Orko Silver Continues to Receive Encouraging Drilling Results

Orko Silver Corp.

TSX VENTURE: OK
Orko Silver Corp.
Nov 12, 2009 09:00 ET

Orko Silver Continues to Receive Encouraging Drilling Results

The original news release on the Orko Silver Corp. website can be found by clicking here.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 12, 2009) - Orko Silver Corp. (TSX VENTURE:OK) is pleased to announce that it continues to receive favorable results from the ongoing drilling program being completed by our joint venture partner, Pan American Silver Corp. (PAA) on the La Preciosa Project in Durango, Mexico.

Diamond drill hole BP09-375 yielded 15.65 metres grading Au 0.579 g/t and Ag 439.4 g/t for a silver-equivalent of 474.1 g/t. Included in this hole is an interval of 5.85 metres grading Au 1.146 g/t and Ag 942.0 g/t for a silver-equivalent of 1,010.7 g/t. Also of note is hole BP09-392 with 16.89 metres grading Au 0.441 g/t and Ag 225.3 g/t for a silver-equivalent of 251.8 g/t.

Gary Cope, President of Orko Silver, states:

We are extremely pleased to see that Pan American's delineation drilling results confirm those initially reported by Orko Silver. The presence of wide high grade intervals is also very encouraging for the project.

The Pan American Phase-I delineation (infill) drilling at La Preciosa consisted of 19 HQ diamond drill holes for a total of 6,316.83 meters and was reported in a news release dated September 08, 2009.

The Phase-II drilling program has commenced and includes further delineation drilling, plus drilling on the previously identified exploration targets located immediately surrounding the La Preciosa deposit. To date, PAA has drilled 40 Phase-II holes, an additional 17 delineation holes and 23 holes on the exploration targets for a total of 9,924.44 meters. Assays for 25 of the Phase-II holes are now available. Delineation drilling is in the Central Area of the La Preciosa Resource. Exploration drilling around the periphery of the Resource includes nine holes from the South Area on the Martha Vein.

Multiple mineralized intercepts are presented in the two tables for the Central Area and South Area testing of the Martha Vein.

The delineation results from the new holes are all located in the known Martha vein structure and were drilled at approximately 50 metre spacing in an area previously drilled by Orko Silver at 100 metre spacing. This data again confirms Orko Silver's previously reported results, and will form the basis of a geostatistical study, toward ultimate resource definition. Phase-II diamond drilling is still underway.

The results of the exploration drilling to date from Baritina and El Vaquero, which are targets outside of the Martha vein resource, have been inconclusive. Further drilling has been done in both areas; results of which are pending. Based on the visual information encountered in the drill core and geological interpretation on cross sections, additional drilling is contemplated in these areas during November and December.

Central Area – La Preciosa Resource

*- In certain holes the Martha vein can be composed of several sub-parallel, silver rich veins: Martha (Sup) - refers to that portion of the Martha vein above the main Martha vein (Superior), and Martha (Inf) - refers to that portion of the Martha vein below the main Martha vein (Inferior)

South Area – La Preciosa Resource

*- In certain holes the Martha vein can be composed of several sub-parallel, silver rich veins: Martha (Sup) - refers to that portion of the Martha vein above the main Martha vein (Superior), and Martha (Inf) - refers to that portion of the Martha vein below the main Martha vein (Inferior)

A complete table of drill results is available on our website at the link below:

http://www.orkosilver.com/i/pdf/drillresults.pdf

A detailed drill plan map is available on our website at the link below:

http://www.orkosilver.com/i/pdf/drillplanmaps.pdf

A printer friendly PDF format of this news release is available at the link below:

http://www.orkosilver.com/i/pdf/orkonews11122009.pdf

Ben Whiting, P.Geo., and George Cavey, P.Geo are the Qualified Persons for Orko Silver Corp. and take responsibility for the technical disclosure in this news release.

Silver-equivalent for the purposes of this drilling program is defined as silver grade plus 60 times gold grade. Metallurgical recoveries and net smelter returns are assumed to be 100% for the silver-equivalent value. Base metal values are not included in the silver-equivalent.

About Orko Silver Corp.

Orko Silver Corp. is developing one of the world's largest primary silver deposits, La Preciosa, located near the city of Durango, in the State of Durango, Mexico.

ON BEHALF OF THE BOARD OF DIRECTORS

Gary Cope
President

This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Orko relies upon litigation protection for forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for this News Release.

Orko Silver - Action Alert by Natural Resource Investor Report

COMPANY - SPONSORED INVESTOR RELATIONS REPORT

Natural Resource Investor
October 19, 2009
Action Alert

Orko Silver Corp (TSXV: OK; US OTC: OKOFF; Frankfurt Exchg: 063.F)

Orko Silver Advances to the Major Leagues as Pan American Silver Starts JV Development on Company’s La Preciosa Silver Project in Mexico. Major Breakout for Silver Impacts Markets!

La Preciosa Project Now Headed Toward Production Status Within Pan American's Portfolio of Producing Silver Mines. La Preciosa Has the Potential to Become One of the Largest Silver Mines in Mexico – With Orko Silver Having a 45% Carried Interest to Production.

Pan American's First 19 Drill Holes Confirm Orko Results. Current 30,000-Meter Drilling Program Aims to Upgrade and Significantly Expand Resource at One of Largest New Silver Discoveries in the World.

Dear Reader,

There are very few primary silver deposits in the world. Orko Silver's La Preciosa silver deposit in Mexico is presently the 9th-largest, and the 2nd-richest in terms of silver grade.

On April 14 this year, Orko announced a joint venture with Pan American Silver – presently the second-largest primary silver producer in the Western Hemisphere – to bring La Preciosa to production.

This joint venture is different from all the others and leaves Orko a unique silver player. In this report we explain the new joint venture and the new Orko, and how the company makes an exceptional opportunity for silver stock investors. We also address the initial work performed by Pan American, and the current development plan leading to a Preliminary Economic Assessment (scoping study) planned to be released by the partners early to mid 2010.

