YeOldGoldNugget's Blog Spot: Martha Vein

Showing posts with label Martha Vein. Show all posts

Thursday, November 12, 2009

Orko Silver Continues to Receive Encouraging Drilling Results

By 79Atoms on Thursday, November 12, 2009

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)

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.

Saturday, October 17, 2009

F.A.Q. - Frequently Asked Questions October 16, 2009

By 79Atoms on Saturday, October 17, 2009

October 16, 2009

Orko Silver – Frequently Asked Questions (FAQ)

Direct download to this pdf from the Orko Silver Corp company website.

There was and still exists confusion surrounding the details of the Joint Venture with Pan American Silver announced on April 14, 2009. Lingering questions remain regarding the terms of the Joint Venture. In an effort to respond to those questions, we have prepared this Frequently Asked Questions (FAQ). The most commonly asked questions were:

Is Orko giving Pan American a 55% interest in La Preciosa by spending US $16 million?

No. We are of the opinion that the confusion surrounding the News Release can be attributed to its length and lack of clarity in the text of the news release itself. People do have a tendency to focus in on a few facts and key in on them. The text of the April 14th, 2009 News Release stated: "Pan American will contribute its demonstrated mine development expertise, as well as 100% of the funds necessary to develop and construct an operating mine", not just the $16 million that most people have asked about. The $16 million is an estimate of the costs involved to complete a feasibility study. They do not earn their 55% until they build the mine/mill and we are in commercial production.

The News Release only mentions the 55% and $16 million, why wasn’t a figure for commercial production mentioned?

The other sum, the mine/mill construction, cannot be determined until the feasibility study is completed. One of the principal purposes of a feasibility study is to determine what it will cost to put a mine into production. Therefore there is no way we could state a figure for the mine construction in the News Release as it is not known right now. A 3,000 tonne/day mine could cost an estimated $150 million, a 5,000 t/d mill could cost an estimated $240 million so there is no way we can say what it will cost until the feasibility study determines the mill throughput which then dictates the capital costs. However, we will be releasing what is called a Preliminary Economic Assessment (also known as a Scoping Study) early in the new year which is a preliminary economic study on what could be a possible economic scenario at La Preciosa.

How will commercial production be financed?

Pan American Silver has to finance the construction of the mine/mill and achieve commercial production to earn their 55% regardless of whether it costs $150 Million or $240 million.

Does Pan American have the ability to finance the project to production?

Pan American has the financial capabilities to finance the 3,000 t/d mine construction out of cash on hand without financing should they choose to do so but will like need to get some top up financing for a larger mine operation. They have significant cash flow so should easily be able to do any sort of financing should they need to do so.

If Orko Silver had to say 'finance $200 million for production', would it not mean significant dilution to current shareholders?

Yes, if we had to finance production. But with this agreement Pan American carries the entire costs to commercial production and we end up owning 45% of a producing mine without having any further dilution of Orko Silver shares. Yes, we give up 55% but if we would have to finance this to production ourselves, we would have to create a mining team (we are explorationists) and likely have to issue ~250 million more shares plus find a brokerage firm or bank to finance this to production. Given the global credit crisis and how difficult it is right now to get any serious financing done, this is a great deal for Orko Silver shareholders. Will the same financing hurdles be in place in 2-3 years from now when this mine might be ready for a production decision, who knows? By entering into this agreement, we took significant financing and dilution risk off the table for Orko Silver’s shareholders.

On the dilution element, does this mean that present shareholders don't suffer further dilution beyond the 4 million in new shares for the Pan American private placement?

There should be no more shareholder dilution beyond the 4 million new shares of Orko Silver issued to Pan American in exchange for $5 million. Note that the private placement to Pan American was done at a significant premium to the market. There could be further dilution should the Board of Orko Silver decide to aggressively acquire & explore a new project. We are looking at projects all the time and if we found something that might fit with Orko; we might consider acquiring an additional asset for the benefit of our shareholders. Make no mistake; our focus is still La Preciosa.

With regard to the Private Placement with Pan American, what does "certain anti dilution clauses" mean?

Our deal allows Pan American to maintain their present percentage interest, 3.5%, so if we do a new equity issue such as for the scenario we described above, Pan American can participate in that financing to maintain their 3.5%. This is not a gift; they have to buy their shares at the same price as the issue price.

