Oroco Resource Compressed Timeline to Production

We�ve seen a lot of junior mining companies come and go, but its seldom that we see one as focused as Oroco Resources Corp (TSX.V:OCO) when it comes to moving a prospective deposit quickly along the exploration process. Oroco has gone from Initial Public Offering in March last year to 43-101 resource calculation in just under a year and is aiming towards a production decision and the completion of a pre-feasibility study in under a year from now.

The National Instrument 43-101 compliant study concludes that work to date on the property has outlined an indicated resource of 7,450,000 tonnes with an average grade of 1,25 grams per tonne gold, 12.8 grams per tonne silver, and 1.02% zinc (297,000 ounces of gold) contained within a larger indicated resource of 25,250,000 tonnes with an average grade of 0.52 grams per tonne gold, 8.6 grams per tonne silver, 0.34% lead and 1.02% Zn and, in addition, a total inferred resource of 4,690,000 tonnes with an average grade of 0.17 grams per tonne gold, 19.4 grams per tonne silver, 0.37% lead and 1.20% Zn. Within the larger resource is contained 445,000 ounces of gold, 9.9 million ounces of silver, 742 million pounds of zinc, and 244 million pounds of lead.

The company drilled 22 holes on its 100% owned Cerro Prieto project in northern Sonora State, Mexico, and every single hole penetrated the target mineralized zone.

�We are excited about the success of the phase one exploration program and the rapid development of the resource at Cerro Prieto, said company president Ken Thorsen. �Given the geological modeling completed to date, we expect to drill more of the same during phase two.�

In all, Oroco completed 5,975.1 meters of Diamond drilling in 22 drill holes during Phase One exploration in 2008. Average drill hole spacing was approximately 100 meters and 600 meters of strike length were drilled at this spacing. Phase Two drilling will test an additional 1600 meters of strike where continuity of mineralization has been confirmed by a step out hole and trenching and strongly indicated by the presence of historical mining.

Oroco starts Phase 2 drilling this month, and has doubled the land position at Cerro Prieto through the acquisition of an additional 4,200 hectare block from Yaman Gold Inc. (TSX:YRI) The additional ground covers projected extensions to the north and south of the mineralized shear zone on Cerro Prieto, and total 9.2 kilometres and include 1.7 kilometres of projected strike length between Cerro Prieto and the Company�s 100% owned Cerro Prieto North claim (�CPN Claim�) and 7.5 kilometres to the south of Cerro Prieto. This brings the entire strike length to a potential18 kilometers.

Its no surprise to industry observers that the project is moving along so rapidly. The management team under the leadership of Ken Thorsen reads like a who�s who of the mining industry, and not so much in terms of exploration as in experience putting mines into production.

Thorsen himself has 40 years experience in the mining business including 15 years as a student and field geologist with Selection Trust, three years with Saskatchewan Mining and Development Corporation (Cameco), 21 years with Teck Corporation (TSX, NYSE:TCK) and six years as a consultant. During this period, Thorsen was directly involved at the field level with the discovery of three ore bodies and at the management level with the discovery and development of three additional ore bodies. Prior to becoming a consultant in 2002, Thorsen worked in senior exploration management at Teck, including a two year period managing its world wide exploration as President of Teck Exploration Ltd.

The company�s chairman, Stephen Leahy, doubles as CEO of TSX Venture Exchange-listed North American Tungsten, one of the world's largest producers of tungsten concentrate, a strategic industrial metal required in a wide variety of products ranging from jet turbine engines and high-speed cutting tools to electronic circuitry and surgical instruments.

Mexico is the world's second largest silver producer, and ranks 11th in terms of global copper production. The country's biggest gold mine, La Herradura in Sonora state is owned and operated as a joint venture between Newmont Mining (NYSE: NEM) and Mexican mining conglomerate Industrias Penoles.

Sonora State accounted for 24% of all mineral production in Mexico in 2006, and the proliferation of exploration and mining companies with offices in the state capital of Hermosillo are testimony to the prolific mineral potential of that part of the country. Oroco�s Cerro Prieto lies 135 km north of Hermosillo.

National Grid power lines and a paved road leading to the State�s major highway are each less than five kilometres from the property. Ground water is available on site and a river flows year round four kilometers south of the property. There are numerous nearby road and rail links to ports in the state of Sonora. The project is being modeled as an open pit, heap leach gold producer, with significant silver and zinc credits. Mining costs at comparable operations in Sonora run well under $5 per tonne and Oroco�s average grade of 1.24 grams per tonne gold put it at the high end of the range when compared to other resources being mined or slated to be mined in the region.

Oroco is currently closing a recently announced private placement financing of CA$1.2 million, and so the company is well capitalized to execute the phase 2 drill program now underway.

Although currently focused intently on advancing the Cerro Prieto deposit, the company also holds a 100% stake in two contiguous mineral concessions in Guerrero, Mexico; Celia Generosa and Celia Gene, totaling 193 hectares and together called the Xochipala Project.

According to a report issued in 1997 by geologist Tawn Albinson, �The Xochipala claims cover ground in the Guerrero Gold Belt sufficient to potentially generate reserves greater than 1 million ounces gold in ore bodies similar to the productive high-grade ore bodies that have been discovered in the past within the region.�

The Xochipala Project is located in the southeast extreme of the original Morelos National Mining Reserve, a 49,400 ha federal mineral reserve which includes the most promising and expanding gold reserves in Mexico. This region encompasses a northwest trend of intrusions with associated gold bearing iron skarn deposits and is part of a wider area which has come to be known as the Guerrero Gold Belt (the �GGB�).

The GGB is currently the focus of aggressive exploration, delineation, development, and mining by Canadian and Mexican majors. Teck Cominco, Goldcorp and Grupo Mexico are exploring and delineating gold reserves in the GGB and to date have discovered in excess of 12 million ounces of gold.

Oroco currently has just over 27 million shares outstanding. Follow the company�s progress at www.orocoresourcecorp.com.

SOURCE: http://www.midasletter.com/news/09062406_Oroco-resources-compressed-timeline-to-production.php