Silvermex Resources Ltd.
TSX VENTURE : SMR

Silvermex Resources Ltd.

March 17, 2008 17:27 ET

Silvermex Drills 52.5 Meters With 122 g/t Ag and 0.14% Cu on Its Penasco Quemado Property

Phase 4 Drilling Completed at Penasco Quemado Bulk Tonnage Deposit.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 17, 2008) - Silvermex Resources Ltd. (TSX VENTURE:SMR) ("Silvermex") announces results of the 3,231 meter reverse circulation drilling program completed on the open pit Penasco Quemado bulk tonnage deposit located in Sonora, Mexico.

Drilling on the Penasco Quemado deposit continues to deliver consistently positive results as the Phase Four, in-fill and step-out drill program, delivered economic grades from every hole. The average grade of the resource to date is approximately 116 g/t Ag (3.4 ounces per tonne silver). Along with its relatively high grade, the near surface characteristics of the deposit (i.e. from surface to 100 meters) suggest an open pit surface mining operation will have a very low strip ratio. Preliminary modeling and mine plans are currently being completed to help provide the necessary data and information required to complete a preliminary assessment. The Company anticipates this study will be commissioned once the current Phase 5 (3,000 meter) drill program is completed.

The current reverse circulation drill program was designed with the principal objective of expanding the current mineral resource at Penasco Quemado Zone. From the assay results and information on structural controls obtained to date, the Company believes it has sufficient confidence to proceed with an updated mineral resource estimate and test several of the newly identified targets. Specifically the results of the January, 2008 drill program are as follows:

Penasco Zone:

A total of 1,254 meters of drilling were completed in 14 holes in the Penasco Zone. The program was designed to (i) increase the level of confidence through infill drilling in the established resource area and (ii) test the down dip and southeastern strike extent of the mineralized zone. The program was successful as it extended the strike length of the current resource to a total of 330 meters from 240 meters. The down dip extent of the mineralized zone is also open. The 3,000 meter reverse circulation drill program proposed for this spring will focus on establishing the down dip extent in this zone. The results of assays are as follows:



Penasco Quemado, Infill and Exploration Drilling Program
Significant Mineral Intersections
-------------------------------------------------------------------
Total
Hole Length Start Finish Interval Width Ag Cu
Number (m) (m) (m) (m) (m) g/t ppm
-------------------------------------------------------------------
PQRC-18 108.00 22.50 39.00 16.50 16.50 135.0 852
-------------------------------------------------------------------
Includes 27.00 33.00 6.00 6.00 292.0 1874
-------------------------------------------------------------------
PQRC-19 54.00 6.00 19.50 13.50 13.50 135.0 1648
-------------------------------------------------------------------
Includes 7.50 13.50 6.00 6.00 239.0 2780
-------------------------------------------------------------------
PQRC-20 54.00 0.00 15.00 15.00 15.00 57.0 788
-------------------------------------------------------------------
Includes 0.00 3.00 3.00 3.00 124.0 2173
-------------------------------------------------------------------
PQRC-21 96.00 6.00 58.50 52.50 52.50 122.0 1441
-------------------------------------------------------------------
Includes 15.00 36.00 21.00 21.00 193.0 2352
-------------------------------------------------------------------
PQRC-22 54.00 3.00 7.50 4.50 4.50 39.5 89
-------------------------------------------------------------------
PQRC-23 72.00 3.00 10.50 7.50 7.50 39.0 663
-------------------------------------------------------------------
and 10.50 31.50 21.00 21.00 19.7 157
-------------------------------------------------------------------
PQRC-24 102.00 54.00 70.50 16.50 16.50 76.0 520
-------------------------------------------------------------------
PQRC-25 108.00 51.00 61.50 10.50 10.50 69.3 1525
-------------------------------------------------------------------
Includes 55.50 58.50 3.00 3.00 110.0 2977
-------------------------------------------------------------------
and 61.50 73.50 12.00 12.00 19.5 269
-------------------------------------------------------------------
and 73.50 94.50 21.00 21.00 37.3 323
-------------------------------------------------------------------
PQRC-26 84.00 0.00 72.00 72.00 72.00 59.1 1443
-------------------------------------------------------------------
Includes 16.50 25.50 9.00 9.00 123.5 3689
-------------------------------------------------------------------
PQRC-27 156.00 63.00 72.00 9.00 9.00 45.5 1026
-------------------------------------------------------------------
and 85.50 106.50 21.00 21.00 30.0 216
-------------------------------------------------------------------
Includes 94.50 102.00 7.50 7.50 42.4 190
-------------------------------------------------------------------
PQRC-28 72.00 9.00 19.50 10.50 10.50 26.6 405
-------------------------------------------------------------------
Includes 10.50 15.00 4.50 4.50 35.7 638
-------------------------------------------------------------------
and 22.50 34.50 12.00 12.00 21.3 464
-------------------------------------------------------------------
Includes 30.00 34.50 4.50 4.50 30.0 639
-------------------------------------------------------------------
PQRC-29 72.00 1.50 6.00 4.50 4.50 27.5 346
-------------------------------------------------------------------
and 45.00 46.50 1.50 1.50 21.9 2747
-------------------------------------------------------------------
PQRC-30 126.00 45.00 57.00 12.00 20.2 162
-------------------------------------------------------------------
and 57.00 67.50 10.50 31.6 260
-------------------------------------------------------------------
Includes 60.00 66.00 6.00 37.2 260
-------------------------------------------------------------------
and 99.00 100.50 1.50 70.8 180
-------------------------------------------------------------------
and 103.50 108.00 4.50 30.4 209
-------------------------------------------------------------------
and 115.50 117.00 1.50 20.7 625
-------------------------------------------------------------------
PQRC-31 96.00 9.00 31.50 22.50 34.3 923
-------------------------------------------------------------------
Includes 22.50 28.50 6.00 66.2 2325
-------------------------------------------------------------------
and 57.00 84.00 27.00 40.0 259
-------------------------------------------------------------------
Includes 66.00 84.00 18.00 48.5 248
-------------------------------------------------------------------


