Canada-based exploration company Orex has agreed to form a joint venture with Plata Panamericana, a subsidiary of Pan American Silver, to further explore and develop the Sandra Project, located in Durango, Mexico.

Orex and Pan American will hold a 40% and 60% interest, respectively, in a new joint venture company for the project.

Both the parties will contribute to the joint venture company as per the proportion of their respective ownership interests.

The Sandra project is a combination of two groups of claims, each controlled by Orex and Pan American, owning 40% and 60% interest respectively, through a new joint venture company to be established.

Under the terms and conditions of the agreement, Orex will serve as the initial operator of the project, and is expected to to finalise an initial program and budget with Pan American and start work on the project.

Orex president Gary Cope said: “We are very pleased that we have finalized this new joint venture arrangement, which allows Orex and Pan American to continue the advancement of the Sandra-Escobar project, previously initiated in our joint venture with Canasil Resources Inc.”

Sandra Escobar is located in the heart of the ‘Mexican Silver Trend’

Sandra Escobar is located north of the town of Tepehuanes, Durango, in the heart of the ‘Mexican Silver Trend’, near the mining districts of Tovar and Guanacevi and is 75 km west of Silver Standard’s La Pitarrilla.

The trend is said to host large-scale 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, featuring mineral concessions and covers multiple mineralised epithermal quartz veins, disseminated horizons and breccia structures.

The Sandra-Escobar area holds good infrastructure, including paved road access, electrical power, water and manpower from nearby communities.

Orex, Canadian-based junior exploration company, has several current projects including Coneto Gold-Silver Project in Durango, Mexico, a joint venture with Fresnillo, and the Jumping Josephine Gold-Silver Project in British Columbia, Canada.