With Pan American as operator, will there still be regular exploration news and further resource estimates?

One of the concerns shareholders may have is that there will be no news because Pan American is now operator. That is incorrect, we will still be drilling and as such there still will be regular news releases as we are obliged to continue announce the results. However, there may not be exactly the same approach as when we were aggressively drilling. Pan American has two mandates, to complete a feasibility study with infill drilling and secondly to continue the exploration of La Preciosa. That will also mean that there should also be another resource estimate. In the meantime as PAA has been getting very active at La Preciosa, news releases are beginning to flow with the results.

Is the JV covering all Orko property/mineral occurrences/silver deposits or just Martha or just La Preciosa but not Santa Monica and San Juan?

The JV covers all properties including San Juan & Santa Monica. Everything in the current land package is a part of the new joint venture. If we find new deposits in the exploration (which is being fully funded by Pan American), it will benefit us as the amount of ounces will increase and improve the bottom line for both parties.

Why wouldn't Pan American just buy Orko Silver?

At this point in time, Pan American will be focused on developing and delivering a feasibility study and then building a mine/mill. Until we get through the feasibility process, we doubt they will need to be aggressive towards us on the chance that the conditions at the time the mine goes into production do not favour a complete takeover. However, two years from now, if we are in a robust economy we would not be surprised if someone makes a friendly move to acquire us. We are hoping that no other company tries to acquire us right now as we strongly believe that are shares are undervalued based on the term of this JV with Pan American, i.e. a full carried interest to production.

What is the cost/consequence to Pan American or Orko Silver if either party wants to leave the Joint Venture?

If Pan American walks before completing a feasibility study, they get nothing. If they have spent the $16 million and deliver a positive feasibility study but decide that the economy at that time doesn't justify mill construction, they give the property back to us, we owe them $8 million which we can pay out of production proceeds or they get a 1.5% NSR until we pay out the $8 million. If they partly build the mill and walk, all they get back is that $8 million and/or the 1.5%NSR as just discussed. There is no reason Orko Silver would walk, we have a free ride to production so there is no need for us to walk. If our team moves to another project, La Preciosa still continues along and we still have our carried 45% interest.

Short term, you will carry-on drilling, right?

Yes, Orko Silver will be involved with all the drilling and in particular, the exploration drilling. We have a technical committee in place that directs the exploration. There will be two company representatives from both companies on the committee. Orko Silver will submit a budget to Pan American for exploration drilling and direct all that exploration. Pan American will complete the necessary infill drilling they need to complete their feasibility study. The Orko Silver technical team will continue as is although Pan American has added some additional geologists. Our initial exploration targets will be Martha North, Martha South and Nancy Vein. The results of that drilling will determine where the next round of drilling may take place. We may not actually leave those three areas if the results are good enough.

Now that we can see the 'light at the end of the tunnel', when do you expect your first sales of silver? 2012?

We are hopeful for 2012. Pan American has indicated that they plan to aggressively attack this project so they may be in a position to get through the feasibility study step sooner and therefore begin construction earlier. Time will tell on that issue.

YeOldGoldNugget's links of interest

Tuesday, August 18, 2009

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

By 79Atoms on Tuesday, August 18, 2009

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.

YeOldGoldNugget's links of interest

Tuesday, April 14, 2009

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

By 79Atoms on Tuesday, April 14, 2009

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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Saturday, March 28, 2009

F.A.Q. - Frequently Asked Questions

By 79Atoms on Saturday, March 28, 2009

Is Orko giving Pan American a 55% interest in La Preciosa by spending US $16 million?

The News Release only mentions the 55% and $16 million, why wasn’t a figure for commercial production mentioned?

How will commercial production be financed?

Pan American Silver has to finance the construction of the mine/mill and achieve commercial production to earn their 55% regardless of whether it costs $150 Million or $240 million.

Does Pan American have the ability to finance the project to production?

If Orko Silver had to say 'finance $200 million for production', would it not mean significant dilution to current shareholders?

On the dilution element, does this mean that present shareholders don't suffer further dilution beyond the 4 million in new shares for the Pan American private placement?

With regard to the Private Placement with Pan American, what does "certain anti dilution clauses" mean?

With Pan American as operator, will there still be regular exploration news and further resource estimates?

