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Oroco Resources - Impressive drill results at the Cerro Prieto Project

Last updated: 19:18 25 Jan 2010 GMT, First published: 20:18 25 Jan 2010 GMT

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As the world economy revives and investor confidence returns the companies that would catch investor attention are those who continue to add value to their assets through exploration and development activities. Promising drill results from these endeavours usher in more confidence in their assets and strengthen the investment case of those companies. Canadian Venture and Frankfurt listed Oroco Resource Corp (TSX.V: OCO, Frankfurt: 0R6) continues to greet the market with impressive drill results from its Cerro Prieto Project.

Highlights of the results from the infill drilling include 22.5 meters of 4.36 g/t Au including 9.0 meters of 8.62 g/t Au (in CP053), 26.0 meters of 2.96 g/t Au including 3.5 meters of 7.80 g/t Au (CP064) and 19.0 meters of 2.99 g/t Au including 8.1 meters of 6.42 g/t Au (CP065). According to Craig Dalziel, President, infill drilling results appear to have validated Oroco’s plans to fast-track to production the higher grade gold-bearing oxide zone at Cerro Prieto.

It is hard not to be excited by the progress Oroco has made in its development efforts. It has been a busy 2009 for Oroco during which a total of 8575.9 meters in 42 diamond drill holes were completed.  Fifteen holes tested the extension of the oxide zone that contains the resource calculated from the 2008 drill programme, three holes tested the deeper sulphide mineralization, eight holes tested the Argonauta claim optioned from Yamana Gold Inc (NYSE: AUY, TSX: YRI). Most significantly, sixteen holes were recently drilled to infill an area from which the Company anticipates the initial ore production at Cerro Prieto.

These results are hardly surprising given the location of the project. Located in Sonora State, Mexico, which is known for gold and silver mining, Cerro Prieto project entails 70 square kilometres of concessions containing up to 14.5 km of strike length of geological structure. Sonora state meanwhile is the home for Mexico’s biggest gold mine, La Herradura owned and operated as a joint venture between Newmont Mining (NYSE: NEM) and Mexican mining conglomerate Industrias Penoles.

Holes in the resource area were spaced at 100 meter intervals to expand the indicated resource calculated from drill results from the 2008 drill programme. The Phase Two holes all intersected the mineralized zone.  Extension drilling to the north (area of the Argonauta concession) has identified a crosscutting structure which dropped the geological units between 150 and 200 meters after mineralization.  The near surface geology in this area consists of porous, coarse felsic pyroclastics that diffused the mineralization as it was deposited.  Although the structure continues through this area, the mineralizing fluids ascending the structure were not as constrained as to the south. The company will be testing this area in more detail in the future.

About Oroco
Oroco is a Canadian-based mineral exploration company with primary focus on the accelerated development of the gold bearing oxide zones of its Cerro Prieto project, a polymetallic (Au-Ag-Pb-Zn) project in Sonora State, Mexico.  The project consists of the 100% owned, 2,723 ha, San Felix, San Francisco and Cerro Prieto concessions and 4,120 ha of the connecting Argonauta 5 Fraccion 1 concession to which the Company holds an option to purchase.  During the first field season in 2008, the Company drilled 5,975 metres of core and tabled a NI 43-101 compliant resource estimate together with the results of a preliminary metallurgical study.