Canada-based junior exploration company Orex Minerals has entered into an agreement to form a joint venture (JV) with TSX-listed Pan American Silver, through its subsidiary Plata Panamericana (Pan American), to further explore and develop the Sandra project, formerly the Sandra-Escobar project, in Durango, Mexico.
Terms of the JV arrangement are based on a letter of agreement signed in July 2019.
The Sandra project is a consolidation of two groups of claims, each controlled by the two participant parties.
Orex and Pan American will own a 40% and 60% interest, respectively, in a new JV company that will be formed for the project.
Orex intends to finalise an initial programme and budget with Pan American and begin work on the project as soon as possible.
The project consists of the Sandra property of 6 335 ha and Escobar property of 635 ha of mineral concessions and covers multiple mineralised epithermal quartz veins, disseminated horizons and breccia structures.
These mineralized features form a high-level silver/gold/base metals system, hosted in andesitic and rhyolitic rocks, cantered on a large rhyolite dome complex in the north and silver systems in smaller rhyolite dome complexes to the southeast.
Intense alteration zones and fluid flooding in permeable formations indicates the presence of bulk tonnage targets.
Excellent infrastructure exists in the Sandra-Escobar area, including paved road access, electrical power, water and manpower from nearby communities.