Aura Silver Resources Inc.

Aura Silver Resources Inc.

January 18, 2010 08:30 ET

Aura Silver Provides Year End 2009 Summary

OTTAWA, ONTARIO--(Marketwire - Jan. 18, 2010) - Aura Silver Resources Inc. (TSX VENTURE:AUU)("Aura Silver" or the "Company") is pleased to provide a year end review with respect to its Taviche silver-gold property in Oaxaca Mexico, its Greyhound base and precious metal property in Nunavut, Canada as well as corporate developments during 2009.

The Company has also announced today the remaining assay results obtained from the completion of Phase II drilling at the Higo Blanco trend with respect to the Taviche property (see Press Release #10-01, January 18, 2010). In all, a total of 22 holes were drilled in two phases during 2009. The drill program was designed to test the geologic structure of the Higo Blanco trend consisting of over seven kilometers of outcropping silicified zones that occur along a major northwest-trending structural zone. We encountered strong mineralized intercepts in 16 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. 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. A Phase III drill campaign is anticipated to begin during the first quarter of 2010. Phase III drilling will focus on stepping out from the original discovery hole in the Mezcal vein in order to quantify an initial resource estimate during 2010.

At our 100% owned Greyhound, Nunavut property, progress continues toward an initial drilling campaign expected to commence during the second quarter of 2010. The Greyhound copper-zinc-precious metals property is located just north of Baker Lake, Nunavut and south of Agnico Eagle's Meadowbank mine. Although considered the far north, Aura Silver's claims host excellent road access and lie close to tidewater.

In 2009, at Greyhound, a helicopter supported airborne versatile time domain electromagnetic (VTEM) and magnetometer survey was completed, along with incorporation, compilation and interpretation of earlier Fugro airborne data. A total of 857 line-kilometres were flown over Fugro-defined conductive zones in order to refine discrete sulphide targets hidden by extensive iron formation. Together a total of 20 drill targets have been selected for drill testing of VTEM anomalies in conjunction with significant high-grade surface showings and tell-tale lithogeochemical rock signatures.

Previous prospecting at Greyhound uncovered showings of up to 4.1% copper (Cu), 13.4% zinc (Zn), 8.2% lead (Pb), 2,700 g/t silver (Ag) and 28 g/t gold (Au). Additional data on samples obtained later contained up to 18.5% Zn and 9.2% Cu. Historical samples collected in 1998 contained values of 1,480 and 3,080 g/t silver. A classic volcanogenic massive sulphide (VMS) district has been defined by lithogeochemical values with the recent VTEM results providing vectors for the selection of drill targets. The Company has located a drill in Baker Lake and will carry out initial drill testing during the second quarter of 2010. The Greyhound property is highly prospective with geologic attributes similar to the Meadowbank mine which contains a gold resource of 3.6 million ounces at an average grade of 3.45 g/t (

Calendar year 2009 was a highly successful year for Aura Silver with a significant discovery of silver-gold mineralization at the Taviche property and the advancement of the Greyhound property to a drill-ready stage. A summary of significant 2009 milestones is as follows:

- On February 9, 2009, the Company announced the final results of sampling performed on Greyhound with results for samples collected during the August 2008 field season that contain up to 4.1% Cu, 13.4% Zn, 8% Pb, 2,700 g/t Ag and 28 g/t Au. Data on additional samples indicate that the massive sulfide occurrence to the northeast of Aura Lake contains up to 18.5% Zn and 9.2% Cu.

