Arco Resources Corp.

Arco Resources Corp.

May 16, 2012 11:07 ET

Arco Establishes Silver Mineral Resource Estimate at Taviche Property in Oaxaca, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 16, 2012) - Arco Resources Corp. (TSX VENTURE:ARR) ("Arco" or the "Company") is pleased to announce that Micon International Ltd. ("Micon") has completed an independent technical report under National Instrument 43-101 that includes a mineral resource estimate on the Company's 100%-owned Taviche property located near Oaxaca City, Mexico. The Inferred Mineral Resource estimate is 160,000 tonnes grading 197.8 g/t Silver (Ag) and 0.85 g/t Gold (Au), at a 100 g/t Silver Equivalent (AgEq) cut-off. This equates to 1,017,000 ounces of silver and 4,400 ounces of gold at a 100 g/t AgEq cut-off. This is the first mineral resource estimate ever on the Taviche Property. The report has now been filed on SEDAR and recommends a two-phase property-wide exploration program with a budget of $556,000.

David Makepeace, PEng. and a senior geologist for Micon, is the independent Qualified Person responsible for preparing the mineral resource estimate on Taviche. This initial resource was created using a block model and interpolated using an Inverse Distance Squared (ID2) method on the capped composites. The Taviche mineral resource is based on surface and underground sampling and a 15-hole, 1,700 metre surface diamond drill program that was carried out in 2010.

The Viridiana vein has been traced for approximately 2,700 metres to the western end of the property. Arco began a channel sampling program in 2009 that provided Ag values as high as 435 g/t, and 9.36 g/t Au over 1.3 metres; underground channel samples provided higher results with 605 g/t Ag and 3.68 g/t Au over 2.0 metres. After this channel sampling program was completed, Arco undertook the drill program to test the Viridiana vein. The 2010 drill program yielded mineralization in 14 of 15 holes with the highlights being hole BDT - 2, with a true width interval of 6.5 metres grading 175 g/t Ag and 1.14 g/t Au; and hole BDT - 8 with a true width interval of 3.2 metres grading 245 g/t Ag and 0.83 g/t Au.

The 2010 drill program was carried out under the supervision of Paul Cowley, P.Geo. and the Company's Chief Geologist. Standard, blank, and duplicate samples were inserted throughout the sample sequence as quality control checks. Samples were analyzed by Acme Analytical Labs.

The contents of this press release have been reviewed and approved by David Makepeace, P.Eng. and Paul Cowley, P.Geo. for the Company.

1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

2) Confidence in the estimate of Inferred Mineral Resources is insufficient to allow the meaningful application of technical and economic parameters. There is no guarantee that all or any part of a mineral resource can or will be converted into a mineral reserve.

3) The mineral resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

About Arco Resources

Arco holds a 100% interest in six mineral claim blocks, all located in the State of Oaxaca, Mexico. The Company is focusing its efforts on its Taviche and Tres Hermanas claim blocks, each of which has had historical production of gold and silver. The Company has optioned its Lachiguiri and Silacayoapan properties to Argentum Silver Corp. For further information on the Company please go to Follow Arco on Facebook.

On behalf of the Board of Directors of Arco Resources Corp.

Warren McIntyre, President and Chief Executive Officer, Arco Resources Corp.

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.

Contact Information