Oro Silver Resources Ltd.

Oro Silver Resources Ltd.

November 10, 2009 08:00 ET

Oro Silver Drills 193 g/t Gold and 1,264 g/t Silver Over 4.3 Metres at El Compas Project, Zacatecas, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 10, 2009) - Oro Silver Resources Ltd. (TSX VENTURE:OSR) ("Oro Silver or the "Company") has received positive assay results for two recently completed diamond drill holes on its El Compas property located in Zacatecas, Mexico. Both holes were drilled at shallow depths below the El Compas mine workings testing gaps in the current resource model.

Highlight drill results include:

  • 193.2 g/t gold and 1,263.9 g/t silver over 4.28 metres (true width) in 09COM043 approximately 50 metres below the El Compas mine portal, and is the highest grade drill intercept reported to date.
  • 4.7 g/t gold and 48.6 g/t silver over 2.44 metres (true width) in 09COM044 approximately 90 metres below surface.

Tom Bagan, Chief Operating Officer of Oro Silver remarked, "We were expecting better than average grades from hole 09COM043 but what we got was truly spectacular. This is by far the best hole ever drilled at El Compas, and it will undoubtedly have a positive impact on our ongoing scoping study demonstrating the robust economics of our gold-silver mine."

Hole 09COM043 drilled below and slightly north of the main historic underground workings. The hole intersected an approximate 4.5-metre wide fault-vein zone at the predicted target depth hosted in brecciated and silicified andesite. The vein zone comprised an approximate half-metre wide quartz-adularia vein with seams and patches of centimetre-scale black silver-sulfide and abundant visible gold (see images of visible gold at the following link: http://media3.marketwire.com/docs/osr1110fig1.pdf). The mineralized portion of the zone averaged 193 g/t gold and 1,264 g/t silver over 4.7 metres (4.28 metres true width), and includes a higher grade interval of 566 g/t gold and 3,037 g/t silver over 1.6 metres (1.45 metres true width).

Hole 09COM044 drilled below the central portion of the historic workings about 80 metres south of 09COM043. Numerous banded and bladed quartz-adularia veins up to 3.68 metres true width were intersected with minor presence of sulfides. Economic grades were obtained in a few of the veins, including 4.68 g/t gold and 48.6 g/t silver over 2.76 metres (2.44 metres true width).

Select assay results of the two holes that drilled the El Compas vein are summarized in the following table:

HoleFrom (m)To (m)Core Length (m)Est. True Width (m)Gold* (g/t)Silver* (g/t)

* Due to presence of visible gold in some samples metallic analyses are being performed. Assay results of metallic analyses are pending.

The current round of drilling consisted of five holes totaling 744 metres. Nine holes for a total of 1,313 metres have now been drilled at El Compas in 2009, as part of the ongoing 5,000-metre drill program. The next round of drilling is expected to commence during the latter part of November following interpretation of assay results for three additional holes completed at the El Orito vein target, located 300 metres east of the El Compas vein. The pending assay results will be received soon.

The objective of the current drilling at the El Compas and El Orito vein targets is to (i) increase the near-surface gold and silver resource, (ii) to test for deeper potential high-grade silver and gold feeder structures, and (iii) to provide additional geological information for the ongoing in-house scoping study.

In addition to drilling, other studies currently underway at El Compas include (i) a geophysical survey consisting of induced polarization and magnetometry over the El Compas mine and other known vein target areas in order to delineate structures and determine if a geophysical signature of the defined high-grade vein zones occur, (ii) surface and underground structural mapping, and (iii) clay sample spectral analysis and satellite ASTER image interpretation to confirm the presence of buddingtonite, a silver and gold indicator mineral. These studies are expected to provide new data that will be utilized to prioritize drill targets, not only to continue testing near-surface targets to increase the current gold and silver resource, but also to test for deeper potential high-grade silver and gold feeder structures. The interpretation that there is potential for deeper feeder structures in the El Compas district is based on the results of surface exploration work completed to date and a prior drill intercept that intersected a quartz vein grading 4.1 g/t gold and 703 g/t silver over 0.9 metres at a vertical depth of 425 metres below surface, located approximately 1 kilometre southeast of the El Compas mine portal.

About El Compas

The El Compas project, covering 34 square kilometres, is a recent gold-silver producer located in the state of Zacatecas 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 significant silver-gold discovery at its Juanicipio project - are located within this belt to the north and west of El Compas (see map at http://media3.marketwire.com/r/oromap). 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.

The current National Instrument 43-101 resource at El Compas calculated at a 3 g/t gold-equivalent cut-off (see Oro Silver's press release dated September 18, 2008) has been reported as follows:

  • 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)

Highlights of the El Compas property based on what the Company has accomplished to date include:

  • 6,713 metres of diamond drilling completed, testing three vein targets (El Compas, El Orito, and EC-4) out of ten identified.
  • True width of veins average 7.2 metres for the El Compas vein and 3.3 metres for the El Orito vein.
  • El Compas vein zone is at least 200 metres long with vertical depth continuity down to 150 metres below surface and is open at depth to the north. The El Orito vein zone at least 350 metres long and is open to the south and at depth. The mineralized veins are exposed at surface and can be accessed by adits and ramps.
  • The El Compas vein was exploited by a small-scale underground operation from 2003 to 2007, mining 50 to 60 tonnes per day.
  • Metallurgical test work on the El Compas vein material confirmed high recovery by gravity separation and cyanidation, ranging from 92 to 98% for gold and 50 to 71% for silver.
  • Currently completing an in-house preliminary mine plan and cost estimation to produce an economic assessment showing cash flow analyses.

Quality Control
Oro Silver maintains a strict quality control program. All sample results generated by Oro Silver were submitted directly to Inspectorate Assay Laboratory, for preparation in Durango, Mexico, and analysis in Reno, Nevada. All samples submitted for analysis were of half-sawn HQ core. Analysis was conducted on 2 assay ton samples for gold and silver, with standards and blanks inserted every 30 samples. Analysis of gold was by fire assay, with a gravimetric finish on samples exceeding 3 g/t gold. Analysis of silver was by 4-acid digestion with an ICP finish, and with a gravimetric finish on samples exceeding 100 g/t silver. Oro Silver's project development programs are supervised by Mr. Thomas Bagan, P. Eng., Chief Operating Officer and Vice-President Operations. Mr. Bagan is a qualified person as defined by National Instrument 43-101 and has reviewed the content of this press release.

About Oro Silver

Oro Silver is a silver exploration company pursuing early and advanced stage silver-based opportunities in Mexico. Oro Silver's corporate 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.


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 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)