Orko has virtually no downside with the joint venture today, because it is fully carried as to all exploration and development costs right up to production. Its La Preciosa Project is the beneficiary of a first-class development program by one of the strongest silver producers in the world today, including a current 30,000-meter drilling program that is one-half resource expansion drilling and one-half in-fill drilling to advance the inferred portion of the resource to the M&I categories.

And Orko's upside is very large. The company's shareholders will essentially benefit from a free ride on the development of this large primary silver deposit – and then the upside of production possibly starting in three to four years.

But first, within 18 to 24 months, as continued exploration and as advanced development of the project proceeds, it should be considered that Pan American may make the offer to buy out Orko for a significant premium. This potential opportunity for investors also comes free with the stock today.

As we say, Orko Silver is a completely unique silver company:

• Little to no need to dilute its share base; plenty of cash
• 45% carried interest in one of the largest silver deposits in the world.
• Partnering with US$1.65 billion-market cap Pan American Silver.
• Already, with the release of the assays from the first 19 diamond-drill holes completed by Pan American, the Orko results have been confirmed and both partners are excited about this year's new exploration drilling and metallurgical test work to be released in the coming months.
• Truly exciting resource expansion potential, with a 30,000-meter drilling program now started.
• La Preciosa could become one of Pan American's largest mines, and potentially one of the largest mines in Mexico.

The Joint Venture Deal

On April 14 this year, Orko Silver and Pan American Silver Corp., jointly announced the formation of a joint venture (JV) to advance Orko's La Preciosa project to production.

• Pan American earns a 55% interest in the JV by bringing La Preciosa into production. Orko will be fully carried and will end up owning 45% of a producing mine. Until the start of production, Pan American has no earned interest in the project or assets. The cost to bring La Preciosa into production – including all drilling to bring the resource to reserve status, including full bankable feasibility, including the construction of ramps and mill, including all metallurgical work – is estimated to range between US$150 million and US$250 million.
• Pan American made a C$5 million investment in Orko at C$1.25/share, a significant premium to market.
• Pan American will spend US$16 million on exploration and development to complete a feasibility study in the next two years.

The unique large-fixed-carried-interest feature of this deal creates a different kind of junior silver player in Orko Silver. Bypassing the conventional ongoing dilutionary features often encountered by juniors in developing major projects on a joint-venture basis, Orko appears to be uniquely positioned with large upside potential. This Alert characterizes this new kind of junior silver company, and...

we endorse the possibility of a major WIN for Orko shareholders.

Current Actions

As announced jointly on June 22, this year's program at La Preciosa consists of 30,000 meters of drilling, with two to four diamond drill rigs active, as well as initiating other project developments including advanced metallurgical testing – all at a cost of US$5.7 million, all being paid by Pan American.

The 30,000-meters of drilling is broken down between in-fill drilling on the Martha Vein to bring the inferred portion of the resource (78 million oz. of silver equiv.) into the measured and indicated categories. This will involve approx. 15,000 meters of drilling.

The other half of the drilling program will explore prominent vein structures within the joint venture property that have been previously discovered by Orko. This drilling will start with the Nancy Vein, where trenching has demonstrated stronger mineralization than did the trenching of the Martha Vein, which contains most of the mineralization thus far discovered at La Preciosa.

About this year's drilling program, Geoff Burns, the President of Pan American, said, "We are set up, we are in the field working and I am extremely optimistic about the potential for a meaningful expansion of the resource base." This statement, from one of the most experienced silver-producing executives, means a lot.

In addition, Gary Cope, the President of Orko, stated that Orko will be "regularly disclosing drill results over the balance of the year." In other words, Orko will NOT be issuing just 1 – 2 statements/year about exploration progress as occurs frequently with JVs with majors, rather, like other juniors, will be announcing results from assays as they come available.

Already, as released by Orko on September 8, three key actions have been performed by Pan American.

1. PAA's Phase-I delineation drilling at La Preciosa consisted of 31 diamond drill holes totaling 8,850 meters. PAA has received results for approx. 6,300 meters of the drilling, the first 19 holes. The holes are located in the heart of the Martha vein structure and were drilled at approx. 50-meter spacing in an area previously drilled by Orko at 100-meter spacing. The drilling has confirmed Orko's drill results at La Preciosa. Phase-II diamond drilling is underway.
2. In addition to the drilling, PAA has completed 57 trenches on regional exploration targets and collected 557 samples. These results have encouraged PAA to commence drilling on the exploration targets including Nancy, El Vaquero, Baritina, Baritina Norte (Martha North) and Orito Norte.
3. PAA has also completed 90% of a planned first-phase detailed metallurgical program. These studies are a key component in the upcoming Preliminary Economic Assessment.

Importantly, PAA drill results include assays such as hole BP09-374, which yielded a true thickness of 32.68 meters grading 0.376 g/t gold and 245.4 g/t silver for a silver-equivalent of 267.9 g/t. And drill hole BP-09-359, which yielded 34.77 meters grading 0.278 g/t gold and 202.4 g/t silver for a silver-equivalent of 219.1 g/t. These are significant values, comparable with earlier drilling by Orko at La Preciosa.

Investors in Orko are, in all likelihood, in for an exciting year, as we demonstrate in the ‘Exploration Potential' section of this report below.

Pan American Silver, the ideal partner

In terms of silver production, Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA) has the objective of becoming the world's number-one silver producer. In 2008, Pan American had higher production than both Coeur d'Alene and Hecla. However, both of these companies are rapidly increasing their production each year, and analysts expect at least Coeur d'Alene to become larger than PAA. PAA needs to increase global silver production. The company is presently producing from six silver mines located in Mexico, Peru and Argentina.

In 2008, PAA produced 18.7 million oz. of silver, which generated US$338.6 million in sales and earnings-per-share of 31 cents. In 2009, the company's target is to produce 21.5 million oz. of silver at a cash cost of US$6.28/ounce. The company has increased its production for 13 consecutive years.

In the last four years, PAA has successfully built and put into production three new silver mines. This same development team is presently at Orko's La Preciosa Project and plans to bring it to production within as little as three to four years.

