Aura Silver Resources Inc.
TSX VENTURE : AUU

Aura Silver Resources Inc.

January 18, 2010 08:30 ET

Aura Silver Confirms Extensions of Its Higo Blanco Silver-Gold Property in Mexico

OTTAWA, ONTARIO--(Marketwire - Jan. 18, 2010) - Aura Silver Resources Inc. (TSX VENTURE:AUU) ("Aura Silver" or the "Company") is pleased to report the remaining assays from its Taviche property, a joint venture project with Intrepid Mines Limited (TSX:IAU). Our 2009 drill program (4,018.6 meters) was designed to test the geologic structure of the Higo Blanco trend on our East Taviche and Alma Delia concessions in Oaxaca State, Mexico. As shown in the assay table below we encountered strong mineralized intercepts in 17 of the 22 holes drilled with the most significant values occurring in holes 2, 3, 16 and 22. The drill program shows that silver/gold mineralization is shallow (less than 135 meters in most cases) and widespread.

The property contains a major northwest-trending structural zone spatially associated with extensive limestone-hosted jasperoid, silicified volcanics, quartz veins and numerous silver-antimony prospect pits. The primary objective of this program was to test several of the mineralized zones as prioritized by rock sampling, geophysics and logistics. Results for holes 1 through 16 have been previously reported (see Press Release #09-11, November 30, 2009, and earlier releases on our website at www.aurasilver.com) whereas the following is intended to summarize the program in its entirety. In summary, silver contents in excess of 10 oz/tonne or 312 grams/tonne (g/t) were encountered in 9 of the 22 holes, and gold contents in excess of 0.5 g/t were encountered in 14 of these holes.

Robert Boaz, President and CEO of Aura Silver, has summarized the Company's intentions at this early stage in the project's history. "Drilling over the past few months has given us the confidence that several distinct, and large, targets have been partially defined by our work. These targets, whether characterized by broad, high grade silver intervals or by favorable alteration and geochemistry, give Aura Silver the confidence to proceed in the most aggressive fashion possible".

The project geology and drill hole locations are shown in Figure 1. Within the Higo Blanco structural corridor, several distinct prospects have been identified. Each zone is defined by strongly anomalous gold (Au), silver (Ag), arsenic (As) and antimony (Sb); there is a strong correlation between silver and antimony and between gold and arsenic with both gold and silver increasing with depth into the mineralized system. These associations and trends are typical of all low sulfidation epithermal systems. The following is a brief summary of the results on a target-by-target basis from the southeast extending to the northwest:

Santo Nino Target: A total of five holes were drilled (see Figure 1) in this area over a strike length of about 300 meters. Holes HBAD06, 07, 08 and 13 were geologic targets whereas Hole HBAD12 was a geophysical target. The later traversed a broad zone of pyritized sediments which nicely explained the IP anomaly but only encountered weak silver mineralization ( less than75 g/t Ag; less than0.48 g/t Au). Two of the holes intersected narrow, but very high grade silver zones, with up to 3,932 g/t silver equivalent (HBAD13) and 1,143.4 g/t Ag equivalent (HBAD08) while the other two holes encountered broader, but lower grade, intercepts. All of the intercepts are hosted by silicified limestone breccias and concealed by altered andesite flows. The style of alteration and mineralization, along with abundance of Mn-enriched carbonate veins in the overlying volcanic rocks, suggest that these holes are located above or adjacent to stronger mineralization. There will be additional drilling here in Phase 3 to step-out from the high grade intercepts and connect this exciting area with the Mezcal target several hundred meters to the northwest.

