Oro Gold Resources Ltd.
TSX VENTURE : OGR

Oro Gold Resources Ltd.

October 16, 2007 07:00 ET

Oro Gold Completes Resource Estimate for Trinidad

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2007) - Oro Gold Resources Ltd. ("Oro Gold") (TSX VENTURE:OGR) announces completion of an Inferred resource estimate for the Taunus pit and south Colinas areas, located on the company's 100% owned 651 km2 Trinidad property, Sinaloa, Mexico.

Oro Gold's initial resource estimate for Trinidad is restricted to the Taunus pit area, previously exploited as an open pit, heap leach mine, and the south Colinas area. The results show 1,624,400 tonnes remain, at an average gold grade of 1.76 g/t for a total of 91,915 ounces of gold, using a gold cut-off grade of 0.5 g/t. The resource estimate was based on Oro Gold's interpretation and modelling of historic drill data, and surface work completed by the company.

A 2,000 meter diamond drill program is currently being conducted to expand the existing resource, and verify the historic assay data. Interpretation of the historic drill data suggests the potential occurrence of high gold-grade chutes within the deposit, as well as untested targets adjacent to the historically drilled area. Prior drilling was predominantly completed by reverse circulation, and most holes were vertical and shallow, averaging 56 meters in length. Oro Gold feels that core drilling and angle holes are required to determine the geological controls of the deposit and the potential. Consequently, this will provide a predictive 3-D model of gold mineralization. Historical drilling did not completely close off mineralization at depth, across width, or along strike. These areas will be drill-tested in the current program.

Darren Bahrey, President and CEO of Oro Gold, states, "We are aggressively advancing our district-scale Trinidad property to delineate a potential low-cost resource for the company, and we continue to be encouraged by exploration results to date."

By the end of the 1st quarter of 2008, the company plans to update its resource estimate for the Taunus and Colinas resource areas based on results of the drilling completed this year. The company has also initiated a review of the past mining operation by Eldorado Gold Corp., and will be soliciting recommendations from external sources on the potential for restarting the historical open-pit heap leach operation at Taunus.

Marc Jutras M.A.Sc., P.Eng., the qualified person as defined by National Instrument 43-101, was responsible for the mineral resource estimate and has reviewed the content of this news release. Mr. Jutras is an Independent person as defined under NI 43-101. The resource estimate is classified as an Inferred Mineral Resource, consistent with the CIM definitions referred to in NI 43-101. The estimate was calculated by ordinary kriging, using all sample data available to the company for 214 historic drill holes in the Taunus and Colinas areas. This estimate will be filed in a technical report, compliant with NI 43-101 on SEDAR within 45 days. Mineral resources, which are not mineral reserves, have not demonstrated economic viability. Oro Gold is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issues, which may materially affect its estimate of mineral resources.

Oro Gold is a gold exploration company with 13 projects located in Mexico and Panama, with five of the projects optioned to joint venture partners. The district-scale Trinidad property continues to be the company's top priority project and the main focus of exploration and resource definition efforts. The Trinidad district is composed of at least 10 project areas that will be advanced accordingly as the company works towards developing a significant resource. Ongoing generative activity and a joint venture strategy will continue to be a fundamental part of Oro Gold's growth.

ON BEHALF OF THE BOARD OF DIRECTORS

Darren Bahrey, President and CEO

Some statements in this release may contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, development and production activities and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the time and success of future exploration, development and production activities and the timing and amount of expenditures.

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

Contact Information

  • Oro Gold Resources Ltd.
    Darren Bahrey
    President and CEO
    (604) 646-1580
    (604) 642-2411 (FAX)
    Website: www.orogoldresources.com