PAA's largest mine is at Alamo Dorado in Mexico, producing approx. 4.8 million oz. silver per year. The plan is for La Preciosa to become PAA's new flagship mine with an early production target approaching 7 million oz./year. Clearly, for their newest development opportunity, the Pan American team of engineers, geologists and metallurgists will be delivering their very best. And 45% of this production will belong to Orko.

La Preciosa

La Preciosa is one of the largest primary silver deposits globally. For comparatives, in terms of GRADE, it is second to only the Prognoz Silver Deposit in Siberia, and is believed to be the second-richest silver deposit of magnitude with average grades of 201 g/t silver-equivalent (more than 6 oz./ton).

In terms of SIZE, La Preciosa is already the 9th-largest undeveloped primary silver deposit with 146-million oz. of silver-equivalent in all categories. With this year's exploration drilling, La Preciosa could quickly move up the ladder of primary silver deposits globally.

For a view of the deposit in its regional setting, please click through here.

Click-through here to view the project, including the key deposit area and additional zones to be drill-tested this year.

The Pan American/Orko Joint Venture controls 100% of the 32,400-hectare La Preciosa Silver Project. La Preciosa is ideally located for production, 40 km. northeast of Durango City, Mexico. It is located in the heart of Mexico's prolific Silver Trend, on the Mesa Central along the east side of the Sierra Madre Occidental mountains, with essentially ideal infrastructure for production:

• 90 minutes from the city of Durango
• 60 minutes from Durango international airport
• access by paved highway
• 8 km. to the national power grid
• 8 km to rail lines
• 2 hours by road or rail to smelter
• water sources directly on property
• no camp on site, none needed, all workers live at home locally

Resource Estimate

*Silver-equivalent values are based on converting the gold ounces at a 60:1 ratio. A cut-off grade of 100 grams/tonne, or more than 3 oz. of silver/ton, was selected by MDA.

The current resource estimate was prepared independently by Mine Development Associates based in Reno, Nevada. The estimate includes drilling results from 354 drill holes at La Preciosa, all of which have been drilled by Orko over the past 4 years.

The resource included in the Inferred category is presently being upgraded to the higher confidence level of Measured and Indicated categories, with in-fill drilling now underway.

As mentioned above, the Martha Vein contains the bulk of the resource at La Preciosa, representing approx. 74% of the silver. It is relatively flat-lying, dipping an average of 20 degrees to the west. It has a known strike extent of over four kilometers and varies in down-dip extent between 200 meters to 1.7 kilometers.

The Martha vein varies in thickness from one meter to 40 meters and averages approx. 15 meters. Within that zone are one or more veins and vein breccias which contain the resource-grade material and which average about five meters in width.

The plan is to find another vein greater than or equivalent to the Martha Vein, and then another, while extending and upgrading the resource in the Martha Vein.

Exploration Potential

The exploration potential at La Preciosa is very large. Both partners endorse the concept that exploration will uncover significantly more resources. Drilling is underway now on the highly prospective Nancy Vein, located 1 km. southwest of the Martha Vein.

Trenching results released by Orko in mid-June highlight the potential at the Nancy Vein. Of particular note are trench sample NT09-12, which yielded 4.2 meters grading 1.342 g/t gold and 217.4 g/t silver for a silver-equivalent of 298 g/t, and trench sample NT09-07, which yielded 8.25 meters grading 0.653 g/t gold and 132.4 g/t silver for a silver-equivalent of 171 g/t.

Trenching of the other veins at La Preciosa, including the surface expression of the Martha Vein, have yielded lower silver values near surface – significantly lower values actually – and this highlights the potential at Nancy. The Nancy Vein has been exposed by trenching for a distance of over 450 meters and remains open along strike in both directions.

Extensions of the Martha Vein will also be addressed with new exploration drilling this year, along with drilling of another four prospective veins (El Vaquero, Baritina, Baritina Norte and Orito Norte) discovered with earlier prospecting by Orko, and by the trenching completed thus far by PAA.

Management

Gary Cope, President, CEO, and Director – Mr. Cope has more than 30 years of experience in corporate finance and 12 years as a senior officer and director of various publicly-held companies. He has an extensive background in corporate strategy, as well as significant experience with the financing of publicly-held companies. Mr. Cope arranged financing for the South Kemess project and was instrumental in the negotiations and sale of the South Kemess deposit.

Mike Devji, Executive Vice-President and Director – Mr. Devji is an experienced financier of public companies. Among other achievements, he led a group of investors who financed a 40%-interest in the South Kemess Gold-Copper Deposit in British Columbia, which was subsequently sold for over C$400 million.

George Cavey, P. Geo., Vice-President Exploration and Director – Mr. Cavey has managed early stage through advanced exploration programs worldwide for 30 years as the president of a geological consulting company. He earlier served as president of the Canadian Council of Professional Geoscientists. He was the 2004 recipient of the Association of Professional Engineers and Geoscientists of BC's Westerman Award, the association's highest honor for a professional geoscientist.

B H (Ben) Whiting, M.Sc., P.Geo., Chief Geologist – Mr. Whiting has 30 years of experience in the international mining industry. He has worked for both major and junior mining companies managing a wide range of operations, from exploration all the way through to production. He also has experience as an advisor to government agencies. Formerly an adjunct professor at Queen's University, Mr. Whiting was awarded the Aaro Aho Foundation's prize in Economic Geology.

Art Freeze, P.Geo., Consulting Geologist, Advisory Board Member – Over the past 40 years, Mr. Freeze has held consulting, supervising and managing positions with several mining companies including Cominco Ltd., Pasminco Exploration, Echo Bay Mines and Pan American Silver Corp. He is president of Stillwater Enterprises Ltd., and served as the primary consulting geologist for Goldcorp Inc. until June 2007.

Outlook

By any valuation measure available, Orko Silver is significantly undervalued, as it presently has a market capitalization of approx. C$90 million, or US$80 million.

Let's consider, for example, the two recent buyouts: Hecla's purchase of 70% of the Green's Creek Mine in Alaska and Coeur d'Alene's buyout of Palmarejo in Mexico. Hecla paid US$750 million for 110 million oz. of silver, or $4.75/oz., and Coeur D'Alene paid $US 1.1 billion for 200 mil. oz. silver, or $5.50/oz.

