Oro Mining Ltd.
TSX VENTURE : OGR

Oro Mining Ltd.

May 05, 2011 08:01 ET

Oro Mining Drills 167 Metres of 2.0 g/t Gold at Taunus Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2011) - Oro Mining Ltd. ("Oro Mining" or the "Company"), (TSX VENTURE:OGR) confirms significant progress on its Taunus Project with the ongoing sonic drill program:

  • Discovery of shallow high grade gold mineralization in an area recently accessible due to the completed dewatering of the Taunus pit.
    • Sonic hole SN13 returned 166.6 metres of 2.0 g/t gold, including 6.9 g/t gold over 28.5 metres from a down hole depth of 36.7 to 65.2 metres. This hole has discovered gold mineralization in an untested area of the Taunus resource model, and is indicating a potential link between the Eldorado and HS zones (See Long Section).
  • The average grade of the mineralized intervals in holes recently drilled by sonic methods in the Eldorado zone is 2.6 g/t gold (average width of 12.7 metres), compared to the average grade of nearby reverse circulation (RC) holes in the Eldorado zone of 1.1 g/t gold (average width of 13.5 metres).
  • A second sonic rig is being mobilized to complete the planned 5,000 m drill program by the end of the second quarter. The sonic drilling technique is proving to be effective in the recovery of the mineralized breccia material and definition of the Taunus deposit.
  • Oro Mining has signed a surface agreement with the local community which provides provision whereby the Company can access and mine the Taunus deposit. With this agreement completed, the Company is advancing the Taunus project with an aim of reaching a production decision.

To see a map and long section of the Taunus pit, please visit the following link: http://media3.marketwire.com/docs/ogri505.pdf.

Sonic Drill Results

Sonic holes SN10, SN11, SN12 and SN13 were drilling inside the existing pit. These are the first sonic holes drilled by Oro Mining in the core of the Eldorado zone directly below the pit floor. Several holes also targeted additional gold-bearing breccia material in untested areas between the Eldorado and HS zones. Overall, as shown in the table below, the sonic results are returning a higher average gold grade as compared to the average grade of the nearby RC or diamond holes.

PAST NEARBY DRILL
HOLEGOLDINTERCEPTS
DEPTHFROMTOINTERVALGRADE(RC or DIAMOND DRILL
SONIC HOLE(m)(m)(m)(m)(g/t)HOLE)
SN01200.025.853.828.02.50.7 g/t gold over 34.0m
79.385.05.71.5N/A
138.4167.429.04.61.5 g/t gold over 31.8m
189.7193.43.72.6N/A
SN07131.236.646.910.41.81.1 g/t gold over 10.0m
102.1104.42.32.3N/A
SN08138.630.637.16.51.32.3 g/t gold over 2.3m
48.756.17.42.23.8 g/t gold over 2.1m
125.0138.613.62.40.7 g/t gold over 5.5m
SN0955.031.138.37.22.00.5 g/t gold over 20.0m
SN1039.411.218.06.81.40.4 g/t gold over 6.0m
SN11109.2020.020.03.74.1 g/t gold over 20.0m
SN1281.81.314.513.22.11.2 g/t gold over 10.0m
SN13180.00166.6166.62.0N/A
Including034.0340.50.4 g/t gold over 20.0m
Including36.761.324.67.74.0 g/t gold over 6.0 m
Including61.3167.1105.81.1N/A
Note: the reported intervals are a down-hole length, and may not represent a true width. The table above compares the sonic assays to nearby RC or diamond holes; note that the holes are not twins and the distance between compared intercepts are in the range of 10 to 20 m.

Sonic holes SN11 and SN13 were drilled on the same section near the center of the pit.

