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Oroco Resource Corp. (TSX-V:OCO), founded in 2006, is a Canadian Vancouver-based mineral exploration company with a history of and expertise in the development of gold and copper resources in Mexico. In 2007 the company acquired a 100% interest in the 193 hectares Xochipala Project located in the southeastern part of the Morelos National Mining Reserve, part of the Guerrero Gold Belt, in the Mexican state of Guerrero. Oroco also holds a controlling interest in the Santo Tomás porphyry copper project encompassing 9327.2 hectares of contiguous mineral concession in Sinaloa and Chihuahua State, Mexico.

PROJECTS

Santo Tomás

Santo Tomás is situated within the Laramide porphyry copper province, the world’s second-largest stretching from the southwestern United States to northern Mexico. The property is located along the banks of the Rio Fuerte in northern Sinaloa State, Mexico approximately 30 kilometers from the town of Choix.

Exploration on the property from the 1960s to the 1990s defined a significant resource of porphyry copper mineralization at Santo Tomás, though evidence of artisanal mining dates back to the early 1900s.

Initial drilling was conducted by American Smelting and Refining Company (Asarco) in 1968, by Tormex-Penoles in the 1970s and by the Esmerelda Group, Minera Real De Angeles, and Exall Resources Ltd in the 1990s. In total approximately 30,000 meters of core and reverse circulation drilling across more than 100 holes has been conducted on the property. The resultant resource estimate identified a resource of approximately 600 million tonnes with an average grade of 0.367% Cu in a proposed North Pit, and 350 million tonnes at 0.309% Cu in a South Pit. A 1994 Pre-Feasibility study by Bateman Engineering (now Tenova) [4] confirmed an operation producing approximately 125,000 tons of copper at 28% Cu concentrate per annum. A decline in copper price and subsequent legal title dispute impeded further advances at Santo Tomás.

Following the successful resolution of the dispute in January 2020, Oroco took a controlling state in the property, which to date includes the Santo Tomás core concessions comprising 1,172.9 hectares, with an additional 8,154.3 hectares in adjacent peripheral concessions. The company holds a net 85.5% interest in the core concessions and an 80% interest in the surrounding and adjacent concessions.

Oroco began an expansive exploration program in 2020 encompassing the use of 3D induced polarization surveys and a 18-24 months drilling program to confirm as well as expand the historical resource. New research suggests that, at the end of this process, Santo Tomás could emerge as one of Mexico’s largest copper deposits. The company began exploratory drilling operations in July 2021  and has announced plans to conduct more than 100,000 meters of diamond core drilling. Phase 1 of the drill program concluded in May 2023 totalling 47 diamond drill holes encompassing 30,909 m of drilling in the North Zone and 21 holes totalling 12,154 m in the South Zone. The 2021-2023 drill program spanned a strike length of 1,600 meters in the North Zone and 1,500m in the South Zone. In addition, not contained in the MRE, the company drilled seven holes spanning 800 strike length in the adjacent Brasiles Zone.

In May 2023 the company released the results of an independently calculated mineral resource estimate (MRE), prepared by Ausenco and SRK Consulting, using data from the 2021-2023 exploration program. The MRE identified a total indicated sulfide resources of 487.3 million tons of 0.36% equivalent copper at a cut-off grade of 0.15% Cu. Metal recoveries were identified as 84.3% Cu, 66% Mo, 57% Au, and 54% Ag resulting in contained metal of 3,864 million pounds of CuEq. In addition, the estimate finds inferred sulfide resources of 599.9 million tons of 0.36% CuEq assuming a 0.15% Cu cut-off, equalling 4,697 million pounds of CuEq.

The MRE will support the upcoming Preliminary Economic Assessment (PEA) slated for release during summer 2023.

In Oroco 2023 Ausenco completed a NI 43-101 compliant Technical Report and Preliminary Economic Assessment. The PEA confirmed Santo Tomas’ prospect as a low capital intensive project with a US$2.33 billion pre-tax NPV (8%) and US$1.24 billion after-tax NPV (8%) with a life-of-mine copper production of 4,749 million pounds.

Xochipala

The Xochipala Property is located in Guerrero State, Mexico and comprises the Celia Gene (100 ha) and the Celia Generosa (93 ha) concessions. The concessions are located adjacent to the town of Xochipala in the municipality of Eduardo Neri, Guerrero, Mexico at the southern end of the Guerrero Gold Belt. The state capital of Chilpancingo lies at distance of 30 kilometers.

As of 2023 the company continues to evaluate the next steps in the exploration of the property.

Salvador

The Salvador Property, also located in Guerrero State, Mexico comprises a 100-hectare mining concession wholly owned by Minera Xochipala, a subsidiary of Oroco. The property is located approximately 25 kilometers to the west of the adjacent Xochipala property. The property hosts skarn mineralization and felsic intrusions indicative of ore deposits.

PAST PROJECTS

Cerro Prieto

Oroco completed the sale of its interest in the Cerro Prieto Property to Goldgroup in 2013.

The project is located in northern Sonora state, with mineral concessions covering an area of about 7,000 hectares. In addition to the sales price of USD 4.5 million Goldgroup agreed to a monthly production royalty for the first 90,000 ounces of gold produced from the mine. During the fiscal year 2022 the royalty represented $899,957.