- On March 2, 2009, the results of sampling and geophysical analysis at the Taviche project were released. In the 300,000 sq. meter area of jasperoid at the Cerro La Mina prospect, 189 well spaced jasperoid samples (approx. 50 meter centers) contain an average of 50 g/t Ag with 10% of the samples containing over 200 g/t Ag. For 1.2 kilometers along the western contact of the jasperoid with the overlying volcanics, the jasperoid (86 samples) contains an average of 90 g/t Ag of which 10% of the samples grade at an average of 175 g/t Ag. Closest to the Mezcal vein system, the jasperoid contains an average of 130 g/t and 10% of the samples exceed 200 g/t Ag with individual sample grades up to 685 g/t Ag. The IP/Resistivity survey was successful in recognizing that the jasperoids are both continuous to depth as well as laterally, indicating that the several distinct mineralized prospects are most likely connected over several kilometres of strike length. The combination of IP and Resistivity has clearly identified the structures that control the distribution of the jasperoid.

- On May 26, 2009, the results of the Greyhound Fugro airborne study were released which showed that the new interpretation of the geophysical data indicates distinct conductors that are coincident with previously described geochemical anomalies and high-grade assays. Given the aerial extent of the geophysical targets, associated banded iron formation and the presence of high-grade surface samples it is believed by our geologists that a sizeable target could be fairly shallow and of significant size.

- On June 11, 2009, the Phase I drill program at the Higo Blanco trend in East Taviche and Alma Delia was announced. This was a 2,000 meter program designed to target the Cerro La Mina, the Mezcal and the Santo Nino vein systems which all showed a high correlation with our geochemical analysis and the IP/resistivity and magnetic intensity geophysical surveys.

- During February 2008, the Taviche joint venture obtained the social license to operate in the area and on August 9, 2009, the community renewed its support for our project. The signing of this agreement allows the Taviche JV to enjoy access to the community lands which encompass the entire Higo Blanco trend. This agreement includes a significant corporate social responsibility component whereby the Taviche JV has supported and will continue supporting projects selected by the community including road maintenance, design and engineering of water projects, support for local schools and clinic, reforestation and small business development. All projects are designed to promote the community's sustainable development, increasing their productivity, improving the environment and strengthening its social fiber.

- On August 14, 2009 the Company released results of the first 3 holes of our Taviche Phase I drill program highlighting high Ag grades at a depth of 85 meters with 34.2 meters averaging 269.7 g/t silver equivalent including 1.45 meters grading 1,116.2 g/t silver equivalent. At a depth of 107 meters, 12.1 meters averaged a grade of 533.1 g/t silver equivalent with 1.3 meters grading 2,466.5 g/t silver equivalent.

- During August to November 2009, the Company raised proceeds of approximately CDN$450,000 from the exercise of outstanding stock options from officers, directors and consultants to the Company.

- On September 3, 2009, the Company released drill results for the Higo Blanco trend on its East Taviche and Alma Delia concessions. All holes at Santo Nino encountered broad zones of well developed silicified breccias with widespread pyrargyrite (containing approximately 60 wt% silver). As with most of the drill results recorded silver/gold mineralization occurred at shallow depth, and in the latter case at less than 60 meters.

- On October 5, 2009, the Company announced the commencement of its Phase II drill program which was designed to test the geologic structure of the entire seven kilometer Higo Blanco trend.

- On October 15, 2009, the Company announced the initiation of a versatile time domain electromagnetic (VTEM) survey at the Greyhound project in order to define drill targets. Greyhound's project airborne geophysical data indicated that there are numerous anomalies over a strike length of 25 kilometers, with specific linear targets, each at least 800 meters in length

- On November 11, 2009 the Company announced the completion of the Greyhound VTEM survey.

- On November 30, 2009, the Company released the initial Phase II drill results for Taviche indicating what was the most prolific intercept to date in hole 16, intersecting 36.6 meters of 303.9 g/t silver equivalent, including 1.9 kilograms/t over 1.5 meters and 1.2 kilograms/t over 0.5 meters. Within this interval, 11.95 meters contains 478.4 g/t silver equivalent.

Robert Boaz, President and CEO of Aura Silver stated, "We are proud of the accomplishments we have made during 2009 at both our Taviche and Greyhound properties. We are excited about the results we expect to generate during 2010 with active drilling programs on both of our projects".

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 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 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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