Mezcal Target: The Mezcal target, shown in Figure 1, has been tested by ten holes (over a strike length of 400 meters) including HBET01, 02, 03, 04, 05, 10, 11, 16, 21 and 22; the results for holes 1 through 16 have been previously reported. The analytical results for all notable intercepts are reported in the table below. In summary, drilling has defined a structural complex composed of several parallel, steep fault planes that have juxtaposed Cretaceous volcaniclastics and limestone against younger andesitic flows and epiclastics. Silver mineralization, locally high grade, is composed of minor amounts of pyrargyrite in quartz veinlets and breccias traversing silicified wallrock, most commonly, limestone. The overall zone is referred to as the Mezcal zone. The zones geometry has yet to be defined but appears to be a shallow, southeast plunging 'tube' or 'wedge' formed against the structural breaks and stratigraphic contacts. Several holes, e.g. HBET02, 03, 16 and 22 have intersected this emerging deposit and suggest that silver mineralization is increasing with depth and to the southeast. The silver content increases from hole HBET02 (58.15 m of 71.4 g/t equivalent Ag) to hole 22 (26.25 m containing 74.8 g/t equivalent Ag) to hole 03 (34.2 m of 269.7 g/t Ag equivalent) and to hole 16 (36.60 m containing 303.9 g/t equivalent Ag), the furthest intersection to the southeast. Over a strike length of 160 m, the silver grade is increasing by a factor of four. Hole HBET04 and 05 appear to have passed beneath the upper silver environment while hole HBET21 was cut short owing to a post-mineral fault; it will need to be deepened or re-drilled further to the southwest.

In addition to silver, broad zones of gold mineralization occurring as quartz-sulfide stockwork are juxtaposed against the Mezcal fault system (west side) and immediately adjacent to the silver zone. The typical widths are 10 to 47 meters containing 0.33 to 0.87 g/t Au. This zone is not well understood and has not been completely explored (it is not the primary target here) but may yield higher grades at depth which is commonly observed in similar epithermal systems.

Robert Boaz adds, "The early stages of drilling at our Mezcal target are yielding exciting results for the Company. Plans for Phase 3 include stepping out from recent drilling both to the southeast and northwest as well as better defining the zone within the 400 meters of strike that currently contains this new discovery".

Southwest Cerro La Mina: Four holes were drilled in this area (see Figure 1) over a strike length of 200 meters. Three of the holes, HBET14, 19 and 20, were collared at the top of the silicified and mineralized limestone on the northeast side of the Mezcal structural corridor (hanging wall). Silicified limestone and narrow quartz-cemented breccias were encountered in all holes but only hole HBET20 traversed any significant mineralization (4.05 m of 162.2 g/t Ag equivalent).

Hole HBET15 was drilled in the opposite direction of hole 14 and across the Mezcal structural complex. The hole has identified what appears to be two discrete structural/altered zones: the upper Mezcal zone (with arsenopyrite) and a lower zone defined by strong illite-pyrite alteration, hydrothermal breccias, silver mineralization (up to 156 g/t Ag), gold mineralization (10.55 m of 0.51 g/t Au; up to 0.82 g/t Au) and widespread adularia veinlets. This broad sheared, altered and mineralized interval is developed within volcancaniclastics and andesite flows in the down-dropped side of the Mezcal structure (throw of at least 250 meters). The drilling of this hole has identified a favorable environment for both silver and gold mineralization in both the volcanic and underlying carbonate sequence at elevations deeper than that observed in the Mezcal zone over 500 meters to the southeast.

Piedra del Sapo Target: Drilling in the Piedra del Sapo area (Figure 1; hole HBET17 and 18), in conjunction with the geologic mapping, suggest that this area is comprised of a large (-2 km in diameter) circular breccia pipe. Breccia fragments consist predominantly of rounded to sub angular limestone fragments (many with hydrothermally altered rims), minor granite fragments (possibly from basement or a deep granite) and some clasts of possible volcanic origin. Drilling has revealed that this fragmental unit is over 125 meters thick and relatively homogenous. We interpret this zone to be a diatreme breccia that may be situated over a hydrothermal centre. The breccias are widely silicified and leached (abundant quartz greater than fluorite filling) and cut by quartz-stibnite breccias and fluorite veins. Geochemically, the Piedra del Sapo zone is defined by elevated antimony and arsenic values with locally anomalous gold and silver values. Work to date suggests that we are high in the hydrothermal system but that a target of considerable size is present at depth, possibly over a buried porphyry system. Deeper drilling will be required to test this further.

The following table presents selected assay data obtained from 2009 drilling at the Higo Blanco trend (results for holes 1 through 16 were previously reported).



