Pershimco Resources Inc.
TSX VENTURE : PRO

Pershimco Resources Inc.

October 27, 2006 12:28 ET

Pershimco Updates San Miguel Exploration in Mexico

ROUYN-NORANDA, QUEBEC--(CCNMatthews - Oct. 27, 2006) - Pershimco Resources Inc. ("Pershimco", and or the "Company") (TSX VENTURE:PRO) is pleased to announce the latest exploration and mining development results from the Operator, Dia Bras Exploration Inc. (" Dia Bras "), on the Pershimco's silver properties, in the State of Chihuahua, Mexico.

On May 31, 2006, Pershimco entered into an agreement with Dia Bras Exploration Inc. (TSX-V: DIB), whereby the latter could earn a direct 70% interest in the San Miguel and La Bamba properties. Under the terms of the agreement, Diabras is required to execute US $ 4 000 000.00 of exploration work on the properties bringing them up to pilot mining level.

During its cease-trade period, Pershimco regularly traveled to Mexico and monitored the work progress on their Mexican properties. Dia Bras previously announced (refer to News Release dated October 3, 2006) results from its underground sampling at the former producing mines of San Miguel and La Bamba. San Miguel has 4 levels (-100, -250, -300 and -500) of which the first three were accessed, mapped and sampled with a total of 450 samples collected. The first three levels are within the oxide zone. At the -100 Level, two adjacent parallel mineralized zones (Breccia and Vein) have been outlined, extending in a N-S for 170 meters. At the southern end of the level, the Breccia Zone ranges from 1.5 to 4 meters in width, A total 7 channel samples were taken from this zone, and returned an average of 565.7 g/t Ag:



-------------------------------------------------
SAMPLE NO. CHANNEL LENGTH ASSAY
(METERS) (AG G/T)
-------------------------------------------------
59716 3.0 150
-------------------------------------------------
59717 3.0 780
-------------------------------------------------
59718 3.0 880
-------------------------------------------------
59719 3.0 300
-------------------------------------------------
59720 3.0 550
-------------------------------------------------
59721 3.0 770
-------------------------------------------------
59722 3.0 530
-------------------------------------------------

The vein zone was channel-sampled along five different sections and
returned an average of 228 g/t Ag over an average width of 2.36
meters:

-------------------------------------------------
SAMPLE NO. CHANNEL LENGTH ASSAY
(METERS) (AG G/T)
-------------------------------------------------
415982 1.6 190
-------------------------------------------------
415983 1.2 270
-------------------------------------------------
59681 3.0 180
-------------------------------------------------
59682 3.0 260
-------------------------------------------------
59684 3.0 250
-------------------------------------------------

At the -250 Level, the same vein and breccia zones were identified
and sampled. Near the shaft, 6 channel samples were collected across
the Breccia zone and returned an average of 221.7 g/t Ag:

-------------------------------------------------
SAMPLE NO. CHANNEL LENGTH ASSAY
(METERS) (AG G/T)
-------------------------------------------------
59784 3.0 40
-------------------------------------------------
59785 3.0 390
-------------------------------------------------
59807 1.7 200
-------------------------------------------------
59808 1.5 20
-------------------------------------------------
59809 1.8 330
-------------------------------------------------
59810 1.7 330
-------------------------------------------------

The Vein Zone was channel-sampled along three sections for a distance
of 20 meters and averaged 340 g/t Ag over an average width of 1.7
meters:

-------------------------------------------------
SAMPLE NO. CHANNEL LENGTH ASSAY
(METERS) (AG G/T)
-------------------------------------------------
59762 1.1 280
-------------------------------------------------
59763 0.8 10
-------------------------------------------------

-------------------------------------------------
SAMPLE NO. CHANNEL LENGTH ASSAY
(METERS) (AG G/T)
-------------------------------------------------
59764 0.8 1,090
-------------------------------------------------
59765 0.7 190
-------------------------------------------------

-------------------------------------------------
SAMPLE NO. CHANNEL LENGTH ASSAY
(METERS) (AG G/T)
-------------------------------------------------
59767 0.8 280
-------------------------------------------------
59768 0.8 150
-------------------------------------------------

