Oro Gold Resources Ltd.
(“Oro Gold”) (TSX.V: OGR) has signed an agreement with Mazorro Resources
Inc. (“Mazorro”) whereby Mazorro can acquire a 60% interest in the Cimarron
property from Oro Gold by spending US$2.5 million on the property and
issuing one million common shares of Mazorro to Oro Gold over a four year
period.
The transaction is subject to Mazorro completing a public offering and being
listed on the TSX Venture Exchange. Mazorro is required to incur US$400,000
in property expenditures and issue 500,000 common shares to Oro Gold by the
first year anniversary date. Oro Gold will be the operator on the property
and receive a 15% management fee, and will initially be advanced a
non-refundable payment of US$135,000 by Mazorro to cover expenses related to
the ongoing exploration program.
The 82 km2 Cimarron property is situated in southern Sinaloa state, Mexico,
50 km east of Mazatlan and 10 km northwest and on trend with the historic
multi-million ounce past-producing Rosario gold and silver mine. Local
infrastructure is well developed and property access is excellent.
Surface geochemical testing of the property has produced very encouraging
results to date. These include highly anomalous stream sediment gold values
above 200 ppb and up to 2,324 ppb Au over a 20 km2 area, high-grade channel
samples of up to 11 g/t Au over 3 metres, and grab samples of up to 128.4
g/t Au. An extensive soil geochemical survey has identified 5 significant
gold/copper surface anomalies up to 2.5 km2 in size with values greater than
100 ppb Au. High-priority drill targets have been identified at the
Veteranos and Calerita prospects.
Mazorro’s work plan at Cimarron for the first year will include in-fill soil
surveys, trenching, detailed mapping, an airborne magnetic and radiometric
survey, and diamond drilling. A National Instrument 43-101 report, entitled
“Exploration Results for the Cimarron Gold Property, Sinaloa State, Mexico”,
is available through the following link
http://www.orogoldresources.com/_resources/cimarron_ni43-101.pdf, and
includes reference maps of the targets identified. This report presents the
technical work completed to date, results for eight prospects on the
property, and recommendations for further work.
Michelle Robinson, MASc., P.Eng, is the qualified person as designated by
National Instrument 43-101, who supervised the sampling and quality control
program at Cimarron and reviewed the technical content of this news release.
Oro Gold is a gold exploration company with 13 active projects in Mexico and
Panama. Located 40 km south-east of Mazatlan, Mexico, the company’s flagship
“Rosario Gold Belt” property portfolio is subject of increased exploration
throughout 2007. Oro Gold’s goal in 2007 is to start developing a gold
resource by drilling its priority targets within the belt. Oro Gold also
has plans to continue aggressive generative exploration activity to identify
low-cost acquisition opportunities with high value-adding potential. In
order to manage risk and obtain funding to advance projects, a joint venture
strategy will be a fundamental part of Oro Gold’s growth.
Oro Gold Options Cimarron Project to Mazorro
May 23, 2007
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