Oro Silver Resources Ltd.

Oro Silver Resources Ltd.

February 16, 2010 07:30 ET

Oro Silver Intersects High-Grade; 909.9 g/t Silver and 4.70 g/t Gold Over 1 Metre at El Compas Project, Zacatecas, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 16, 2010) - Oro Silver Resources Ltd. ("Oro Silver or the "Company") (TSX VENTURE:OSR) has received assay results from two more drill holes at the El Compas project near Zacatecas, Mexico. The property is located within the Fresnillo Trend, known as the world's largest silver producing region. The highlight of the recent drilling was an intersection from Hole 09COM054 (Hole 54):

  • 364.7 g/t silver and 1.66 g/t gold over 3.10 metres, including 909.9 g/t silver and 4.70 g/t gold over 1.0 metre in drill hole 09COM054, located approximately 160 metres vertically below and to the north of the El Compas underground workings (from 207.0-210.1m downhole).

Darren Bahrey, President of Oro Silver stated: "Looks like we are onto something very significant, the results of Hole 54 extend mineralization at the El Compas vein target to its deepest level yet. The silver grades in Hole 54 shows we can correctly predict the location of the ore shoot and that our conceptual model for high-grade silver mineralization at depth is testing true. This intersection increases the potential to discover larger deposits like MAG Silver's recent discovery at nearby Juanicipio project. What we need to do now is vector in on potential wider zones below Hole 54, on both NS and NW structures, and in particular at points where these two structural trends intersect, and this is precisely where our upcoming drill program is focused."

Drilling results

The Hole 54 intercept confirms the continuity of the El Compas ore shoot to its deepest level yet (160m below mine portal elevation) and improves the Company's understanding of El Compas vein mineralization and its ore shoot geometry. Hole 54 is also the Company's first attempt at drilling beneath the El Compas Mine with a focus on targeting silver-rich mineralization. The fact that high grade silver (but still with appreciable gold) was intersected in this hole demonstrates that mineralization is becoming more silver–rich with depth. This compares favorably with an historical drill hole (HOLE-1) by Hochschild Mining, located 1 km to the southeast of the El Compas vein, which tested the NW trending Escuadra fault, intersecting a 0.9 metre wide quartz vein that returned 703 g/t silver and 4.07 g/t gold at a vertical depth of 425 metres below surface (see Map 1). The location of Hole 54 was guided by the results of recently completed induced polarization and magnetic geophysical surveys, in addition to clay sample spectral analysis (see press release dated February 11, 2010).

The El Compas Mine is located at the top of an epithermal vein system. The deposit is open to the south and at depth and there remains discovery potential in these areas as suggested by the hole 54 results. The targeted areas for the upcoming 2,500 metre drill program will focus on surface-mapped structures coincident with geophysical anomalies along the projection of veins being mined at El Compas (and El Orito). Now that silver-rich mineralization has been confirmed at depth along both NS and NW trending structures, the intersection of these two structural elements could represent target zones with enhanced potential for thicker vein development and higher-grade mineralization and will also be drill tested. 

Hole 56 tested the El Compas vein approximately 700 metres south of the El Compas mine, down dip of a surface grab sample of outcropping vein material that returned 11.25 g/t gold. The hole intersected a 1.13 metre wide, banded quartz vein hosted in the upper rhyolite unit that returned 0.76 g/t gold and 5 g/t silver, and while not high grade this intercept suggests good continuity of the vein.

A short summary of recent holes from drilling from the El Compas project is given below outlining the significant widths and grades at the project (see press releases dated November 10 and 17, 2009 and January 15 and 27, 2010):

Hole No. Interval Gold Silver
09COM054 1.0 m 4.70 g/t 909.9 g/t
09COM052 17.0 m 3.02 g/t 42.1 g/t
including 4.0 m 9.88 g/t 109.2 g/t
09COM048 5.9 m 19.95 g/t 166.3 g/t
09COM047 3.3 m 1.08 g/t 16.2 g/t
including 0.4 m 4.05 g/t 93.5 g/t
09COM046 8.2 m 5.20 g/t 87.7 g/t
09COM046 2.6 m 15.20 g/t 242.0 g/t
09COM043 4.3 m 193.20 g/t 1263.0 g/t

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. Due to the common occurrence of native gold that may lead to a "nugget effect" and subsequent under-reporting of gold values metallic analysis is being performed samples containing visible gold and/or returning >5 g/t Au by gravimetric method. 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. 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).


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 Map 1: El Compas Drilling Successes, please visit the following link: http://media3.marketwire.com/docs/osr_0216_map_1.pdf

To view Map 2: El Compas Section and 2010 Target Area, please visit the following link: http://media3.marketwire.com/docs/osr_0216_map_2.pdf

To view Map 3: Fresnillo Trend and Mining District Analogy, please visit the following link: http://media3.marketwire.com/docs/osr_0216_map_3.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.
    Ariel Cobangbang
    (604) 646-1586
    Oro Silver Resources Ltd.
    Suite 1400-625 Howe Street,
    Vancouver, BC V6C 2T6
    (604) 646-1585
    (604) 642-2411 (FAX)