Assuming Pan American earns its 55% by achieving production, and assuming no discovery of additional ounces at La Preciosa (an unrealistically conservative assumption), this approx. $5/oz valuation from the two buyouts can suggest share valuations for Orko Silver of US$2.46/share (C$2.75/share) on the basis of such comparables. Obviously, however, such factors as additional resources, world silver prices and global economic conditions can offset such notional estimates.

The joint-venture partners' plan is to upgrade the resource, expand the resource and issue a Preliminary Economic Assessment. All positive progress will cause Orko Silver to become more broadly appreciated by the market and potentially lead to significant revaluations of the company.

Taking a broader survey of this sector, there are very few pure-play silver companies in advanced exploration or development today. Canaccord-Adams Research tracks 19 such companies, but only 12 of those offer more than 50% silver in their total resource. Of the 12, deleting those with political concerns, metallurgical problems, or a small resource leaves only a handful to warrant the attention of the serious silver investor.

Concurrently, with silver trading stably in the $15/oz to $17/oz range, this sector holds tremendous potential for large gains in value.

Against this backdrop, Orko stands out clearly from the crowd as the company with a world-class project selected by Pan American Silver. PAA is one of only 4 major silver producers in North America in the position of having the experienced personnel who know exactly the full criteria for development of a major pure-play silver mine.

Further, the unique character of the JV agreement – with Orko having a 45% carried interest all the way to production – leaves this company as a serious primary silver developer, and exhibiting certain unique advantages:

• No further dilution
• 30,000-meter drilling program this year, now started
• 45%-owner of one of the world’s major silver deposits with large growth potential
• Partnering with one of the best and biggest silver miners
• And a modest market valuation

We urge you to start to track Orko Silver. Call 1-604-687-6310 and ask for Mike Devji, EVP, or email info@orkosilver.com, and visit http://www.orkosilver.com/.

Thank you,
The Editors
Natural Resource Investor
& World Gold Stock Report



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Orko Silver Chart October 14, 2009

Orko Silver Daily Chart

Chart is courtesy of marketclub.
Marketclub - Orko Silver Corp. Trend Analysis.

So, I suppose everybody has heard the news about Pan American Silver making a friendly take over bid for Aquiline Resources Inc.? So I guess I should start with that first.

A good place to start would be to first watch the following two news videos on Business News Network to let the news sink in:

• Commodities : Pan American Buys Aquiline
• Pan American Silver Corporation announces takeover of Aquiline

And then to read through the following PDF's from Pan American Silver :

• Presentation Pan American Silver - Aquiline
• Pan American Silver Corp. to Launch Friendly Offer for Aquiline Resources Inc.

My opinion, indirectly great advertising for Orko Silver Corp. Investors see Aquiline rising, they see a larger producer doing a friendly takeover of another mid cap silver explorer. Pan American Silver is certainly making sure they will in the long run better benefit of this coming bull run in gold and silver. The deal with Orko Silver, a deal with Aquiline. I don't really think this is such a bad partner to have in these times.

So whether the rise in Orko Silver today and the deal of Pan American Silver with Aquiline have something to do with one and other...I'd say...you bet ya!

Wow, what a day, what a day. We had some big buyer(s) today. Please do leave a comment on my blog will you, leaving your name and a number where I can reach you at:-)
But yeah, before it even was 10 AM we already had about 300K shares traded. Some solid action, that kinda sold the deal for me as to where we were gonna go today price wise. As if the opening of 0.97 didn't already reveal more than enough.

Then the stock did a short dance with the 0.97 which quickly got boring so to spice this one up it decided to make a run for the 1.00 and easily breaking that and putting a high of 1.04 on the boards a little after 12 o clock. The 1.00 was kept on the boards cause the rest of trading was with decent volumes keeping the price well above 1.00 and into a close of 1.01 +0.05 (5.21%)

So, that gives us a fairly good bottom around 0.95 when September 18 saw some decent volume of shares being bought around that average price. Now today again very decent volume around an average of lets say 1.00. All in all, good bottom here from which to built upon the coming days.

Since large buyers do not enter a stock to trade out the next day I'd say this is another holder so that means tomorrow will probably not see that much of profit taking before we head up to even higher ground.

Oh yeah, to those who after looking over the chart still have their hands raised I'd also like for them to leave a comment with their name and a number where I can reach you at...its -flogging some sense into- season you see and I'm in a very generous mood today. Normally, for a decent -flogging some sense into- I'd charge about 50 dollars an hour, but now, for those few I'd do it entirely for free just because I am really that nice of a guy and to sweeten this entire deal for you, I'd not only give you one hour, I'm gonna give you 2 whole hours for free!!

Now don't anybody ever say YeOldGoldNugget doesn't contribute to society!

US Dollar Daily Chart

Chart is courtesy of marketclub.
Marketclub - US Dollar Trend Analysis.

No, not the silver chart today but the US dollar chart. I think posting this chart saves me the work of posting either the gold or the silver one.

That definitely does NOT look good! This has to go further down before it can go up again. If a rally is to materialize from here I'd really like to know the reasons for that....and no that does not include any fairy tales coming from the media.

The dollar has lost another 0.578 cents today and now stands at 75.398 -0.578. Just a matter of time before the 75.00 is broken.

I am curious as to what tomorrows action in gold, silver and the US dollar will bring.

In the links of the day I've added another junior silver miner Excellon Resources Inc. (TSX: EXN) with some spectacular results who also happens to be in the same neck of the woods as Orko Silver is. Durango State, Mexico. That must be the same silver trend thats running through Orko's property. Check out the news release they sent out October the 6th.

3,293 g/t Ag. Today they expanded on those results. So, any doubts anyone should have about what's in the ground there in Mexico should really be wondering by now. The drilling program by Orko and Pan American Silver is vast enough and will last us through the year. Plenty of opportunity to add some decent resources to the list.



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• Excellon Announces Further Expansion of the High-Grade 623 Manto
• Excellon Announces Excellent Assays Expanding the Recently-Discovered 623 Manto

Pan American Silver And Orko Silver Begin Comprehensive Drilling And Development Program At 'La Preciosa'

June 22, 2009.
Pan American Silver And Orko Silver Begin Comprehensive Drilling And Development Program At "La Preciosa".

