Oro Silver Resources Ltd.

Oro Silver Resources Ltd.

July 12, 2010 08:00 ET

Oro Silver Identifies Five New Target Areas at El Compas Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 12, 2010) - Oro Silver Resources Ltd. ("Oro Silver or the "Company") (TSX VENTURE:OSR) recently completed a number of grid surveys in addition to twenty two diamond drill holes expanding the El Compas near surface gold-silver resource, see press release dated June 1, 2010. The 45 km2 property-wide first pass surface exploration work included lithologic, alteration and structural mapping, selective geochemical rock sampling, clay alteration studies, and aerial image interpretation. These surveys have identified five new target areas that warrant follow-up exploration work.

Highlights of completed program:

    Five new target areas identified with near surface and/or deep silver mineralization potential
    Property-wide clay alteration study shows that buddingtonite (clays of hydrothermal origin) is related to northwest structural trends and may be used as an exploration vectoring tool.
    Property and regional scale northwest faults and north-south faults hosting veins were identified during aerial image interpretation providing new areas for potential resource expansion
    A northwest to east-west trending structure may be associated with the native copper-silver vein intersected at depth in drill hole 10COM060 and is an additional target, see http://www.orosilver.com/main/?TechnicalDiscussion

New target Zones

  1. The Central target area is situated within the northwest-trending El Compas structural corridor of andesite comprising the north-south trending EC2, EC4, and EC5 vein zones. The target area is defined by the Escuadra fault to the southwest and a narrow continuous zone of northwest trending quartz veins to the northeast. Targets in the Central area include three north-south vein systems as well as two bordering northwest trending structures, for shallow gold and possibly deeper silver/gold mineralization. One of ten grab samples from EC2 vein returned 1.18 g/t Au + 68.5 g/t Ag. One of two samples taken from a small mine dump at this location returned 7.15 g/t Au + 87.5 g/t Ag. Elsewhere gold and silver values for grab samples range from un-mineralized (North EC4), to very weakly anomalous (Escuadra fault), to weakly mineralized (EC5: 2.01 g/t Au +3.6 g/t Ag, NW vein zone: 2.3 g/t Au + 28.7 g/t Ag).
  1. The Picones prospect is located in the northwest area of the El Compas claim block and consists of north-south and northwest trending quartz and calcite veins anomalous in gold and silver, and locally very anomalous in manganese geochemistry. The host rock is andesite with hematite, limonite, manganese oxide, and carbonate alteration associated with veining.
  1. Maravillas is located in the northern portion of the property. The prospect area comprises one principal and several minor northwest striking, southwest dipping quartz veins that are hosted in phyllite. The veins are exposed intermittently over a 1.8 km length. Mineralized material collected from an ore dump at this location was high in silver and base metals and for this reason these veins appear to be associated with the deeper parts of an epithermal system within the El Compas corridor. Two grab samples of strongly sphalerite and galena mineralized material collected from the main ore dump returned 375 g/t Ag, 0.84 g/t Au, 0.19% Pb, 1.32% Zn, and 183 g/t Ag, 0.436 g/t Au, 0.77% Pb, and 2.94% Zn.
  1. The Boquillas area is located in the western portion of the El Compas claim block and is underlain by rhyolite with gently south dipping sinter that hosts at least one north-south trending quartz vein approximately 750m in length.
  1. The San Ramon target is located in the southern area of the El Compas claim block and is underlain by rhyolite, which hosts at least one north-south trending, steeply dipping quartz vein. The vein is exposed for about 50m, and is up to 3.5m wide. A vertical shaft at least 15m deep has been excavated over the thickest portion of the vein. Vein material exhibits coarse bladed, banded, and vuggy textures. The surface exposure of the vein at this location is interpreted to be very high in the epithermal system and has similar characteristics of those seen at the El Compas and El Orito vein showings.

New Survey Results

Spectral analysis for approximately 650 rock samples show that buddingtonite, kaolinite, and smectite clays were the main clay minerals identified on the property. The distribution and extent of bedrock showing clay alteration is suggestive of late hydrothermal alteration of bedrock by migrating ore fluids. The sinter-rich Boquillas area represents one of the largest areas of buddingtonite clay alteration on the property and poses an excellent new target for deep mineralization. See Map 2 Schematic Section of El Compas Corridor.

Aerial image interpretation suggests that mineral occurrences and mineral prospects at El Compas are associated with one or more first order, property to regional scale northwest trending structural elements. North-south trending fault-veins as observed at El Compas and El Orito exhibit maximum width and grade development at their intersections with northwest structures. These structures control the location of vein development by providing channels for migrating ore-bearing fluids rich in gold (near surface) and silver (at depth). Gold and silver deposition occurs through episodic mineralizing events creating a characteristic repeated banding and breccia texture over widths of up to 20 metres as noted at El Compas. The banded layers in an epithermal deposit are often a measure of the size of the deposit. The extensive banding and other textures at El Compas suggest a significant feeder zone, yet to be discovered, may exist at depth.

In addition to the expansion and continued exploration of near-surface gold targets, the recently completed property-wide surface exploration coupled with the deeper drilling (holes: 57, 59 & 60) have identified areas for deep silver potential. These three holes show that the structures hosting gold near surface are persistent at depth and that significant hydrothermal alteration has occurred at deeper levels. For a detailed description of these holes, see press release dated June 1, 2010.

Exploration Plans:

    Continued interpretation of data from latest exploration program to prioritize drill targets on 45 km2 El Compas property
    Up to 15,000 metre multi-phase drill program to:
        Continue to grow the size of the existing near surface, gold-silver resource in the proximity of the current resource base
        Test shallow gold-silver targets elsewhere on the property
        Test deeper targets
    Update 43-101 Compliant resource estimate at El Compas and El Orito

Quality Control

All sample results generated by Oro Silver were submitted directly to Inspectorate Assay Laboratory, for preparation in Durango, Mexico, and analysis in Reno, Nevada. Analysis of gold was by fire assay, with a gravimetric finish on samples exceeding 3 g/t gold. Analysis of silver was by 4-acid digestion with an ICP finish, and with a gravimetric finish on samples exceeding 100 g/t silver. Mr. Freeman Smith, P. Geo. is a qualified person as defined by National Instrument 43-101 and has reviewed the content of this press release.

About Oro Silver

Oro Silver's mandate is to develop properties toward silver production through a strategic business arrangement and development plan focused on advanced-stage projects with known silver resources that exhibit potential for expansion. The El Compas mine continues to be the cornerstone for Oro Silver's growth strategy in the Zacatecas silver district part of the Fresnillo silver trend (known to have produced several billion ounces of silver) hosts the world's largest, silver mine, the Fresnillo Mine, located 45 km to the northwest.


Darren Bahrey, President & 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, resource estimation, 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.

To view Figure 1, please click on the following link: http://media3.marketwire.com/docs/osr712f1.JPG

To view Map 2, please click on the following link: http://media3.marketwire.com/docs/osr712m1.JPG

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