Penasco Zone, Southeastern Extension (PQD-05):

A total of 540 meters of drilling in 6 holes were completed in the vicinity of hole PQD-05 completed during the 2006 drill campaign. PQD-05 previously intercepted high grade silver mineralization near cross section 0-720 SE approximately 400 meters southeast of the Penasco Zone. This principal mineralized trend appears to have been offset by post depositional faulting that has produced minor strike slip and down dip displacement. An Induced Polarization-Resistivity (IP-R) survey completed at 50 meter dipole spacings during the summer of 2007 along cross section 0-720SE identified an IP-R anomaly related to the high grade silver intersection from PQD-05. The survey was expanded to complete two additional IP-R survey lines on either side of the first. Similar IP and Resistivity responses were received suggesting the continuity of the mineralized zone.

The following assays results confirm the continuity of the silver mineralization along the NW-SE trend with a minor WNW-ESE displacement of the zone resulting from the previously described faulting. Additional drilling is proposed to follow up the extension of the previous mineralized intersections. Significant intersections in this zone include:



Penasco Quemado Southeastern Extension, Exploration Drilling
Significant Mineral Intersections
-------------------------------------------------------------------
Total
Hole Length Start Finish Interval Width Ag Cu
Number (m) (m) (m) (m) (m) g/t ppm
-------------------------------------------------------------------
PQRC-35 102.00 39.00 43.50 4.50 4.50 18.4 31
-------------------------------------------------------------------
PQRC-36 96.00 21.00 33.00 12.00 12.00 22.5 33
-------------------------------------------------------------------
Includes 27.00 30.00 3.00 3.00 28.3 42
-------------------------------------------------------------------
PQRC-37 72.00 42.00 69.00 27.00 27.00 46.1 132
-------------------------------------------------------------------
Includes 42.00 55.50 13.50 13.50 69.8 210
-------------------------------------------------------------------
Includes 51.00 55.50 4.50 4.50 110.6 350
-------------------------------------------------------------------
PQRC-38 96.00 43.50 46.50 3.00 3.00 14.4 136
-------------------------------------------------------------------
PQRC-39 96.00 73.50 84.00 10.50 10.50 63.0 309
-------------------------------------------------------------------
Includes 76.50 81.00 4.50 4.50 87.0 490
-------------------------------------------------------------------


San Luis Area (Pink Breccia)

A total of 372 meters in nine shallow holes were completed to test the continuity of the silver mineralization identified during the previous 2006 drilling program. Results include:



San Luis Area (Pink Breccia), Exploration Drilling
Significant Mineral Intersections
-------------------------------------------------------------------
Total
Hole Length Start Finish Interval Width Ag Cu
Number (m) (m) (m) (m) (m) g/t ppm
-------------------------------------------------------------------
PQRC-40 54.00 12.00 18.00 6.00 6.00 38.5 792
-------------------------------------------------------------------
PQRC-41 48.00 13.50 34.50 21.00 21.00 63.2 561
-------------------------------------------------------------------
Includes 15.00 19.50 4.50 4.50 98 1565
-------------------------------------------------------------------
PQRC-42 30.00 9.00 18.00 9.00 9.00 52 510
-------------------------------------------------------------------
PQRC-43 42.00 12.00 18.00 6.00 6.00 30.2 376
-------------------------------------------------------------------
PQRC-44 42.00 22.50 28.50 6.00 6.00 32 675
-------------------------------------------------------------------
PQRC-45 42.00 15.00 21.00 6.00 6.00 71.1 1173
-------------------------------------------------------------------
PQRC-46 48.00 24.00 27.00 3.00 3.00 19.9 326
-------------------------------------------------------------------
PQRC-47 36.00 6.00 10.50 4.50 4.50 56.6 1606
-------------------------------------------------------------------
PQRC-48 30.00 0.00 6.00 6.00 6.00 61 495
-------------------------------------------------------------------


