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Canadian mineral exploration company Orex Minerals has exercised the first option and formed a joint venture (JV) with Canasil Resources to earn 55% ownership interest in the Sandra Escobar project in Durango state, Mexico. 

Orex formed a joint venture pursuant to an option agreement dated 15 September 2015 with Canasil Resources.

Orex paid Canasil C$500,000 ($381,519) for 55% ownership interest after investing more than $2m in exploration and development in the Sandra Escobar project.

Both companies will form a joint committee responsible for managing ongoing exploration at the project.

Orex and Canasil will have membership at the committee based on their proportional interest at the project.

"Both companies will form a joint committee responsible for managing ongoing exploration at the project."

Under the option agreement, Orex has a second option to earn an extra 10% interest in the property by paying another C$500,000 and investing a further $2m for development and exploration of the Sandra Escobar project in the next two years. Orex informed Canasil that it would not use this option.

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By GlobalData

Orex president Gary Cope said: “We are looking forward to further exploration at the Sandra Escobar project with Canasil as our joint venture partner.”

Located towards the north of Tepehuanes town, the Sandra Escobar project is situated in the Mexican Silver Trend that is known to host one of the largest silver deposits.

The project comprises 6,976ha of mineral concessions and includes several mineralised epithermal quartz veins and breccia structures.

These veins host silver-gold-base metals system in its andesitic and rhyolitic rocks.