Aura Silver Resources Inc.
TSX VENTURE : AUU

Aura Silver Resources Inc.

October 26, 2011 08:30 ET

Aura Silver Uses Soil Gas Hydrocarbon Technology to Locate High-Grade Gold and Silver Sources at Aura Lake, Greyhound Project, NU

OTTAWA, ONTARIO--(Marketwire - Oct. 26, 2011) - Aura Silver Resources Inc. (TSX VENTURE:AUU) ("Aura Silver" or the "Company") is pleased to announce that it has identified possible distinct sources of the high-grade gold and high-grade silver surface samples found in close proximity to Aura Lake on its wholly-owned Greyhound project in Nunavut. As previously reported (see press release Sept. 7, 2010), Aura Silver's prospecting has identified multiple surface rock samples ranging up to 5,300 g/t silver carrying little gold and up to 28 g/t gold with negligible silver. However, drilling to date of structural, geophysical and geochemical targets has been unable to locate a source of these high grade samples. A possible cause is believed to be due to glacial transport.

The difficulty in finding a source of the high-grade gold and silver samples through traditional geophysical and geochemical techniques prompted Aura Silver to employ an interpretative study referred to as Soil Gas Hydrocarbon ("SGH") to unravel anomalous trends in the entire area and to pinpoint drill targets. SGH is a deep penetrating organic geochemistry developed by Activation Laboratories Ltd. ("Actlabs") of Ancaster, Ontario that involves the analysis of surficial samples prospected over potential mineral or petroleum targets (see: http://www.actlabs.com/files/SGH_-_NEW_.pdf). The analysis involves the testing for 162 hydrocarbon compounds in the C5-C17 carbon series range in a wide variety of sample types. The observation of a specific set of hydrocarbon classes provides a forensic signature of mineral identification related to the hydrocarbons synthesized by bacteria that are in contact with the mineral target at depth. The geochromatographic dispersion of the SGH classes in the overburden has been successful in delineating mineral targets found at over 700 metres in depth. Over 14 years of research, Actlabs has conducted over 800 SGH surveys with an 85% repeat client base including some of the worlds' largest mining companies.

The Aura Lake SGH analysis provides compelling results and has defined a separate gold and two separate silver targets (see: http://media3.marketwire.com/docs/Figure_1_and_2_AuraSilver_1026.pdf). The targets identified reside to the east and south east of Aura Lake in areas where no previous drilling has occurred. These targets are sufficiently definitive to outline drill targets and have been rated by Actlabs as high-priority targets; with gold receiving the second highest rating of the gold pathfinder class maps and silver of the very highest confirmation level. The results also indicate that gold and silver samples originated from two different mineralizing systems with most samples being transported on a north to southerly path.

Robert Boaz CEO and President of Aura Silver states that, "We are extremely excited about the SGH analysis as it is consistent with our belief that the source of high-grade surface samples from Aura Lake are nearby. We feel SGH significantly augments our understanding of the Aura Lake area along with our previous geophysics and geochemical studies."

Drilling of these targets is planned to commence in the spring of 2012.

Summary of 2011 Activities

The 2011 fieldwork consisted of a multi-phase exploration program including prospecting and geological mapping, detailed soil sampling, ground geophysical surveying and diamond drilling. Work was initiated in May, 2011 with line cutting and a ground MaxMin II electromagnetic ("EM") and magnetic surveys carried out across the north-east portion of the Greyhound claim group. Results of this EM survey were interpreted by an independent consultant with drill targets outlined. An extensive soil sampling survey was carried out consisting of 498 samples collected over anomalous gossan zones found while mapping and across the trace of electromagnetic conductors. This work was completed by July with crews then re-focusing exploration in the Aura Lake area, the original portion of the property that hosts high-grade gold and silver subcrop. Mapping, soil sampling and prospecting took place over the summer months with a total of 1,340 soil samples collected in the area of Aura Lake. Samples were collected along 100m separated lines at 50m stations along the line. Assay results of this work were not available to the Company until the late August to mid-September period.

Northeast Greyhound

In late summer, a second series of drill holes targeted high soil geochemical targets co-incident with gossanous surface zones, anomalous outcrops and EM targets in the northeast portion of the claim group located 23 kilometres from Aura Lake. A total of 10 holes totaling 1,746 m were drilled all of which intersected barren semi-massive sulphides.

South Aura Lake

The South Aura Lake Anomaly forms three discontinuous gold anomalies each striking east-westerly. The main anomaly covers the original gold showing where surface rock values of up to 28.2 g/t Au were previously discovered and is outlined by a co-incident induced polarization geophysical anomaly. Soil values ranged from 22 ppb to 1,070 ppb Au (1.07 g/t Au). A second and larger anomaly has a strike length of 700m with soil values ranging from 35ppb to 1,450 ppb Au (1.45 g/t Au). One rock sample collected assayed 4.69 g/t Au and 59.4 g/t Ag. The third and most southerly anomaly covers a strike length of 300m with soil values from 24ppb to 481 ppb Au. A total of 17 drill holes or 2,648.6 meters tested a variety of geological, geochemical and geophysical targets. Initial results were not encouraging and no significant assay results were encountered.

The Dingo Target

The Dingo target to the north and east of Aura Lake is the second new area outlined by the 2011 soil survey. The quartz-vein body outcrops at the contact of mafic volcanic and a granodiorite intrusion over a continuous strike length of 1,700m. A total of 295 soil samples were collected on 100m line spacings across the vein. Anomalous soils varied from 52 ppb to >2,000 ppb Au (> 2 g/t Au) with rock samples from outcrop from trace amounts up to 9.1 g/t Au and 96.6 g/t Ag (see table below). At the southern end, a copper stringer zone was found associated with the quartz vein which carried weaker precious metals values (0.89 g/t Au and 47.6 g/t Ag).

The following table lists recent significant rock samples collected at the Dingo and South Aura Lake targets:

Location Sample Au (g/t) Ag (g/t)
Dingo Main G0650992 7.44 96.6
Dingo-South AA03 9.10 4.4
Dingo-South 98-AA-04 7.23 10.2
Dingo-South JS11-43 1.18 20.8
Dingo – Copper Zone JS11-44 0.89 47.6
Aura Lake South JS11-31 3.20 6.9
Aura Lake South A21 14.90 >100
Aura Lake South A22 6.57 88.2
Aura Lake South AS3N 200E 4.69 59.4
Aura Lake South KB005 7.62 8.5
Aura Lake West 1200003 34.20 no assay

In the first phase of drilling, drill core was analyzed by ALS Chemex, in Vancouver and Yellowknife for multi element geochemical analyses by ICP-MS (48 element or extended whole-rock package) and gold by fire assay and FA-AA finish. All soil samples and drill core during the second half of the drill program were processed by Activation Laboratories in Ancaster, Ontario. Soils were analyzed by multi-element Ultratrace-6 four acid digestion with gold analysis by ICP and rocks and core were assayed for gold by 1A2 (Au Fire Assay-AA).

Paul Pitman, 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 97,680,844 common shares outstanding.

FORWARD-LOOKING STATEMENTS:

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 www.sedar.com. 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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