Oro Silver Resources Ltd.
TSX VENTURE : OSR

Oro Silver Resources Ltd.

October 05, 2009 09:00 ET

Oro Silver to Target High-Grade Silver Potential at El Compas Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 5, 2009) -

- Previous diamond drilling by Minera Hochschild Mexico S.A. de C.V. on the EC2 target located approximately 1 kilometre east of the El Compas mine portal intersected silver vein mineralization; 0.9 m quartz vein returned 703 g/t silver and 4.07 g/t gold at a depth of 425 m below surface.

- El Compas is situated within the world-class Zacatecas-Fresnillo silver belt where deep drilling has led to spectacular discoveries of high-grade silver and gold mineralization.

Oro Silver Resources Ltd. ("Oro Silver" or the "Company") (TSX VENTURE:OSR) plans to drill both near-surface gold-silver vein targets and deeper silver targets at the Company's El Compas project in Zacatecas State, central Mexico. Oro Silver is currently conducting a staged program that includes structural mapping, clay sample analysis, and IP-magnetometry geophysics. Up to 5,000 metres of diamond core and reverse circulation drilling will follow. Approximately half of the drilling will explore for potential silver targets deeper in the El Compas district.

About El Compas

El Compas project, which covers 34 square kilometres, is a recent gold-silver producer located in Zacatecas State within one of Mexico's primary silver belts. Five mines - Fresnillo, Francisco Madero, El Bote, Malanoche/Cozamin and Vetagrande - as well as MAG Silver's major silver-gold discovery at its Juanicipio project are located within this belt to the north and west of El Compas (see map: http://www.orosilver.com/userfiles/3D_google_looking_NW.jpg). These underground mines collectively produced more than one billion ounces of silver, Fresnillo being one of the largest silver mines in the world. El Compas, which has principally been explored and mined for gold near surface, will now also be tested for deeper silver vein potential.

Exploration and project development milestones accomplished to date include:

- 5,969 metres of diamond drilling, testing three of ten vein targets (El Compas, El Orito, and EC-4);

- The true width of veins average 7.2 metres for the El Compas vein and 3.3 metres for the El Orito vein;

- To date the gold-silver bearing vein zone at El Compas is at least 200 metres long with vertical depth continuity down to 150 metres below surface, and remains locally untested at depth. The veins are exposed at surface and can be accessed by adits and ramps;

- The El Orito gold-silver vein zone is 360 metres long and mineralized down to 100 metres below surface. Visible gold was observed in veins intersected in the latest drill holes 09COM038 and 41. The El Orito vein zone remains untested to the south and locally at depth;

- The current National Instrument 43-101 resource at El Compas (using a three-gram-per-tonne gold-equivalent cut-off) stands at 65,000 gold-equivalent ounces in the indicated category (grading 5.82 grams per tonne gold and 59.09 grams per tonne silver) and 41,200 gold-equivalent ounces in the inferred category (grading 4.94 grams per tonne gold and 45.69 grams per tonne silver);

- Metallurgical testwork on the El Compas vein material has confirmed high recovery by gravity separation and cyanidation, ranging from 92 to 98 per cent for gold and 50 to 71 per cent for silver;

- Oro Silver has completed an in-house preliminary mine design and cost estimation to produce an economic assessment with cash flow analysis.

A drill contract is being negotiated and a more definitive program will be announced following this release.

About Oro Silver

Oro Silver is a silver exploration company pursuing silver-based exploration and development opportunities in Mexico. Oro Silver's strategy is to advance properties towards silver production through strategic business arrangements and development plans focusing 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,

Darren Bahrey, President & CEO

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.

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
    Investor Relations
    604 646-1585
    604 642-2411 (FAX)
    www.orosilver.com