Oro Silver Resources Ltd.
TSX VENTURE : OSR

Oro Silver Resources Ltd.

January 27, 2010 08:00 ET

Oro Silver Intersects 9.88 g/t Gold and 109.2 g/t Silver Over 4 Metres Extending High Grade El Compas Vein to the South

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 27, 2010) - Oro Silver Resources Ltd. ("Oro Silver or the "Company") (TSX VENTURE:OSR) has received more positive assay results for five drill holes recently completed on the El Compas vein target on its El Compas property near the city of Zacatecas, Mexico. Four of the drill holes tested the potential to expand near surface high-grade gold and silver mineralization in the north and central-south portions of the El Compas resource area, while the fifth hole tested the potential to expand known mineralization at depth. Highlights from these holes include:

  • 3.02 g/t gold and 42.1 g/t silver over 17.0 metres, including 9.88 g/t gold and 109.2 g/t silver over 4.0 metres, in drill hole 09COM052, located approximately 30 metres below and to the south of the El Compas underground workings.

Darren Bahrey, President of Oro Silver remarked, "Hole 09COM052 confirms near surface mineralization to the south of the El Compas mine workings. The higher grades are very encouraging and will have a positive impact on future resource estimates, especially in terms of near surface resource potential. This hole appears to have pierced the El Compas vein where it intersects another northwest striking structure resulting in a wider vein zone and higher grades suggesting the potential for discovering additional high-grade mineralization further to the south."

Select assay results of the recently drilled holes at the El Compas vein target are summarized as follows (for hole locations see the longitudinal and plan maps attached):

Drill Hole From (m) To (m) Core Length* (m) Gold (g/t) Silver (g/t)
09COM049 42.0 45.0 3.0 0.64 1.7
  48.3 54.2 5.9 1.30 23.0
includes 51.0 53.8 2.8 2.41 33.5
09COM050 50.4 50.8 0.4 7.37 80.1
  62.0 65.7 3.7 0.39 7.7
09COM051 130.3 142.8 12.5 0.50 50.9
includes 140.0 142.8 2.8 0.68 87.7
  154.5 156.0 1.5 0.37 68.3
09COM052 85.0 102.0 17.0 3.02 42.1
includes 85.0 88.6 3.6 1.69 25.9
includes 98.0 102.0 4.0 9.88 109.2
includes 98.0 100.9 2.9 13.11 132.5
09COM053 34.8 37.0 2.2 2.38 17.9

* The core length represents downhole length and is not true width. True width estimated at 80-90% of core length.
Oro Silver's ongoing drill program at El Compas is testing additional targets identified during the 2009 drill program and will incorporate the knowledge gained from the targeting studies which are ongoing.
These targeting studies being completed at El Compas to aid in prioritizing vein targets to be drill-tested include:

  • 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;
  • Surface and underground structural mapping;
  • 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.

These studies are helping to identify further targets for deeper high-grade silver and gold feeder structures in the El Compas district (initial targets to be tested in February 2010). In addition, the potential for deep high-grade silver is based on the results of recent surface exploration work and an older drill program conducted by Hochschild 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. This intersection is located approximately one kilometre southeast of the El Compas mine entrance. Preliminary geophysical results suggest potential structures at depth with a similar geological model that may host high-grade silver mineralization similar to those found elsewhere in the Zacatecas silver belt.

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. Mr. Thomas Bagan, P. Eng 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 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.

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.

To view the Maps associated with this press release, please click on the following link: http://media3.marketwire.com/docs/1oro26.pdf

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.
    Tom Bagan, P.Eng., Chief Operating Officer
    604 646-1585
    604 642-2411
    www.orosilver.com