Santa Cruz Returns to Production: Exploration Continues in the Santa Cruz Mining Camp, Durango, Mexico

Ben Whiting, Douglas Cavey and Jesus Betancourt 1er Congreso “Tendencias de la Actividad Minera en Mexico” 4 – 6 Septiembre 2008

Forward Looking Statements

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This presentation may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forwardlooking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Orex relies upon litigation protection for forward-looking statements.

Content of Presentation

The Joint Venture - People Santa Cruz Project - Introduction Setting Objectives and Targets History Geology and Exploration Production Summary


Santa Cruz Au-Ag-Cu Project
A joint venture between

Silverex, S.A. de C.V.
Durango, Mexico and

Orex Minerals Inc.
Vancouver, Canada


A strong technical and management team: C.P. Victor Salas Gamero – President, Silverex Ing. Victor Salas Martos – VP Operations, Silverex Mr. Gary Cope – President, Orex Ing. Ben Whiting – Chief Geologist, Orex Ing. Art Freeze – Director, Orex Ing. George Cavey – Director, Orex Ing. Miguel Davila – Technical Advisor Project Leaders – Douglas Cavey and Jesus Betancourt


Orex Minerals Inc. (TSX Venture Exchange: REX) is REX pleased to have as joint venture partners Silverex SA de CV of Durango, Mexico We are focusing on the exploration and development of Silver and Gold in Mexico, starting with the Santa Cruz Project

Regional Map – Durango, Mexico

Objectives and Targets

Main Objectives
• Explore a highly prospective and very under-tested epithermal Au-Ag mining camp in the heart of the “Silver Lake Trend” Sierra Madre Occidental How large, but still realistic, can our targets be?

Objectives and Targets

Potential target types: San Dimas (Tayoltita) - Goldcorp La Cienega - Peñoles

Objectives and Targets

2. Return

to Production

Initially this is at a small scale with the current Santa Cruz Mill at 50 tonnes/day, increasing to 90 tonnes/day --- Depending on exploration success, how large an operation might be possible?

Potential target scales:
San Dimas – Goldcorp – 2,300 tonnes/day La Cienega – Peñoles – 3,000 tonnes/day


Santa Cruz, like many Mexican mining camps, has a Cruz long history of exploration and production at a small scale 1780s – Earliest phases of small scale mining. 1908 – Santa Cruz Mining Company (SCMC) created. 1910-1917 – Mexican Revolution. 1918-1934 – Intermittent production by SCMC. 1967-1983 – Private – Dougherty Family 1985-present – Private – Salas Family 2005 – Short exploration program by Minco 2007 – Orex Minerals joins with Silverex 2008 – Exploration and Production Resume

Current Status

Where do we stand today?
Santa Cruz is a large contiguous land package of 16,502 hectares (~ 42,200 acres) mining camp Historic producing mining operations on the property A permitted flotation mill and support infrastructure, reactivated in 2008.  33 linear kms of Au and Ag bearing veins, with effectively no historic drilling.  A renewed exploration effort at a time of strong worldwide metal demand.


Geological Setting is of intermediate epithermal gold-silver and base metals veins hosted in Tertiary volcanics of the Sierra Madre Occidental.
The high plateaus are capped by rhyolites and dacite tuffs of the “Upper Volcanic Series” Main host for the veins is andesite tuffs and andesitic agglomerate of the “Lower Volcanic Series” resting on a basement of Cretaceous metasedimentary rocks.  Multiple mineralized structures, with extensive alteration, over 33 linear kms of Au and Ag bearing veins.  Bonanza high-grade mineralization targets are present.

