Oro Silver Resources Ltd.
TSX VENTURE : OSR

Oro Silver Resources Ltd.

March 19, 2007 09:54 ET

Oro Silver Signs Deal to Acquire Producing Silver Mine in Zacatecas, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 19, 2007) - Oro Silver Resources Ltd. ("Oro Silver") (TSX VENTURE:OSR) has signed Letters of Intent establishing the terms of exploration and option to purchase agreements for certain mining properties held by the mining company, Contracuna, S.A. de C.V., and a private Mexican individual.

Highlights:

- 25% net revenue from current operation

- Rights to significant property portfolio in a prolific silver district

- Rights to expand and purchase mill

- Significant exploration upside reinforcing Oro Silver's mine-site exploration strategy

- Long-time property owner and operator on retainer to assist Oro in future acquisitions in the Zacatecas district

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 Veta Grande and 29 other concessions in the Zacatecas district, covering 852 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.

During the term of the purchase option, Oro Silver will receive 25% of the net revenue from the mill located in the municipality of Veta Grande, Zacatecas, in exchange for making capital improvements. The mill is currently processing ore material from the El Compas and the Veta Grande mines. Oro Silver has preferential rights to acquire the mill and its attendant facilities.

Oro Silver paid US$30,000 upon signing the Letters of Intent and will pay US$170,000 upon successful completion of a 30-day due diligence period. Before the first year anniversary, Oro Silver will pay an additional US$800,000 in order to complete the option-to-purchase and thereby own 100% of the El Orito, La Virgen, and Ampliacion El Compas concessions and hold the exploitation rights on the El Compas mining concession.

Zacatecas, founded by the Spaniards in 1548, is one of the largest historic silver districts in the world with past production estimated at 1.2 billion ounces. 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 which the Company plans to leverage itself through additional acquisitions to become the dominant player in the district.

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. Through its network of local contacts, Oro Silver has direct access to many silver-based opportunities in historically significant silver districts located in Mexico. 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

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
    (604) 646-1585
    (604) 642-2411 (FAX)