(Read original article here.)


Vancouver, British Columbia - June 22, 2009 - Pan American Silver Corp. ("Pan American") (PAAS: NASDAQ; PAA: TSX) and Orko Silver Corp. ("Orko") (OK: TSX.V) are pleased to announce that this week they commenced a comprehensive exploration and delineation drilling program at the La Preciosa silver project in Mexico.

The Companies expect to complete approximately 30,000 meters of drilling on the property between now and the end of December of this year. The initial delineation drilling is specifically designed to upgrade Martha Vein inferred resources to measured and indicated status, while the exploration drilling will focus on several untested prominent vein structures within the joint venture property, that had been previously discovered by Orko.

Pan American, operator of the La Preciosa joint venture, plans to spend a total of US $5.7 million in 2009, to complete the drill programs, as well as to initiate other project development related activities, including advanced metallurgical testing.

Drilling activities will be carried out by Major Drilling S.A. de CV of Hermosillo. The first rig is now drilling and a second rig is scheduled to commence drilling in the next 10 days. Assay testing will be performed by SGS Mineral Services in Durango, Mexico.

Gary Cope, President and CEO of Orko said, "We are extremely pleased to resume drilling at La Preciosa. Pan American and Orko have jointly developed a program to further delineate the Martha vein while testing for down dip and along strike extensions. But, perhaps more exciting is that we also will begin drill testing several other vein targets that we know exist on the property and we look forward to regularly disclosing drill results, over the balance of the year."

Geoff Burns, President and CEO of Pan American added, "We have assembled a project development team and put together an aggressive drilling program for La Preciosa for 2009. We are set up, we are in the field working and I am extremely optimistic about the potential for a meaningful expansion of the resource base."

On April 14th, 2009 Pan American and Orko jointly announced an agreement to create a joint venture to develop the La Preciosa silver project in Mexico. The La Preciosa and adjacent mineral concessions of Santa Monica and San Juan cover 32,422 hectares of contiguous mining claims. Orko had previously defined an indicated resource estimated at 10,637,000 tonnes grading 185 grams of silver per tonne and 0.27 grams of gold per tonne for a total of approximately 63,000,000 ounces of silver and 94,000 ounces of gold. In addition, the property hosts an inferred resource estimated to comprise 12,087,000 tonnes, grading 185 grams of silver per tonne and 0.25 grams of gold per tonne, for a total of approximately 71,700,000 ounces of silver and 97,000 ounces of gold.

The Joint Venture partners have agreed to delay the completion of a Preliminary Economic Assessment until the 2009 drilling and metallurgical test program has been completed. This will allow them to accumulate more extensive resource and metallurgical detailed data that will form the basis of the comprehensive Preliminary Economic Assessment.

George Cavey, P.Geo., Orko's Vice-President, Exploration, is the Qualified Person who takes responsibility for the technical disclosure in this news release.

About Pan American Silver

Pan American Silver's mission is to be the world's largest and lowest cost primary silver mining company, and to achieve this by increasing its low cost silver production and its silver reserves. The Company has eight operating silver mines in Mexico, Peru, Argentina and Bolivia.

About Orko Silver

Orko Silver Corp. is developing one of the world's largest primary silver deposits, La Preciosa, located near the city of Durango, in the State of Durango, Mexico.

Information Contacts

Pan American Silver Corp.
Kettina Cordero
Coordinator, Investor Relations
(604) 684-1175
www.panamericansilver.com


Orko Silver Corp.
Gary Cope
President
(604) 684-4691
www.orkosilver.com


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 CONTAINS "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND "FORWARD-LOOKING INFORMATION" WITHIN THE MEANING OF APPLICABLE CANADIAN SECURITIES LEGISLATION. ALL STATEMENTS, OTHER THAN STATEMENTS OF HISTORICAL FACT, ARE FORWARD-LOOKING STATEMENTS. WHEN USED IN THIS NEWS RELEASE, THE WORDS "ANTICIPATE", "BELIEVE", "ESTIMATE", "EXPECT", "INTEND", "TARGET", "PLAN", "FORECAST", "STRATEGIES", "GOALS", "OBJECTIVES", "BUDGET", "MAY", "SCHEDULE" AND OTHER SIMILAR WORDS AND EXPRESSIONS, IDENTIFY FORWARD-LOOKING STATEMENTS OR INFORMATION. SUCH FORWARD-LOOKING STATEMENTS AND INFORMATION INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS AS TO: THE TERMS AND CONDITIONS OF THE JOINT VENTURE, WHICH MAY BE AMENDED BY FUTURE NEGOTIATIONS BETWEEN PAN AMERICAN AND ORKO; STATEMENTS AS TO PAN AMERICAN'S FUTURE EXPENDITURES AND ACTIVITIES FOR THE BENEFIT OF THE JOINT VENTURE, WHICH ARE CONDITIONAL TO PAN AMERICAN MAINTAINING ITS INTEREST IN THE JOINT VENTURE; LA PRECIOSA ACHIEVING FUTURE PRODUCTION; VALUE CREATION AND GROWTH FOR PAN AMERICAN'S AND ORKO'S SHAREHOLDERS; DEFINITION OF A LARGER MINERAL RESOURCE AT LA PRECIOSA; AND TSX VENTURE EXCHANGE ACCEPTANCE OF THE PRIVATE PLACEMENT. PAN AMERICAN AND ORKO DO NOT INTEND, AND DO NOT ASSUME ANY OBLIGATION TO, UPDATE SUCH FORWARD-LOOKING STATEMENTS OR INFORMATION, OTHER THAN AS REQUIRED BY APPLICABLE LAW.