The Santa Cruz Camp

 The Santa Cruz camp is divided into three structural districts – Eastern, Central and Western as follows;

Santa Cruz Project Map

Eastern District

Multiple northeast and east striking veins, exceeding 8 kms, include La Fragua, Orozco, Las Trojas, San Luis, San Jose, San Pedro, San Juan (east) and San Benedicto. Current tennantite-tetrahedrite (commenced late April 2008) production is from the La Fragua Mine. This is on east to northeast striking structures, with narrow, but high-grade veins.  Small-scale mine extracting tennantite-tetrahedrite (Cu, Ag, Au) direct-shipping ore being sent to China.  Additional material from La Fragua not meeting the direct shipping classification is being processed in the Santa Cruz Mill, which restarted in mid-June 2008.  Two phases of drilling are planned for La Fragua and Orozco.

La Fragua – Quartz-Tennantite-Tetrahedrite Mineralization

Central District

 Multiple north, northeast and east striking veins exceeding 17 kms, include Santa Cruz, Guadalupana, Marte, Buena Suerte, Chino, Grande, San Juan and Guadalupe. Only the Chino and Grande veins have had a minor amount of historic drilling.  Santa Cruz Mine, a past producer with 17 levels of underground Mine development to a depth of 240 metres.  Drilling planned for the Santa Cruz vein to identify additional “clavos” (mineralized shoots) along strike adjacent to the mine workings.  Historic references of face sampling values over 0.25 to 1.00 m widths show grade ranges 2.0 to 11.5 grams Au/tonne and 1,990 to 30,776 grams Ag/tonne.

Santa Cruz Facilities – Mill, Dormitory, Office, Cookhouse

Western District

 Multiple northwest striking veins over 6 kms include Jesus Maria, Christian, Zambraneña, La Perla, Carmen, Creston and Cordon. Intense alteration zones envelop the veins. Old mine workings at Zambraneña and La Perla will be re-opened for examination and additional mapping. Historic references of face sampling values over 0.50 to 3.00 m width show grade ranges 1.0 to 26.0 grams Au/tonne and 900 to 3,500 grams Ag/tonne.  Highest grab sample recorded Au 5,500 g/t and Ag 110,000 g/t. Road extension of the Zambraneña Road (upper road) and Jesus Maria (lower road) has been conducted in 2008 to provide improved access. The Western District has never been drilled. Two phases of drilling are planned for 2008.

Jesus Maria Location

Sampling on Lower El Carmen Showing

Highlights of 2007 Sampling



Type (true width) Chip -1.50m Chip - 2.50m Rock grab Chip - 1.00m Chip - 1.10m Chip - 1.50m Chip - 1.50m Rock grab

Au (g/t) 0.370 1.002 1.233 10.060 1.444 13.150 7.780 6.500

Ag (g/t) 197.0 284.0 433.7 817.0 663.6 929.9 348.7 882.1

Ag * Equivalent 219.2 344.1 507.7 1420.6 750.2 1718.9 815.5 1272.1

Cu (ppm) 24 38 29 112 114 134 65 102000

Pb (ppm) 918 108 52 470 826 187 85 95

Zn (ppm) 1546 199 99 647 1630 382 215 2208

100003 100004 100006 100009 100011 100013 100014 100015

Carmen Carmen Zambraneña Jesus Maria Jesus Maria Christian Christian Santa Cruz

*Silver-equivalent is defined as silver grade plus 60 times gold grade. Metallurgical recoveries and net smelter returns are assumed to be 100% for this purpose. Base metal values are not included in the silver-equivalent value.

La Christian Showing

Exploration - Current Activities

 Current

activities on site consist of road and bridge repairs, as well as new road construction, to gain better access to Orozco in the east and Zambraneña and Jesus Maria in the west. The rainy season has made road conditions a priority. Ortho-photography has been flown and surveying control stations have been prepared for topographic control.  Reconnaissance sampling and geological mapping in the Western and Eastern Districts has also commenced, as well as the identification of drill targets. A drilling program is planned for the dry season.

