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Golden investment for Goldboro By Emily Hobbs Goldboro - Orex Exploration recently announced a $31,000,000 investment in development of its Goldboro property thanks to two unnamed investors. The investors have agreed to purchase more than 67,000,000 shares of the company at a price of $US 0.40 per share subject to a 60-day due diligence period. Orex Exploration will use the funding for additional exploration and a feasibility study on the property.
Jean Lafleur, mineral exploration consultant with Orex says the company will continue drilling and assessing the quality and quantity of gold at the site. It will take about two years to prepare for a feasibility study.
"It's a lot like buying a house," explains Lafleur. "You have to look at budget, finances, the ore itself, how to mine it and mill it. We have to decide if we go for a small project with high grade, or a large project with low grade."
Lafleur says the feasibility study will also include environmental assessments and socio-economic studies with local people.
"When the financing closes in early November, we'd like to prepare everyone, just so that our voice is heard, that a project is underway," says Lafleur.
The type of mine that Orex might eventually develop depends on the type of gold at the site. Lafleur says an open pit mine is a possibility, but it is too early to say for sure if the site will be open pit or underground.
Lafleur says the construction phase of the project will employ 200-500 people and the mining phase will employ 150-200 miners and equipment operators.
Gordon MacDonald, special projects manager for the Guysborough Regional Development Authority says the investment is encouraging for the area.
"The company took some core samples in March and those samples gave them the confidence to take it further and do wider sampling," says MacDonald. "The biggest thing is that the price of gold has stayed high and it looks like something that if the next stage goes well, it will be nice to see gold mining return to the county."
To date, Orex has spent over $18.9 million in exploration work on the Goldboro property. The area is known as the Boston-Richardson mine, a mineral belt that was mined between 1893 and 1912 and produced 54,871 ounces of gold.
MacDonald says this is the biggest gold investment in the province in a long time, and the largest for Guysborough County since the 1980s.
"It's nice to see," says MacDonald.
"This is great for gold mining in Nova Scotia," says Lafleur. "Don't forget that Nova Scotia is one of the oldest gold mining camps in Canada. It's been abandoned but there is still quite a bit of gold in Nova Scotia.
"I'm hoping people will listen," Lafleur of the investment. "The financial markets in Toronto and the larger companies will hear the call that there is substantial development in Nova Scotia and that's positive."
Lafleur says representatives from Orex plan to meet with the Regional Development Authority and the Guysborough Municipal Council this week.
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Press Release Source: OREX EXPLORATION INC.
Orex Updates Company Activities at Goldboro Thursday October 13, 8:03 am ET
ROUYN-NORANDA, QUEBEC--(CCNMatthews - Oct. 13, 2005) - OREX EXPLORATION INC. (TSX VENTURE:OX - News; " Orex ") wishes to update the Company's activities in light of the previously announced financing, while reviewing the current Phase 1 program and the impact of results to date, as well as outlining future exploration and development work at its 100% owned Goldboro Property in northeastern Nova Scotia. ADVERTISEMENT
On September 8, 2005, the Company announced that two private investors had agreed to invest $US 26,944,066 in consideration of 67,360,165 common shares of the Company at a price of $US 0.40 per share. The financing is subject to a 60 day due diligence period. The private placement is conditional on obtaining all regulatory approvals. The proceeds will be used by the Company for exploration leading to, and eventually including, a feasibility study on the Goldboro Property in Nova Scotia, as well as working capital. Furthermore, the private investors have agreed to take the necessary steps to finance any future mining development on the Goldboro Property.
The Company is now in the last stage of the Phase 1 program at Goldboro, awaiting the final fire-assays results, as well as results from the metallurgical test samples. The Company is confident that the metallurgical results will determine that the Goldboro mineralization has grades to warrant additional resource definition work to be completed in 2006, as the property eventually progresses towards feasibility. The objective of the Phase 1 drilling program was to determine a more realistic gold grade of the Goldboro mineralization, primarily focused on re-drilling several of the near-surface new "gold belts" within a 250 meter long, 150 meter wide and 150 meter deep corridor immediately below, and west of, the historically mined Boston-Richardson Belt (historical production of 377,000 tonnes at 6.8 g/t Au).
