Oro Gold Resources Ltd.
TSX VENTURE : OGR

Oro Gold Resources Ltd.

September 08, 2010 08:15 ET

Oro Gold Drills Higher Gold Grade in Near Surface Eldorado Zone at Trinidad Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2010) - Oro Gold Resources Ltd. (TSX VENTURE:OGR) ("Oro Gold") has completed the first diamond drill hole from inside the Taunus open pit. This hole, TR-52, was drilled directly below the pit and intersected 1.6 g/t gold over 38.2 metres in the Eldorado zone. The gold grade in this interval is higher than comparable intervals in nearby historic drill holes and confirms the potential for higher grade near-surface material in the Eldorado zone. The Company also reports drill assay results for step-out hole TR-49, which is expected to add ounces to the Taunus gold resource.

Oro Gold's 2010 program is focused on resource definition and expansion, as well as metallurgical, engineering and environmental work necessary to demonstrate the production potential of the Taunus gold deposit.

Taunus Drill Results

  • Hole TR-49 (step-out): 3.4 g/t gold over 7.0 metres within an anomalous interval of 1.2 g/t gold over 27.5 metres (starting at a down-hole depth of 53.5 metres). This hole extends the Eldorado zone another 60 metres to the north in the current Taunus resource model. The hole also intersected the beginning of the HS zone which appears to be offset by a fault. Oro Gold will target additional drill holes further to the north to identify the potential faulted portion of the HS zone.
  • Hole TR-52 (in-fill): 1.6 g/t gold over 38.2 metres (starting at a down-hole depth of 27.6 metres), including 3.1 g/t gold over 9.9 metres and 2.6 g/t over 8.8 metres. This hole confirms higher gold grade potential in the Eldorado zone.

"Hole 52 is significant because it is the first hole drilled within the existing pit targeting the Eldorado zone located directly below the pit floor. Results indicate the potential for higher gold grade in this shallow zone. The draining of the pit continues that will give access in drilling expansion targets to the west and deeper potential high-grade gold feeder structures. We continue to drill step-out holes to add size to the known mineralized zones with the objective of adding ounces and showing continuity to the Taunus gold resource," commented Frank Powell, Executive VP of Oro Gold.

The size of the Taunus gold resource area has increased to over 600 metres in length, comprising multiple stacked oxidized breccia zones to a depth of approximately 300 metres. Additional drilling is required to determine the thickness and lateral extent of the zones. The current geological model shows lateral continuity of the high-grade gold zones up to 100 metres wide.

For a plan map highlighting the recent drilling, as well as accompanying long and cross sections, please visit the following link: http://media3.marketwire.com/docs/ogr98.pdf

Ongoing Drill Program

Drilling has not progressed as planned due to severe rainy conditions limiting access to drill sites. Oro Gold has made changes to the drill program by temporarily reducing the number of drill rigs to one diamond drill and one reverse circulation (RC) drill. The diamond drill rig will continue drilling in the Taunus deposit area focused on expanding the gold resource. The RC rig has moved to the Cimarron gold project, located approximately 15 kilometres north of the historic gold mining town of Rosario. The Cimarron property shows gold resource potential; the latest drill program completed by a joint venture partner returned up to 0.9 g/t gold over 90 metres at surface. Oro Gold is the 100% owner of Cimarron.

The sonic drill is scheduled to commence drilling at Taunus in September. A 2,000-metre drill program is planned with the sonic rig, anticipated to improve the drilling of the high-grade, oxide breccia zones.

Fifty-four diamond drill and seventy-four RC holes have been completed to date. The Company has now drilled approximately 11,200 metres this year (exceeding the originally planned 10,000 metres), and plans to continue drilling an additional 5,000 metres into the fall.

Diamond drilling continues at Taunus. Hole TR-54 was recently completed to a depth of 150 metres below the Taunus pit with the objective of targeting other horizontal gold mineralized zones beneath the Eldorado zone. Hole TR-55 is ongoing, located 30 metres north of hole TR-52, with the objective of (i) determining the gold grade of the Eldorado zone, (ii) targeting other horizontal zones directly below the Eldorado zone, and (iii) extending the HS zone to the west.

For the remainder of the year, Oro Gold plans to accomplish the following goals:

  • Increase the resource size of the Taunus gold deposit
  • Release an updated NI 43-101 resource estimate based on diamond drill holes completed at Taunus
  • Discover new gold zones in the immediate area of Taunus
  • Discover the source of the high-grade gold zones at Taunus (potential feeder structures)
  • Make new gold discoveries in areas outside of Taunus that have gold resource potential

About Taunus

The Taunus gold target area is located on Oro Gold's wholly-owned Trinidad property in an 80 kilometre-long, northwest-trending structural corridor in what Oro Gold is referencing as the Trinidad district. The Taunus gold deposit is interpreted to be hosted in a local pull-apart basin situated in the larger Trinidad district structural corridor. Mineralization at the HS zone within the Taunus gold target is interpreted to be an oxidized, low-to-intermediate sulphidation, epithermal vein system. The mineralization is characterized by multiphase stockwork veining hosted in both clastic, porphyry intrusive and andesitic units. Oro Gold has identified 10 other gold targets within the Trinidad district currently being advanced to a drill stage.

Quality Assurance - Quality Control

The Trinidad project exploration is under the direction of Frank Powell, Executive Vice President Oro Gold Resources Ltd. Gary Lustig, P.Geo, a qualified person as designated by National Instrument 43-101 has reviewed the technical content of this release. A thorough quality assurance and quality control program (QA/QC) protocol was utilized on the project which included the insertion of duplicate, blank and standard samples. The core samples were submitted directly to Inspectorate de Mexico, S.A de C.V. for preparation in Durango, Mexico, with analysis in Reno, Nevada. Analysis of gold was conducted by fire assay on 1 assay ton samples, with a gravimetric finish on samples exceeding 5 g/t gold. Analysis was. Silver analysis was by ICP-AES following aqua regia digestion (geochem).

About Oro Gold

Oro Gold is a publicly-listed gold exploration company with projects located in Mexico and Panama. Oro Gold focuses exploration in under-explored mining camps that have the potential to host multi-million ounce gold deposits. The district-scale Trinidad property that hosts the Taunus gold deposit continues to be Oro Gold's top priority project and main focus of exploration and resource definition. Oro Gold's mission is to make world class gold discoveries.

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.

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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