Oro Gold Resources Ltd.

Oro Gold Resources Ltd.

January 29, 2007 16:46 ET

Oro Gold Receives Trinidad Title and Feasibility Study; Plans Drill Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 29, 2007) - Oro Gold Resources Ltd. ("Oro Gold") (TSX VENTURE:OGR) has received title to the 651 km2 Trinidad property in Mexico, as well as feasibility study data for the past-producing Trinidad mine located on the property. The Company is planning a first-phase drill program to define a potential remaining resource and to test step-out targets developed over the past year. Trinidad is considered the top priority project in Oro Gold's Rosario Gold Belt portfolio, located in Sinaloa, Mexico.

The feasibility study, prepared in 1995 by Montgomery Consultants of Vancouver, B.C., for Eldorado Gold Corp., outlined the Taunus, Boca and Colinas resource areas. A resource calculation was conducted on the Taunus and Colinas zones, following which Taunus was developed into an open pit, heap leach mine operation. The feasibility data presented are no longer current and are only included as a historical reference.

The study indicated that the Taunus zone contained a 132,166 ounce gold and 363,574 ounce silver resource (2,077,230 tonnes @ 1.979 g/t Au and 5.444 g/t Ag, using a 0.5 g/t Au cut-off). The model assumed a US$375/oz Au price, 75% Au recovery and an average cash cost of $10.42 per tonne of ore. A mine life of 4.1 years was calculated, mining 6,195 tonnes per day, of which 4,126 tonnes was waste.

A resource estimate for the Colinas zone delineated a 12,140 ounce gold resource (320,000 tonnes at 1.18 g/t Au), and recommended additional drilling to expand and upgrade the resource.

No resource estimate was provided for the Boca zone, located 480 metres north of the Taunus pit. Oro Gold channel sampled the Boca zone, which returned 2.9 g/t Au over 48 metres, confirming the significance of this target.

Production from the Taunus zone initiated in Q4 1996 and halted in Q3 1998, representing approximately 2 years of the estimated 4.1 years of mine life. Poor weather conditions, a lower than planned production rate, higher production costs at US$373/oz Au total cash costs and a weakening gold price to sub-$300 levels forced the mine closure.

Stated Darren Bahrey, President & CEO: "Trinidad is a project of high merit, which was terminated in its infancy due to external factors, most notably a heavy downturn in the price of gold. As a marginal deposit in a weakening commodities market, its true potential was never explored. Today's gold price changes how a project with this potential should be approached."

Oro Gold has received data from 140 RC drill holes in the pit area, of which 138 have gold assays. Most holes were vertical, averaging 56 metres in length and spaced 25 to 30 metres apart. The drilling appears to have focused on converting the surface outcropping mineralization into a quickly mineable resource. Step-out drilling was not conducted prior to 1995. Oro Gold's preliminary data and field review suggests that portions of the Taunus historical resource remain un-mined, and that historic drilling did not completely close off mineralization at depth, across width, or along strike. The table below displays results for select holes outside of the current pit outline.

Au Ag
Hole From To Width (ppb) (ppm)
TTC-126 38 60 22 1,623 7.7
TTC-146 18 28 10 3,488 5.2
TTC-163 36 52 16 3,494 15.0
TTC-175 68 80 12 5,095 5.6
including 16 24 8 2,962 7.95
TTC-224 24 36 12 3,444 4.5

A planned minimum 1,000 metre first-phase drill program will test un-mined areas of the historic resource to estimate how much remains, as well as step-out targets to determine the potential for expanding the resource area. Another 1,000 metres of drilling is planned to test additional targets located on-strike 5 to 7 kilometres to the south of the pit.

"Of all our properties, Trinidad has the potential to be developed into a resource in the shortest amount of time and at the least expense," stated Eric Grill, Oro Gold's VP Exploration. "Not only does the historic resource appear to have been only partially exploited, but the potential of additional nearby zones is excellent, and we look forward to drill testing them."

Oro Gold has also developed targets on several prospect areas located 5 to 7 kilometres on-strike to the south. Sampling of veins and structures in these areas returned up to 11.38 g/t gold over 1 metre and 41.71 g/t gold and 709 g/t silver over 2.1 metres (see June 8, 2006 press release). It is notable that upon re-assay by metallics method, gold grades for these samples went up to 11.92 g/t and 45.34 g/t respectively. Field work resulted in the expansion of known areas of gold-related alteration and veining to over 30 km2 representing a doubling in size of the previously mapped alteration footprint. Mapping completed by Oro Gold suggests the area represents a large zoned Au-Cu porphyry-related hydrothermal system with distal polymetallic veins.

Oro Gold staked the Trinidad property in late 2005 as part of its generative exploration program aimed at acquiring the most prospective targets near the past-producing multi-million ounce Rosario mine. The Company is in the process of securing drill permits and intends to initiate drilling by the end of Q2 2007.

A qualified person has not done sufficient work to classify the historical resource estimates as current mineral resources. Oro Gold is not treating the historical resource estimate as current mineral resources and the historical estimate should not be relied upon. Michelle Robinson, MASc., P.Eng, a qualified person as designated by National Instrument 43-101, supervised the sampling and quality control programs conducted for Oro Gold and has reviewed the technical content of this news release. Samples were analyzed at Acme Analytical Laboratories in Vancouver, Canada.

On behalf of the board of directors,

Darren Bahrey, President & CEO

This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. Oro Gold disclaims any intention or obligation to revise or update such statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Oro Gold Resources Ltd.
    Darren Bahrey
    President & CEO
    (604) 646-1580
    (604) 642-4211 (FAX)
    Website: www.orogoldresources.com