FORWARD-LOOKING STATEMENTS OR INFORMATION INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE THE ACTUAL RESULTS, LEVEL OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS OF PAN AMERICAN, ORKO OR THEIR RESPECTIVE OPERATIONS TO BE MATERIALLY DIFFERENT FROM THOSE EXPRESSED OR IMPLIED BY SUCH STATEMENTS. SUCH FACTORS IN RELATION TO PAN AMERICAN INCLUDE, AMONG OTHERS: FLUCTUATIONS IN THE SPOT AND FORWARD PRICE OF SILVER, GOLD, BASE METALS OR CERTAIN OTHER COMMODITIES (SUCH AS NATURAL GAS, FUEL OIL AND ELECTRICITY); FLUCTUATIONS IN THE CURRENCY MARKETS (SUCH AS THE PERUVIAN SOL AND MEXICAN PESO VERSUS THE U.S. DOLLAR); CHANGES IN NATIONAL AND LOCAL GOVERNMENT, LEGISLATION, TAXATION, CONTROLS, REGULATIONS AND POLITICAL OR ECONOMIC DEVELOPMENTS IN CANADA, PERU, MEXICO, ARGENTINA, BOLIVIA, THE UNITED STATES OR OTHER COUNTRIES IN WHICH PAN AMERICAN MAY CARRY ON BUSINESS IN THE FUTURE; OPERATING OR TECHNICAL DIFFICULTIES IN CONNECTION WITH MINING OR DEVELOPMENT ACTIVITIES; RISKS AND HAZARDS ASSOCIATED WITH THE BUSINESS OF MINERAL EXPLORATION, DEVELOPMENT AND MINING (INCLUDING ENVIRONMENTAL HAZARDS, INDUSTRIAL ACCIDENTS, UNUSUAL OR UNEXPECTED FORMATIONS, PRESSURES, CAVE-INS AND FLOODING); INADEQUATE INSURANCE, OR INABILITY TO OBTAIN INSURANCE, TO COVER THESE RISKS AND HAZARDS; EMPLOYEE RELATIONS; AVAILABILITY AND INCREASING COSTS ASSOCIATED WITH MINING INPUTS AND LABOUR; THE SPECULATIVE NATURE OF MINERAL EXPLORATION AND DEVELOPMENT, INCLUDING THE RISKS OF OBTAINING NECESSARY LICENSES AND PERMITS; DIMINISHING QUANTITIES OR GRADES OF MINERAL RESERVES AS PROPERTIES ARE MINED; BUSINESS OPPORTUNITIES THAT MAY BE PRESENTED TO, OR PURSUED BY PAN AMERICAN; PAN AMERICAN'S ABILITY TO SUCCESSFULLY INTEGRATE ACQUISITIONS; AND CHALLENGES TO PAN AMERICAN'S TITLE TO PROPERTIES; AS WELL AS THOSE FACTORS DESCRIBED IN THE SECTION "RISK RELATED TO PAN AMERICAN'S BUSINESS" CONTAINED IN PAN AMERICAN'S MOST RECENT FORM 40F/ANNUAL INFORMATION FORM FILED WITH THE SEC AND CANADIAN PROVINCIAL SECURITIES REGULATORY AUTHORITIES. ALTHOUGH PAN AMERICAN AND ORKO HAVE ATTEMPTED TO IDENTIFY IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN FORWARD-LOOKING STATEMENTS OR INFORMATION, THERE MAY BE OTHER FACTORS THAT CAUSE RESULTS TO BE MATERIALLY DIFFERENT FROM THOSE ANTICIPATED, DESCRIBED, ESTIMATED, ASSESSED OR INTENDED. THERE CAN BE NO ASSURANCE THAT ANY FORWARD-LOOKING STATEMENTS OR INFORMATION WILL PROVE TO BE ACCURATE AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS OR INFORMATION. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS OR INFORMATION.


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Pan American Silver And Orko Silver To Jointly Develop The 'La Preciosa' Silver Project

April 14, 2009
Pan American Silver And Orko Silver To Jointly Develop The 'La Preciosa' Silver Project

(Read original article here.)


Vancouver, British Columbia - April 14, 2009 - Pan American Silver Corp. ("Pan American") (PAAS: NASDAQ; PAA: TSX) and Orko Silver Corp. ("Orko") (OK; TSX.V) are pleased to announce that they have reached an agreement for the joint development of Orko Silver's La Preciosa silver project in the state of Durango, Mexico.

The Project

The La Preciosa silver project and adjacent mineral concessions of Santa Monica and San Juan, cover 32,422 hectares of contiguous mining claims on which Orko has already defined an indicated and inferred mineral resource. The indicated resource is estimated to comprise 10,637,000 tonnes, grading 185 grams of silver per tonne and 0.27 grams of gold per tonne, for a total of approximately 63,000,000 ounces of silver and 94,000 ounces of gold, while the inferred resource is estimated to comprise 12,087,000 tonnes, grading 185 grams of silver per tonne and 0.25 grams of gold per tonne, for a total of approximately 71,700,000 ounces of silver and 97,000 ounces of gold. The primary discovery is the Martha vein, which ranges from 2 to 40 meters in thickness and has been traced over 3.5 kilometers on strike. Martha remains open at depth and along strike, as do several other promising veins and earlier stage exploration targets within the remainder of the La Preciosa claims. For more details on the resource estimates, refer to the technical report by Mine Development Associates ("MDA") dated March 31, 2009. George Cavey, P.Geo., Orko's Vice-President, Exploration, is the Qualified Person who takes responsibility for the technical disclosure in this news release.

The Joint Venture Agreement

Pan American and Orko have agreed to form a joint venture to develop the La Preciosa project. Pan American will contribute its demonstrated mine development expertise, as well as 100% of the funds necessary to develop and construct an operating mine, in consideration for a 55% interest in the joint venture, while Orko will contribute its exploration expertise and the La Preciosa project and related concessions to retain a 45% interest.
Over the next 36 months, Pan American has agreed to spend an estimated US$16 million at La Preciosa to conduct resource definition drilling, acquire necessary surface rights, obtain permits, and ultimately prepare and deliver a feasibility study to maintain its interest in the Joint Venture. Furthermore, Pan American has agreed to spend a minimum of US$5.0 million in the first 12 months of the development program to maintain its interest in the Joint Venture, of which a minimum of US$2.5 million will be spent to continue to explore the highly prospective land package that Orko is contributing to the Joint Venture.

