Oro Silver Resources Ltd.
TSX VENTURE : OSR

Oro Silver Resources Ltd.

September 17, 2009 09:00 ET

Oro Silver Intersects Gold-Silver Mineralized Veins in Step-Out Holes at El Compas Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 17, 2009) - Oro Silver Resources Ltd. (TSX VENTURE:OSR) -

Recent diamond drilling on Oro Silver's El Compas project in Zacatecas, Mexico, has intersected visible gold and extended the known length of the key El Orito vein. Four holes totaling 569 metres were completed. Drilling focused on three target areas: the El Orito vein, the El Compas vein footwall and the EC-4 vein. Results confirmed the potential for the El Orito vein to host near surface high-grade gold and silver mineralization.

El Compas, which covers 34 square kilometres, is a former silver and gold producer located in Zacatecas State on one of Mexico's primary silver belts. Five mines- Fresnillo, Francisco Madero, El Bote, Cozamin and Vetagrande-lie within the region along with Mag Silver's Juanicipio project. El Compas is situated along one of at least five parallel and productive mineral trends in an area that hosts outstanding mining infrastructure and history (see map: http://media3.marketwire.com/docs/OSR0917A.JPG).

The current National Instrument 43-101 resource at El Compas (using a 3 g/t gold-equivalent cut-off) stands at 65,000 gold-equivalent ounces in the Indicated category (grading 5.82 g/t gold and 59.09 g/t silver) and 41,200 gold-equivalent ounces in the Inferred category (grading 4.94 g/t gold and 45.69 g/t silver).(i)

Assay results for all four holes of the recent drill program at El Compas have been received and interpreted. Highlights included two shallow step-out holes (09COM038 and 041) located at the south end of the El Orito target. Both holes intersected quartz veins with visible gold. The results extended the current length of the El Orito vein from approximately 190 to 350 metres. The vein, which remains open at depth and to the south, occurs approximately 400 metres northeast of the El Compas mine portal.

Hole 09COM038 intersected the El Orito vein starting at 135 metres downhole, returning 3.81 g/t gold and 56.7 g/t silver over 2.04 metres. Minor visible gold was observed in the core.

Hole 09COM041 further extended the El Orito vein zone to the south by intersecting two mineralized veins starting at 83 and 99 metres respectively downhole. The upper vein intercept was 0.65 metres and returned 5.62 g/t gold and 45.8 g/t silver. The lower vein intercept was 1.4 metres and returned 12.71 g/t gold and 106.6 g/t silver. Visible gold was observed in both veins.

Additional drilling will take place to potentially expand the El Orito vein zone to the south and at depth. The potential to increase the near surface gold and silver resource on the El Compas property is very good.

The El Compas north-south veins observed at or near surface are interpreted to be at a higher level above a potentially larger epithermal vein system more typical of the major productive silver belts observed in the Zacatecas district. Oro Silver is focused on: 1) increasing the current gold and silver resource base of the near surface vein zones identified on the property, and 2) to make a major vein discovery at depth more characteristic of the nearby historic silver vein deposits.

Assay results for the recent drill program are presented below.



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Hole ID From (m) To (m) Interval (m) Gold (g/t) Silver (g/t)
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09COM038 134.76 136.80 2.04 3.81 56.7
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09COM039 17.80 19.70 1.90 1.57 3.6
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09COM040 136.90 138.10 1.20 0.13 0.8
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09COM041 83.00 83.65 0.65 5.62 45.8
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and 98.80 100.20 1.40 12.71 106.6
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Note: Intervals posted are down-hole drill lengths, and may not represent true width.

A location map of the completed holes can be viewed at the following link: http://media3.marketwire.com/docs/OSR0917B.JPG.

Drill hole 09COM039 was designed to test the V3 vein located in the footwall of the main El Compas vein 50 metres north of drill hole 08COM023. Completed in 2008, the hole cut a 0.92 metre wide vein that returned 8.23 g/t gold and 30.9 g/t silver. Hole 09COM039 did not intersect any significant veining. Vein development in the target area may have been affected by a northwest striking fault which passes between the two holes.

Drill hole 09COM040 was collared 1.4 kilometres southeast of the El Compas mine. This hole was designed to confirm historical drill results at the EC-4 target, a north-south trending structural feature hosting intermittent narrow quartz veins at surface. Historical drilling by Minera Hochschild included two core holes 100 metres apart that cut narrow veins assaying up to 15.19 g/t gold and 154.6 g/t silver over 1.1 metres in one hole and 9.72 g/t gold and 92.2 g/t silver over 0.75 metres in the other. Oro Silver's hole 09COM040 was drilled midway between the two historical holes only to intersect a 15 metre wide structural zone consisting of stockwork quartz veinlets weakly anomalous in gold and silver.

Exploration plans include continued surface exploration to define and prioritize near surface and deep drill targets, followed by another phase of diamond and reverse circulation drilling.

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

- 5,969 metres of diamond drilling completed, testing three vein targets (El Compas, El Orito, and EC-4) out of 10 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 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 testwork 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.

- Completed an in-house preliminary mine design, planning and cost estimation to produce an economic assessment with cash flow analyses.

Quality control

Oro Silver maintains a strict quality control program. All sample results generated by Oro Silver were submitted directly to Eco Tech Laboratories, Stewart Group Geochemical & Assay Lab, for preparation in Zacatecas, Mexico, and analysis in Kamloops, British Columbia. Analysis was conducted on 30 gram 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 aqua regia digest with an atomic absorption finish, and a gravimetric, finish on samples exceeding 30 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 properties primarily in Mexico. Oro Silver's corporate mandate is to develop properties toward production through strategic business arrangements and development plans focused on advanced-stage projects with known silver resources that have potential for expansion. The El Compas gold-silver mine is the cornerstone in Oro Silver's growth strategy in the Zacatecas silver district.

(i)Oro Silver's resource estimation was performed by Marc Jutras, M.A. Sc., P.Eng., and audited by Robert De L'Etoile, M.A.Sc., P.Eng., of SGS-Geostat. Mr. De L'Etoile is an independent qualified person as defined by National Instrument 43-101. The mineral resource is effective as of September 16, 2008. A gold equivalency factor of 83.7 was used for the silver grades. This factor is based on gold and silver metal prices calculated from a combination of a 36 month trailing average of the metal price (60%) and a 24 month average of futures metal price (40%). The metal prices used in the calculation of the gold equivalency factor are $752.30 USD for gold and $13.38 USD for silver. The factor also incorporates gold and silver metal recoveries of 94.5% and 63.5% respectively (metallurgical testing done by Oro Silver Resources in 2008 - see June 9, 2008 press release). The reader can refer to the National Instrument 43-101 technical report on the Company's web site for more information on the El Compas mineral resource estimation.

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, 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 Ltd.
    Darren Bahrey
    President & CEO
    604 646-1585
    604 642-2411 (FAX)
    www.orosilver.com