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OREX GOLD MINES CORP.
(OTC BB: ORXX)
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The World's solution to eliminating sodium cyanide and its environmental destruction
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BUSINESS WIRE -- JUNE 7, 1999 -- "Orex is currently in various stages of negotiation with several mining companies for possible acquisition, joint venture, and processing agreements. The Company has been overwhelmed with inquiries and proposals from mining companies around the world and is carefully reviewing each one in order to maximize shareholder value."
BUSINESS WIRE -- JULY 13, 1999 -- "Orex announces Letter of Intent to acquire 2 mining companies. Orex will acquire the Santa Maria Mine and Mill,substantial reserves of moderate grade gold oresubstantial high-grade reserves of uranium, vanadium, mining equipment, contract mining agreements as well as a current contract with Phelps Dodge (NYSE PD).
Featured in "BUSINESS WEEK", April 19, 1999 - Page 156, "Developments to Watch" Section
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Introduction
Most technological improvements can be easily recognized. We come in contact with new technology on a daily basis whether its e-commerce, cellular text messaging, or conducting business from your seat on a plane. Technology effectively enriches our lives while enabling society and all forms of industry to be more productive. Even the mining industry has felt the benefits from new technology with the enhanced ability to locate and mine gold ore. Although the average annual price of an ounce of gold has dropped by over $100 during the past three years, gold producers still need to satisfy their shareholders with a respectable bottom line. Worldwide demand for gold is running about 30% ahead of supply according to the World Gold Council. This fact further requires gold producers to do just that... Produce. With gold prices at a 20-year low, there is greater emphasis being placed on employing the most effective and economical method of processing gold ore. This is where the break-through technology from Orex Gold Mines Corp. for providing a low cost and environmentally safe method of processing gold ore comes into play.
Gold Mining Technology
Much of the gold mined today consists of fine particles of gold disseminated in small concentration within the ore. The ore is crushed or ground to a fine powder and the gold is extracted from the ore by dissolving it. Gold in solution is subsequently separated from the original rock material of the ore and recovered as gold metal.
The four commonly used solvents that dissolve gold ore are hazardous and highly toxic: Cyanide, which is used in gold mining worldwide, is extremely poisonous. A few milligrams is fatal to humans. Mercury is hazardous as a vapor and in water-soluble saltsand corrodes membranes of the body. Aqua Regia is a concentrated mixture of hydrochloric and nitric acids that is toxic and extremely corrosive. Thiourea is a potent thyroid poison for humans, and recognized as potentially carcinogenic. Mercury amalgamation followed by cyanide leaching came into widescale use in gold mining. The basic chemistry regarding gold mining worldwide has changed little in over one hundred years. Cyanide continues to be the method of choice by far even though it and other toxic chemicals can contaminate the environment and kill.
The Opportunity
Technological progress has enabled us to use natural resources more effectively and to use the world's reserves to create new opportunities. Just as automation revolutionized the manufacturing industry, Orex Gold Mines believes the technology developed by Mr. Norman Haber will revolutionize the mining industry.
Orex Gold Mines Corporation (Orex) has the unique opportunity to be the first company to commercially use the "Haber Gold Process" (HGP) in the U.S. as a non-hazardous alternative to cyanide leaching for gold. This exciting new gold recovery process also enables gold to be recovered from ores that the traditional method of cyanide leaching cannot treat. More importantly, HGP is environmentally safe. Growing environmental concerns about the use of cyanide have resulted in legislated prohibition (November 1998) against cyanide use for gold mining in Montana. Other stringent requirements restricting cyanide use already exist in New Mexico, Oregon, Alaska, etc. The successful employment of the HGP can bring a high profile of national exposure to the Company.
The project was ultimately presented to Mr. Norman Haber who reasoned that the application of the HGP to alluvial and other kinds of gold deposits appear to be realistic. On this basis, Mr. Haber has been willing to extend his company's license for use of the Haber gold extraction technology. The specific properties now under consideration are located in Arizona, Oregon, Montana, and New Mexico, where cyanide permitting is virtually impractical today.
An important feature of certain deposits under consideration, such as placers or concentrates, is that they lend themselves to an early phase-in for gold production. Once gold mining has begun, enhancement of production volume can proceed.
The evolution of modern engineering methods for mechanical concentration of gold in placer deposits allows for low cost and efficient processing. Mechanical processing of placer type ore gives gold recovery directly. Overall, this enables very large volume production output of ore with relatively modest capital expenditure and lower production costs. The direct gold recovery merely requires the gold to be sent to the smelter for conversion to bullion bricks.
The placer type ores also carry gold in a form that is known as microfine gold. The content of microfine gold in placer type deposits can reach 40-50%. Microfines can normally not be readily processed. Even cyanide technology, the standard for gold mine production worldwide, does not lend itself to efficient recovery of microfine gold. This represents a substantial sacrifice in recovery efficiency. Conversely, the HGP has a very high efficiency for recovery with microfine gold. An HGP processing facility will allow the selected gold properties to be the first for the use of a non-toxic recovery method for placer gold in the United States. Deposits which previously were unable to be mined due to their nature, location, or other problems with the gold ore, can now be successfully removed. This will bring improved recovery economics to the Company as well as possible broad attention because of the non-toxic nature, speed and efficiency of gold recovery with the use of the HGP.
