Mexico - Chalchihuites

Location & Accessibility

The Chalchihuites Property is situated in the municipality of Chalchihuites in the State of Zacatecas, about 100 kilometres southeast of the city of Durango, State of Durango and 100 kilometres northwest of Fresnillo, Zacatecas, Mexico. It is easily accessible year round by paved highway to the town of Vicente Gerrero, and then south-southeast via secondary roads to Gualterio and south to Chalchihuites. Power is available at the site and exploration and mining crews are available from Chalchihuites, Durango and Fresnillo.

Recent Activity

A summary report on the Chalchihuites Property was originally prepared by Peter A. Christopher, P.Eng., in April 2003. The report was not prepared in the form required by NI 43-101 and as a result has not been filed with Sedar.

Through an agreement with Minera Montana R.L. de C.V. in March, 2003, Oremex obtained the right to acquire the Chalchihuites Property and four other properties in the State of Durango and one property in the State of Zacatecas. In September 2007, Oremex acquired Minera Montana and its portfolio of properties in Mexico.

Oremex has maintained the Chalchihuites Property in good standing, but has not performed any field work on the property this year. The Company plans to conduct an assessment of this property by year end and may offer the property for joint venture.

Topography & Geology

The district geology consists of Lower to Upper Cretaceous Cuesta der Cura Formation and Indidura Formation limy sedimentary rocks that have been intruded by Tertiary granodiorite and quartz monzonite stocks. The largest body of granitic rock forms the Chalchihuites Sierra. Tertiary volcanic rocks occur mainly in the eastern part of the area and include Lower Volcanic Complex andesites and dacites, Upper Volcanic Complex rhyolite tuff and breccia and recent basalt and andesite flows.

Cretaceous rocks form anticlines and synclines oriented N45°W and parallels the strike of the Chalchihuites Sierra. Veins on the property have east-west, northeast and north-south trends. Mineral deposits in the Chalchihuites Mining District produced silver, lead, copper, zinc, kaolin and minor tin, mercury and gold that comes from veins, chimneys, skarns and mantos.

History & Previous Workings

Mineral deposits of the Chalchihuites district were known and exploited by natives before the Colonial Period. The Spanish colonialists found the district in the period 1530-1556 at about the same time as the Zacatecas district was found. The first mining companies, among them Fresnillo and Penoles, started operating in the district in the 1930s. Since 1947, the Compania Minera Victoria Eugenia has operated some of the regions mines Consejo de Recursos Minerales (“CRM”, 1992). There are active mines in the area.

The Chalchihuites Mining District is reported to have produced large amounts of silver since pre-Columbian time, but production records allow for only speculative estimates of total production. For example, the CRM reported that in 1992, the Raul Mazatan mill processed 50 tonnes per day, Enrique Santos Marentes mill processed 250 tonnes per day, Minera Victoria Eugenia mill processed 250 tonnes per day and Besmer mill processed 80 tonnes per day. The Company has not researched these statistics and the status of any of these operations is unknown.

The Chalchihuites Property host veins containing silver, lead and zinc with minor copper and gold. The main veins have been exploited and mined by using a number of adits and shafts. Historic sampling plans probably exist and would expedite evaluation of the property. Some of the old underground workings are accessible and might provide sites for sampling of veins.

Technical Reports

No Technical Report has been filed for the Chalchihuites Property.