Oro Silver Resources Ltd.

Oro Silver Resources Ltd.

December 14, 2007 16:29 ET

Oro Silver Reaches Agreement on an Option to Purchase of Mill and Related Mining Properties at Vetagrande, Zacatecas, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 14, 2007) - Oro Silver Resources Ltd. ("Oro Silver") (TSX VENTURE:OSR) is pleased to announce that it has reached an agreement in principle with Contracuna I, S.A. de C.V. and a private Mexican individual on an exploration contract with an option to purchase the operating mill and seven associated mining properties in the municipality of Vetagrande, Zacatecas, Mexico.


- Seven contiguous mining concessions, one of which is currently being mined

- Operating 150-ton per day milling facility with permitted tailings area

- Staged payments over 5 years totaling US$11,700,000 for mill and mining properties

- 70 hectares of surface rights including the mill, tailings and mine site

A formal agreement for an exploration contract and option to purchase is currently being drafted. The agreement will encompass an option to purchase a 150-tpd mill and seven associated mining properties covering 292 hectares located in the municipality of Vetagrande, Zacatecas, Mexico. The US$11,700,000 purchase price will be staged over five years; the first payment of US$1,500,000. Oro Silver will have the right to exercise the purchase option at any time after signing.

Between 2002 and 2007, the material mined from the El Compas mining concession, which is now under Oro Silver's control (see press release dated November 19, 2007), was processed through the Vetagrande mill. The mining properties known as La Contracuna I, Ampliacion a San Juan Bautista, Morse, San Francisco, San Tiburcio, Mina Guadalupito Fraccion 1, and Mina Guadalupito Fraccion 2 have all had past mining. The La Contracuna I concession is currently under production.

Furthermore, after completing a US$400,000 investment designed to increase throughput and recovery in the 150-tpd mill at Vetagrande, Oro Silver will receive a 3% net smelter return during the term of the option to purchase. The 70 hectares of surface rights including the mill facilities and the mine site on La Contracuna I can be purchased over a ten-year period for US$360,000.

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) 646-1580
    (604) 642-2411 (FAX)