San Marco Resources Inc.
TSX VENTURE : SMN

San Marco Resources Inc.

January 10, 2011 07:00 ET

San Marco Increases Land Position at Tecomate to 12,000 Hectares and Announces First Phase Results of "Scout Drilling"

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2011) - San Marco Resources Corp. (TSX VENTURE:SMN) is pleased to report that it has increased its land package of its 100% owned Tecomate gold/silver prospect in Durango, Mexico from 5,930 to 12,290 hectares. The additional ground was staked to cover more artisanal workings and other gold/silver showings. A six-hole first-phase scout drilling program totalling 1,320m has been completed. The drilling was carried out using a man-portable core drill rig, and partially tested two out of eight zones so far identified on the property where mineralization occurs at surface in Lower Tertiary volcanics along northerly trends. The zones that were drill tested are two of four permitted for drilling and are the easiest to access of all the zones so far identified on the property. Ease of access played an important role in the selection for drill testing with the objective of obtaining valuable third dimension geological data in areas where dense vegetation and steep terrain limit surface work. Permitting for more drilling in other zones on the property is nearly complete. Ongoing reconnaissance exploration and chip sampling is focusing on discovering new zones and identifying drill targets in the six other zones so far at Tecomate where gold, silver, lead and zinc mineralization occur at surface.

Volcaniclastics containing quartz stockwork, crackle breccia, and pervasive silicification host the mineralization at surface in the Brenda and Southeast zones that San Marco's scout drilling tested. The first of two holes drilled in the Brenda zone returned precious metals values of economic interest over down-hole intervals of 6m, 14m, and 5m. The Brenda zone is roughly 700m long by 200m wide. Two of four holes in the Southeast zone returned sporadic precious metals values of economic interest over narrow down-hole intervals and two returned sporadic lead and zinc values of economic interest over narrow down-hole widths. The Southeast zone is roughly 1300m long by 200m wide.

Table 1 provides assay composites of economic interest from all the holes drilled at Tecomate in the scout drilling program.

Hole   Zone Azimuth (degrees) Dip (degrees) From (m) To (m) Width (m) Au gpt Ag gpt Pb% Zn%
                       
TBD-01   Brenda 270 -60 8 14 6 0.341 20.9 - -
          168 182 18 0.148 2.10 - -
          195 199.9 4.9 0.360 1.67 - -
TBD-02   Brenda 220 -50 74 75.5 1.5 - - 0.315 0.564
TBD-03   Southeast 240 -60 2 4 2 0.812 26.6 - -
          8 10 2 0.224 2.40 - -
          16 18 2 0.207 0.90 - -
          36 42.5 6.5 0.221 1.26 - -
          58 60 2 0.775 1.30 - -
          62 64 2 0.517 0.30 - -
          68 70 2 0.518 0.30 - -
TBD-04   Southeast 250 -65 14.4 22.8 8.4 - - 0.565 1.29
          21.35 22.8 1.45 0.105 31.7 2.47 4.47
          26.35 38.05 11.7 - - 0.125 0.366
          36.5 38.05 1.55 0.066 14.8 0.310 0.938
TDB-05   Southeast 250 -65 37.85 62 24.15 - - 0.155 0.077
          104.00 106.00 2 0.438 1.50 0.073 0.111
          108.15 108.75 0.6 0.296 8.80 1.035 1.465
          116.50 122.00 5.5 - - 0.030 0.220
          158.00 170.00 12 - - 0.049 0.149
TBD-06   Southeast 250 -65 16.65 20.0 3.35 0.716 28.9 - -
          42.00 44.00 2 0.190 0.50 - -
          46.00 48.00 2 0.239 1.50 - -

Chairman Robert Willis stated; "Since the overall geology relating to mineralization is not yet well understood, the scout drilling has provided valuable third dimensional information and identified certain rock units which appear to be the better hosts for mineralization of interest. This information will help guide ongoing exploration in areas known to have numerous gold and silver showings scattered over this very large land package." 

Field activities were completed under the direction of Brent Hendrickson, Vice-President of Exploration for San Marco Resources who has been working in the region since 2006. The technical information contained in this press release has been based on information reviewed by San Marco's President, Robert D. Willis, P. Eng., a 'qualified person' for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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