Orex Minerals Inc.'s (CVE:REX) shares advanced more than 5% on Tuesday after announcing that project partner Fresnillo PLC (LON:FRES) has commenced a phase V diamond drilling program of approximately 5,000 metres in 11 holes on the Coneto gold-silver project in Durango, Mexico.
The Coneto project is a joint venture, with ownership of 55/45 per cent between Fresnillo and Orex. The mineral concessions of both parties in the Coneto mining district have recently been combined into a company named Exploraciones y Desarrollos Mineros Coneto SAPI de CV in order to advance the project. A technical committee, with membership from both companies, guides the exploration programs.
The main objective of the new program will be to extend the diamond drilling coverage adjacent to gold-silver intercepts in the Zona Norte (La Bufa, Santo Nino and Reliz veins), Zona Oeste (Loma Verde vein), Zona Centro (Descubridora vein) and Zona Sur (Durazno, Impulsora, and Promontorio veins).
"With two diamond drill rigs being mobilized onto the Coneto project, we look forward to continuing exploration and advancement with our colleagues at Fresnillo," said Orex's president, Gary Cope.
Kluane Drilling Ltd. provides the drilling services utilizing environmentally low-impact KD-1000 man-portable diamond drill rigs.
The historic Coneto mining district is situated in the heart of the Mexican silver trend, on the Mesa Central, stretching from Guanajuato in the southeast, through to the states of Zacatecas and Durango. This prolific trend hosts some of the world's largest silver camps and deposits, including Fresnillo, Guanajuato, La Pitarrilla, La Preciosa, Real de Angeles and Zacatecas.
The silver and gold mineralization at Coneto is of intermediate sulphidation style epithermal veins hosted in Tertiary andesites and rhyolites.
Orex and Fresnillo hold, through Exploraciones y Desarrollos Mineros Coneto SAPI de CV, an extensive contiguous land package of mineral concessions in the Coneto mining district, which collectively total approximately 17,600 hectares and cover multiple mineralized epithermal quartz veins. In the first four phases, Orex and Fresnillo drilled 93 holes totalling about 33,400 metres.
Orex shares were last up 5.3% at C$0.50.