Aura Silver Resources Inc.

Aura Silver Resources Inc.

March 15, 2010 08:30 ET

Aura Silver Commences Phase III Drilling on Prolifically Mineralized Taviche Project in Mexico and Will Increase Stake to a Potential 70% of the Project

OTTAWA, ONTARIO--(Marketwire - March 15, 2010) -

Aura Silver Resources Inc. (TSX VENTURE:AUU) ("Aura Silver" or the "Company") is pleased to announce that it will increase its potential share in the Taviche silver-gold project, Oaxaca, Mexico by fully funding Phase III drilling costs.

Joint venture partner Intrepid Mines Ltd. (TSX:IAU) ("Intrepid") has decided to allow the dilution of their potential joint venture interest in the project from 35%. Pan American Silver Corp. is expected to retain a 30% interest in the project once the joint venture earn-in is complete which could be as early as this year. It is expected that under the existing terms of the option agreement Aura Silver will become operator of the project.

Intrepid has recently reported its intention to concentrate its current capital resources on its Australian, Indonesian and Ecuadorian properties and to allow its potential interest in the Taviche property to be diluted as Aura Silver continues to invest in exploration. If the Intrepid interest were diluted to a 7% level, Intrepid would have the right to convert its interest to a 1% net smelter royalty.

"Given the significant silver zones intersected to date on the Higo Blanco trend, we are very pleased to be able to provide our shareholders with the potential for a larger share of the Taviche project. Drilling results to date are very encouraging and our Phase III drill program will begin immediately", said Robert Boaz, President and CEO.

As previously reported, drilling results along the Higo Blanco jasperoid trend show wide intercepts of mineralization with, for example, 34.2 meters of 269.7 grams per tonne (g/t) and 36.6 meters of 303.9 g/t silver equivalent. All drill hole intercepts containing high silver equivalent mineralization (of the last 22 holes drilled) occur at shallow depths of less than 150 meters.

Aura Silver recently completed a private placement financing raising approximately $1.3 million and is sufficiently financed to complete the next two phases of planned drilling at the Taviche project. The current Phase III program will target the Higo Blanco trend to further delineate the geologic structure with the objective of eventually defining a resource. Aura Silver also plans to commence a drilling campaign on its highly prospective 100% owned Greyhound property in Nunavut, Canada during the second quarter of 2010.

Dr. James M. Franklin, P. Geo. is Aura Silver's qualified person (as defined by National Instrument 43-101) and has reviewed and approved the scientific and technical information in this press release.

About Aura Silver

Aura Silver is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects in Canada (100% owned Greyhound project) and in Oaxaca, Mexico. Aura Silver has 49,621,902 common shares outstanding.

For further information regarding this financing contact: Robert Boaz, President and CEO at (905) 403-8010 or by e-mail at Aura Silver's web site is located at


This press release may contain forward looking statements that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business including the uncertainty as to whether further exploration will result in the target(s) being delineated as a mineral resource, capital expenditures, operating costs, mineral resources, recovery rates, grades and prices, estimated goals, expansion and growth of the business and operations, the private placement financing activities of the Company, plans and references to the Company's future successes with its business and the economic environment in which the business operates. All such statements are made pursuant to the 'safe harbour' provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's most recent annual MD&A and the Company's continuous disclosure documents that can be found on SEDAR at Aura Silver does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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