Mexican Silver Mines Ltd.

Mexican Silver Mines Ltd.

July 07, 2008 09:00 ET

Mexican Silver Mines Ltd. Commences First Phase Drilling at the Mamulique Project

CALGARY, ALBERTA--(Marketwire - July 7, 2008) - Mexican Silver Mines Ltd. ("Mexican Silver") (TSX VENTURE:MSM)(FRANKFURT:MS2)(WKN:A0MSLE) is pleased to announce the commencement of its first drilling program on the historic Mamulique mining district. Phase I drilling will consist of seven bore holes totalling 1,500 meters. The Mamulique district is located 30 kilometers northeast of Monterrey, Mexico at the southernmost tip of Mexican Silver's Anillo de Fuego concession. It is a historic zinc-silver-lead mining district in the Eastern Cordillera Silver Belt of northeast Mexico. Photos, plans and sections (figures I to IV) of the Mamulique project are available for review on the Mexican Silver website noted below.

Mexico's national highway, Highway 85, connects Monterrey, Mexico to Laredo, Texas and cuts through the Mamulique area. Mexican Silver has identified previously unrecognized lead-zinc occurrences in these road cuts consisting of structurally controlled and manto-type mineralization (figures I and II).

Regional data collected by Mexican Silver shows that at least 15 historical mining shafts are situated along the crest of the Mamulique anticline for over a strike length over 10 kilometers. These among others include the Santo Nino, Victoria, Mina El Milagro, Mina Las Torres and Mina La Paloma (figure II).

Mexican Silver's current focus is the 120 hectare Santo Nino and Victoria mining area (figure III) where a number of mine adits and declines had been mapped and sampled both from surface and underground. The Santo Nino shaft has a reported mining depth of at least 180 meters and the La Victoria shaft has a reported depth of 50 meters (figure IV). Servicio Geologico Mexicano (SGM) reported the historical production of the Santo Nino mine from when it was in production in the last century to be approximately 500 tons per month of high grade zinc ore (up to 40 percent) with additional silver and lead values. Ore was shipped to Cia Zinc National in Monterrey for processing as noted in Yacimientos Minerales De La Region Norte de Nuevo Leon, Subgerencia De Evaluacion De Projectos En Geologia Regional, Consejo de Recursos Minerales by Engineer Donaciano P. Hernandez, & George E. Bustamante under the supervision of Engineer Fernel Arvizu Lara, dated February 1983.

The mapping sampling program has defined a mineralized structural zone approximately 1,400 meters long, which on the surface consists of at least six sub-parallel veins (figure III). Near the surface the host rock for mineralization is of the Cuesta del Cura formation. Projected below Cuesta del Cura formation, as established based on regional stratigraphic correlation, is the Aurora formation. The Aurora formation is a more hospitable host rock for economic scale mineralization as disclosed in the La Encantada Mine (First Majestic Silver Corp. - Section 9.1 in paragraph 6 and figure 9-1, Technical Report for the La Encatada Silver Mine Coahuila State, Mexico by Pincock, Allen & Holt - report # 70567 dated July 24th, 2007) and La Platosa Mine (Excellon Resources Inc. slides 24 to 26 of PowerPoint presentation of Platosa Bonanza Silver Project Durango, Mexico, SGM archive files). The mineralization of these mines occur in the same setting as the Mamulique project.

The first Mamulique hole MM-08-01 (figure IV) is located approximately 150 meters northwest of the Santo Nino Shaft and will be drilled to 450 meters in depth at an incline of -60 degrees. MM-08-01 will serve to corroboration of the initial detailed mapping and sampling of the underground working of the six sub-parallel veins, which range in thickness from 30 centimeters to 1.5 meters wide, (see news release dated February 19 2008). The sub-parallel veins are moderately fractured, slightly dolomitize corridor, which at portion show pinching and swelling of the veins as sulphide and calcite-rich breccia dikelets, Outside the veins and breccia dikelets are anatomising calcite-sulphide veinlets traversing the dolomitic fine sedimentary host rock characterized by finely disseminated pyrite. The potential of this corridor as a distinct mineable unit, particularly as it extends along the 1,400 meter extent of the target zone, is currently being evaluated. Figures V, VI and VII are the most recent characterization of the silver, lead and zinc iso-values for the main veins at Victoria and Santo Nino mines. All figures indicate that the grades of the three metals of interest are very much open along strike and at depth.

The Mamulique program currently being pursued will consist of the three following elements:

1) Detailed characterization of geology and mineralization characteristics of the area through rehabilitation of existing mine openings and subsequent comprehensive mapping and sampling. This is in order to accurately delineate mineralized volume and define the distribution of metals values in three dimensions. Some of the veins observed appear to be drifted by tunnels to as much as 300 meters and raised/winze to as high as 100 meters.

2) Generation of additional mineral inventory data points through a two-phase drilling program.

I. Phase I consists of seven bore holes aggregating 1,500 meters (shown as squares in figure IV) and aimed to block the mineralized corridor and adjacent lenses at 200 meter centers.

II. Phase II, which will depend on the results of Phase I, is a definition program that will consist of seven holes totalling about 2,100 meters and adjacent lenses at 100 meter centers (shown as an orange square in figure IV).

An interactive update of the Mamulique geological, technical and geochemical datasets in accord with Mexican Silver's international industry quality assurance and quality control compliant work protocols. Element three will also consist of the subsequent quantification/qualification of the mineral resource inventory based on various manual and geostatistical mineral resource and ore valuation methods.

The first phase Mamulique drill program is anticipated to take four weeks at which time core samples from the drilling will be shipped to ALS Chemex for analysis. Results of the drilling will be released when all assay results are received from the lab. Chemex has an International Standard Organization rating of ISO 9001:2000 and is independent of Mexican Silver.

Mexican Silver follows a rigorous Quality Assurance/Quality Control program consisting of inserting standards and duplicates into the sample stream submitted to Chemex for analyses.

Mr. William Dynes, P. Geol., the project supervisor of Mexican Silver's drilling program on the Mamulique Property, is the Corporation's nominated Qualified Person responsible for monitoring the supervision and quality control of the programs completed within the its properties. Mr. Dynes has reviewed and verified the technical information contained in this news release.

About Mexican Silver Mines

Mexican Silver Mines is a silver focused junior resource company developing three former silver producing properties in north-eastern Mexico. To learn more about Mexican Silver Mines, please visit:


Feisal Somji, B.Sc., MBA, President and Chief Executive Officer

This news release contains forward-looking information including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations and potential mineral recovery processes. Forward-looking information includes disclosure regarding possible future events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. When used in this news release. The words "estimated", "plan", "anticipated", "expected", "intend", believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Mexican Silver to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. For any forward-looking information given, management has assumed that the analytical results it has received are reliable, and has applied geological interpretation methodologies which are consistent with industry standards. Although management has a reasonable basis for the conclusions drawn, there can be no assurance that forward-looking statements will prove to be accurate and actual results may differ materially from those currently anticipated in such statements. For such statements, we claim safe harbour.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this information.

Contact Information