Genco Resources Ltd.
TSX VENTURE : GGC

Genco Resources Ltd.

August 20, 2007 13:56 ET

Genco Announces Santa Ana Drill Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 20, 2007) - Genco (TSX VENTURE:GGC) announces the results of the ongoing drill campaign and underground development work in the Santa Ana vein located in the Temascaltepec Silver Gold Mining District, State of Mexico, Mexico. Drilling in the Santa Ana vein continues to return both high grade vein and bulk tonnage style drill intersections. Highlights include GDH-135 with 1 meter grading 666 grams per tonne (g/t) silver and 0.56 g/t gold. This intercept extends the known mineralized zone down dip a minimum of 200 meters. In addition, GDH-103 intersected 1.6 meters (core length) grading 282 g/t silver and 0.20 g/t gold. This drill intercept is 1,000 meters, northeast of the current Santa Ana ramp development area and thus extends the confirmed strike length of the Santa Ana vein an additional 1000 meters to the northeast.

The following tabulates the bulk tonnage style Santa Ana drill intersections.



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Santa Ana Bulk Tonnage Style Drill Intersections
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Gold Silver eAg(i)
Drill Hole From To Interval g/t g/t g/t
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GDH-39 66.95 103.55 36.6 0.10 103 108
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GDH-50 101.15 109.55 8.4 0.184 144 153
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GDH-51 Vein Style Mineralization only-see next table
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GDH-53 Low Grade
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GDH-64 Low Grade
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GDH-71 111 119.4 8.4 0.05 82 84
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GDH-73 Low Grade
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GDH-84 150 168.2 18.2 less than 0.05 58 58
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GDH-89 107.3 133.5 26.2 less than 0.05 46 46
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GDH-90 Low Grade
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GDH-91 108 130.5 22.5 0.08 50 55
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GDH-93 Santa Ana Vein Eroded Out Beneath Basalt
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GDH-91 Vein Style Mineralization only-see next table
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GDH-99 148.5 162 13.5 less than 0.05 49 49
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GDH-100 Low Grade
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GDH-101 Low Grade
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GDH-103 182.24 193.5 11.26 less than 0.05 81 81
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GDH-108 18.9 26 7.1 0.20 187 196
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GDH-112 Low Grade
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GDH-118 Abandoned in 193 g/t eAg, recovery very poor
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GDH-127 Vein Style Mineralization only-see next table
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Average of mineralized intercepts 16.9 0.07 79 82
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The following tabulates the high grade vein style intersections included in the above intercepts.



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Santa Ana Vein Style Drill Intersections
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Gold Silver eAg(i)
Drill Hole From To Interval g/t g/t g/t
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GDH-39 80.45 84.35 3.9 0.32 270 286
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GDH-50 103.15 105.15 2.0 0.35 355 372
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GDH-51 157.5 159.1 1.6 0.14 135 142
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GDH-71 117 119.4 2.4 0.13 233 239
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GDH-84 151 152 1 less than 0.05 196 196
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GDH-89 115.2 118.2 3 0.15 146 153
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GDH-91 120 122 2 0.29 267 281
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GDH-92 87 88 1 0.39 161 181
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GDH-97 89 90 1 0.18 345 354
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GDH-99 158 158.8 0.8 0.26 169 182
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GDH-103 183.24 184.44 1.2 0.1 282 287
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GDH-108 18.9 20.5 1.6 0.2 272 282
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GDH-127 24.25 27.6 3.35 0.19 228 228
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GDH-135 255 256 1 0.56 666 694
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(i)The eAg calculation is based on US$550/ounce gold and US$11/ounce silver
for a 1:50 gold:silver ratio in the above tables. A recovery factor of
100% for silver and gold is used for calculating the eAg, actual metal
recoveries will be less.


BDW International Drilling of Mexico SA de CV used HQ and NQ coring equipment to drill all the above holes with the exception of holes GDH-108, GDH-118 and GDH-127 which were drilled by La Guitarra's drilling department using BQ and ATW core drilling equipment. True vein thickness of the intercepts varies from 100% to approximately 70% the intercept width. The average of all vein style mineralized drill intersections in the Santa Ana vein to date is 2.1 meters grading 304 g/t silver and 0.73 g/t gold for a silver equivalent grade of 341 g/t.

The long section shows the spatial relationships between the existing reserves and the drill holes completed to date on the Santa Ana vein.

To view the map accompanying this press release please click on the following link: http://www.ccnmatthews.com/docs/Genco%20Map.pdf

Core recoveries to date have been poor in the oxidized Santa Ana vein intersections. Genco's staff geologists believe metal values are being lost in the washed out (oxidized) vein material. The average grade of vein material encountered in the access ramp is 330 g/t silver and 0.6 g/t gold as compared to a projected grade of 274 g/t silver and 0.3 g/t gold; drilling has further substantiated the concept of washed out vein material. A reverse circulation drilling program is being planned to test this belief by the twinning of several core holes.

Drilling in the Mina de Agua area to date has been conducted only in the oxidized zone. Surface mineralization has been found to be nearly completely leached of metal values in many areas. The leached condition is believed to extend to a more moderate degree through out the elevational horizon tested to date. In certain districts this leaching has produced a high grade silver blanket at the sulfide oxide interface. Genco is actively exploring for this possibility by deeper drilling.

Approximately 400 meters of ramp and sills have been completed in the Santa Ana ramp. The objective is to drive the ramp below the existing Spanish Colonial era mine workings and develop the first production level at Santa Ana by years' end.

Qualified Person

This news release has been reviewed for technical content by a director of the Company, James M. McDonald, P. Geol., a "qualified person" for the purpose of National Instrument 43-101, Standards of disclosure for Mineral Projects.

Quality Control & Assurance

Genco has implemented a quality assurance and control (QA/QC) program to ensure sampling and analysis of all exploration work is conducted in accordance with the best possible practices. All drill core is sawn in half and one-half is split, bagged and picked up by ALS Chemex personnel on site. Depending upon core recovery, within the ore zone the core samples are generally between 0.8 and 1.5 meters in length. Reverse circulation drilling samples are split into two samples at the drill, bagged and one sample is pickup by ALS Chemex personnel. The retained samples of core or reverse circulation cuttings are saved for future check assaying or metallurgical work.

Samples picked up by ALS Chemex are transported to its Guadalajara, Mexico, preparatory laboratory, logged in to the computer tracking system, crushed, split and a pulp sample prepared. The pulp sample is sent to ALS Chemex's laboratory in Vancouver B.C. for analysis. The analytical technique used is Fire Assay with Gravimetric Finish using a 30 gram pulp sample for both gold and silver. ALS Chemex routinely uses blanks and standards as part of their quality control and assurance program.

Some of the mineralized core intervals are check assayed in La Guitarra's Mine laboratory using a 1/4 split of the retained core or a split of the retained reverse circulation sample. All underground mine samples referred to above were analyzed in La Guitarra's mine laboratory. The assay technique used by La Guitarra's laboratory is Fire Assay with Gravimetric Finish on a 20 gram pulp sample for both gold and silver.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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