Guadalupe IP Anomaly and Penasco East:

A total of 285 meters of reverse circulation drilling were completed in two holes in these zones. The first hole, PQRC-32 was completed to test an IP anomaly identified during the 2007 survey completed on behalf of the Company by Zonge Engineering. The survey identified a strong IP anomaly interpreted as a high angle structure related to the emplacement of the silver mineralization at the southwestern edge of the Penasco mineral zone. It is believed this structure was a conduit for emplacement of the mineralization in this zone. From surface to 56 meters the hole intersected a red conglomerate unit, from 56 to 85 meters an andesitic breccias and from 85 to 119 meters a lithic tuff. Below the tuff the local water table was encountered along with a moderately oxidized, coarse grain granite with disseminated pyrite. It is believed the IP anomaly is created by the combined effect of the high angle structure, disseminated pyrite and ground water. The anomalous silver and copper values (13 g/t Ag and 455 ppm Cu across 7.5 meters) appears to be associated with the intrusive body and its contact with the lithic tuffs which probably acted as the conduit for the mineralizing fluids responsible for the Penasco Quemado (PQ) resource.

The second hole in this region, PQRC-33 was drilled along the eastern edge of the Penasco Zone to explore the continuity of the mineralization beneath the andesitic breccias. These breccias outcrop parallel to and along the footwall of the ore body. The presence of manganese oxides, barite and calcite veinlets and moderate oxidation in the breccias suggest a low sulphidation, epithermal environment. Between 93.0 to 96.0 meters this hole intersected 37.6 g/t Ag and 153 ppm Cu. Only moderately anomalous grades were returned from the other intervals.

La Fortuna Zone:

La Fortuna is located approximately 5 kilometers west of the Penasco Zone. The mineralization appears to be associated with a moderately dipping, northwest trending, 300 meter long, 10 meter wide zone of fault breccia that hosts a dense concentration of quartz veinlets and stockworks. Previous sampling programs returned significant silver, lead and zinc grades. To help define the orientation of the fault breccia at depth two IP-R lines 100 meters apart were completed across the structure. The results confirm the 60 degrees or 55 degrees dip of the structure to a depth of 100 meters. Below this level the structure becomes very low angle structure with strong chargeability anomalies coincident with both the hangingwall and footwall. A total of 576 meters in 4 holes were completed in this zone to test the mineralized structure at depth. The following significant intervals were intersected:



La Fortuna Area, Exploration Drilling
Significant Mineral Intersections
-------------------------------------------------------------------
Total
Hole Length Start Finish Interval Width Ag Cu
Number (m) (m) (m) (m) (m) g/t ppm
-------------------------------------------------------------------
PQRC-49 132.00 49.50 63.00 13.50 13.50 49 403
-------------------------------------------------------------------
Includes 49.50 54.00 4.50 4.50 115 948
-------------------------------------------------------------------
PQRC-50 144.00 43.50 48.00 4.50 4.50 38.2 612
-------------------------------------------------------------------
PQRC-51 150.00 102.00 108.00 6.00 6.00 207 2221
-------------------------------------------------------------------
Includes 102.00 105.00 3.00 3.00 402 2911
-------------------------------------------------------------------
PQRC-52 150.00 Non significant values
-------------------------------------------------------------------


The final hole in the current program, PQRC-53, was completed to test a geochemical anomaly identified 1200 meters southeast of the Penasco Zone in an area known as Loma Negra. The 204 meter hole encountered a sequence of rhyolites-rhyodacites with significant arsenic, manganese, copper, barium, antimony, silver and lead grades. This mineral assemblage suggests the existence of a low sulphidation, epithermal environment. The Company is yet to receive assay results from this hole.

Quality Control

All samples have been submitted to IPL in Richmond, B.C. for four acid digestion followed by ICP analysis. Duplicates, standards and blanks have been randomly inserted to the sampling stream at a ratio of 1 check assay for every 25 samples. Check assays are being completed at ALS Chemex in North Vancouver, B.C.

Qualified Person

Pursuant to National Instrument 43-101, Darcy Krohman, P.Geo., C.A,. Executive Vice-President and CFO of Silvermex Resources Ltd. is the Qualified Person (QP) responsible for the disclosure in this news release. Field work has been conducted by Silvermex Resources Ltd. employees and contractors.

This News Release contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect out current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results.

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

Contact Information