Orex Exploration

    Orex Exploration drills five m of 9.2 g/t Au



    2008-06-05 09:07 ET - News Release


    Mr. Mark Billings reports


    OREX EXPLORATION INC.: NEW ASSAYS FROM FIRST 5 DRILL HOLES OF 2008 AT GOLDBORO GOLD PROJECT CONFIRM DOWN-PLUNGE EXTENSIONS OF '123' AND '56' ZONES


    Orex Exploration Inc. has provided the results from the first five diamond drill holes of the phase 2A drilling program in progress at the company's wholly owned Goldboro gold project in northeastern Nova Scotia. BR08-01 intersected the 123 zone grading 9.2 grams per tonne (g/t) gold over a 5.0-metre core interval including a 1.5 m interval grading 29.1 g/t gold that included a 0.5 m interval grading 73.7 g/t gold. BR08-02 intersected the 123 zone grading 3.1 g/t gold over 15.0 m. The BR08-02 intersection is approximately 40 m down dip from the BR08-01 intersection.


    To date, 13 of the planned 16 holes (BR-08-01 to 13) comprising approximately 3,500 m of the 4,250 m phase 2A drill program have been completed. Selected higher grade assay results received for the first five holes(i) are in the table.

    New Buy Recommendation
    Orex Exploration Inc.
    Business: Exploration and development of a
    gold project in Nova Scotia with multimillionoz.
    potential
    Traded TSX Venture: OX
    Approx. Shares Outstanding: 100,000,000
    Price 4/25/08: $0.105
    Market Capitalization: $10 Million
    43-101 Gold Resource*: 800,000 oz.
    Progress Rating: “C”
    Telephone: 819-797-4354
    Web Site: http://www.orexexploration.ca
    *All 43-101 categories combined
    Your editor has recently agreed to interview various junior mining companies on behalf of IDNR-TV. The
    name of the show is Face the Analyst. It provides your editor with a chance to view mining companies, some of
    which may from time to time be deemed worthy of inclusion in this newsletter.
    On Monday and Tuesday of this past week, I interviewed no fewer than eight junior mining firms and I expect
    to review several of them further, with the possibility of adding them to this newsletter. In fact, I am taking the
    liberty this week to commence coverage on Orex Exploration Inc. because in my view this is one of the
    most 6 undervalued junior mining companies that I have seen of late. And believe me, with the junior
    mining stocks down so substantially from their highs, that is saying something.
    Orex is essentially a one-project company, which is unusual in that most of the companies we cover have
    several projects. However, that project, known as the Goldboro Project in Nova Scotia, is an advanced-stage
    project and a very good one at that. It already hosts a 43-101 resource of 800,000 ounces, broken down as
    follows: (1) 316,000 “Measured & Indicated” ounces and (2) 484,000 “Inferred” ounces.
    As I understand it, these ounces would be accessible via open pit so the project could potentially be a low-cost
    mining operation.
    But there are three other factors that make this an exceptionally exciting project:
    · Access to the property is easy and infrastructure as a whole is very good.
    · Metallurgical work suggests that because of the nugget effect of the gold mineralization, the actual
    grades look like they could be 2 or 3 times higher than the numbers used in the 800,000-oz. resource. In
    other words, we could be looking at 1.6 million oz. to 3.2 million oz. already on the Goldboro project.
    · The 43-101 resource has been calculated based on drilling along a 225-meter section of a gold-bearing
    structure that measures over 2,000 meters. In other words, only about 10% of the known gold-bearing
    structure has yet been drilled.
    So if you start with an open pittable gold deposit of 800,000 ounces, then multiply it by at least 2 to reflect a
    grade that is at least twice what is factored into the 43-101 number so far, and then realize that only a minor
    portion of the known gold-bearing structure has yet been drilled, it isn’t farfetched in my view to think a 3+
    million-ounce gold deposit—and possibly something much larger than that—could be in the making on the
    Goldboro Project.
    Yet this stock has a market cap of only around $10 million!
    BOARD OF DIRECTORS AND MANAGEMENT
    Mr. Ali Abbas Ali Al-Hazeem, President and CEO - Mr. Al-Hazeem is the Founder and Chairman of
    Amarium Commodities DMCC, a commodities brokerage and trading firm headquartered in Dubai (United
    Arab Emirates). Mr. Al-Hazeem is also a former director of the Kuwait Clearing Company S.A.K., of the
    Kuwait Real Estate Bank and of the Financial Group of Kuwait (Asset Management and Investment Banking
    Firm). He is a current Director and co-owner of Intercoil International Co. LLC, an industrial company based in
    Dubai. He was also a banker with Merrill Lynch International and with the Central Bank of Kuwait. Mr. Al-
    Hazeem is a venture capitalist and active investor on the Canadian markets. He received his MBA in financial
    studies from the University of Nottingham in the United Kingdom. He holds a Bachelor of Science in
    International Business Administration from the American University of Switzerland; furthermore he was an
    Adjunct Lecturer in finance at the American University of Dubai back in 1999. He was previously registered
    with the NASD, NYSE, CBOE and the Philadelphia Exchange (PHLX) as a general securities representative.
    Additionally, he was registered with the NFA and the CFTC as a commodities and futures representative. Mr.