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Hole Sample From To Length Au Ag AgEq
(m) (m) (i)(m) (g/t) (g/t) (ii)(g/t)
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HBET-01
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Gold
zone 2522-2548 0.00 38.75 38.75 0.45 13.5 40.6
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Including 2522-2542 0.00 29.55 29.55 0.50 15.4 45.5
--------------------------------------------------------------------
2534-2543 19.45 31.10 11.65 0.69 20.1 61.3
--------------------------------------------------------------------
2542 28.05 29.55 1.50 1.89 108.0 221.4
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HBET-02
--------------------------------------------------------------------
Silver
zone 2581-2607 14.90 73.05 58.15 0.08 66.8 71.4
--------------------------------------------------------------------
Including 2593-2607 59.50 73.05 13.55 0.13 137.5 145.4
--------------------------------------------------------------------
2596-2607 61.50 73.05 11.55 0.15 157.3 166.2
--------------------------------------------------------------------
2596 61.50 62.15 0.65 0.14 667.0 675.3
--------------------------------------------------------------------
2607 71.85 73.05 1.20 0.19 743.0 754.3
--------------------------------------------------------------------
Gold zone 2642-2649 107.65 117.45 9.80 0.87 12.4 64.3
--------------------------------------------------------------------
2652-2659 119.50 130.25 10.75 0.43 12.2 38.1
--------------------------------------------------------------------
2668 157.90 158.75 0.85 1.47 4.4 92.6
--------------------------------------------------------------------
HBET-03
--------------------------------------------------------------------
Silver
zone 2679-2711 85.00 119.20 34.20 0.13 261.8 269.7
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Including 2701-2711 107.10 119.20 12.10 0.24 519.0 533.1
--------------------------------------------------------------------
2701-2704 107.10 111.80 4.70 0.16 1,076.7 1,086.3
--------------------------------------------------------------------
2683 88.05 89.50 1.45 0.27 1,100.0 1,116.2
--------------------------------------------------------------------
2701 107.10 107.90 0.80 0.12 646.0 653.0
--------------------------------------------------------------------
2703 108.90 110.20 1.30 0.28 2,450.0 2,466.5
--------------------------------------------------------------------
Gold zone 2715-2727 135.00 149.10 14.10 0.54 3.8 36.3
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HBAD-06
--------------------------------------------------------------------
Silver
zone 2848-2849 10.75 12.80 2.05 0.20 61.1 73.2
--------------------------------------------------------------------
2858-2862 44.20 49.65 5.45 0.02 201.5 202.4
--------------------------------------------------------------------
Including 2861 47.20 48.40 1.20 0.02 339.0 339.9
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Gold zone 2881-2882 66.95 68.20 1.25 0.69 6.8 47.9
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Including 2882 67.70 68.20 0.50 0.95 9.6 66.3
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HBAD-07
--------------------------------------------------------------------
Silver
zone 2898-2901 13.65 18.00 4.35 0.10 71.1 77.1
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Including 2901 16.25 18.00 1.75 0.15 95.6 104.5
--------------------------------------------------------------------
Silver zone 2918 37.90 39.40 1.50 0.06 165.0 168.4
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HBAD-08
--------------------------------------------------------------------
Silver
zone 2943 63.85 64.80 0.95 0.06 1,140.0 1,143.4
--------------------------------------------------------------------
HBET-10
--------------------------------------------------------------------
Silver
zone 3061 5.65 6.65 1.00 0.56 397.0 430.7
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Gold zone 3066-3099 12.25 59.25 47.00 0.33 5.2 25.0
--------------------------------------------------------------------
Including 3081-3084 32.10 38.25 6.15 0.48 5.0 33.6
--------------------------------------------------------------------
3092-3094 46.85 51.70 4.85 0.49 5.7 35.1
--------------------------------------------------------------------
HBET-11
--------------------------------------------------------------------
Silver
zone 3164 160.60 161.60 1.00 0.19 334.0 345.3
--------------------------------------------------------------------
Silver
zone 3138 114.55 115.70 1.15 0.38 243.0 265.6
--------------------------------------------------------------------
Gold zone 3138-3145 114.55 123.50 8.95 0.50 62.3 92.4
--------------------------------------------------------------------
3211-3147 131.00 135.35 4.35 0.80 3.3 51.4
--------------------------------------------------------------------

--------------------------------------------------------------------
HBAD-12 3213 118.95 120.80 1.85 0.13 75.1 82.8
--------------------------------------------------------------------
HBAD-13 3226 38.85 39.35 0.50 3.37 3,730.0 3,932.2
--------------------------------------------------------------------
3245 62.60 63.50 0.90 0.25 241.0 255.9
--------------------------------------------------------------------

