Nayarit bags resource estimate for Orion

Vancouver – Nayarit Gold (NYG-V) has hit a milestone at its Orion project: the release of its first resource estimate.

The resource estimate by and large covers the Animas – Del Norte target, a system of two parallel veins that is Nayarit’s chief focus at the Orion project, 110 km northwest of Tepic, Mexico.

The Animas – Del Norte target, part of a northwest striking epithermal vein system, weighs in at 4 million indicated tonnes grading 1.24 grams gold per tonne and 113.8 grams silver per tonne for 162,000 oz. gold and 14.9 million oz. silver.

Nayarit divides the resource into open pit and underground components based on US$850 per oz. gold and US$13 per oz. silver. About three quarters of the indicated resource, in terms of contained metal, falls into the open pit.

By adding two other targets to the mix, Estrella and San Francisco, the indicated resource estimate comes to 4.2 million tonnes grading 3.19 grams gold and 180 grams silver.

Now, resource in hand, Nayarit says it will tentatively have a scoping study out during the fourth quarter 2009. Nayarit also says that it is continuing to explore targets that might feed a central mill in the Animas – Del Norte area.

Mineralization at Animas – Del Norte is so far about 800 metres long, 10-30 metres wide and up to 450 metres deep. “The best potential at Orion for expanding the high-grade resource exists along strike of Animas/Del Norte,” president and CEO Colin James says in a statement, “and we will continue to aggressively explore in these areas.”

Nayarit’s shareprice held steady on news of the resource estimate, closing at 48¢. Nayarit has about 87 million shares outstanding.