Oro Silver Resources Ltd.

Oro Silver Resources Ltd.

November 17, 2009 08:00 ET

Oro Silver Drills 8.2 Metres of 5.2 g/t Gold and 87.7 g/t Silver at El Orito Vein, Zacatecas, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2009) - Oro Silver Resources Ltd. ("Oro Silver or the "Company") (TSX VENTURE:OSR) has received more positive assay results for two additional drill holes recently completed on the El Orito target located on its El Compas property near the city of Zacatecas, Mexico. Recent drilling has nearly doubled the strike length of the El Orito vein to approximately 350 metres. In addition, the drill intercept of 8.2 metres has identified a significantly wider mineralized vein zone indicating the potential for much higher tonnage than previously modeled. More drilling is planned to potentially extend the gold and silver mineralization to the south and at depth.

Highlight results from these latest two drill holes include:

- 5.2 g/t gold and 87.7 g/t silver over 8.2 metres (estimate true width 5.3 metres) in drill hole 09COM046 located approximately 60 metres below surface, and is the best drill intercept reported to date at El Orito.

- Higher grade vein intercepts of 15.2 g/t gold and 242.0 g/t silver over 2.6 metres and 18.3 g/t gold and 426.9 g/t silver over 0.5 metres in 09COM046.

Darren Bahrey, President and CEO of Oro Silver commented, "We are very encouraged with the high-grade gold and silver grades returned by the latest round of drilling. Even more impressive are the significant vein widths being intersected at shallow depths. Our systematic approach using advanced exploration tools has been key to producing these excellent drill results. Drilling will continue into 2010 with the aim of making more high-grade vein discoveries and adding ounces to our gold and silver resource base."

The El Orito target is a recent discovery located 300 metres east of the El Compas mine entrance. The focus of the current drilling is to continue expanding the El Orito vein target, which is anticipated to have a significant impact on increasing the Company's NI-43-101 resource at El Compas.

Select assay results of the recently drilled holes at the El Orito vein target are summarized as follows:

Core Est. True
From To Length Width Gold(i) Silver
Hole (m) (m) (m) (m) (g/t) (g/t)
09COM045 148.90 151.20 2.30 1.76 1.11 30.9
09COM046 69.96 70.43 0.47 0.27 18.31 426.9
and 75.53 83.70 8.17 5.25 5.22 87.7
includes 75.53 81.30 5.77 3.71 7.18 117.5
includes 75.53 78.10 2.57 1.65 15.17 242.0
(i) Due to presence of visible gold in samples metallic assaying is being
performed on all high-grade samples. Results of metallic assays are

A location map of the completed holes can be viewed at this link: http://www.orosilver.com/userfiles/El_Compas_Property_area_Nov12_09_Zoom_web.jpg.

Hole 46 (09COM046) tested the near-surface potential of the El Orito vein, up-dip of the mineralized quartz vein previously intersected in hole 09COM038 (1.39 m of 3.81 g/t gold and 56.7 g/t silver). Hole 46 intersected four quartz veins from approximately 70 to 84 metres down-hole. The central part of this zone includes two high-grade veins that averaged 15.2 g/t gold and 242.0 g/t silver over 2.6 metres (estimate 1.7 metres true width). This high-grade interval occurs within a broader vein zone that grades 5.2 g/t gold and 87.7 g/t silver over 8.2 metres (estimate 5.3 metres true width).

Hole 45 (09COM045) tested the potential of the Orito vein down-dip of the high-grade quartz vein previously intersected in hole 09COM041 (0.9 m of 12.7 g/t gold and 106.6 g/t silver). Hole 45 intersected a single 2.3-metre wide quartz vein at 148.9 metres down-hole grading 1.1 g/t gold and 30.9 g/t silver.

In summary, the El Orito target comprises one or more sub-parallel, near vertically-dipping quartz veins with individual veins ranging from a half-metre to several metres wide. The mineralized portion of the vein is approximately 350 metres in length and strikes roughly north-south. High-grade gold and silver mineralization in the veins occurs at a shallow depth down to a vertical depth of about 125 metres. The potential is good for the El Orito vein system to expand along strike and at depth.

Nine holes for a total of 1,313 metres have been drilled at El Compas in 2009, as part of the ongoing 5,000-metre drill program. The next phase of drilling is scheduled to commence during the upcoming week now that all assays have been received and interpreted.

The objective of the current drilling at the El Compas and El Orito vein targets is to accomplish the following:

1. To increase the near-surface gold and silver resource;

2. To test for deeper potential high-grade silver and gold feeder vein structures;

3. To provide additional geological information for the in-house scoping study.

Studies being completed at El Compas to aid in prioritizing vein targets to be drill-tested include the following:

1. Induced polarization and magnetic surveys over the El Compas mine and other known vein targets to determine if a geophysical signature of the defined high-grade vein zones occur;

2. Surface and underground structural mapping;

3. Clay sample spectral analysis and satellite ASTER image interpretation to confirm the presence of buddingtonite - a mineral known to be associated with silver and gold mineralization in the Zacatecas silver belt.

The potential for deeper high-grade silver and gold 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 703 g/t silver and 4.1 g/t gold over 0.9 metres at a vertical depth of 425 metres below surface, located approximately one kilometre southeast of the El Compas mine entrance. Preliminary geophysical results look encouraging in identifying structures at depth which may host high-grade silver mineralization; final interpretations are still pending.

About El Compas

The El Compas project, covering 34 square kilometres, located in the state of Zacatecas one of Mexico's primary silver belts. Five mines - Fresnillo, Francisco Madero, El Bote, Malanoche-Cozamin and Vetagrande, as well as MAG Silver's Juanicipio project - are located within this belt to the north and west of El Compas (see map: http://media3.marketwire.com/r/3D_google_looking_NW_2.jpg). These underground mines collectively produced more than one billion ounces of silver. The El Compas district, principally explored and mined for gold at shallow depths, will also be tested for deeper silver vein potential.

The Company's 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)

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 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)
    Website: www.orosilver.com