Oro Silver Resources Ltd.
TSX VENTURE : OSR

Oro Silver Resources Ltd.

November 19, 2007 09:00 ET

Oro Silver Purchases Mining Rights at El Compas and Acquires Three Mining Concessions, Zacatecas, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2007) - Oro Silver Resources Ltd. ("Oro Silver") (TSX VENTURE:OSR) has exercised its option to purchase three mining properties plus the mining (exploitation) rights at the El Compas Mine near Zacatecas, Mexico, for US$800,000.

Highlights:

- Purchase of the exploitation right at El Compas

- 100% ownership of the El Orito, La Virgen and Ampliacion El Compas concessions

The options to purchase the properties El Orito, La Virgen, and Ampliacion El Compas (88.3 hectares) and the exploitation rights for the El Compas mining concession were initially obtained on April 21, 2007 from F. Gutierrez, the operator of the El Compas mine and owner of the three mining concessions. The option agreements were due to expire on April 21, 2008. Oro Silver expedited the purchase in order to facilitate geological and engineering studies necessary for resource development and optimization of the mine plan. Exercising the option for the mining rights also prevents continued depletion of mineralized material from the El Compas adit zone. The ownership of the El Compas mining concession is under an option to purchase from A. Alvarado (see press release of June 5, 2007).

The El Compas adit zone comprises multiple sub-parallel epithermal veins within the larger El Compas concession (28 hectares). Production by the previous operator began in 2002 at a rate of 50 to 100 tons per day. Mining was from an adit with a declined ramp along the mineralized epithermal veins. Weighted average of mill-head grade for approximately 55,000 tons of material mined from 2002 through 2006 averaged 4.67 g/t gold and 86.74 g/t silver. The gold and silver values obtained from Oro Silver's systematic channel sampling of the ramp are described in the press release dated August 5, 2007, and in the NI 43-101 report filed September 10, 2007.

Oro Silver initiated its exploration program on these properties in April 2007 to determine the strike extent of the El Compas mineralized system and to confirm and access the potential of the known mineralized zones on the El Compas property. Work consisted of surface geological mapping and sampling, underground mapping and channel sampling, re-logging and re-interpretation of third party drill data. In addition, a systematic re-sampling program of approximately 1,500 meters of drill core with potentially mineralized vein material is underway.

Oro Silver will initiate a 5,000-meter drill program before year end to evaluate the depth and lateral extension of the El Compas mineralized system, which includes the adit zone. In conjunction with the exploration work, Oro Silver is continuing its engineering and metallurgical studies in order to optimize the mining and milling processes. Oro Silver expects to provide a preliminary resource estimation during the second quarter of 2008 when drilling and geological modeling are complete.

The exploration program is supervised by Mr. Herve Thiboutot, P. Eng. and Vice-President of Exploration and Development, while the engineering work is supervised by Robert Gardiner, P. Eng. and Director Engineering for Oro Silver, both are qualified persons as defined by National Instrument 43-101. Mr. Thiboutot and Mr. Gardiner 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.
    Matthew Chandler
    Corporate Communications Manager
    (604) 646-1586
    (604) 642-2411 (FAX)