Aura Silver Resources Inc.
TSX VENTURE : AUU

Aura Silver Resources Inc.

December 07, 2006 12:55 ET

Aura Silver Enters Into Agreement With Intrepid to Explore the Taviche Silver-Gold Property in Mexico

BRAMPTON, ONTARIO--(CCNMatthews - Dec. 7, 2006) - Aura Silver Resources Inc. ("Aura") (TSX VENTURE:AUU) announced today that the Company has entered into an Agreement with Intrepid Mines Limited ("Intrepid") (TSX:IAU -TSX:IXN - ASX:IAU), on the Taviche Property in Oaxaca State, Mexico. The Property consists of two concessions totaling 13,724 hectares which are held by Intrepid under option from Plata Panamericana S.A. de C.V., ("Plata") a wholly owned subsidiary of Pan American Silver Corporation ("Pan American"). Aura and Intrepid will form a joint venture whereby they can jointly earn a 70% interest in the Pan American properties.

The concessions are underlain by a large number of silver and gold-bearing quartz veins. Historic small-scale mining activity is evident in various parts of the property. The Western Concession surrounds the San Jose silver-gold deposit under exploration and development by Continuum Resources Ltd. and Fortuna Silver Mines Inc. This deposit consists of multiple quartz vein and hydrothermal breccia-hosted epithermal silver-gold mineralization which, from the 1880s to 1942, produced 19.2 million ounces of silver and 144,000 ounces of gold from one million tonnes of ore (reference, March, 2006 technical report prepared for Fortuna Silver Mines Inc.).

A Letter of Agreement between Plata and Intrepid calls for Intrepid to commit to spending a total of $US 4.0 million over 5 years and make option payments totaling $US 790,000 over the same period to earn a 70% interest in the Concessions. Plata holds the right to back-in at the end of the fifth anniversary if a NI 43-101 compliant report has identified a measured and indicated resource estimate of at least 50 million ounces of contained silver. Should Plata exercise their right, they can recover 40% of the property interest, for an aggregate 70% by funding 100% of subsequent expenditures over a 4 year period. These expenditures will equal three times Intrepid's aggregate investment to that date.

In November, Aura Silver Resources Inc signed a Memorandum of Understanding with Intrepid whereby Aura can earn 50% of Intrepid's interest in the Taviche Property. Aura will fund the initial $US 115,000 of exploration work and reimburse Intrepid for a $US60,000 signing payment made to Plata. Aura will also fund the second anniversary payment of $US 80,000 to Plata. During the remainder of the 5 year option period with Plata, Aura and Intrepid will equally share exploration expenses and payment requirements. Intrepid will act as operator during this period.

The Taviche property acquisition marks a return to Mexico for both Intrepid and Aura. "We are very pleased to have Intrepid as our joint venture partner and to capitalize on their extensive experience in searching for epithermal gold-silver deposits in Latin America," said Paul Pitman, President of Aura. "Mexico is a well known jurisdiction in which to discover and develop new mines". An aggressive field program will be initiated early in the New Year with detailed sampling and mapping of the exposed vein systems on the West Taviche Concession (6,254 Ha) and a stream sediment program over the East Taviche Concession (7,494 Ha) where the Mexican Government has identified numerous gold-silver bearing vein prospects.

About Aura Silver

Aura Silver Resources is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects. The Company has 27,036,562 common shares outstanding.

FORWARD LOOKING STATEMENTS

This Press Release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has neither approved nor disapproved the information contained in this press release.

Contact Information