VANCOUVER, Feb. 23, 2018 /CNW/ - Oroco Resource Corp.
(TSX-V: OCO) ("Oroco" or "the Company") is
pleased to announce that it has acquired, through its wholly-owned
Mexican subsidiary, Minera Xochipala, S.A. de C.V. ("MX"), a
77.5% interest in each of the La China II and Amp. Santo Tomás
Reduccion 1 mineral concessions from Santo Tomas Metals, S.A. de
C.V. ("STM"), and a 77.5% interest in an application for the
Papago 17 mineral concession from Ubaldo
Trevizo Ledezma ("Trevizo") of Choix, Sinaloa. In aggregate, the three
properties (the "Properties") comprise approximately 6,978
ha and abut and surround the Santo
Tomas copper porphyry properties in Sinaloa, Mexico (the "Santo Tomas
Concessions"). Please see the attached map for
references.
![Oroco Resource Corp. - Area of Mineral Tenure Acquisitions (CNW Group/Oroco Resource Corp.) Oroco Resource Corp. - Area of Mineral Tenure Acquisitions (CNW Group/Oroco Resource Corp.)](https://prnewswire2-a.akamaihd.net/p/1893751/sp/189375100/thumbnail/entry_id/1_7dekvqgs/def_height/144/def_width/144/)
The Company has acquired its interest in the La China II
concession in consideration for the payment of $100,000 Mexican pesos (approximately
CDN$6,700), and its interest in the
AMP Santo Tomas Reduccion 1 concession in consideration for the
payment of $500,000 Mexican pesos
(approximately CDN$33,400). The
AMP Santo Tomas Red 1 concession has been cancelled for reason of
failure to pay tax arrears. However, STM has indicated that
the notices of deficiency and of cancellation were not properly
served upon it as required by applicable laws and regulations. STM
has filed an appeal of the cancellation, and is confident that the
appeal will be successful. The Company's Mexican legal
counsel have confirmed that failure to properly serve the notices
provides valid legal grounds to have the cancellation nullified and
the Red 1 Concession re-instated.
MX has acquired its 77.5% interest in the application for the
Papago 17 concession in consideration for the payment of
$100,000 Mexican pesos (approximately
CDN$6,700), and the issuance of two
million common shares of the Company (the "Shares").
Delivery of the Shares to Trevizo will be subject to the Papago 17
concession being registered by no later than December 31, 2018, which date may be extended to
December 31, 2019 by Oroco in its
sole discretion. All three concessions are, or will be
subject to a 2% net smelter royalty. Acquisition of the
interest in the Papago 17 concession application is subject to the
approval of the TSX Venture Exchange.
The Company also holds a 13.6% equity interest in Altamura
Copper Corp. ("Altamura"), a British Columbia company, and an option to
acquire an additional 6.4% equity interest in Altamura. Through its
Mexican subsidiary, Xochipala Gold S.A de C.V. ("XG"),
Altamura has purchased the Santa Tomas Concessions from the
registered owner of the property. An officer of the Company
and a private company owned by the spouse of an officer of the
Company are shareholders of Altamura. The Company and
Altamura have no common directors, officers or control
persons. Oroco is currently negotiating to acquire the
remaining common shares of Altamura that the Company does not
own.
Altamura has agreed that, upon the resolution of an existing
legal dispute (the "Dispute") between XG and a third party,
certain affiliates of STM will receive a registered minority
interest in the Santo Tomas Concessions.
While the negotiations to acquire the balance of the shares of
Altamura are ongoing, there is no guarantee that the parties will
reach terms that are acceptable to the Company and to the Altamura
shareholders. Oroco will only provide an update on these
negotiations if and when the parties reach an agreement regarding
the purchase and sale of the Altamura shares. Similarly, the
timing and substance of the resolution of the Dispute will
determine whether XG is able to register its interest in the Santo
Tomas Concessions.