The Haber Gold Process
Several different mining groups were commissioned to investigate and review the authenticity of the HGP and to report on its potential viability. These tests yielded results that demonstrate the efficiency and the economic advantages of the HGP over cyanide extraction.
Pin####, Allen & Holt, Inc. made tests of the HGP on a 250 pound sample of Blackhawk Mine ore. The results concluded that "the HGP offers various advantages over present techniques and extracted gold in bulk in significantly less time than is possible with cyanide. Recovery rates were exceptionally good, particularly when compared to cyanide on the ores tested." It was determined that using the HGP does not require any exotic equipment or hardware while handling requirements for the chemicals used are significantly less stringent than those practiced for cyanide. In the tests observed, the HGP extracted 89% of the gold from a low-grade ore from the Cripple Creek district of Colorado and 93% of the gold in a high-grade ore concentrate from the Victorville area of California. In both instances, leach time was completed in 6 hours.
PA Technology Pty. Ltd. was commissioned to test the HGP for efficiency of gold extraction and to report on its potential viability. Thus, 3 tonnes of Australian gold bearing ore was prepared and shipped to the USA, where a pilot test, in Tombstone, Arizona, was run under the control of PA Technology Pty. Ltd., by Dr. William Jones. In order to make an accurate comparison, the type of ore used was very conducive to gold recovery using cyanide. The PA Technology pilot test concluded that HGP was effective for gold extraction on an Australian oxidized gold ore in tonnage quantities. The extraction of gold was 94% in 6 hours with the HGP, far superior to the 91% in 24 hours for cyanidation. This was confirmed by independent assays. Maximum extraction was reached 4 times faster with HGP versus cyanide leaching.
Comparison of HGP
with Cyanide Leaching
Independent samples of the West Australian tonnage ore were extracted from the reaction vessel and returned to Australia for assay by independent laboratories. A sub-sample of the ore was leached by Ammtec, Inc. under their standard cyanidation test conditions. The results from the HGP pilot plant in this test displayed that a 91% gold extraction rate was achieved in just 4 hours. Once again, cyanide leaching proved to be inferior as a 24- hour time period was needed to reach the same 91% rate of gold extraction. In this test, the results show that the HGP recovery rate was 6 times faster than cyanide, and can accomplish in 4 hours what cyanide took 24 hours to accomplish.
Economic Benefits
Lyntek, Inc. was also commissioned to perform a series of metallurgical tests with the HGP. These tests, like the tests performed by Pin####, Allen & Holt and PA Technology, determined actual recovery information and the efficiency benefits to the HGP. Lyntek, Inc. also determined the economic advantages of the HGP over conventional cyanide leaching. A significant difference between the two leaching methods was the consumption of reagents. Cost per ton of concentrate was approximately $60 with the cyanide method while the HGP reagent cost less than $8 per ton. Leaching times were also significantly slower using cyanide, with extraction taking approximately four times longer to achieve similar results.
Seizing the Opportunity
With favorable test results and pilot tests by reputable, world class, certified mining engineering experts and companies, Orex is convinced that with the HGP technology, it can rapidly launch itself into prominence in gold mining.
The HGP has the ability to extract gold as efficiently or more efficiently than cyanide; it has a recovery rate that is substantially faster than cyanide; it has a chemical cost that compares favorably with cyanide; and it is environmentally safe. Coupled with the increasing prohibitions against cyanide use, Orex plans to seize this unique opportunity and be the first company in the U.S. to commercially utilize the HGP.
Recent Investor Highlights
Although Orex has traded publicly for only a few months, the company has already begun to take the initial steps needed toward achieving their goals of becoming fully reporting and listing the stock on a higher exchange. The company seems to be gaining national attention in both printed and Internet media coverage. Written articles on Orex have appeared in "Business Week" (April 19, 1999; page 156), "Mining Stock Digest" (April 1999), and "Financial Sentinel" (May/June 1999). SmallcapNewswire.com, a financial news portal, became the first Internet site to initiate coverage of Orex as a "feature company" on July 26, 1999.
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OREX GOLD MINES CORP. INVESTOR FACTS
MISSION STATEMENT; To revolutionize the mining industry with an amazing gold extraction process that is non-toxic, less costly, and provides for greater gold recovery than traditional methods.
OTC BB Symbol: ORXX
Shares Outstanding: 21,000,000
Public Float: 3,000,000
52 Week High/Low: $7.81 - $0.34
Long-Term Debt: Zero
CONTACT: Warren Hemedinger, President, 888-749-OREX, or visit the company's Web site at www.orexgold.com. Additional company profile from smallcapnewswire.com: www.SmallcapNewswire.com/orex.html. |