--------------------------------------------------------------------
HBET-14 3252 17.30 19.25 1.95 0.16 66.1 75.5
--------------------------------------------------------------------

--------------------------------------------------------------------
HBET-15 3277 167.65 168.20 0.55 0.52 156.0 187.1
--------------------------------------------------------------------
Gold zone 3283-3289 173.75 184.30 10.55 0.51 20.0 50.8
--------------------------------------------------------------------
HBET-16
--------------------------------------------------------------------
Silver
zone 3299-3323 103.70 140.30 36.60 0.19 292.3 303.9
--------------------------------------------------------------------
Including 3314-3319 123.25 135.20 11.95 0.06 474.9 478.4
--------------------------------------------------------------------
3319 133.70 135.20 1.50 0.01 1,860.0 1,860.4
--------------------------------------------------------------------
HBET-17
--------------------------------------------------------------------
Gold zone 3345-3347 1.60 5.95 4.35 0.49 15.0 44.7
--------------------------------------------------------------------
HBET-18
--------------------------------------------------------------------
Gold zone 3431 99.30 101.30 2.00 0.57 0.5 34.8
--------------------------------------------------------------------
3432 105.05 106.85 1.80 0.29 12.9 30.4
--------------------------------------------------------------------
HBET-20 3478-3482 2.50 7.65 5.15 0.22 131.5 144.5
--------------------------------------------------------------------
3479-3482 3.60 7.65 4.05 0.14 154.0 162.2
--------------------------------------------------------------------
HBET-22
--------------------------------------------------------------------
Silver
zone 3511-3536 74.00 100.25 26.25 0.12 67.3 74.8
--------------------------------------------------------------------
Including 3511-3527 74.00 90.35 16.35 0.14 79.9 88.1
--------------------------------------------------------------------
3511-3515 74.00 78.85 4.85 0.11 178.1 184.6
--------------------------------------------------------------------
3511 74.00 74.60 0.60 0.23 669.0 682.9
--------------------------------------------------------------------
3515 77.75 78.85 1.10 0.13 339.0 346.7
--------------------------------------------------------------------
3535 98.05 99.15 1.10 0.30 230.0 248.1
--------------------------------------------------------------------
Gold zone 3561-3568 136.70 152.20 15.50 0.69 18.0 59.4
--------------------------------------------------------------------
Including 3562-3563 138.70 142.70 4.00 1.15 7.8 76.5
--------------------------------------------------------------------
3569-3573 156.60 163.25 6.65 0.57 10.7 44.7
--------------------------------------------------------------------
Including 3569-3571 156.60 159.20 2.60 0.97 15.7 73.7
--------------------------------------------------------------------

(i) Intervals shown are down-hole intervals. True widths are not
yet known in the initial phases of drilling.

(ii) Silver equivalent for the purposes of this drilling program is
defined as silver grade plus 60 times gold grade. Metallurgical
recoveries and net smelter returns are assumed to be 100 per cent
for the silver equivalent value. Base metal values are not included in the
silver equivalent.


Core samples collected by the Taviche joint venture have been analyzed by SGS Labs in Durango, Mexico for multi element geochemical analyses by ICP-OES (40 element), gold by fire assay and AAS finish (greater than 0.005 g/t) and silver by AAS (greater than 0.3 g/t). Silver values in excess of 300 g/t are re-analyzed by fire assay. A blank is included after every 10th sample and every 25th sample is a known standard.

Robert Boaz summarizes the Company's attitude about the exploration program at Higo Blanco to date, "The Taviche joint venture has been able to advance two goals at Higo Blanco: first, the identification of economic grades and widths of silver at the Mezcal target area; and second, the expansion of our knowledge of the multiple targets at Higo Blanco. We are confident that any one of our target areas, as well as ones we have yet to test, will provide us with exciting news in 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.

A Map is available at the following address: http://media3.marketwire.com/docs/tavich.pdf

About Aura Silver

Aura Silver is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects in Canada (Greyhound Lake) and in Oaxaca, Mexico. The Company has 41,831,902 common shares outstanding.

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 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 www.sedar.com. 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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