Oro Silver Resources Ltd.
TSX VENTURE : OSR

Oro Silver Resources Ltd.

October 15, 2009 08:30 ET

Oro Silver Acquires Right of First Refusal for Vetagrande Mill and Mining Properties in Zacatecas, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2009) - Oro Silver Resources Ltd. ("Oro Silver" the "Company") (TSX VENTURE:OSR) has reached an agreement granting the Company's wholly owned subsidiary Minera Oro Silver S.A. de C.V. ("Minera Oro Silver") a two-year Right of First Refusal ("ROFR") to acquire the Vetagrande silver mine and mill located in the world-class Zacatecas-Fresnillo silver district, in Zacatecas State, Mexico from Contracuna I, S.A. de C.V. ("Contracuna"). The ROFR gives Oro Silver the option to become active with the Vetagrande mine at any time within the next two years in exchange for keeping the Vetagrande mining concessions in good standing.

The Vetagrande mine is an active silver producer and has produced grades ranging from 200 to 1,500 g/t silver (not NI 43-101 compliant). Highlights based on preliminary exploration completed by the Company in 2008 include:

- Drill intercepts of 186 g/t silver over 2.29 metres to 2,369 g/t silver over 0.25 metres;

- Underground control samples collected by Oro Silver confirm historic grades, with values ranging from 140.3 to 436.7 g/t silver and 0.2 g/t to 2.0 g/t gold.

The mine is situated along the same district trend as the world's largest silver mine, the Fresnillo mine. See district trend map by clicking http://www.orosilver.com/userfiles/3D_google_looking_NW.jpg or going to www.orosilver.com

Key features of the Vetagrande mine and mill include:

- Operating 550 tpd mill with permitted tailings area; expansion and optimization potential

- Veins 2-to-10 metres in width

- Vertical depth potential of 450 metres and untested at depth

- 70 hectares of surface rights including mill, tailings and mine infrastructure, with 2 operating shafts, and 3 ramps in development

- Nine contiguous mining concessions; one of which is currently being mined

- Concessions cover 2.7 kilometres of strike on the Veta Grande silver vein deposit

This agreement is a significant milestone for Oro Silver, as the Company has achieved its goals of: 1) cultivating its relationship with a Mexican partner (Contracuna) in the Vetagrande district, and 2) being able to maintain an involvement with one of the larger silver mines in Zacatecas, Mexico.

"Although the El Compas mine project continues to be the cornerstone of our growth strategy in the Zacatecas silver district, we continue to secure opportunities that make good business sense for our company and allow for future growth," stated Tom Bagan, Oro Silver COO. "This recently signed right of first refusal for the Vetagrande mine has us excited about the possibility of adding this significant silver project back into our portfolio."

About Oro Silver

Oro Silver is a silver exploration company pursuing early and advanced stage silver-based opportunities primarily in Mexico. Oro Silver's strategy is to develop properties towards silver production through a strategic business arrangement and development plan focused on advanced-stage projects with known silver resources that exhibit potential for expansion. The El Compas mine continues to be the cornerstone for Oro Silver's growth strategy in the Zacatecas silver district.

ON BEHALF OF THE BOARD OF DIRECTORS, Darren Bahrey, President & CEO.

Some statements in this release may contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, resource estimation, development and production activities and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the time and success of future exploration, development and production activities and the timing and amount of expenditures.

Neither the TSX Venture Exchange nor its Regulation Services accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Oro Silver Resources Ltd.
    Darren Bahrey
    President & CEO
    604-646-1585
    604-642-2411 (FAX)
    www.orosilver.com