    Al-Hazeem is also a director of Pershimco Resources (TSX-V: PRO) since October 2006, and of Odyssey
    Petroleum (TSX-V:ODE) since August2007.
    Mr. Mark Billings, Director and CFO - Mr. Billings is presently a Partner at Atwater Financial Inc., a
    Montreal-based financial consultancy that provides corporate finance services to Canadian small-cap
    companies. Prior to joining Atwater Financial he served as Chief Financial Officer of Dynasty Gaming Inc.
    (TSX-V: DNY), he also served as Vice-President of Corporate Finance with the Strategic Capital group of
    Desjardins Securities Inc. from 2004 to 2006, where he led a number of public and private financings and took
    companies public on the Canadian exchanges. From 2000 to 2003 he was Chief Financial Officer of G.P. Group
    Ltd.. From 1999 to 2000, Mr. Billings was Vice-President of Corporate Finance with Benvest Capital Inc.,
    which presently trades as Benvest New Look Income Fund (TSX: BCI.UN). Mr. Billings has a MBA from the
    7 Harvard Business School and a BA Political Science, from Carleton University. He is also a Chartered Financial
    Analyst(CFA).
    Mr. Louis Lapointe, Director - Mr. Lapointe is the owner of a private forestry equipment export company. He
    worked until recently as a corporate finance and business development consultant with biotech and software
    companies as well as prime brokerage groups and a Montreal based investment bank. For the past three years
    he has been working extensively with small cap private companies seeking expertise in financial investment and
    corporate structure. He hold a BA in Business Administration.
    Jean Lafleur, M. Sc., P. Geo. (OGQ) – Director - Mr. Lafleur is a Professional Geologist with 25 plus years
    of experience in various capacities in the mineral exploration field. He has worked as a geologist, exploration
    manager, vice-president exploration and technical advisor for a number of companies in Canada and
    internationally over career, most recently with Beartooth Platinum, Crowflight Minerals, McWatters Mining
    and Placer Dome. Since 2003, Mr. Lafleur has been a Mineral Exploration Consultant (as President of
    PJLEXPL Exploration Inc.) leading several multi-disciplinary teams within number of junior exploration
    companies in the search for precious and base metals, platinum-palladium, nickel and uranium. He specializes
    in marketing junior exploration companies and projects to the financial and investment communities. He is also
    a Director of Eloro Resources Ltd., Champion Minerals Inc., NioGold Mining Corporation, Rocmec Mining
    Inc.,and Pershimco Resources Inc.
    Claude Poulin – Director - Mr. Poulin, chartered accountant and income tax specialist, is an independent
    consultant since 1998. From September 1979 to August 1998, he was associate and director of the income tax
    department for KPMG in Rouyn-Noranda.
    David Hatchette – Director - Mr. Hatchette is a geologist graduated in 1985 from St-Francis Xavier University
    (Nova-Scotia). He has worked as geologist on the Company's Goldboro project from 1988 to 1990. He is
    currently working as a technical manager for an information and technology company.
    Julie Godard - Corporate Secretary - Mrs. Godard is a lawyer since November 1985. From 1986 to May
    1991 she was an employee of Bélanger Barrette, lawyers, Rouyn-Noranda. Since May 1991, she is an
    independant lawyer practicing in securities and in corporate fields.
    THE BOTTOM LINE
    We understand some management inadequacies in the past, combined with little promotion of this story, may
    have been responsible for this company’s lackluster stock performance, although we note that this entire sector
    has been weak so far this year. The point is, virtually no one is following Orex Exploration. As a result, it’s
    selling at a paltry 10 cents, despite the fact that it has an ironclad 43-101 gold resource of 800,000 ounces to its
    credit and that in all likelihood the actual resource is double or more that number.
    One can never assume continuity, but it is certainly possible that much if not most of the remaining 80% or 90%
    of the gold-bearing structure that has not yet been drilled may contain similar grades over similar dimensions. If
    so, we could be looking at a multimillion-ounce open-pit gold deposit for a company with a market cap of only
    about $10 million.
    In my view, the downside risk for this stock is minimal. The upside potential is most certainly a double over the
    next 12 months and it could be several times that, depending on the success of ongoing exploration and market
    conditions. In our view, this is one of the most attractive penny gold mining share speculations we have seen in
    some time.
    Again, we want to underscore the fact that there are never any guarantees in this business, so we don’t assume
    anything. That is why we want to remind you once again to allocate no more than 5% of your portfolio to this or
    8 any other one stock at the time of purchase. If you stick to that philosophy, the kind of success we think is
    possible for Orex can add significant value to your portfolio. On the other hand, if for some unforeseen reason
    we are wrong about this stock and it goes nowhere for an extended period of time, you will have saved valuable
    capital to employ in the purchase of others stocks, some of which will inevitably do well.
    Jay Taylor:
    http://www.miningstocks.com