Is the JV covering all Orko property/mineral occurrences/silver deposits or just Martha or just La Preciosa but not Santa Monica and San Juan?

Why wouldn't Pan American just buy Orko Silver?

What is the cost/consequence to Pan American or Orko Silver if either party wants to leave the Joint Venture?

Short term, you will carry-on drilling, right?

Now that we can see the 'light at the end of the tunnel', when do you expect your first sales of silver? 2012?

Wednesday, February 18, 2009

Orko Silver Increases and Upgrades La Preciosa Resource Estimate

By 79Atoms on Wednesday, February 18, 2009

February 18, 2009

Orko Silver Increases and Upgrades La Preciosa Resource Estimate

(Read original article here.)

VANCOUVER, British Columbia - Orko Silver Corp. (TSX.V - OK) -- is pleased to release the latest resource estimate for our La Preciosa silver deposit located in Durango, Mexico. This independent resource estimate has been completed by Mine Development Associates (MDA) of Reno, Nevada. MDA has stated that the La Preciosa deposit now comprises 47% Indicated Resources and 53% Inferred Resources. The current resource estimate is based on all of Orko's drilling, including the 2008 drilling of an additional 205 holes (79,021m).

Previous resource estimates completed at La Preciosa all contained Inferred Resources only. The last resource estimate, of March 31, 2008, outlined an estimated Inferred Resource of 15.35 million tonnes grading 0.321 g/t Au and 190.0 g/t Ag at a cut-off grade of 100 g/t for a Silver-Equivalent grade of 209.2 g/t. Contained metal in the Inferred Resource equaled 93.7 million oz Silver and 158,000 oz Gold, totaling 103.2 million oz Silver Equivalent*.

Gary Cope, President of Orko, adds: ""It has been very rewarding to have watched La Preciosa grow from a "Grassroots" exploration play, into one of the top new silver discoveries in the world. This resource increase when combined with the upgrade of 47% of the total ounces to the "Indicated" category gives us the confidence that we are well on our way to demonstrating the potential for another large silver mine in Mexico. Our immediate plans include continuing with our delineation of the Martha Vein, including infill drilling and to begin the drill testing of other targets such as Nancy, El Orito Norte and El Vaquero."

In total, eight veins were modeled including the Martha Vein, which dominates the resource. In the process of modeling, lithological units were differentiated which helped in establishing the orientation and continuity of the individual veins. Using geological data along with the metal grades, it was possible to establish continuity of mineralized zones of stockwork, breccia, veins, and veinlets. The high-grade veins within these zones were segregated and modeled. All zones and veins were modeled into a three dimensional solid. Once defined, statistics of each domain and each vein were evaluated separately, and capping was carried-out individually for each vein and domain. The sample data was then composited to three-metre intervals. Grade continuity was evaluated separately for each vein and domain. Inverse distance squared estimation was used. A cut-off grade of 100 g/t was selected by MDA. Classification into Indicated and Inferred was dependent upon the vein continuity, geological continuity and proximity to the closest drill hole, as well as the number of samples and the number of drill holes used in the individual blocks.

All reported resources lie within the modeled veins. The reported resource estimate is undiluted using a 60:1 gold to silver ratio with no metallurgical extractive factors applied. The QA/QC work demonstrates reliability of the analytical data and the auditing of the database has shown it is accurate.

Of particular note are the resources contained within the Martha Vein, as outlined in the following table:

Steve Ristorcelli, R.P.Geo. of MDA is the Qualified Person who takes responsibility for the resource disclosure component in this news release.

A complete table of the current resource estimate is available on our website at the link below:

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

Subsequent to the issuance of the resource estimate, a Preliminary Economic Assessment will also be completed by MDA.

The Company is now in possession of final analytical results from the completion of all 354 drill holes at La Preciosa. The Martha Vein oriented drilling program has extended the mineralization in a SSE direction. The Company's geologists have noted a drop in the silver values to the southeast, where drilling has taken place on the periphery of a small Quaternary basaltic volcano. In this area, the Martha vein is thick and strong and this will be one the areas where future drilling will be carried out.

