Orex Minerals and Pan American Silver have entered into a joint venture (JV) agreement to further explore and develop the Sandra-Escobar silver-gold project in Mexico.
Pan American Silver will take part in the joint venture via its subsidiary Plata Panamericana.
The parties had announced their intention to form the joint venture last year. The joint venture has been named Empresa Minera Sandra-Escobar.
Orex Minerals will hold a stake of 40% in the joint venture, while the remaining 60% stake will be held by Pan American Silver.
Located in Tepehuanes, Durango State, the Sandra-Escobar project consolidates two groups of claims. The claims that are part of the project are controlled by Orex Minerals and Pan American Silver.
Orex Minerals will be the initial operator of the Sandra-Escobar project.
The two partners will make contributions to Empresa Minera Sandra-Escobar as per their respective ownership interests.
The Sandra-Escobar silver-gold project is located in the core of the “Mexican Silver Trend”, which is between the Tovar and Guanacevi mining districts.
It is made up of the Sandra property that spans 6,335ha and Escobar property, which is spread over 635ha.
The project covers various mineralised epithermal quartz veins, disseminated horizons, and breccia structures.
Orex Minerals president and CEO Ben Whiting said: “This is an excellent opportunity to consolidate the majority of the mineral district. There are multiple precious metal targets, as well as the existing Boleras Silver Deposit.
“We at Orex look forward to working with Pan American to advance the Sandra-Escobar Project.”
Orex Minerals plans to finalise an initial programme and budget for the silver-gold project with its joint venture partner and begin work as soon as possible.
The company is engaged in another silver-gold project in Durango. Orex Minerals is partnered by Fresnillo in the Coneto silver-gold project.
The Canadian company’s third project is the Jumping Josephine gold project, located in British Columbia.
