Oro Silver Resources Ltd.
TSX VENTURE : OSR

Oro Silver Resources Ltd.

May 01, 2007 08:50 ET

Oro Silver Proceeds With Option to Purchase Mining Assets in Zacatecas, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 1, 2007) - Oro Silver Resources Ltd. ("Oro Silver") (TSX VENTURE:OSR) has completed its thirty-day due diligence and entered into option to purchase agreements for certain mining properties near Zacatecas, Mexico, held by the Mexican mining company, Contracuna, S.A. de C.V., and a private Mexican individual.

Highlights:

- Option to purchase three mining concessions totaling 98.4 hectares

- Option to purchase exploitation rights for the El Compas concession

- Rights of first refusal for 30 mining concessions in the Zacatecas district

- Negotiated a 30-day extension to the Letter of Intent for rights to gain 25% of the revenue from the mill in Vetagrande, and preferential rights to purchase it

- Long-time property owner/operator retained to assist in future acquisitions

Under these agreements Oro Silver has the option to purchase a 100% interest in three exploration properties totaling 98.4 hectares, along with the exploitation rights for the adjoining El Compas mine.

Additionally, Oro Silver has the right of first refusal to acquire the two most important mining concessions at Vetagrande and 28 other concessions in the Zacatecas district, covering 841 hectares. The existing operator is on retainer to assist Oro Silver in acquiring additional mining properties in the region and in obtaining all necessary operating permits.

An extension of thirty days was obtained to complete the contract granting the preferential rights to acquire the mill and attendant facilities in the municipality of Vetagrande. Once the contract is completed, Oro Silver will receive 25% of the net revenue from the mill after making capital improvements. This mill is currently processing ore material from the El Compas and Vetagrande mines.

Oro Silver paid US$127,500 upon the completion of these contracts. US$20,000 was paid for the extension of the Letter of Intent regarding the Vetagrande mill and the remainder of US$22,500 will be paid upon its successful completion.

Before the first year anniversary, Oro Silver can acquire 100% of the El Orito, La Virgen, and Ampliacion El Compas concessions and hold the exploitation rights on the El Compas mining concession by making a final payment of US$800,000.

Zacatecas, founded by the Spaniards in 1548, is one of the largest historic silver districts in the world with past production estimated at over 1.2 billion ounces silver equivalent. Veta Grande is considered one of the most significant vein systems in the district, contributing a significant portion of the past production. Oro Silver's acquisitions represent a strong foothold in the heart of the Zacatecas silver mining district. From here, the Company plans to leverage itself through additional acquisitions to become the dominant player in the district.

Completion of these agreements supports Oro Silver's mine-site exploration strategy. Oro Silver's goal is to become a mid-tier silver producer through an aggressive acquisition and development plan focused on advanced-stage projects with known silver resources that exhibit potential for expansion. The Company will explore and develop primary silver deposits located in Mexico and North America.

On behalf of the board of directors,

Gregory M. Cox, President and CEO

This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. Oro Silver disclaims any intention or obligation to revise or update such statements.

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

Contact Information

  • Oro Silver Resources Ltd.
    Gregory M. Cox
    President and CEO
    (604) 646-1585
    (604) 642-2411 (FAX)