Aura Silver Resources Inc.

Aura Silver Resources Inc.

September 07, 2010 08:30 ET

Aura Silver Reports High Grade Gold/Silver Assays at Greyhound-Up to 28.2 G/T Gold and 5.38 Kilograms/T Silver

OTTAWA, ONTARIO--(Marketwire - Sept. 7, 2010) - Aura Silver Resources Inc. (TSX VENTURE:AUU) ("Aura Silver" or the "Company") has received assays from a surface sampling program conducted during its summer exploration program on its Greyhound property in Nunavut, Canada. Gold grades are as high as 28.2 grams per tonne (g/t) while silver assays are up to 5,380 g/t. These samples were taken as part of a brief mapping and sampling program in the western part of the Greyhound property. In a previous press release (Aura Silver Extends Gold Corridor And Discovers New Base Metal Target, August 20, 2010), the Company reported preliminary results of the first phase of its drill program, which was primarily oriented to test VTEM conductors, as part of the VMS-oriented program. Assays are pending from the second phase of this program.

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, within one kilometer of this gold/silver zone discovery.

The surface geology program involved re-examining several prospects, both historic and those previously identified by Aura Silver, to determine more about the extent and geological relationships of the mineralized areas (see table below). Many of the historic prospects to the west of Whitehills Lake were re-evaluated, as well as the silver prospect to the west of Aura Lake (West Aura) and the gold prospect at the southeast corner of Aura Lake (SE Aura).

Sample Au (g/t) Ag (g/t) Area
G0650983 28.20 62.9 SE Aura
G0650984 11.60 20.6 SE Aura
G0650985 0.32 5,380.0 SE Aura
G0650986 27.00 69.2 SE Aura
G0650988 1.08 1,800.0 West Aura
G0650992 0.53 71.7 Dingo showing, west of Whitehills Lake
G0650994 0.08 9.6 Dingo showing, west of Whitehills Lake
G0650995 7.44 95.9 Dingo showing, west of Whitehills Lake
G0650996 0.01 1.3 Oliva showing, boulder

The sampling southeast of Aura Lake enabled the Company to extend the gold-rich occurrence previously identified in the 2008 sampling for about 100 meters to the south. Most surprising was that three out of the four samples taken here contain high-grade gold (0.35 to 0.93 troy oz/tonne) and 20-69 g/t silver; the fourth sample contains 171 troy oz/tonne of silver with anomalous gold. A sample taken in 2008, 500 meters SSW of the South

Aura Lake showing was previously analyzed for major elements only (no Au, only Ag) and contains 30g/t Ag, indicating that the Au-Ag zone extends at least that far. The sample taken from the original silver-lead-zinc showing to the west of Aura Lake not only confirmed its presence, but it also contains distinctly anomalous gold. Combining the evidence from the west and SE Aura occurrences, the Company now realizes that the spatially related gold and silver showings are possibly also genetically related. The possibility of a single gold-silver system enlarges both the economic prospectivity and metallurgical robustness of the Aura Lake precious metal targets. Similar sulfide-rich material was discovered up to 500 meters to the north of the SE Aura occurrence (assays pending). Furthermore, extensive silicification and quartz sulfide veining was noted during soil sampling up to 3 kilometers south of this prospect. Here the system has intersected strongly carbonatized, sulfidic and silicified iron formation, and the adjacent ultramafic rocks are intensely carbonatized and pyritized.

The Dingo showing, which is 5 kilometers NNE of the South Aura lake area, is an extensive (200m+) quartz-vein system spatially associated with the margin of the major subvolcanic intrusion that underpins all of the west Greyhound property. Although mineralization is sparse relative to that of Southeast and West Aura in this system, our samples demonstrate further the association of gold and silver. 

To assess the gold potential of the identified 4 kilometer long corridor Aura Silver conducted a soil survey collecting till, soil and gossanous material for analysis. Results are pending. It is anticipated that an I.P. (induced polarization) survey will follow up this work in September. Additional geochemical work will also be carried out to expand the search area.

Robert Boaz, CEO of Aura Silver stated "These samples are of significant importance to the potential of Greyhound to host an ore deposit, particularly given that the property is hosted by strata that are very similar to those at Agnico-Eagle's Meadowbank gold mine. Further, these results prove that Aura Silver now has two highly prospective and extensive land packages; Greyhound in Nunavut and also our Taviche properties in Mexico, two mining friendly jurisdictions".

Dr. James Franklin states that these results have caused us to re-evaluate our geological model for the Aura Lake area. The potential for an extensive structurally related gold-silver system is further supported by the presence of the assay data presented herein, quartz-feldspar porphyry dykes, extensively carbonatized ultramafic rocks ("green carbonate") and intensively altered, sulfidic iron formation. All of these extend continuously from South Aura Lake for at least 3 kilometers to the south. In addition, the newly discovered VMS target approximately 2 kilometers east of Aura Lake requires follow-up geophysical work. The next phase of our program will focus on the 10 km2 area that comprises the western "core" of our Greyhound property.

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. Rock samples collected by Aura Silver have been analyzed by ALS Canada Inc. in Vancouver and Yellowknife, Canada.

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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