Oro Silver Resources Ltd.
TSX VENTURE : OSR

Oro Silver Resources Ltd.

January 10, 2008 09:00 ET

Oro Silver Plans to Increase Capacity and Recovery at Vetagrande Mill in Zacatecas, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2008) - Oro Silver Resources Ltd. ("Oro Silver") (TSX VENTURE:OSR) is developing a program to increase the capacity and recovery of gold and silver at the 150-tonne per day Vetagrande Mill in Zacatecas, Mexico. An option to purchase the mill and nine associated mining properties was acquired on December 20, 2007 (see press release of December 21, 2007).

Highlights:

- Limited capital investment of US$400,000

- Increase in mill recovery capability and capacity expected

- Preliminary metallurgical test work forecasts an increase in recoveries to 90% for gold and 53% for silver at El Compas

The Vetagrande Mill has processed material from the Vetagrande Mine, El Compas Mine and third parties over the past five years. The milling circuit consists of two ball mills followed by flotation cells. The current throughput is limited by the ball mill capacities to approximately 150 metric tonnes per day, depending on the types of material processed. The tailings area is currently being expanded and permitting is in place.

Production data obtained from the operator indicate average recovery of 50.9% for gold, and 47.9% for silver, from material processed from the Vetagrande Mine between 2003 and 2007. The data from the material processed from the El Compas Mine show average recovery of 66% for gold and 28% for silver over the same period. Oro Silver has options to purchase both the El Compas and Vetagrande Mines.

Both throughput and recovery are expected to be substantially improved as part of Oro Silver's US$400,000 investment in capital improvements in the facility. Preliminary metallurgical tests by SGS Minerals Services on material collected by Oro Silver from El Compas show recoveries of 90% for gold and 53% for silver. Metallurgical test work on material from Vetagrande is yet to be completed. After completing its investment, Oro Silver will receive a 3% net smelter return on all materials processed from Vetagrande, El Compas and any third parties during the term of the option.

"This is a low-cost high-benefit step to optimize our operations in Zacatecas," stated Greg Cox, President and CEO of Oro Silver. "We are confident that these modifications and improvements will increase both recovery and capacity as well as provide flexibility in scheduling for different types of material, all of which will have a positive impact on project economics."

Oro Silver Resources Ltd. is a silver exploration company pursuing early and advanced stage silver-based opportunities primarily in the western hemisphere. The company is focused on (i) developing resources and optimizing milling processes at its El Compas and Veta Grande Mine projects in Zacatecas, Mexico, and (ii) completing additional strategic acquisitions. Oro Silver's strategy is to become a mid-tier silver producer through an aggressive acquisition and development plan focused on advanced-stage projects with known silver resources that exhibit potential for expansion.

Oro Silver's engineering work is supervised by Robert Gardiner, P. Eng. and Director of Engineering for Oro Silver while its exploration program is supervised by Mr. Herve Thiboutot, P. Eng. and Vice-President of Exploration and Development. Both are qualified persons as defined by National Instrument 43-101, and both have reviewed the content of this press release.

On behalf of the board of directors,

Gregory M. Cox, President and CEO

This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. Oro Silver disclaims any intention or obligation to revise or update such statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Oro Silver Resources Ltd.
    Gregory M. Cox
    President and CEO
    (604) 646-1585
    (604) 642-2411 (FAX)