Oro Silver Resources Ltd.
TSX VENTURE : OSR

Oro Silver Resources Ltd.

January 15, 2010 08:15 ET

Oro Silver Intersects High Grade Mineralization; 19.95 g/t Gold and 166.3 g/t Silver Over 5.9 Metres at El Compas Project, Zacatecas, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 15, 2010) - Oro Silver Resources Ltd. ("Oro Silver or the "Company") (TSX VENTURE:OSR) has received more positive assay results for two additional drill holes on the El Orito target located on its El Compas property near the city of Zacatecas, Mexico. The drill holes were designed to test the potential for high-grade gold and silver mineralization in the central portion of the El Orito target area at shallow depths. Highlights from these latest two drill holes include:

- 19.95 g/t gold and 166.3 g/t silver over 5.9 metres in drill hole 09COM048 located approximately 60 metres below surface.

- 1.08 g/t gold and 16.2 g/t silver over 3.3 metres, including 4.05 g/t gold and 93.5 g/t silver over 0.4 metres in drill hole 09COM047 located approximately 50 metres below surface.

Darren Bahrey, President and CEO of Oro Silver commented, "We are very pleased with the results of these latest drill holes as they have extended the known mineralization extent to more shallow areas we had not tested before, growing the overall size of the El Orito gold-silver vein system."

The El Orito target is a recent discovery which is located 300 metres east of the El Compas mine entrance (where Oro Silver recently reported an intercept of 193 g/t gold and 1,264 g/t silver over 4.3 metres, see press release dated, November 10, 2009). 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. Recent drilling has nearly doubled the strike length of the El Orito vein to approximately 350 metres, and more drilling is being programmed to potentially extend the gold and silver mineralization to the south and at depth.

Hole 48 (09COM048) was drilled in the central mineralized portion of the El Orito target in between and up dip (more shallow) of holes 08COM026 and 09COM046, and 80 metres north of Hole 47. Hole 48 intersected a vein zone from 54.5 to 72.9 metres downhole containing several veins with banded and bladed textures. Most of the veins contain minor black silver sulfide, as well as fine-grained native gold.

Hole 47 (09COM047) was drilled in the central mineralized portion of the El Orito target between and up dip (more shallow) of holes 09COM041 and 09COM046. Hole 47 intersected a vein zone from 59.2 to 70.4 metres down hole containing multiple quartz veins with banded and bladed textures. Some of the veins contain fine blebs of disseminated black silver sulfide, and more rarely fine grained native gold.

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 system 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.

Nineteen drill holes for a total of 2,268 metres were completed at El Compas between June and December 2009, as part of the ongoing 5,000-metre drill program. Assay results for holes 09COM49 to 56 are still pending and will be released once they have been received and interpreted. See appended map for drill hole locations.

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

Hole From (m) To (m) Core Length* (m) Gold (g/t) Silver (g/t)
09COM047  43.6 43.9 0.3 4.80 119.9
and  59.2 60.7 1.5 0.81 22.2
and 67.0 70.4 3.4 1.08 16.2**
includes 67.0 67.7 0.7 2.50 22.4
includes 70.0 70.4 0.4 4.05 93.5
09COM048 54.4 60.3 5.9 19.95 166.3**
 includes 54.4 55.6 1.2 81.19 654.4
 includes 59.6 60.3 0.7 30.72 308.6
and 63.1 65.4 2.3 1.33 22.7
and 68.7 72.9 4.2 1.09 24.0**

*The core length represents downhole length and is not true width.
 ** Silver assay results that are still pending for this interval were assigned 0 g/t grade.

Assay results for the 2009 drilling program at both El Orito and El Compas target areas are showing a higher proportion of samples with high to very high-grade gold when compared with drilling results from the period 2007-2008. Many of these more recent high-grade sample intervals contain visible, native gold indicating that a "nugget effect" may be leading to the under-reporting of gold values. For this reason metallic analysis is being performed on all samples containing visible gold and/or returning greater than 5 g/t Au by gravimetric method. The results of the metallic analyses will be compiled and released in a summary report once all results have been received and interpreted.

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.

The objective of this year's 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; and

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; and

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.

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. Analysis was conducted on 2 assay ton samples for gold and silver on half-sawn core, 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.

About El Compas

The El Compas project, covering 34 square kilometres is 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 appended map). These underground mines have collectively produced more than one billion ounces of silver. The El Compas district, principally explored in the past for gold at shallow depths will be tested for its 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)

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.

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 accompanying this news release, please click on the following link: http://media3.marketwire.com/docs/osr115m.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 (FAX)
    www.orosilver.com