Silvermex Resources Ltd.
TSX VENTURE : SMR

Silvermex Resources Ltd.

December 04, 2009 12:49 ET

Silvermex Completes Acquisition of Rosario Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 4, 2009) - Silvermex Resources Ltd. (TSX VENTURE:SMR) (the "Company" or "Silvermex") is pleased to announce that it has completed the acquisition of all of the shares of Aurcana de Mexico S.A. de C.V. from Aurcana Corporation (TSX VENTURE:AUN) and has thereby acquired the Rosario Project located in Sinaloa, Mexico.

The past-producing Rosario Silver/Gold/Lead/Zinc mine and 8,515 hectare property position is strategically located within 5 kilometers of Silvermex's San Marcial Silver Project in south eastern Sinaloa State, Mexico.

The assets acquired include all facilities and infrastructure at Rosario including; 20 year surface rights agreement in good standing, 30 year water use permit, underground workings, tailings dam, water, 60 km - 33 KV power line, offices, shops, 120 man camp, infirmary, warehouses and assay lab. The previous owner invested approximately $11 million in property payments, exploration, upgrades and renovations to the mine and mill site including upgrading of electrical substations and wiring, camp and accommodations, mine dewatering and detailed engineering of an 800 tonne per day (t/d) mill designed to be installed on the existing foundations and structures.

Historic production on the Rosario Project by Grupo Mexico, the prior operator, averaged 600 t/d from 1986 to 2000. During this production period a total of 2.5 million tonnes of ore were extracted which averaged 190.5 grams per tonne (g/t) silver, 0.92 g/t gold, 2.02% zinc and 2.38% lead.

The Rosario project is comprised of 2 past producing mines, the Plomosas-La Cruz mine and the San Juan Mine. The mines were operated by Grupo Mexico until 2001. Operations were ceased in 2001 due to low metal prices and a regional labor dispute.

Plomosas-La Cruz Mine

The Plomosas Mine had been partially refurbished by the previous operator in preparation for an 800 tpd operation. The Plomosas Mine currently has 323,278 tonnes of historic reserves with grades of 92.0 grams per tonne silver, 3.7% zinc, 2.5% lead and 1.0 gram per tonne gold and 286,613 tonnes of historic inferred resources with grades of 161.3 grams per tonne silver, 3.21% zinc, 2.23% lead and 1.2 grams per tonne gold.

The historic reserves are located in a number of mineral zones which include the Veta Plomosas, Plomositas, Lead-Zinc Stock Work, and Silver Stock Work. Silvermex will focus on the potential that remains within these zones and intends to expand the resource from areas remaining between old mine levels along strike and below the lowest level exploited. The stock work zones have potential for tonnage expansion along the strike and dip of the Plomosas fault structure.

The reader should be cautioned the historic reserves and resources do not conform to National Instrument 43-101 requirements for reporting purposes; as such the Company is not treating these historic estimates as current reserves or resources. The historical reserves do not have demonstrated current economic viability and are being treated as historical resources. These estimates should not be relied upon until they have been verified by further due diligence and by the Company's "Qualified Person".

Plomosas-La Cruz Mine - Select Underground Channel Samples taken by Aurcana Corporation from Levels 775 to 825

SAMPLEWIDTH (meters)g/toz/t%%
AuAgAuAgCuPbZnPb+Zn
8662.0025.4611.00.819.61.32.611.413.9
8672.0018.0379.00.612.20.30.85.56.3
8692.0041.0123.01.34.00.63.12.75.8
8821.804.3148.00.14.80.10.72.53.2
8830.7536.41536.01.249.40.517.911.329.2
8851.004.1125.00.14.00.111.136.647.7
8911.202.638.00.11.20.029.319.548.8
8942.002.944.00.11.40.037.726.364.1
8950.352.552.00.11.70.035.627.162.7
9311.851.743.00.11.40.17.823.731.6
9321.252.042.00.11.40.16.311.317.5
9341.701.336.00.01.20.110.915.226.1
9350.504.185.00.12.70.128.632.360.9
9361.502.954.00.11.70.214.920.735.6
9392.002.663.00.12.00.125.520.345.8
12442.000.717.00.00.50.112.19.121.2
12451.100.935.00.01.10.414.710.525.2
12511.504.056.00.11.80.018.928.247.1
12520.705.545.00.21.40.55.615.521.1
12571.306.098.00.23.22.05.05.710.7
12582.0014.2124.00.54.00.84.07.511.5
12612.005.2259.00.28.33.94.515.820.3
12622.006.461.00.22.00.40.41.41.8
12631.5519.6218.00.67.00.80.41.31.7

San Juan Mine

The San Juan Mine at Rosario is 4 kms from the Rosario mill site and is strategically located along trend between the San Marcial Mine and the Plomosas Mine.

San Juan is a high priority target with an 230,511 tonnes of historic inferred resources with average grades of 327.8 grams per tonne silver, 3.90% zinc, 1.70% lead and 0.2 grams per tonne gold. Developed workings consist of several hundred metres of drifts and cross cuts on two levels.

