Orex Minerals Inc (CVE:REX) says it's got its hands on a third quality asset in Mexico - as it unveiled a deal to buy the San Luis del Cordero project in Durango.
The resource group said it had inked a letter of intent (LOI) with Exploraciones del Altiplano SA de CV (Altiplano) over the property.
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Cordero has undergone several phases of exploration, with multiple targets yet to be explored, the firm said.
The concessions cover more than 2,825 hectares and include the full extent of the known mineralization.
"Acquisition of the Cordero Project gives Orex a third quality asset, with upside exploration potential, in the prolific Silver Trend of north-central Mexico," said Orex's president Gary Cope.
Altiplano has an NI 43-101 resource estimate for the project from 2014. That has an indicated resource of 662,600 tonnes at a grade of 121 g/t silver, 0.78% copper and 1.06% zinc, for a silver-equivalent of 240 g/t (grams per ton) and 5.1 million ounces silver.
There is also an inferred resource of 2,785,300 tonnes at 144.4 g/t silver, 0.75% copper and 1.45% zinc, for a silver-equivalent of 273 g/t (grams per ton) and 24.4mln ounces of silver.
Orex Minerals is focused on precious and base metals exploration in Mexico and Canada.
Its other assets are the Coneto silver-gold project in Durango, Mexico, which is a joint venture with silver major Fresnillo plc (LON:FRES), the Sandra Escobar silver project in Mexico, as a joint venture with Canasil Resources, and the Jumping Josephine Gold Project in British Columbia, Canada.
The firm is currently drafting the formal terms of the deal, which is non-binding as yet. It is worth US$2.5mln to be paid over four years.
The terms are 100,000 shares and US$100,000 on signing the agreement, and pay 200,000 shares and US$150,000 on the first anniversary.
On the fourth anniversary, it must pay $1.5 million (of which 30% can be in shares). Ownership of the property would then be transferred to Orex, it said.
This project is a skarn and epithermal vein hosted silver-copper-zinc district, located 155 kilometres northeast of the City of Durango, Orex added.