Aura Silver Resources Inc.

TSX VENTURE : AUU


Aura Silver Resources Inc.

June 16, 2010 08:30 ET

Aura Silver Extends Silver Zone to Over 300 Meters - Encounters Significant Gold Values in Limestone

OTTAWA, ONTARIO--(Marketwire - June 16, 2010) - Aura Silver Resources Inc. (TSX VENTURE:AUU) ("Aura Silver" or the "Company") is pleased to provide results from its ongoing silver and gold exploration at its Higo Blanco project located in the Taviche district, Oaxaca, Mexico. New results include hole HBET-23 with 238.7 grams per tonne (g/t) silver equivalent over 19.3 meters which extends the overall length established for the Higo Blanco silver trend by about 50 meters. A newly discovered gold zone in Hole HBET-24 includes 2.05 g/t gold (Au) over 8.35 meters (including 4.9 g/t over 2.25 meters).

Drilling to date comprises 27 holes in total (assays are pending for holes HBET-25, -26 and -27) and has been conducted over several square kilometers defined by silver-antimony bearing 'jasperoid' in Cretaceous limestone and gold-arsenic bearing quartz-sulfide stockwork and hydrothermal breccias in altered Tertiary volcanics. The majority of the drilling has been focused along the northwest-trending Higo Blanco corridor over a strike length of about 1,800 meters. Within this strike length, a concealed silicified breccia near the intersection of the Mezcal structure and the Cretaceous limestone/volcanic interface has been tested in several holes over a strike length of about 1,100 meters. In brief, an elongate, southeast plunging hydrothermal breccia with up to a couple percent of pyrargyrite (silver-antimony sulphide) has been partially defined. Additional drilling will be required to define limits to the northwest, southeast and down-dip.

Assays for hole HBET-23, located about 50 meters southeast from the intercept in hole HBET-16 (26.8 meters at 365.6 g/t silver) which was a 45 meter step out from discovery hole HBET-03 (34.20 meters at 269.7 g/t), intersected 238.7 g/t silver equivalent over 19.3 meters in pyrargyrite-bearing hydrothermal breccias developed in silicified limestone. This is the same environment identified in the other significant intercepts including HBET-02, -03, -11, -16 and -22. Currently, the silver-bearing breccias have been identified over a strike length of about 300 meters.

Both the gold and silver mineralizing events reflect a robust hydrothermal system. Current exploration is attempting to follow distinct mineralization styles to depth via down-dip step-outs along the Mezcal structure. The ubiquitous presence of hydrothermal breccias, possible phreatic breccias and andesitic dikes along the structure are proving to be useful guides to both silver and gold mineralization. 

About 700 meters along strike and to the northwest, hole HBET-24 was drilled to test the intersection of the Mezcal structure and limestone at depth and below previous drilling (i.e. HBET-15), where both favorable alteration and mineralization were identified (see Press Release #10-01, dated January 18, 2010). Although the hole was lost (at 217 meters) prior to achieving its target depth of 250 meters, the limestone was encountered and contained numerous, narrow andesite dikes. Several silicified zones at the dike-carbonate contacts were identified and contained anomalous gold values (e.g. from 148.65 to 157.0 meters, 8.35 meters with 2.05 g/t Au, including a higher grade intercept of 4.9 g/t Au over 2.25 meters). This is considered to be significant for several reasons: First, gold mineralization (>0.5 g/t Au) has been identified in both broad surface exposures and in drilling over approximately 1,000 meters of strike along the Mezcal structure, but this new zone is significantly more gold-rich, possibly indicating that the gold zone is expanding with depth. Secondly, the gold (arsenic) event is spatially associated with the silver (antimony) event and is developed along the same structural corridor. And thirdly, the andesite dikes are likely tapping deep-seated, metal-bearing fluids which have migrated up along the same faults that controlled the dyke emplacement. The ubiquitous presence of arsenopyrite and stibnite support a high structural position in the epithermal system. Deeper drilling is clearly warranted in this area. 

Additionally, three holes were drilled at the Rosario prospect, located several kilometers north of Higo Blanco to test the geologic structure beneath the old Rosario mine. These holes did not encounter significant vein mineralization. The Rosario vein is one of many silver and gold-bearing veins identified by Aura Silver in the eastern part of the Taviche district. A trenching program is currently underway in order to better define these structures.

"We remain confident that our drilling program will continue to expand the high-grade silver resource along the Mezcal structure laterally and to depth where we hope to see an increase in gold values", said CEO Robert Boaz.

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 59,102,402 common shares outstanding.

FORWARD-LOOKING STATEMENTS

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 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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