Oro Silver Resources Ltd.
TSX VENTURE : OSR

Oro Silver Resources Ltd.

March 03, 2010 08:00 ET

Oro Silver Commences Deep Drilling for High-Grade Silver at the El Compas Project, Zacatecas, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2010) - Oro Silver Resources Ltd. ("Oro Silver" or the "Company") (TSX VENTURE:OSR) has commenced drilling on its El Compas project near Zacatecas, Mexico. The ongoing 5,000 metre drill program will focus on testing the potential down dip extension of high-grade silver mineralization at the El Compas mine below hole 09COM054 (990.9 g/t silver and 4.70 g/t gold over 1.0 metre, see press release dated February 15, 2010), and will also test northwest trending faults for high-grade silver potential at depth.

Darren Bahrey, President of Oro Silver stated: "Most of our recent drilling has focused on expanding the near surface gold-rich resource at the El Compas and El Orito veins. Hole 09COM54 has demonstrated that a transition from near surface high-grade gold to deeper high-grade silver-rich mineralization occurs below the El Compas mine. The high-grade silver vein intercepted in hole 54 in addition to another vein intercept drilled by a previous explorer to the east provide rationale for drill testing the intersection of northwest and north-south structural trends at depth for high-grade silver mineralization. The only way to test this idea is with drilling."

Drilling by Oro Silver has been mostly focused on the near-surface, gold-rich potential of the El Compas and other parallel trending vein systems. Now that high-grade silver mineralization has been confirmed at depth within north-south and NW trending structures, the Company is expanding its exploration focus to include the idea that larger, silver-rich targets associated with the deeper parts of the epithermal vein system could be present, in particular where these mineralized structures intersect. The results of recent surface clay alteration studies show mineral zonation centered around these intersecting structures that includes proximal buddingtonite and arsenate/phosphate-bearing clays, and distal kaolinite and smectite clays. It is the Company's belief that the intersecting structures could represent blind target zones with increased potential for high-grade silver mineralization at depth. A total of 2,500 metres of drilling has been contemplated for deep targeting for silver-rich vein mineralization. Initial targets include testing the down dip extension of the silver mineralization intersected in hole 09COM054 below the El Compas mine, the deepest significantly mineralized zone drilled to date below the mine, followed by deep drill testing of the northwest trending Escuadra fault where it is intersected by the north-south trending El Compas and EC-2 vein systems. The potential surface manifestations of the intersecting structures above the target zones may be only weakly developed due to the presence of a 200 to 250 metres thick rhyolitic volcanic unit that overlies the more productive andesitic volcanic rocks at depth in the area. Target depths for these latter holes are calculated to be at least 600 metres below surface, and correspond to depths that are comparable to bonanza grade mineralization at MAG Silver's Juanicipio property. Additional drill targets are likely, as additional information from ongoing surface exploration work becomes available.

Presently the Company is pre-collaring holes with an RC rig and plans to complete the holes with a diamond-drill tail. This technique is cost saving and allows for faster drilling and subsequent assay turn-around times.

2010 first quarter exploration plans

  • A 2,500 metre drill program.
  • Additional targeting surveys (geophysics, structural studies, and clay analysis).
  • Completion of El Compas and El Orito geological model.
  • Scoping studies and resource estimation work.

About Oro Silver

Oro Silver is a silver exploration company pursuing early and advanced stage silver-based opportunities in Mexico. Oro Silver's mandate is to develop properties toward 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. The Zacatecas Fresnillo silver trend (known to have produced several billion ounces of silver) is well known for its silver production as the Fresnillo Mine 45km to the northwest held by Industrias Peñoles currently produce over 31 million ounces of silver annually from high-grade (23 oz/T Ag plus up to 0.1 oz/T Au) veins. Fresnillo commenced mining around the year 1560 and has produced about 800 million ounces of silver (see http://www.penoles.com.mx).

ON BEHALF OF THE BOARD OF DIRECTORS,

Tom Bagan, P.Eng., Chief Operating Officer

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 Provider accepts responsibility for the adequacy or accuracy of this release.

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