Aura Silver Resources Inc.

Aura Silver Resources Inc.

October 07, 2010 14:12 ET

Aura Silver Initiates Ground Geophysics on Its High Grade Gold/Silver Property at Greyhound, NU

OTTAWA, ONTARIO--(Marketwire - Oct. 7, 2010) - Aura Silver Resources Inc. (TSX VENTURE:AUU) ("Aura Silver" or the "Company") is pleased to report that it has initiated a ground-based induced polarization (IP) survey on its newly discovered gold and silver zone at Greyhound Lake in Nunavut, Canada. The IP survey is designed to outline specific targets for our next drill program on this highly prospective area. As previously reported (see press release #10-21, September 28, 2010), a recent soil sampling survey has determined that the high grade gold and silver samples that were collected in August, 2010 are likely indigenous to the east, south and south east of Aura Lake. Gold and associated elements are enriched over a 400,000 m2 area of the southern portion of Aura Lake that has, near its northwestern corner, a 30,000 m2 area containing the previously reported gold and silver-enriched rock samples, including seven samples that contain an average grade of 14.8 g/t Au (range from 0.3 to 28.8 g/t) and in the same area an average grade of 1,472 g/t Ag (range from 21-5,380 g/t). We have also discovered a potential volcanogenic-associated massive sulfide (VMS) system which exists further to the east and northeast of Aura Lake and this could be the source of the 18.5% zinc and 9.2% copper samples found to the west, 800m north of Aura Lake.

The Company's Greyhound property comprises 25,333 hectares located approximately 40 kilometers north of the community of Baker Lake and 46 kilometers south of Agnico-Eagle's Meadowbank mine. The Meadowbank mine contains proven and probable reserves of 3.7 million ounces of gold at an average grade of 3.5 g/t ( Infrastructure is excellent; the all-weather road from Baker Lake to the Meadowbank mine crosses through the Greyhound property, lying within one kilometer of this gold/silver zone discovery.

The geophysical IP dipole-dipole array survey is being conducted by Abitibi Geophysics Inc. who will undertake a 29 line-kilometer survey using state of the art field and processing equipment. The IP survey will examine the areas of high-grade rock and strongly anomalous soil samples and we anticipate that the results will be used to establish drill targets. The survey will also encompass the east side of the banded iron formation (BIF) around which many of the high grade gold and silver values occur, and where weak airborne electromagnetic conductive responses occur. The nature of these anomalies is unclear but these may indicate shallow poor conductivity, possibly from gold enriched sulphide replacement zones. The Company plans to complete this program before the winter freeze up. Results will be analyzed and a comprehensive drill program will be initiated in the spring.

"This is an exciting phase of our work at Greyhound. The newly discovered gold and silver corridor will be our primary focus in the spring once the IP study is analyzed. We will then initiate more work on the copper-zinc VMS target to the east of the all-weather road to the Meadowbank mine" said CEO, Robert Boaz. "We have barely scratched the surface in understanding the precious and base metal potential within this poorly exposed Archean greenstone belt".

Dr. James M. Franklin, P. Geo. is Aura Silver's qualified person (as defined by National Instrument 43-101) and has reviewed and approved the scientific and technical information in this press release.

About Aura Silver

Aura Silver is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects in Canada (100% owned Greyhound project) and in Oaxaca, Mexico. Aura Silver has 59,102,402 common shares outstanding.


This press release may contain forward looking statements that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business including the uncertainty as to whether further exploration will result in the target(s) being delineated as a mineral resource, capital expenditures, operating costs, mineral resources, recovery rates, grades and prices, estimated goals, expansion and growth of the business and operations, the private placement financing activities of the Company, plans and references to the Company's future successes with its business and the economic environment in which the business operates. All such statements are made pursuant to the 'safe harbour' provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's most recent annual MD&A and the Company's continuous disclosure documents that can be found on SEDAR at Aura Silver does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Neither the 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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