  • Sonic hole SN13 intersected 2.0 g/t gold over 166.6 metres. This hole targeted the shallow, Eldorado zone as well as the deeper 'gap zone' between the Eldorado and HS zones. The composite(1)is composed of three distinct intervals:
    1. An upper interval of 0.5 g/t gold over 34.0 metres (from 0 to 34.0m down hole). This zone is interpreted to be the upper portion of the main Eldorado zone and has an interpreted true width of approximately 30 metres.
    2. A high grade interval of 8.0 g/t gold over 24.6 metres (from 36.7 to 61.3m down hole), interpreted to be the main Eldorado zone. This interval appears to have a vertical component by changing in dip from approximately 45 degrees to approximately 60 degrees giving it an estimated true width of approximately 11 metres.
    3. A lower interval of 1.1 g/t gold over 105.8 metres (from 61.3 to 167.1 m down hole). This portion of the mineralized interval is interpreted to be higher angle or near vertical. The true width of this zone is estimated to be 20 to 30 metres.
  • Sonic hole SN 11 is located 15 metres to the west of hole SN13 and intersected the main Eldorado zone of 3.7 g/t over 20.0 metres (from 0 to 20.0m down hole). The true width of this zone is estimated to be approximately 11 metres.

Sonic holes SN10 and SN12 are located on the same section near the south end of the pit. Both holes intersected the Eldorado zone returning a higher grade than previously reported by nearby RC holes.

Sonic holes SN7, SN8 and SN9 are located approximately 100 metres outside of the Taunus pit and aimed at evaluating the gold grade of the near surface Eldorado zone. These holes intersected higher grade gold than nearby RC holes. Sonic hole SN8 intersected 3 gold bearing zones, the deeper zone of 2.4 g/t gold over 13.6 metres (from 125 to 138.6 m down hole) is significant being located outside of the resource pit shell.

1 Minimum composite length of 5 metres over 0.2 g/t Au, may include up to 3 metres less than 0.2 g/t Au

Exploration Plan

Total meterage completed to date this year is approximately 1,365 m in 10 sonic holes. Technical delays and slower drilling have been encountered with the sonic technique when drilling below 100 metre depths. It is important to acknowledge that the sonic drilling was implemented by Oro Mining as an innovative tool to complete the resource exploration drilling to overcome the technical challenges experienced at Taunus this past year, and will continue to require more time to establish procedures and protocol, currently under review by an independent qualified person.

The objectives of the sonic drill program are to increase the Taunus resource base by: 1) increasing the gold grade of the Eldorado and HS zones; and 2) drilling untested areas below the Eldorado zone targeting potential high-grade gold feeders, as well as offsets and extensions to the zones.

The Company is planning to complete another resource estimate for the Taunus gold deposit following the completion of the current sonic drill program.

Quality Control

Oro Mining maintains a strict quality control program. All samples generated by Oro Mining were submitted directly to Inspectorate, an ISO 9001-2008-certified assay laboratory, for preparation in Durango, Mexico, and analysis in Reno, Nev. All sonic drill samples submitted for analysis were from splits of quarter-sawn frozen core. Analysis was conducted on one-assay-tonne samples for gold, with a standard, blank and duplicate inserted for every 20 samples submitted. Analysis of gold was by fire assay with AAS finish, and with gravimetric finish on samples exceeding five g/t gold. Y. (Gary) Wong, P.Eng., is a qualified person as defined by National Instrument 43-101 and has reviewed the content of this press release.

About Oro Mining

Oro Mining is a publicly-listed company on the TSX Venture Exchange with properties located in Sinaloa and Zacatecas, Mexico. Oro Mining's corporate mandate is to advance its projects toward production, while continuing to make exploration discoveries on its extensive property position. The district-scale Trinidad property that hosts the Taunus gold deposit continues to be the focus of Oro Mining's exploration and project development activities. The Company's mission is to create exceptional value for our shareholders through exploration discovery, resource growth, mine development and production, while providing sustainable benefits to our staff, the environment, and the communities where we operate.

ON BEHALF OF THE BOARD OF DIRECTORS

John Brownlie, Chief Executive Officer

Some statements in this release may contain forward-looking information. These statements include, but are not limited to, statements with respect to future drilling, exploration, development and production activities. 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the 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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