    Orex and Osisko Sign Option and Joint Venture Agreement
    Nov 12, 2009 9:04:00 AM


    Email Story Discuss on ZenoBank


    View Additional ProfilesMONTREAL, QUEBEC--(Marketwire - Nov. 12, 2009) - OREX EXPLORATION INC. (TSX VENTURE:OX) (FRANKFURT:O5D) is pleased to inform its shareholders that it has signed an Option and Joint Venture Agreement (the Agreement) with Osisko Mining Corporation (TSX:OSK). As outlined in the Company's news release of September 29, 2009, Osisko now has a working right and an exclusive option to acquire up to a 60% undivided interest in Orex's Goldboro property and surrounding claims in Nova Scotia (collectively, the Property), by incurring exploration and development work expenditures and by making a private placement in the Company. Other terms of the Agreement include the following:



    - Upon signing of the Agreement, Osisko will close a subscription in
    the capital stock of Orex of 13,000,000 Units at a price of $0.10
    per Unit, for gross proceeds of $1,300,000. Each Unit consists of
    one common share and one transferable common share purchase
    warrant. Each transferable common share purchase warrant entitles
    its holder to acquire one common share for $0.125 for a period of
    three years. The common shares and underlying securities comprising
    the Units are subject to a four-month hold period.


    - In order to acquire a 50% undivided interest in the Property on or
    before September 29, 2013 (the Initial Option), Osisko shall incur
    exploration and development expenditures:


    - In the amount of at least $1,500,000 on or before September
    29, 2010;


    - In the aggregate amount of at least $3,500,000 on or before
    September 29, 2011; and


    - In the aggregate amount of at least $8,000,000 over the
    following two years, that is, on or before September 29,
    2013.


    - Osisko may, at its sole discretion, accelerate and apply
    exploration and development expenditures to future years'
    expenditures and, accordingly, the Initial Option may be
    exercised sooner.


    - Osisko shall solely fund a prefeasibility study to earn an
    aggregate 60% interest (that is, an additional 10% interest) in the
    Property on or before September 29, 2015 (the Additional Option).


    Between now and up to September 29, 2015 (the Option Period), Osisko will be the manager of the project. A Management Committee will be formed during the Option Period with two representatives from each party. This Management Committee will be responsible for revising programs submitted by Osisko and for approving and evaluating the results of all programs. In the event of a tie, Osisko shall have the casting vote during the Option Period.


    Upon acquiring a 50% or a 60% interest in the Property, a joint venture would be formed between Osisko and Orex.


    Mark Billings, President and CEO of Orex, commented, "The signing of this Option and Joint Venture Agreement with Osisko is a very significant milestone for Orex. By having Osisko now as our partner, this will help us advance more quickly the development of the Goldboro Property, with the aim of eventually having an operating gold mine."


    Subject to approval by the TSX Venture Exchange and other regulatory authorities, Orex may pay a finder's fee in connection with this transaction to Canaccord Adams in the amount of $65,000 in cash and 650,000 Units, which are to be issued on the same terms and conditions as the Units issued to Osisko and as described above.

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