Mexican Silver Mines Ltd.

Mexican Silver Mines Ltd.

December 05, 2007 12:21 ET

Mexican Silver Mines Ltd. Announces Positive Drill Assay Results From Vallecillo and the Commencement of Drilling at Iguana

CALGARY, ALBERTA--(Marketwire - Dec. 5, 2007) - Mexican Silver Mines Ltd. ("Mexican Silver") (TSX VENTURE:MSM)(FRANKFURT:MS2)(WKN:A0MSLE) is pleased to announce initial assay results from drilling on its Vallecillo project. The Company has completed a 13 hole program for a total of 3,081 meters on the project. Results from the first four drill holes have now been received. The Vallecillo district has been the site of silver-lead mining activities dating back to 1776 where mineralization is hosted within structures and mantos of the Eagle Ford Formation in a sequence of interbedded limestones and silty carbonates. The largest mine in the district, the Dolores Mine, has a known depth of 100 meters. All the other mines in the area, all located on Mexican Silver's Providencia property, have been mined from 5 to 20 meters. These mines were restricted to the water table due to inadequate mining and water management techniques at the time. The Vallecillo District is located in the southern part of the Company's 100% owned Providencia Concession.

The Company's Phase One drill program at Vallecillo was the first ever drilling directed at this district by any group. As the majority of the underground workings are inaccessible and historic mine maps from the various mines in the district were not available, this drilling program provided the first concrete subsurface information for in-situ mineralization. Mexican Silver was cautious in its drilling pattern due to the lack of historic mine maps as we did not want the drill to encounter underground open areas which would result in the loss of the hole and potential damage to the drilling equipment. The subsurface information obtained through this phase of drilling will allow Phase Two drilling to step closer to the historic mining targets.

Complete results from the first four diamond drill holes have been received and a number of individual drill intercepts exhibit positive assay values. The highlighted results from the initial set of assay came from drill hole V-3.

Assays of interest for drill hole V-3 included (estimated true thicknesses):

- 1 meter intercept from 162.3 to 163.5 meters depth: 136 g/t Ag and 9.52% Pb

- 2 meter intercept from 167.3 to 169.3 meters depth: 313 g/t Ag and 0.88% Pb

Drill hole V-3 was located 200 meters west of the Dolores mine and intercepted silver-lead mineralization in a thin limestone manto and breccia structure which correlates with the interpreted Dolores zone.

Assays of interest from drill hole V-1 returned geochemically anomalous values from numerous zones of thin stratiform and limestone breccia hosted mineralization including (estimated true thicknesses):

- 2 meters from 69 to 71 meters depth of 13 g/t Ag

- 2 meters from 85 to 87 meters depth of 3 g/t Ag

- 2 meters from 93 to 95 meters depth of 3 g/t Ag

- 1 meter from 162 to 163 meters depth of 7 g/t Ag

Drill hole V-1 was located approximately 100 meters west-northwest of the Delores shaft and exhibits multiple zones of anomalous silver mineralization indicative of metal fluid flow through the host carbonate horizons.

Assays of interest from drill hole V-2 returned geochemically anomalous values from multiple zones of thin stratiform mineralization including (estimated true thicknesses):

- 14 meters from 132 to 146 meters depth of 1 g/t Ag

- 8 meters from 182 to 190 meters depth of 1 g/t Ag

- 1 meter from 212 to 213 meters depth of 4 g/t silver

- 7 meters from 219 to 226 meters depth of 3 g/t silver

- 10 meters from 244 to 254 meters depth of 3 g/t silver

Drill hole V-2 was located approximately 150 meters northwest of the Dolores shaft. This anomalous mineralization indicates low grade metal fluid flow through a moderate thickness of limestone.

Assays of interest from drill hole V-4 returned geochemically anomalous values of (estimated true thickness):

- 0.75 meter intercept from 125.5 to 126.25 meters depth: 7 g/t Ag with 0.3% Pb and 2.93% Zn

Multiple one to two grams per ton silver values were also returned from the interval 131 to 179 meters depth. V-4 was located approximately 400 meters southwest of the Dolores shaft and suggests that fluid pathways were active throughout this zone of thin breccias/veins and altered limestones.

Phase Two drilling at Vallecillo in the coming months will target extensions to these zones of breccias and stratiform replacement mineralization primarily to the west of the Dolores shaft.

Feisal Somji, President and CEO of Mexican Silver Mines, stated: "Visually we have seen a strong system in the 140 to 170m depth from observations in all 13 holes drilled at Vallecillo, This mineralization is observed over an 8 km strike that remains open to the west. We are now waiting for assay results from the lab on the remaining holes."

Mexican Silver has recently purchased the Gemcom GEMS Software and is in the process of inputting data into this program. This software will enable the Company to properly define a delineation pattern type drilling program to be initiated at the Vallecillo Project in the coming months.

Additionally, drilling at the Iguana project has now commenced. The Company has planned a 7 hole drill program for this project located on the Ral Concession which encompasses an area of 10,160 acres centered on Iguana. High grade silver-lead-zinc mineralization, found as replacement mantos and skarns, is localized along the contact zones of multiple Tertiary granodiorites within Cretaceous limestones. In some of the mine workings, high grade mineralization extended for distances over one hundred meters as a replacement of a single limestone horizon.

ALS Chemex Labs Ltd. of North Vancouver, BC, Canada conducted all of the geochemical analysis for this drilling. Blank samples were inserted every 15th sample for quality control assurance. Core recoveries for the reported intervals were considered good and representative of the interval. Data validation was conducted by Mexican Silver's Exploration Manager Carlos Escalante, B.Sc. on all drill core logs.

Mr. William Dynes, P. Geol. is the Qualified Person, as defined in NI 43-101, who has reviewed and verified the scientific and technical mining disclosure contained in this new release.

About Mexican Silver Mines

Mexican Silver Mines is a silver focused junior resource company developing three former silver producing properties in north-eastern Mexico. To learn more about Mexican Silver Mines, please visit:


Feisal Somji, B.Sc., MBA, President and Chief Executive Officer

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