Arco Resources Corp.

Arco Resources Corp.

October 06, 2010 09:30 ET

Arco Reports Drill Results on Final Holes at its Taviche Silver/Gold Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2010) - Arco Resources Corp. (TSX VENTURE:ARR)(FRANKFURT:MJ7) ("Arco" or the "Company") is pleased to announce results from the remaining seven holes of the recently completed diamond drill program on its 100%-owned Taviche property located in Oaxaca, Mexico. Taviche is a silver-gold-bearing quartz vein traced for over 1.5 kilometres with typical epithermal textures and existing historic (Spanish and subsequent) underground workings. The recently completed program is the first surface drilling to have ever been conducted on this vein and has tested a 450 metre-long strike length of the vein to date. Highlights from holes BDT-9 through BDT-15 include 2.7 metres of 220 g/t silver (Ag) and 0.85 g/t gold (Au) or 271 g/t silver equivalent (AgEq).

Drilling Highlights

HOLE NUMBER FROM (m) TO (m) WIDTH (m)* Ag (g/t) Au (g/t) AgEq**
BDT-10 110.80 111.60 0.80 497 1.03 560
BDT-11 109.80 111.10 1.30 385 1.14 453
BDT-12 112.90 115.60 2.70 220 0.85 271
BDT-15 57.90 58.40 0.50 236 0.44 262
BDT-14 72.00 75.00 3.00 88 0.21 100
Including 74.00 75.00 1.00 157 0.40 191
BDT-9 161.10 162.00 0.90 51 0.12 58
BDT-13 74.90 76.00 1.0 87 0.29 104
*True widths are estimated to be roughly 65% of drill intercept length.
**Arco used the silver equivalent ratio of 1 gram of gold = 60 grams silver assuming 100% recoveries.

"We are very encouraged with the consistently elevated silver and gold values along the 450 metre strike length so far tested by this drill program. The silver-gold system remains open to the east, west and at depth. Next week, our technical group will provide a geological summary that pulls all of these results together to give it proper context. We intend to continue drilling on the system as promptly as possible," says Warren McIntyre, President of Arco.

Standard, blank, and duplicate samples were inserted throughout the sample sequence as quality control checks. Samples were analyzed by Acme Analytical Labs. Samples were analyzed by Aqua Regia digestion with ICP-MS analysis. Overlimit silver values were re-analyzed by Aqua Regia digestion with ICP-ES finish. Overlimit silver >300 g/t were re-analyzed by fire assay on 30g sample with gravimetric finish. Paul Cowley, P.Geo. and Chief Geologist for Arco, is the Qualified Person, as defined in National Instrument 43-101, for the drilling campaign and has reviewed and approved the technical content of this news release.

Taviche Property

The Taviche property covers 421 hectares and is located approximately 68 kilometres from Oaxaca City, Mexico. Access to the property is excellent, less than 1 kilometre from paved road and a 1.5 hour drive from the capital of Oaxaca. On Taviche, the sub vertical laterally continuous silver-gold-bearing quartz vein varies in thickness from 1 to 5 metres, averaging 2 metres. Epithermal textures include open space fillings, bladed veining and megacrystic carbonate replacement, all significant textures known in gold-silver epithermal deposits. Of the 1.5 kilometre long trace, the vein has received 500 metres of historic continuous underground workings on one level. Underground channel sampling defined a 230 metre long shoot of the vein with values averaging 173 g/t Ag and 1.5 g/t Au. Corresponding surface sampling approximately 15 metres above the underground workings identified a 220 metre long shoot averaging 161 g/t Ag and 2.18 g/t Au.

About Arco Resources

Arco holds a 100% interest in seven mineral claim blocks, all located in the State of Oaxaca, Mexico. The Company has begun to focus its efforts on its Taviche and Predilecta claim blocks, each of which has had historical production of gold and silver. The Company currently has agreements in principle to option 100% interests in its Lachiguiri, Silacayoapan and Nino Perdido Property (to Silex Ventures Ltd.) and in its Tres Hermanas Property (to Zodiac Capital Ltd.).

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

Warren McIntyre, President and Chief Executive Officer

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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