Key terms of the joint venture and the development strategy for La Preciosa include:

• Pan American will be the operator for the joint venture and has agreed to share with Orko all technical information relating to the development of La Preciosa


• A joint venture Management Committee will be formed, with representation from both Orko and Pan American, which will be responsible for monitoring the project's development


• Any mine construction decision and subsequent operating budgets will require the unanimous approval of the Management Committee


• Pan American has agreed to a "standstill" with Orko for as long as the joint venture is in operation.

Commenting on the agreement, Mr. Geoff Burns, President and CEO of Pan American stated: "I am extremely pleased to be partnering with Orko Silver in the joint development of La Preciosa. Orko has done a first class job in defining a very significant silver resource and the project is at an ideal stage to take the next step towards future production. Having just completed the development and construction of two mines, we had been actively seeking opportunities to re-deploy our talented team of mine builders. The timing is right, the location is right and the resource seems right to allow for some real value creation and growth for both Pan American's and Orko's shareholders."

Mr. Gary Cope, President and CEO of Orko commented: "We have long believed in the value of La Preciosa and it is rewarding to know that Pan American has recognized that same potential by committing both its capital and human resources to the project. We believe that with further exploration we should be able to define a significantly larger silver resource. Most importantly, we have structured a Joint Venture which is truly an open partnership. Orko's shareholders will benefit from the financial capacity and extensive mine development expertise that Pan American brings to the joint venture. As such, this transaction significantly reduces the financing and dilution risk for our shareholders. We believe this will be a strategic advantage for Orko and we look forward to working closely with Pan American's team as La Preciosa moves toward production."

GMP Securities L.P. and BMO Capital Markets acted as financial advisers to Orko and have both provided fairness opinions that the transaction is fair from a financial point of view.

Private Placement

Coincident with the formation of the La Preciosa joint venture, Pan American has also agreed to purchase, on a private placement basis, 4,000,000 common shares of Orko at a purchase price of CDN $1.25 per share. Pan American's investment in Orko's common shares is subject to certain anti-dilution and pre-emptive rights to participate in future financings of Orko. The price represents a premium to the current market price and further reflects Pan American's confidence in the value of the project. The private placement is subject to acceptance by the TSX Venture Exchange.

About Pan American Silver

Pan American Silver's mission is to be the world's largest and lowest cost primary silver mining company, and to achieve this by increasing its low cost silver production and its silver reserves. The Company has eight operating silver mines in Mexico, Peru, Bolivia and Argentina.

About Orko Silver

Orko Silver Corp. is developing one of the world's largest primary silver deposits, La Preciosa, located near the city of Durango, in Durango State, Mexico.

Information Contacts

Pan American Silver Corp.
Kettina Cordero
Coordinator, Investor Relations
(604) 684-1175
www.panamericansilver.com


Orko Silver Corp.
Gary Cope
President
(604) 684-4691
www.orkosilver.com


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 CONTAINS "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND "FORWARD-LOOKING INFORMATION" WITHIN THE MEANING OF APPLICABLE CANADIAN SECURITIES LEGISLATION. SUCH FORWARD-LOOKING STATEMENTS AND INFORMATION INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS AS TO: THE TERMS AND CONDITIONS OF THE JOINT VENTURE, WHICH MAY BE AMENDED BY FUTURE NEGOTIATIONS BETWEEN PAN AMERICAN AND ORKO; STATEMENTS AS TO PAN AMERICAN'S FUTURE EXPENDITURES AND ACTIVITIES FOR THE BENEFIT OF THE JOINT VENTURE, WHICH ARE CONDITIONAL TO PAN AMERICAN MAINTAINING ITS INTEREST IN THE JOINT VENTURE; LA PRECIOSA ACHIEVING FUTURE PRODUCTION; VALUE CREATION AND GROWTH FOR PAN AMERICAN'S AND ORKO'S SHAREHOLDERS; DEFINITION OF A LARGER MINERAL RESOURCE AT LA PRECIOSA; AND TSX VENTURE EXCHANGE ACCEPTANCE OF THE PRIVATE PLACEMENT. PAN AMERICAN AND ORKO DO NOT INTEND, AND DO NOT ASSUME ANY OBLIGATION TO, UPDATE SUCH FORWARD-LOOKING STATEMENTS OR INFORMATION, OTHER THAN AS REQUIRED BY APPLICABLE LAW.

FORWARD-LOOKING STATEMENTS OR INFORMATION INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE THE ACTUAL RESULTS, LEVEL OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS OF PAN AMERICAN, ORKO OR THEIR RESPECTIVE OPERATIONS TO BE MATERIALLY DIFFERENT FROM THOSE EXPRESSED OR IMPLIED BY SUCH STATEMENTS. SUCH FACTORS IN RELATION TO PAN AMERICAN INCLUDE, AMONG OTHERS: FLUCTUATIONS IN THE SPOT AND FORWARD PRICE OF SILVER, GOLD, BASE METALS OR CERTAIN OTHER COMMODITIES (SUCH AS NATURAL GAS, FUEL OIL AND ELECTRICITY); FLUCTUATIONS IN THE CURRENCY MARKETS (SUCH AS THE PERUVIAN SOL AND MEXICAN PESO VERSUS THE U.S. DOLLAR); CHANGES IN NATIONAL AND LOCAL GOVERNMENT, LEGISLATION, TAXATION, CONTROLS, REGULATIONS AND POLITICAL OR ECONOMIC DEVELOPMENTS IN CANADA, PERU, MEXICO, ARGENTINA, BOLIVIA, THE UNITED STATES OR OTHER COUNTRIES IN WHICH PAN AMERICAN MAY CARRY ON BUSINESS IN THE FUTURE; OPERATING OR TECHNICAL DIFFICULTIES IN CONNECTION WITH MINING OR DEVELOPMENT ACTIVITIES; RISKS AND HAZARDS ASSOCIATED WITH THE BUSINESS OF MINERAL EXPLORATION, DEVELOPMENT AND MINING (INCLUDING ENVIRONMENTAL HAZARDS, INDUSTRIAL ACCIDENTS, UNUSUAL OR UNEXPECTED FORMATIONS, PRESSURES, CAVE-INS AND FLOODING); INADEQUATE INSURANCE, OR INABILITY TO OBTAIN INSURANCE, TO COVER THESE RISKS AND HAZARDS; EMPLOYEE RELATIONS; AVAILABILITY AND INCREASING COSTS ASSOCIATED WITH MINING INPUTS AND LABOUR; THE SPECULATIVE NATURE OF MINERAL EXPLORATION AND DEVELOPMENT, INCLUDING THE RISKS OF OBTAINING NECESSARY LICENSES AND PERMITS; DIMINISHING QUANTITIES OR GRADES OF MINERAL RESERVES AS PROPERTIES ARE MINED; BUSINESS OPPORTUNITIES THAT MAY BE PRESENTED TO, OR PURSUED BY PAN AMERICAN; PAN AMERICAN'S ABILITY TO SUCCESSFULLY INTEGRATE ACQUISITIONS; AND CHALLENGES TO PAN AMERICAN'S TITLE TO PROPERTIES; AS WELL AS THOSE FACTORS DESCRIBED IN THE SECTION "RISK RELATED TO PAN AMERICAN'S BUSINESS" CONTAINED IN THE COMPANY'S MOST RECENT FORM 40F/ANNUAL INFORMATION FORM FILED WITH THE SEC AND CANADIAN PROVINCIAL SECURITIES REGULATORY AUTHORITIES. ALTHOUGH PAN AMERICAN AND ORKO HAVE ATTEMPTED TO IDENTIFY IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN FORWARD-LOOKING STATEMENTS OR INFORMATION, THERE MAY BE OTHER FACTORS THAT CAUSE RESULTS TO BE MATERIALLY DIFFERENT FROM THOSE ANTICIPATED, DESCRIBED, ESTIMATED, ASSESSED OR INTENDED. THERE CAN BE NO ASSURANCE THAT ANY FORWARD-LOOKING STATEMENTS OR INFORMATION WILL PROVE TO BE ACCURATE AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS OR INFORMATION. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS OR INFORMATION