The following table summarizes the result of the balance of the drill holes drilled in 2008. Of particular note is a high-grade intercept for the Martha Vein in hole BP08-319, located on the eastern side of the mineralized trend. Hole BP08-319 yielded a true thickness of 3.57 metres grading 0.184 g/t gold and 257.8 g/t silver for a silver-equivalent of 268.8 g/t. Also of interest is hole BP08-339A which yielded 7.36 metres grading 1.265 g/t gold and 123.5 g/t silver for a silver-equivalent of 199.3 g/t.

Key Martha Vein intercepts added for this release:

Drill holes along the periphery, or which did not reach thickness and/or grade cut-offs, include BP08-307, -308, - 309, -313, -314, -315, -316, -317, -321, -322A, -323, -327, -328, -329, -330, -332, -333, -334, -335, -336, -337, -338, -340, -341, -342, -344, -345, -346, -347, -349, -350, -351, -352, -353, 354. Some of these holes cut significant thicknesses of the Martha vein, wherein low grades were encountered. While not making the underground cut-off grade, they may be considered for future open-pit potential studies.

The Company remains extremely optimistic about its future prospects at La Preciosa. For 2009, Orko Silver plans to carryout in-fill drilling that will allow the Company to increase the resource confidence of the Martha vein, as well as drill testing along the extensions of the other known vein trends, within the overall extensive property package.

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/drillplanmap.pdf

All 2008 holes were started in HQ-size core, with reduction to NQ-size core at approximately 260 metre down hole depth. Drill core is logged by geologists who mark sample locations according to lithological/alteration changes. The individual samples are taken over core lengths always less than or equal to two metres and commonly less than a metre. The core is cut in half with a diamond saw. One-half of the core is stored in the original core boxes in core storage buildings on site. The other half of the cut core sample is placed in sample bags and transported by Orko personnel to the SGS Mineral Services or Inspectorate labs in Durango, Mexico for sample preparation and analysis.

Full details of the Company's sampling protocols and QA/QC program can be located at our website at the link below:

http://www.orkosilver.com/s/QAQC.asp

George Cavey, P.Geo., is the Qualified Person and takes responsibility for the overall technical disclosure in this news release. These resource estimates are classified as Indicated and Inferred Mineral Resources, consistent with the CIM definitions referred to in NI 43-101. This estimate will be filed in a technical report, compliant with NI 43-101 on SEDAR within 45 days. Mineral resources, which are not mineral reserves, have not demonstrated economic viability. Orko is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issues, which may materially affect its estimate of mineral resources.

George Cavey, P.Geo. is the Qualified Person and takes responsibility for the technical disclosure in this news release. Full details of the Company's sampling protocols and QA/QC program can be located at our website at the link below:

http://www.orkosilver.com/s/QAQC.asp

*Silver-equivalent, for the purposes of this resource estimate, was defined as the silver grade plus 60 times the gold grade. The reported numbers are for in situ metal content without consideration of metallurgical recoveries and net smelter returns.

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

http://www.investorhub.ca/orkonews18022009.pdf

About Orko Silver Corp.

Orko Silver Corp. is a professional exploration company with an increasing silver resource. Orko Silver's principal project, La Preciosa, located near the city of Durango, Mexico, is an advanced silver and gold project. Two additional projects include the Santa Monica east of La Preciosa and the San Juan west of La Preciosa.

ON BEHALF OF THE BOARD OF DIRECTORS

Gary Cope
President

For further information, contact Orko Silver Corp. at (604) 684-4691 or
Via our website at www.orkosilver.com

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

*Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. Mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "measured", "indicated", and "inferred" resources, which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No. 000-51923, which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml.

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Wednesday, January 7, 2009

Orko Silver Provides 2008 Year End Summary

By 79Atoms on Wednesday, January 07, 2009

January 07, 2009.

Orko Silver Provides 2008 Year End Summary

(Read original article here.)

VANCOUVER, British Columbia - Orko Silver Corp. ("Orko") (TSX.V - OK) -- The Company wishes to provide a year end summary and update of activities planned for 2009.

Calendar Year 2008 represented a significant expansion of the Martha Vein with four diamond drills turning until October when the Company cut back to two drills in order to preserve working capital. All drills were idled in early December, with present plans to resume drilling early in 2009, subsequent to the issuance of the Company's upcoming sixth resource estimate being conducted by Mine Development Associates of Reno, Nevada (MDA), and incorporating their recommendations for ongoing drill testing.

