Oro Silver Resources Ltd.
TSX VENTURE : OSR

Oro Silver Resources Ltd.

August 27, 2007 15:42 ET

Oro Silver Reports 42.99 G/T Gold and 99.0 G/T Silver Over 6 Meters from Underground Sampling at El Compas Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2007) - Oro Silver Resources Ltd. ("Oro Silver")(TSX VENTURE:OSR) has received final results for underground sampling recently completed at the El Compas Mine property in Zacatecas, Mexico. 370 1-meter samples, in 46 channels, were taken from the 7 levels of the production ramp. All results are believed to be true width intervals.

Highlights:

- Highest 1-meter silver sample: 475.8 g/t Ag and 44.57 g/t Au

- Highest 1-meter gold sample: 125.07 g/t Au and 402.8 g/t Ag

- Average grade for the 370 samples: 4.60 g/t Au and 29.5 g/t Ag

- Average length of all channels: 8.02 meters

- Au-rich epithermal veins, atypical of the Ag-rich veins characteristic of the Zacatecas district

Results from selected channels for levels 1 to 7 are provided in the following table:



------------------------------------------------------------------------
Level Channel Average Average Length
Number Ag (g/t) Au (g/t) (m)
------------------------------------------------------------------------
1 C-7 97.8 11.91 8.0
------------------------------------------------------------------------
1 C-37 51.5 5.48 16.0
------------------------------------------------------------------------

------------------------------------------------------------------------
2 C-8 24.7 7.36 18.0
------------------------------------------------------------------------
2 C-10 99.0 42.99 6.0
------------------------------------------------------------------------
2 C-11 46.6 6.45 15.0
------------------------------------------------------------------------

------------------------------------------------------------------------
3 C-16 71.9 9.76 14.0
------------------------------------------------------------------------
3 C-17 150.3 13.36 4.0
------------------------------------------------------------------------

------------------------------------------------------------------------
4 C-20 72.6 6.54 10.0
------------------------------------------------------------------------
4 C-24 25.0 3.61 12.0
------------------------------------------------------------------------

------------------------------------------------------------------------
5 C-26 130.8 24.78 7.0
------------------------------------------------------------------------
5 C-27 57.4 11.98 4.0
------------------------------------------------------------------------

------------------------------------------------------------------------
6 C-29 71.4 16.45 4.0
------------------------------------------------------------------------
6 C-30 24.5 3.68 21.0
------------------------------------------------------------------------

------------------------------------------------------------------------
7 C-34 30.7 4.79 9.0
------------------------------------------------------------------------
7 C-36 59.7 7.75 3.0
------------------------------------------------------------------------
Note: All individual values uncut, entire channel length composited


A total of 46 channels were taken from the production ramp covering the accessible portions of the underground workings. Channels were spaced at 25 meter intervals down the ramp and taken perpendicular to the strike of the epithermal vein. With veins steeply dipping to the west, apparent thickness are fairly close to true thickness. Each channel is comprised of a series of 1 meter long samples. Sixteen of the lowest gold grade channels averaged 0.43 g/t Au and 4.46 g/t Ag, over 5.63 meters in length.

Surface mapping and sampling indicate that the vein system extends in a north-south direction, and illustrates excellent potential for additional mineralized chutes along more than 2 kilometers of strike.

An NI 43-101 report is currently being prepared.

Oro Silver Resources maintains a strict quality control program. Sampling was supervised by Mr. Herve Thiboutot, P. Eng. and Vice-President of Exploration and Development for Oro Silver, who is the qualified person as defined by National Instrument 43-101. Mr. Thiboutot has reviewed the content of this press release. All samples were chip channeled, cut and bagged individually, and then security sealed. Samples were submitted directly to Inspectorate de Mexico, S.A de C.V., for preparation in Durango, Mexico, and analysis in Reno, Nevada. Analysis was conducted on 2 assay ton samples, with one standard and one blank sample inserted every 30 samples. Analysis of Au was by fire assay, with a gravimetric finish on samples exceeding 3 g/t Au. Analysis of Ag was by 3 acid digestion and atomic absorption, with a gravimetric finish on samples exceeding 200 g/t Ag.

Oro Silver has the option to purchase a 100% interest in the currently producing El Compas mining concession, for total payments of US$2.7 million, staged over 2 years. The company will earn a 51% interest after payment of US$1.6 million. Under a separate agreement, Oro Silver has the option until April 21, 2008, to purchase the mining rights from the current operator for US$800,000. Once completed, these transactions will give Oro Silver 100% ownership and control of the El Compas mine.

Oro Silver's strategy 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. While becoming a major player in the Zacatecas silver district, Oro Silver will continue its growth through exploring and developing primary silver deposits 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.
    Matthew Chandler
    Corporate Communications
    (604) 646-1586
    (604) 642-2411 (FAX)