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Corporate Overview

Overview

Orko is a silver explorer with a large land position in an historic silver mining region in Durango State, Mexico. All three projects are located on large contiguous mineral concession packages. This is home to several mines including Hecla's San Sebastian Mine; which has had annual production of up to 2.8 million ounces of silver.

1. Orko controls 100% of its "La Preciosa" project.

Orko has conducted geological mapping, geophysical testing and has systematically drilled a portion of the known strike length of epithermal silver-gold veins on the property. Two of the veins, La Gloria and Abundancia, have been drill tested each along 1.2 km strike length which established the first NI 43-101 compliant Inferred Resource Estimate released on January 19th, 2006. Data from 26 drill holes totaling 11,579 metres form the basis of an Inferred Resource of 2.72 million tonnes grading silver 227.2 g/t and gold 0.464 g/t, for a silver-equivalent grade of 255 g/t. Contained metal in the Inferred Resource equals 618 million grams silver (19.9 million ounces silver) and 1.26 million grams gold (40,400 ounces gold) for a silver-equivalent content of 694 million grams (22.3 million ounces silver-equivalent).

The second NI 43-101 compliant Inferred Resource Estimate was released on September 7th 2006. This Resource Estimate was based on the first 24 holes drilled by Orko in 2005 and 7 historical holes from 1981-82. Using the identical methodology and adding the results of the 7 historical holes plus another 7 holes for a total of 38; an Inferred Resource Estimate of 3.42 million tonnes grading 235.0 silver grams per tonne (g/t) and 0.435 gold g/t, for a silver-equivalent grade of 261.1 g/t. This represents a significant increase of 30% in the contained silver-equivalent metal content to 892 million grams (28.7 million ounces).

The third NI 43-101 compliant Inferred Resource Estimate was released on March 13th 2007; and is based upon assay results up to and including 79 of 111 drill holes on La Preciosa Ridge. An Inferred Resource of 4.39 million tonnes grading 229.9 silver grams per tonne (g/t) and 0.396 gold g/t, for a silver-equivalent grade of 253.7 g/t. This represents a contained silver-equivalent metal content of 1,114 million grams (35.8 million ounces).

The resource estimates have been prepared on vertical longitudinal sections for each vein, with changes in dip of veins taken from 100 metre cross sections for volumetric adjustments. On the longitudinal sections, multiple ore-shoot locations were interpreted, defined by structure and underground sampling utilizing minimum cut-offs of 150 g/t Ag-Eq. Veins on "La Preciosa" have been traced for 5 kilometres north-south, as well as multiple east-west veins. Veins include Abundancia, La Gloria, Luz Elena, Carmen, Esperancita, Transversal, Incognita, Nueva, Sur, Ramal Sur, El Orito, El Orito Norte, Zona Sur, Nancy, Martha etc... Currently, less than 30% of the targets have been drilled and only to a true depth of 340 metres. The deposit, consisting of multiple veins, remains open along strike and at depth.

Drilling is underway using 2 rigs, working 7 days a week, 24 hours a day. Orko is presently drilling holes 112 and 113. So far, over 45,000 metres of drilling has been completed to date. The Company will be releasing a new resource estimate by the end of Q3 2007.

2. A larger mineral concession land package to the north and east, called "Santa Monica" project, has also been optioned from Goldcorp. Under the terms of the Joint Venture Agreement, Orko Silver can earn a 75% interest in the project by incurring US $1.5 Million on exploration expenditures over a 5 year period. This is a more preliminary exploration project, containing float boulders of epithermal style silver-gold mineralization. Soil and quartz float surveys have been completed. Currently, Geophysics is being conducted and exploration is set to begin in the near future.

3. To the west of "La Preciosa" and "Santa Monica" is the large mineral concession property called the "San Juan" project. An agreement has been reached with Silver Standard to option this land package. Orko can earn a 75% interest in the San Juan project by incurring US $750,000 over a 5 year period. Thus far, three silver-gold epithermal veins have been located; La Plomosa, El Vacaro and San Juan veins are known to outcrop on this property. Preliminary surface sampling has been conducted and a Soil Survey is underway.

Overall, "La Preciosa", "Santa Monica" and "San Juan" represent an excellent land position. Successes over the past year on "La Preciosa" bode well for future successful expansion of the resources.

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