On the -300 Level, the Vein Zone is developed over a distance of 200
meters and was sampled on three sections. It averages 443.8 g/t Ag
over an average width of 2.4 meters:

-------------------------------------------------
SAMPLE NO. CHANNEL LENGTH ASSAY
(METERS) (AG G/T)
-------------------------------------------------
SOUTH FACE
-------------------------------------------------
59786 1.7 320
-------------------------------------------------
59787 2.2 660
-------------------------------------------------

-------------------------------------------------
SAMPLE NO. CHANNEL LENGTH ASSAY
(METERS) (AG G/T)
-------------------------------------------------
CUT AT 190 METERS
SOUTH OF SHAFT
-------------------------------------------------
59799 1.2 300
-------------------------------------------------
59800 1.5 120
-------------------------------------------------

-------------------------------------------------
SAMPLE NO. CHANNEL LENGTH ASSAY
(METERS) (AG G/T)
-------------------------------------------------
59796 0.9 550
-------------------------------------------------
59797 0.6 200
-------------------------------------------------

A total of 2,172 meters was also drilled in 11 diamond drill holes at
San Miguel to test mineralized material easily accessible from the
shaft below the -300 Level. Except for two holes blocked on a fault,
the other 9 holes cut the zones with the following assay results:

---------------------------------------------------------------------
DRILL HOLE NO. FROM TO WIDTH AG PB ZN CU
(METERS) (METERS) (METERS) G/T % % %
---------------------------------------------------------------------
DC06B015 114.0 122.5 8.5 168 A/P(i) A/P A/P
---------------------------------------------------------------------
INCL. 114.0 116.0 2.0 288 A/P A/P A/P
AND 116.0 119.0 3.0 25
AND 119.0 120.0 1.0 254
AND 120.0 122.0 2.0 31
AND 122.0 112.5 0.5 380
---------------------------------------------------------------------
DC06B017 121.05 122.20 1.15 809 3.3 2.5 0.7
---------------------------------------------------------------------
DC06B021 138.0 142.0 4.0 237 A/P A/P A/P
---------------------------------------------------------------------
INCL. 138.0 139.0 1.0 299 A/P A/P A/P
AND 139.0 140.0 1.0 274
AND 140.0 141.0 1.0 267
AND 141.0 142.0 1.0 107
---------------------------------------------------------------------
DC06B023 56.0 57.0 1.0 26 1.0 3.9
---------------------------------------------------------------------
DC06B024 126.0 134.0 8.0 158 A/P A/P A/P
---------------------------------------------------------------------
INCL. 126.0 127.0 1.0 184 A/P A/P A/P
AND 128.0 129.0 1.0 235
AND 129.0 131.0 2.0 110
AND 131.0 134.0 3.0 151
---------------------------------------------------------------------
(i) Assay pending.


Drill holes DC06B026 and DC06B027 also cut the zones but results are still pending.

Mr. Andre St-Michel, P. Eng., Vice-President of Dia Bras is the qualified person within the meaning of NI 43-101. All drill samples were assayed by ALS-Chemex, North Vancouver, British Columbia using ICP method, while underground samples were assayed by the Atomic Absorption method at the Dia Bras laboratory facilities at the Malpaso mill.

Pershimco has been advised by the TSX Venture Exchange that the shares of the Company are scheduled to be reinstated to trading effective the opening Monday, October 30, 2006.

About Pershimco Resources

Pershimco is a Canadian mining exploration company involved in the development of two high-potential properties, the Courville gold property, 40 km from Val-d'Or, Quebec, and the San Miguel silver property, in northern Mexico. Pershimco's securities are listed on the TSX Venture Exchange under the symbol PRO.

FORWARD-LOOKING INFORMATION -- This press release contains forward-looking statements reflecting Pershimco objectives, estimates, expectations and the impact of acquisitions on Pershimco's financial performance. These statements are identified by the use of verbs such as "believe", "anticipate", "estimate", and "expect" as well as by the use of future or conditional tenses. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from Pershimco's projections or expectations.

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

Contact Information

  • Pershimco Resources
    Mr. Roger Bureau
    President
    1-866-797-2180
    819-797-9617 (FAX)
    www.pershimco.ca