Initial fire-assay results have been received for 18 of the 23 drill holes from 6 sections spaced at 25 meter intervals (8625E, 8650E, 8675E, 8700E, 8725E and 87505E) covering a strike length of 150 meters. Fire-assay results show extreme grade variability even in the presence of visible gold, and even with larger core samples, as was previously observed at Goldboro, due to the gold nugget effect. The westerly extension of the south limb of the historically mined Boston-Richardson ("BR") belt has also been identified. The south limb of the BR belt has averaged 2.32 g/t Au over an average width of 4.2 meters for a 150 meter strike length from the six sections with assays available. Visible gold was identified in three of the seven drill holes intersecting the zone. Wider mineralized and continuous mineralized intervals that combine several of the gold belts are also being identified below the BR belt. Gold belts 1, 2, 3 (and in places belt 4) form a single mineralized zone, l! ocated approximately 50 metres beneath the BR belt. Within the hinge and along the south limb of the BR Anticline, the 1-2-3 belts averaged 4.15 g/t over an average width of 15.2 metres from 16 of the 18 drill holes to date intersecting the zone over a 150 metre strike length. There is also evidence confirming additional wider mineral zones beneath belts 1-2-3 comprising belts 5-6 and 7-8, respectively. The zones appear continuous over the 250 metre length of the structure drilled in the 2005 program from the 2.5 kilometre full length of the Anticline.
The Company is expected to release the last batch of fire-assay results from the Phase 1 program shortly; whereas results from the first metallurgical samples are expected later in the month.
The Company plans a three-phase exploration program to bring the Goldboro Property to feasibility. The program will include outlining, via drilling, the high grade gold potential of the central segment of the Boston-Richardson Anticline (refer to Figures 1 and 2), over a 1 kilometre strike length (Phase 2); delineation drilling of additional high grade lenses along the entire length of the BR Anticline from Dolliver Mountain to East Goldbrook corridor, a distance of 2.5 kilometre (Phase 3); and delineation and definition drilling along the Dolliver Mountain - East Goldbrook corridor to define sufficient gold resources to sustain a viable open pit and/or underground mine operation leading to an eventual feasibility study from the defined gold resources (Phase 4).
Mr. Jacques Levesque, Orex's President also adds "Orex shareholders will be rewarded for their patience with this major financing to develop the Goldboro Property, a task the Company had initially set out to do in the early 1990's. Once the financing in place, the Company will aggressively undertake the necessary work to outline a high quality gold resource along the full 2.5 kilometre mineralized Boston-Richardson Anticline, leading towards feasibility in 2007."
The technical information in this press release has been prepared by Mr. Jean Lafleur, Geo. (OGQ), the Company's independent mineral exploration consultant and Qualified Person under the NI 43-101 guidelines.
Figures are available on CCNMatthews' website at the following address:
OREX EXPLORATION INC. Jacques Levesque President (819) 797-4354 Fax: (819)797-2454 OR OREX EXPLORATION INC. David Hatchette Director (902) 469-1936 www.orexexploration.ca
The TSX Venture Exchange does not accept any responsibility for the adequacy or accuracy of this press release.
-------------------------------------------------------------------------------- Source: OREX EXPLORATION INC.
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Work completed by Orex on the Goldboro property consists of diamond drilling, underground development work on two separate levels by way of a decline ramp, installation of a head frame and hoist over the old Boston-Richardson shaft, and completion of extensive metallurgical tests on ore samples.
To date, Orex has spent over $18.9 million in exploration work on this gold-bearing property.
gold is there. It appears to be in saddle reefs, similar to Beardmore.
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Gold Mining in the Area The story that surrounds the first discovery of gold in the Goldboro area seems a little too strange to be true, but is taken from a report to the Chief Gold Commissioner in 1862.
It seems a young man named Elias Cook was prospecting in nearby Wine Harbour. He collected some samples of gold-bearing quartz and returned with them to the area around Goldboro. Because Cook noticed that the rocks of the area resembled those he had seen, he decided to try and find gold in the Isaac's Harbour/Goldboro area. Together, he and a friend, Allan McMillan, began their search. For some unknown reason, Cook didn't empty his pockets and unknowingly dropped some of the samples he had found in Wine Harbour. McMillan found the samples and thought it was new gold. The two men rejoiced in their discovery and ran to town. Many excited people returned, but found nothing.
After the frustrated villagers left, Joseph Hynes resumed the prospecting in a slightly different area. He discovered several good samples and the Gold Rush was on.
Many companies were formed and dissolved over the next 80 years as they tried to mine gold in the area of Goldboro. Although a great deal of gold was discovered, the area was never able to produce gold in consistently viable commercial quantities. Mining activity ceased to be a major concern sometime during the 1940s.
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