The Santo Tomás mineral camp is characterized by copper porphyry
and skarn/replacement style mineralization linked to the Laramide
Orogeny (80-40 Ma age). The Santo Tomás Cu-Mo-Au-Ag porphyry
mineralization lies mostly on the Santo Tomás Concessions and is
associated with a NNE-trending zone of quartz monzonite porphyry
stocks and dikes, hosted in Cretaceous limestone and metamorphosed
andesite. The mineralization is primarily comprised of
chalcopyrite, pyrite, and molybdenite sulfides with lesser bornite
and chalcocite sulfides. Minor oxide copper occurs on
surface. Taken together, the porphyry intrusions and
mineralization comprise the Santo Tomás mineralization zone.
The Santo Tomás mineralization zone is mapped on surface and
drill tested along a strike length of 4 km on the Santo Tomás
Concessions and Papago 17 area. The Company has assembled
information from historic diamond drilling, rotary and reverse
circulation holes from exploration programs spanning 1968 to
1993. In 1994, Mintec, Inc. prepared a mineral resource
estimate based on assay information from 14,881 meters of drilling
in 49 drill holes drilled by ASARCO and Tormex–Peñoles, and 40
drill holes drilled by Exall Resources Limited
("Exall"). During that year, Exall commissioned
Bateman Engineering Inc. ("Bateman") to conduct an economic
assessment of the Santo Tomás project, based on technical work by a
team that included Mintec, Inc., Mountain States Research and
Development, Inc., and Minetek S.A. de C.V. In July of 1994,
Bateman completed this study,
termed "Santo Tomás Project, Sinaloa,
Mexico, Pre-Feasibility Study," and did not use any inferred
mineral resource estimates in its work. The economic
assessment by Bateman contains
favorable metallurgical test results and engineering designs that
remain broadly acceptable today. However, the Company
considers these historical economic studies and associated mineral
resource estimates to be only conceptual in nature until confirmed
by current technical programs.
In 2017, the Company initiated a program of mineral exploration
in the Santo Tomás mineral camp with surface geological mapping and
the assembly of historical drilling information on the Properties
and the Santo Tomás Concessions. Additionally, Auracle
Geospatial Science, Inc. ("Auracle") was contracted to task
MDA's RadarSat 2 satellite for the acquisition of Synthetic
Aperture Radar ("SAR") data for the entire camp.
Phase One of the Company's exploration work is now
complete. Modeling by Auracle of the SAR data has confirmed
and significantly enhanced the structural geology results from the
2017 field mapping by the Company. Historic drilling
indicates a well-mineralized zone of quartz monzonite dikes and
hornfelsed andesite of the Santo Tomás mineralization zone passes
southward from the Santo Tomás Concessions onto the Papago 17
area.
Phase One work also indicates that the Santo Tomás
mineralization zone extends northward from the Santo Tomás
Concessions onto the Amp. Santo Tomás Reducc. 1 concession, as
evidenced by prominent gossans and copper oxide showings.
Historically, three rotary drill holes were collared by Exall on
Amp. Santo Tomás Reducc. 1 but were not reported publicly.
The geological information contained in this release is approved
by Dane A. Bridge, M.Sc., P. Geol.
who is an Independent Qualified Person and who conducted surface
geological mapping on the site of the Properties and the Santo
Tomás Concessions in 2017.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This news release includes certain "forward-looking
information" and "forward-looking statements" (collectively
"forward-looking statements") within the meaning of applicable
Canadian securities legislation. All statements, other than
statements of historical fact included herein, including without
limitation, statements relating to future events or achievements of
the Company, are forward-looking statements. There can
be no assurance that such forward-looking statements will prove to
be accurate, and actual results and future events could differ
materially from those anticipated or implied in such statements.
Many factors, both known and unknown, could cause actual results,
performance or achievements to be materially different from the
results, performance or achievements that are or may be expressed
or implied by such forward-looking statements. Readers
should not place undue reliance on the forward-looking statements
and information contained in this news release concerning these
matters. Except as required by law, Oroco does not assume any
obligation to update the forward-looking statements should they
change, except as required by law.
SOURCE Oroco Resource Corp.