Road Repairs – Jesus Maria Road

Proposed Budget 2008-09

Phase I
Diamond Drilling No. of Holes Metres @ $150/m Analytical Geol/Tech No. of Samples @ $25/sample (Re: Drilling) @ $10/metre Geological Mapping Licensed Surveying Support Services Report Preparation /Management Contingencies @ 10%

10 3000 $450,000 2000 $50,000 $30,000 $10,000 $5,000 $6,000 $10,000 $56,100

6 2000 $300,000 2000 $50,000 $20,000 $10,000 $5,000 $4,000 $10,000 $39,900

15 5000 $750,000 4000 $100,000 $50,000 $10,000 $5,000 $10,000 $20,000 $94,500


$1,500,000 $200,000 $100,000 $30,000 $15,000 $20,000 $40,000 $190,500






Proposed Budget 2008-09

Phase II
Diamond Drilling No. of Holes Metres @ $150/m Analytical Geol/Tech No. of Samples @ $25/sample (Re: Drilling) @ $10/metre Metallurgical Testing Licensed Surveying Support Services Report Preparation /Management Contingencies @ 10%

10 3000 $450,000 2000 $50,000 $30,000 $10,000 $5,000 $6,000 $10,000 $56,100

6 2000 $300,000 2000 $50,000 $20,000 $10,000 $5,000 $4,000 $10,000 $39,900

15 5000 $750,000 4000 $100,000 $50,000 $10,000 $5,000 $10,000 $20,000 $94,500


$1,500,000 $200,000 $100,000 $30,000 $15,000 $20,000 $40,000 $190,500






Production - Current Activities

Small-scale mining operation has resumed on the Eastern District’s La Fragua Mine. This is for production of direct-shipping high-grade tennantite-tetrahedrite ore and for mill feed.

 The Santa Cruz Mine existing buildings, used to house approximately 20 workers, are now refurbished and are being utilized.  Milling engineering consultants have examined the Santa Cruz Mill and tailings.  The Santa Cruz mill was overhauled and commenced operation in mid-June 2008 at an initial 50 tdp. Initial production results to be announced soon.

La Fragua – High-Grade and Stockpile Mineralization

Mill Renovations

South Ball Mill

Mill Renovations

Flotation Cells

Froth Flotation – Santa Cruz Mill

Fire Assay – Santa Cruz Lab

Summary  A two phase exploration geological mapping, sampling and diamond

drilling exploration program, consisting of 20,000 metres, has been proposed for the 2008-09 season. 25 kilometres of road repairs have been completed to improve access in the Central and Eastern Districts.  New road construction to improve access to the Western District is underway to complete an upper road to the Zambraneña and a lower road to the Jesus Maria areas. Resurfacing the Mesa de la Tortuga airstrip -1.6 Kilometres long, the longest airstrip in the region. Small-scale mining operation resumes on the Eastern District’s La Fragua. The Santa Cruz mill commenced operation in mid-June 2008 at an initial 50 tdp, with expansion planned to 90 tdp.

Airstrip – Santa Cruz

Capital Structure

Listing: Trading Symbol: Share Structure
Issued: Warrants: Options: Fully diluted:

TSX Venture Exchange REX

47,391,470 4,048,750 4,082,000 55,522,220 $300,000 $2,500,000 CDN $0.15 to $0.51

Working Capital Fully Diluted Working Capital 52 Week Low/High

Warrants Outstanding

Warrants Outstanding
Each warrant is exercisable into one common share Warrants Exercise Price 4,048,750 $0.20 Options Outstanding Proceeds 809,750 Expiry Date June 2009

Each option is exercisable into one common share Options 684,000 203,000 1,430,000 1,565,000 3,882,000 Exercise Price * $0.39 $0.28 $0.43 $0.27 $ Proceeds 266,600 56,300 615,150 424,550 1,362,600 Expiry Year 2009 2010 2011 2012

* Exercise price presented is a weighted average of all options that expire in the year.

Contact Information

Contact Information

Orex Minerals Inc. 2610-1066 West Hastings Street Vancouver, B.C. Canada V6E 3X2 Phone: +1.604.684.4691 Fax: +1.604.684.4601

Email: Web:

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