During 2008, Orko Silver drilled over 70,700 metres at La Preciosa bringing the total drilled to date to over 146,000 metres in 366 holes. All drilling was conducted by Major Drilling International under the direction of Orko Silver.

Orko released its fifth NI 43-101 compliant resource estimate during 2008, which demonstrated an increase in the resource at La Preciosa by approximately 30% to 103.2 million Silver-equivalent ounces. The independently verified estimate, announced on March 31st, 2008, concluded that work to date on the property had outlined an estimated Inferred Resource of 15.35 million tonnes grading 0.321 g/t Au and 190 g/t Ag at a cut-off grade of 100 g/t for a Silver-equivalent grade of 209.2 g/t, and equaling 3,211 million grams Ag-Eq or 103.2 million oz Ag-Eq.*

The mineral resource estimate was based on assay results from diamond drill holes
BP05-01 to BP07-149 plus seven extensions of holes previously drilled on La Preciosa Ridge. Average drill-hole spacing approximates 100 metres. Not all of the holes were used in the resource estimation as a number of holes tested targets outside the defined resource block. Orko is pleased to have added over 30 million ounces to the resource estimate which included assay data from an additional 36 holes of drilling since the previous estimate in October 2007. The Martha Vein accounted for all of the additional ounces added and now represents 56% of the total resource at La Preciosa. The Martha Vein has an average true thickness of 9.92 metres.

During 2008, Orko Silver also retained Mine Development Associates of Reno, Nevada to complete an independent resource estimate. This sixth resource estimate, initially scheduled for completion in the 4th quarter 2008, has been delayed until early 2009, so that additional metallurgical testing of the Martha Vein can be completed and missing information can be gathered, all with the expectation of upgrading the resource classification.

The final product will be a 3D block model including detailed recommendations for the next stage of drilling. Subsequent to the issuance of the MDA results, a Preliminary Economic Assessment analysis will be completed.

The Martha Vein oriented drilling program has extended the mineralization in a SSE direction, toward the La Preciosa/ Santa Monica Property boundary. The Company's geologists have noted a drop in the silver values to the southeast, where drilling has taken place on the periphery of a small Quaternary basaltic volcano. Here Martha vein thickness remains strong.

A similar depletion in grade is also noted along the southern boundary of a second basaltic volcano along the northern boundary of Martha drilling. Our technical team now believes that heat from the emplacement of the northern volcano may have remobilized and caused the pooling of silver-bearing fluids into large mineralized zones, as seen in the vicinity of hole BP07-71ext (20m of 460 g/t Ag Eq) and hole BP07-75ext (40m of 260 g/t Ag Eq) as well as a number of other thick intercepts where our best portion of the current resource estimate lies. A similar scenario may be in place in the southeast in the vicinity of the second volcano. Orko geologists plan to test this theory in 2009 by drilling wider spaced holes south and southeast of the southern volcano, toward definition of richer areas of silver concentration.

The Company remains extremely optimistic about its future prospects at La Preciosa. For 2009, Orko Silver plans to carryout in-fill drilling that will allow the Company to increase the resource confidence of the Martha vein, as well as drill testing along the extensions of the other known vein trends, within the overall property package.

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

http://www.investorhub.ca/orkonews07012009.pdf

George Cavey, P.Geo. is the Qualified Person and takes responsibility for the technical disclosure in this news release. Full details of the Company's sampling protocols and QA/QC program can be located at our website at the link below:

http://www.orkosilver.com/s/QAQC.asp

*Silver-equivalent, for the purposes of this resource estimate, was defined as the silver grade plus 60 times the gold grade. The reported numbers are for in situ metal content without consideration of metallurgical recoveries and net smelter returns.

About Orko Silver Corp.

Orko Silver Corp. is a professional exploration company with an increasing silver resource. Orko Silver's principal project, La Preciosa, located near the city of Durango, Mexico, is an advanced silver and gold project. Two additional projects include the Santa Monica east of La Preciosa and the San Juan west of La Preciosa.

ON BEHALF OF THE BOARD OF DIRECTORS

George Cavey
Vice-President Exploration

For further information, contact Orko Silver Corp. at (604) 684-4691 or
Via our website at www.orkosilver.com

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

*Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. Mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "measured", "indicated", and "inferred" resources, which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No. 000-51923, which may be secured from us, or from the SEC's website at www.sec.gov/edgar.shtml.