VANCOUVER, April 1, 2020 /PRNewswire/ - Oroco Resource Corp. (TSX-V: OCO) ("Oroco" or "the Company") announces that as a result of a disclosure review by the British Columbia Securities Commission ("the BCSC"), the Company wishes to clarify and amend its disclosures with respect to its Santo Tomas porphyry copper project ("the Project") in northwest Mexico, specifically as those disclosures relate to the treatment of an historical resource as reflected in a Technical Report filed in September, 2019 and technical information distributed since that time.
The BCSC reviewed the Company's October, 2019 and March, 2020 corporate presentations (the "Presentations") and its current technical report dated August 22, 2019 and titled "Technical Report Geology, Mineralization, and Exploration of the Santo Tomas Cu-(Mo-Au-Ag) Porphyry Deposit Sinaloa, Mexico" authored by D. A. Bridge, P. Geol." (the "Report"). Both the current Presentation and the Report have been removed from the Company's website pending revision. The disclosure issues in the Presentations and the Report with respect to National Instrument 43-101 (the "Instrument") and Form 43-101F1 are summarized in the following discussion.
With regard to the Presentations, they do not include all information required by the Instrument with regard to the Historical Resource Estimate each time it is disclosed. The Presentations also include mineral equivalent grades contrary to the Instrument and do not identify and disclose the relationship to the Company of the qualified person who prepared, supervised or approved the technical information disclosed in the Presentation.
With regard to the Report, it does not, in all places where the Historical Resource Estimate is disclosed, include all information and cautionary language required by the Instrument with regard to the Historic Resource Estimates; includes historical economic analysis contrary to the Instrument; and it uses the word "ore", which with the disclosure of an Historical Resource Estimate, implies technical and economic viability not supported in the Report. The Company advises that, as a consequence, the Report is not compliant with the Instrument and Form 43-101F1 and should not be relied upon until a revised technical report is filed.
The Company wishes to clearly reiterate that it does not classify the Historic Resource Estimate referred to in the Report as a current mineral resource and that it is not treating the Historical Resource Estimate as a current mineral resource. The historical work is being used by the Company solely to plan and guide the location of future exploration geophysics and drilling.
The Company is working with counsel and technical Qualified Persons to correct the disclosures as required.
The technical information in this News Release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 ("NI 43-101") and has been reviewed and approved on behalf of the Company by Mr. Paul McGuigan, P. Geo., of Cambria Geosciences Inc., a Qualified Person under NI 43-101.
The Company holds a net 61.4% interest in the collective 1,172.9 ha core concessions of the Santo Tomas Project in NW Mexico, and may increase that majority interest up to an 81.0% interest with a project investment of up to CAD$30 million. The Company also holds a 77.5% interest in 7,807.9 ha of mineral concessions surrounding and adjacent to the core concessions (a total project size of 22,192 acres). The Project is situated within the Santo Tomas District, which extends from Santo Tomas up to the Jinchuan Group's Bahuerachi project, approximately 14 km to the north-east. Santo Tomas hosts a significant copper porphyry deposit defined by prior exploration spanning the period from 1968 to 1994. During that time, the property was tested by over 100 diamond drill and reverse circulation drill holes, totaling approximately 30,000 meters. Based on data generated by these drill programs, a Prefeasibility Study was completed by Bateman Engineering Inc. in 1994.
The Santo Tomas Project is located within 160km of the Pacific deep-water port at Topolobampo, and is serviced via highway and proximal rail (and parallel corridors of trunk grid power lines and natural gas) through the city of Los Mochis to the northern city of Choix. The property is reached by a 32 km access road originally built to service the El Sauzal Mine of Goldcorp in Chihuahua State.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward Looking Information
This news release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact included herein, including without limitation, statements relating to future events or achievements of the Company, are forward-looking statements. There can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated or implied in such statements. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these matters. Oroco does not assume any obligation to update the forward-looking statements should they change, except as required by law.
SOURCE Oroco Resource Corp.