Oro Silver Resources Ltd.
TSX VENTURE : OSR

Oro Silver Resources Ltd.

October 22, 2009 08:00 ET

Oro Silver Commences 5,000m Drill Program on El Compas Property, Zacatecas

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 22, 2009) - Oro Silver Resources Ltd. ("Oro Silver" or the "Company") (TSX VENTURE:OSR) reports that it has commenced diamond drilling on its El Compas gold-silver mine property in Zacatecas, Mexico. The objective of the drill program is to increase the Company's gold and silver resource by testing (1) near-surface gold vein targets and (2) deeper silver targets more typical to the nearby northwest-trending historic mining belts in the Zacatecas district.

The current National Instrument 43-101 resource at El Compas has been calculated at;

  • 65,000 indicated gold-equivalent ounces (310,000 tonnes at 5.82 g/t gold and 59.1 g/t silver)
  • 41,200 inferred gold-equivalent ounces (234,000 tonnes at 4.94 g/t gold and 45.7 g/t silver)

*calculated at a 3 g/t gold-equivalent cut-off (see Oro Silver's press release dated September 18, 2008)

The initial phase of drilling will focus on the El Orito and El Compas vein targets (click here to see the location map: ttp://www.orosilver.com/userfiles/El_Compas_Property_area_Oct_09_web.jpg), where previous significant drill intercepts ere reported (see Oro Silver's press releases dated June 9, 2008 and September 17,2009): 

Drill Hole From (m)To (m)Interval (m)*Gold   (g/t)Silver     (g/t)
08COM008 84.50 94.40 9.90 2.60 149.00
08COM011 59.00 74.35 15.35 2.67 33.20
including70.5074.353.855.6265.90
08COM01464.1469.004.866.7884.00
including66.5969.002.4113.36147.50
08COM01946.4665.2018.746.6244.50
including49.0963.3014.218.4049.60
08COM028126.01142.0015.992.37147.8
including126.01132.146.135.26276.3
09COM038134.76136.802.043.8156.7
09COM041 83.0083.650.65 5.62  45.8
and98.80100.201.4012.71106.6

*Intervals posted are down-hole drill lengths, and may not represent true width.

Oro Silver completed 5,400 metres of core drilling at El Compas and El Orito in 2008. This program tested two of the ten known vein targets identified to date. Drilling completed so far on the first two drill targets, El Compas and El Orito, indicates that the El Compas vein zone is open at depth to the north and east, and the El Orito vein zone is open at depth and to the south. Both the El Compas and El Orito veins are located near surface and are gold-rich with elevated silver values. The main El Compas vein was mined by the Company's Mexican partner from 2003 to 2007.

In this upcoming drill program, and with the aid of vectoring tools such as surface and underground structural geological mapping, IP-magnetometry geophysics and clay sample infrared spectrometry analysis, Oro Silver is identifying the best locations to place its priority drill holes in order to maximize potential success in the drilling. 

"We look forward to continued exploration successes on our El Compas property," stated Darren Bahrey, Oro Silver's President and CEO. "El Compas is situated in the same district trend as Fresnillo, the world's largest silver mine (see map below). The mining history in the Zacatecas district and the fact that the area is largely under-explored has us very eager to drill our priority targets and make new discoveries as well as increase our existing silver and gold resource."

To view the map accompanying this news release please click on the following link: http://media3.marketwire.com/docs/osr1022m.JPG

The above map indicates the important district-scale northwest-trending structural corridor (shown as a blue line) located on the Company's El Compas property, which parallels other known major productive silver trends located nearby to the north. The intersection of the north-south vein structures and this northwest-trending structural corridor is interpreted to be the priority targets for near-surface gold and deeper silver vein potential.

Oro Silver has awarded the 5,000-metre diamond and reverse circulation drill contract to BDW International Drilling of Mexico SA de CV.

About El Compas

The El Compas project, covering 34 square kilometres, is a recent gold-silver producer located in Zacatecas state within one of Mexico's primary silver belts. Five mines—Fresnillo, Francisco Madero, El Bote, Malanoche/Cozamin and Vetagrande, as well as MAG Silver's major silver-gold discovery at its Juanicipio project—are located within this belt to the north and west of El Compas (see map above). These underground mines collectively produced more than one billion ounces of silver. El Compas, which has principally been explored and mined for gold near surface, will now also be tested for deeper silver vein potential.

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, 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 Provider 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