The reader should be cautioned the historic reserves and resources do not conform to National Instrument 43-101 requirements for reporting purposes; as such the Company is not treating these historic estimates as current reserves or resources. The historical reserves do not have demonstrated current economic viability and are being treated as historical resources. These estimates should not be relied upon until they have been verified by further due diligence and by the Company's "Qualified Person".

Two adits provide access to the San Juan prospect. A decline has been driven into the San Juan Vein and has tested the vein structure over a vertical distance of 40 metres. Historic drill intersections suggest that the zone remains open at depth.

San Juan Mine - Select Channel Samples taken by Aurcana Corporation from Main Level and Ramp

SAMPLEWIDTH (meters)g/toz/t%%
AuAgAuAgCuPbZnPb+Zn
3771.71.3605.00.019.50.00.10.30.5
38120.2247.00.07.90.00.10.50.5
38320.2982.00.031.60.00.20.30.5
38420.3262.00.08.40.00.30.40.7
3911.30.1714.00.023.00.01.00.51.5
39220.4988.00.031.80.00.70.31.0
39820.0277.00.08.90.00.60.71.3
4081.60.41735.00.055.80.21.12.03.1
40920.2396.00.012.70.00.90.51.4
4131.20.5393.00.012.60.10.71.32.0
4221.350.3284.00.09.10.00.50.91.4
4230.950.1464.00.014.90.00.61.01.6
4831.50.3223.00.07.20.00.10.20.3
5051.70.1282.00.09.10.00.20.60.8
57220.1961.00.030.90.10.20.10.3
6980.80.5377.00.012.10.04.31.55.8
69920.41248.00.040.10.13.34.27.5
7021.80.1930.00.029.90.02.50.93.5
7031.21.0779.00.025.00.02.81.03.9
7131.355.91167.00.237.50.00.10.20.2

San Marcial Silver Project

The current mineral resource at San Marcial includes an indicated mineral resource of 18.0 million ozs silver, 55.3 million lbs of zinc (Zn) and 29.9 million lbs of lead (Pb) and an inferred mineral resource of 4.4 million ozs silver, 34.7 million pounds of zinc (Zn) and 19.5 million lbs of lead (Pb). The Technical Report for the San Marcial Property dated November 23, 2007 as updated on November 5, 2008 was prepared by Mr. William Lewis, B. Sc., P.Geo. (Micon International Ltd.) the independent Qualified Person, and was prepared using CIM definitions for mineral resources as required by National Instrument 43-101.

Category Tonnes Ag (g/t)Pb (%)Zn (%) Contained
Ag (oz)
Contained
Pb (lb)
Contained
Zn (lb)
Indicated3,755,893149.20 0.360.6718,021,22129,931,874 55,328,145
Inferred:3,075,40344.21 0.29 0.514,371,018 19,525,788 34,690,817

Preliminary resource modeling has determined that the resource at San Marcial hosts a near-surface, potentially bulk-mineable, high-grade resource of 1.13 million tonnes grading 321 g/t containing 11.6 million ounces of silver. The existing resource is open at depth and along strike and has been traced on surface for 1.6 kms.

Select Drill Results from San Marcial

 IntervalSilverInterval Silver
Drill Hole(meters)Grade (g/t)(feet)Grade (oz/t)
SM-211.01392.1035.7812.61
SM-310.59227.0034.427.30
SM-453.95235.00175.347.56
 (incl.)15.00731.0048.7523.50
 (incl.)27.00247.2087.757.95
SM-517.16282.0055.779.07
SM-53.00490.009.7515.75
SM-63.00500.409.7516.09
SM-99.00873.7029.2528.09
SM-117.50664.8024.3821.37
SM-122.801317.869.1042.37
SM-126.00234.5019.507.54
SM-1321.20762.0068.9024.50
SM-1514.60292.1047.459.39
SM-1527.00111.6087.753.59
SM-162.60506.008.4516.27
SM-1822.70238.3073.787.66
SM-202.00426.306.5013.71
SM-202.401241.507.8039.91
SM-201.70727.005.5323.37
SM-2238.00123.60123.503.97
SM-080561.0091.40198.252.94
SM-08088.50468.0027.6315.05
SM-080817.00370.5055.2511.91
SM-08103.00326.009.7510.48
SM-081211.00347.8035.7511.18
SM-08127.80282.0025.359.07
SM-08132.00323.506.5010.40

The Company also announces the granting of 1,400,000 incentive stock options at an exercise price of $0.34 per share, subject to TSX Venture Exchange approval. The options expire on Dec. 3, 2014.

Qualified Person

The contents of this press release were reviewed and approved by Mr. William Lewis, B. Sc., P.Geo. (Micon International Ltd.) who is recognized as a Qualified Person under the guidelines of National Instrument 43-101. Mr. Lewis also prepared the Technical Report on the San Marcial Silver Project.

This News Release contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking-statements.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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