TSX-V: REX
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Project Overview

The Sandra Project is a silver and gold exploration property located 40 km north of the community of Tepehuanes and 180 km north of the City of Durango in Durango State, Mexico.

The project consists of the Sandra Property of 6,335 hectares and Property of 635 hectares of mineral concessions and covers multiple mineralized epithermal quartz veins, disseminated horizons and breccia structures, located halfway between the mining districts of Guanacevi (Endeavour Silver) and Tovar (Minera de Atocha) and 75 km west of the giant La Pitarrilla Deposit (SSM Mining), in the prolific "Mexican Silver Trend."

These veins form a high-level silver-gold-base metals system, hosted in andesitic and rhyolitic rocks, centered on a large rhyolite dome complex in the north and silver systems in smaller rhyolite complexes to the southeast. Intense alteration zones and fluid flooding in permeable formations indicates the presence of bulk tonnage targets. Excellent infrastructure exists in the Sandra area, including paved road access, electrical power, water and manpower from nearby communities.

The Boleras Silver Deposit, a near surface silver resource hosted in a crystal rhyolite tuff, is located on the Sandra Property (see Orex news release dated 31 October 2016). At a "Base Case" of 45 g/t Ag cut-off, the Inferred Resource Estimate yielded 9.75 million tonnes grading 106.2 g/t Ag for a total of 33.3 million ounces of silver.

Geology

Trenching in the southeast region - La Posta Target Zone

The geological setting of the Sandra property can be divided into three regions.

  • In the northcentral part of the property lies a prominent volcanic dome called "Cerro Colorado", with distinct reddish intense hematitic alteration and breccias.
  • In the southwest part of the property are multiple epithermal to mesothermal veins hosting gold and silver, plus the base metals copper, lead and zinc, in altered andesites.
  • In the southeast part of the property are several recessive rhyolite domes, with permeable volcaniclastic horizons, hosting disseminated and stockwork silver mineralization.

The recent exploration programs have focused in the southeast of the property to test near-surface, bulk tonnage silver targets.

Current exploration programs are integrating the structural geology and geochemistry of the previously separate mineral concession blocks within the Sandra Mining District.

Resource Estimate

Orex has drilled 8,372 metres in 62 diamond drill holes in the southeastern region of the project. The first 59 diamond drill holes formed the basis for an initial resource estimate on the "Boleras Silver Deposit." At a "Base Case" of 45 g/t Ag cut-off, the Inferred Resource Estimate yielded 9.8 million tonnes grading 106 g/t Ag for a total of 33.3 million ounces of silver (See Orex news release of 31 October 2016).

Boleras Silver Deposit - Inferred Resource Estimate by Cut-Off Grade
           
Cut-off Grade Tonnes Grade Grade Silver Silver
Ag (g/t) (Mt) Ag (g/t) Ag (oz/t) (M-g) (M-oz)
           
15 12.05 92.51 2.97 1,114.9 35.8
30 11.48 95.92 3.08 1,101.4 35.4
45 -- BASE CASE 9.75 106.24 3.42 1,036.1 33.3
60 8.03 117.78 3.79 946.0 30.4
75 6.39 130.78 4.21 835.3 26.9
90 4.97 144.51 4.65 718.0 23.1

For detailed information on the Inferred Resource Estimate, please refer to the "Technical Report" filed on SEDAR entitled:
Collins, J.M., Fowler, A. and Butler, S., 2016, "Sandra Project Technical Report, Boleras Mineral Resource Estimate, December 2016." Mining Plus Canada Consulting Ltd. on behalf of Orex Minerals Inc. and Canasil Resources Inc., 93 p. (effective date: 25 October 2016).

Diamond Drilling in the southeast region - La Posta Target Zone - SA-15-003

(Results of drilling here).

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