oroco resource corp oco may 2009 update
TRANSCRIPT
TSX-V: OCO
Frankfurt: OR6
www.orocoresourcecorp.com
DISCLAIMER
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.
PROJECT LOCATIONS
HIGHLIGHTS
Gold resource: 300,000 ounce indicated oxide gold resource with 85% extraction in preliminary leach tests.
Zinc resource : +500,000,000 pound zinc resource with 85.3% extraction in preliminary leach tests.
Oxide gold and zinc resources open along strike in both directions.
Recent expansion of landholdings with Yamana property option Agreement, 7,000 ha concession total containing 17.5 km of strike length
Sulphide resource open to depth and north and south on strike. Drill Hole CP011 intersected 10% combined lead and zinc, 0.78% copper and good silver and gold credits over significant width.
Thickness of zone, topography and grade indicate potential for very low cost initial open pit operation focused on mining the oxide gold resource.
Premier logistics include water source, paved highway and national power grid within 10 kilometers and good mining work force within one hour of project.
Mining friendly Mexico gives the opportunity to put project into production within a short time frame.
•7,000 Ha Land Position Containing 17.5 km Strike Length
•Cerro Prieto $2.5 Million Purchase Price Fully Paid
•4,200 Ha Property Option With Yamana Gold
CERRO PRIETO PROJECT SURFACE PLAN
2008, Phase 1 Exploration Program Managed by Ing. Antonio Montante
• 6,000 meters (22 holes) diamond drilling over 600 meter strike length
• Trenching successful along 1,250 meter strike length
• $1,000,000 program completed on time and on budget
• Mineralization remains open on strike north and south and to depth
• Mineralized structure continues on Yamana Option Concession and Cerro PrietoNorth concession
NI 43-101 COMPLIANT 7.5 MILLION TONNE INDICATED GOLD RESOURCE USING 0.5 G/T Au CUT OFF
CATEGORY CUT-OFF TONNES Au Ag Pb Zn (g/t Au) (g/t) (g/t) (%) (%)
INDICATED 0.5 7,450,000 1.24 12.8 0.41 1.04INFERRED 0.5 140,000 0.99 11.2 0.73 1.98
CATEGORY TONNES GOLD (OUNCES) SILVER (OUNCES) LEAD (POUNDS) ZINC (POUNDS)INDICATED 7,480,000 297,000 3,066,000 67,321,200 170,766,000INFERRED 140,000 4,500 50,400 2,252,500 6,109,500
CONTAINED METAL IN 0.5G/T GOLD CUTOFF RESOURCE
NI 43-101 COMPLIANT 20.4 MILLION TONNE INDICATED RESOURCE USING 0.5 % ZINC CUT-OFF
CONTAINED METAL IN 0.5% ZINC CUT-OFF RESOURCE
CATEGORY CUT OFF TONNES Au Ag Pb Zn (% Zn) (g/t) (g/t) (%) (%)
INDICATED 0.5 20,440,000 0.43 8.7 0.38 1.2INFERRED 0.5 6,290,000 0.13 14.5 0.3 1.04
CATEGORY GOLD (OUNCES) SILVER (OUNCES) LEAD (POUNDS) ZINC (POUNDS)INDICATED 282,600 5,717,400 171,189,100 540,597,100INFERRED 26,300 2,932,400 41,589,500 144,176,900
CERRO PRIETO PROJECT MINERALIZATION
• Subvertical orientation
• Up to 65 meters true thickness
• Oxide to 350 meters from surface
• Topographically amenable to open pit mining
CERRO PRIETO PROJECT LONGITUDINAL SECTIONMETAL DISTRIBUTION
Gold distribution
Zinc distribution
CERRO PRIETO MINE LOOKING NORTH
CERRO PRIETO PROJECT: LOCATION AND INFRASTRUCTURE
CERRO PRIETO 3D UNDERGROUND ANIMATION
Water Table
9 Level
10 Level
Shaft8 Level
500m
1,250m
1,000m
750m
OXIDE
SULPHIDE
2008 OROCO DRILL HOLES
PROPOSED 2009 DRILL HOLES – OROCO CLAIM
PROPOSED 2009 DRILL HOLES – YAMANA CLAIM
OROCO LONGITUDINAL SECTION
500 Meters
OXIDE GOLD
RESOURCE
OROCO CLAIM
BOUNDARY
1000 Meters 500 Meters
CP023Ç ÇHistorical Workings
OROCO RESOURCE CORP.
PROGRAM AND BUDGET TO PREFEASIBILITY MAY 2009
DIAMOND DRILLING: Cerro Prieto Claims – 7400 m 800,000
Yamana Option – 8000 m 885,000
METALLURGY, ENGINEERING, ENVIRONMENT 1,000,000
SUPERVISION AND OVERHEAD 840,000
Sub Total 3,525,000
OTHER EXPLORATION: Cerro Prieto North 625,000Yamana Option (non oxide) 850,000
Sub Total 1,475,000
GRAND TOTAL 5,000,000
DRILL, DEFINE, MINE: CRITICAL PATH TO MINING
Jan 2009 Complete resource estimate, begin metallurgical studies and preliminary mine plan
May 2009 Commence infill and extension drilling
Nov 2009 Complete drilling Complete environmental studies
Jan 2010 Complete updated resource calculation Commence prefeasibility
Jul 2010 Complete prefeasibility study
Oct 2010 Begin construction
Apr 2011 Complete construction
HIGHLIGHTS
Gold resource: 300,000 ounce indicated oxide gold resource with 85% extraction in preliminary leach tests.
Zinc resource : +500,000,000 pound zinc resource with 85.3% extraction in preliminary leach tests.
Oxide gold and zinc resources open along strike in both directions.
Sulphide resource open to depth. CP011 intersected 10% combined lead and zinc, 0.78% copper and good silver and gold credits over significant width.
Thickness of zone, topography and grade indicate potential for very low cost initial open pit operation focused on mining the oxide gold resource.
Premier logistics include water source, paved highway and national power grid within 10 kilometers and good mining work force within one hour of project.
Mining friendly Mexico gives the opportunity to put project into production within a short time frame.
CAPITAL STRUCTURE
Shares Issued and Outstanding* 27,593,521
Stock Options and Warrants 7,551,760
Shares Issued and Outstanding 35,145,281Fully Diluted
Common Share Listing: TSX.V:OCOFrankfurt: OR6
*Management Holdings +11,000,000
DIRECTORSStephen M. Leahy, Executive Chairman, Director
• Founder of North American Tungsten
• Over 26 years of experience in venture capital
• Chairman, CEO, Director of North American Tungsten Ltd.
Ken Thorsen, President and CEO, Director
• Over 40 years of experience in the mining business
• 8 years with Selection Trust; 3 years with Cameco
• 21 years with Teck Corporation and 7 years as a consultant
• Senior Exploration Executive at Teck Cominco
including 2 year period as President of Teck Exploration Ltd.
Robert Friesen, Director
• Over 40 years of experience in mining and minerals exploration
• 7 years as Chief Geologist with Noranda Group
• 5 years as a Project Geologist with Teck Exploration Ltd.
Casey Forward, Director and Chief Financial Officer
• Over 25 years of accounting experience in North America and the
United Kingdom with numerous public companies
TSX-V: OCO
Frankfurt: OR6
www.orocoresourcecorp.com