Pan American and Orex are expected to negotiate a formal joint venture agreement to replace the 2015 agreement
Canada-based junior mineral exploration company Orex Minerals, through its subsidiary Plata Panamericana, has signed an agreement with Pan American Silver, regarding the Sandra Escobar Project, in northern Durango, Mexico.
Pan American has recently acquired 100% interests of Canasil Resources in the Sandra Escobar project, including the rights and obligations of Canasil under the 2015 agreement between Orex and Canasil.
Canasil is a mining and mineral exploration company with a portfolio of precious and base metals including gold, silver, copper, zinc and lead exploration projects in British Columbia, Canada and Durango, Sinaloa and Zacatecas States, Mexico.
Under the present agreement, Pan American and Orex are expected to negotiate a formal joint venture agreement to replace the 2015 agreement.
Pan American and Orex have agreed to suspend operation of the 2015 agreement until they sign new agreement or until 31 December 2019.
In addition, both the companies would contribute towards the cost of maintaining the Sandra Escobar project on a pro-rata basis during the suspension period.
Sandra Escobar project details
Sandra Escobar silver-gold Project is located north to the town of Tepehuanes, Durango, in the centre of Mexican Silver Trend, between the mining districts of Tovar and Guanacevi, 75km west of Silver Standard’s La Pitarrilla.
The company said that the highly productive Mexican Silver 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 project is comprised of 6,335ha Sandra property and 635ha Escobar property with mineral concessions and covers multiple mineralized epithermal quartz veins, disseminated horizons and breccia structures.
Orex Minerals said in a statement: “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.”