Oro Silver Resources Ltd. ("Oro Silver or the "Company") (TSX
VENTURE: OSR) has completed clay, geophysical, structural geology,
and satellite image surveys on its El Compas property within the
Fresnillo Trend near Zacatecas, Mexico (see Map 1). These surveys
suggest significant potential exists for discovery of high-grade
silver below the gold bearing zones at the mine site. These studies
have indicated some significant findings:
-- A compilation of the 2009 survey results indicate high-grade silver may
exist below the gold bearing zones at El Compas, El Orito, and the
northwest trending Escuadra Fault (this theory is supported by a drill
hole completed by Hochschild Mining in 2006 which intersected 703 g/t
silver and 4.1 g/t gold over 0.9m at 425m below surface).
-- Geological studies at El Compas show epithermal style mineralization
similar to other veins systems in the Zacatecas region, including MAG
Silver's Juanicipio Project (resource: 238 Million ounces silver).
-- Clay studies indicate that mineralogy can be used at El Compas for
target vectoring gold and silver veins.
"The potential for significant high-grade silver veins exists
below the El Compas mine and all the studies seem to support our
conceptual model. These surveys have enabled us to plan a carefully
designed drill program targeting silver which will get underway
this month. It's important to remember that prior to the Mexican
revolution, in the 1930's, most mines were located at shallow
depths and only recently has modern exploration been applied to
these old mining districts. We expect that more announcements like
the Juanicipio Project discovery will occur in the Zacatecas area,"
stated Darren Bahrey, President of Oro Silver.
Summary of the surveys conducted
In order to better understand the geology at El Compas the
Company conducted geological bedrock mapping (both on-surface and
underground), clay mineralogy surveys, satellite imagery, and
geophysical studies over the areas of known mineralization, and
elsewhere on the property. The objective of these surveys was to
help guide upcoming drilling efforts to test silver targets located
beneath the near-surface gold targets. These surveys have been used
successfully elsewhere in the Zacatecas district.
CLAY STUDIES
Clays are a component of weathered bedrock, and also may be
related to hydrothermal alteration. There are many different types
of clay, each having a unique chemical composition. Clay studies
can be used in mineral exploration to vector towards mineralized
zones since certain clays are found to be located closer than
others to precious metal bearing bodies. Clay studies suggest that
high-grade silver mineralization may be located at deeper levels
below the El Compas mine.
Eighty-five reconnaissance clay samples were collected within
1.6 km of the El Compas mine and then analyzed by infrared
spectroscopy. The results of the sampling indicate clay mineral
zonation that is spatially related to known mineralized structures.
The zoned alteration assemblage is characterized by: (1) proximal
buddingtonite and arsenate/phosphate clay mineral; (2) intermediate
kaolinite; and (3) distal smectite. Buddingtonite is part of the
advanced argillic alteration assemblage and is strongly associated
with the mineralized hangingwall sections of the northwest-trending
Escuadra Fault system and not with the north-south trending
mineralized structures. At the Fresnillo mine (the world's largest
silver mine), located approximately 45 kilometres to the northwest,
buddingtonite is associated with northwest structures on the flanks
of the deposit.
In addition to clay sampling, regional scale detection and
mapping of clay alteration was carried out using ASTER satellite
imagery by multispectral and hyperspectral analysis. Both the
multispectral and hyperspectral data identified large areas of clay
alteration, especially in the western portion of the El Compas
property. Hyperspectral data identified combinations of kaolinite,
smectite, illite, and dickite roughly coincident with results of
the multispectral analysis. The presence of a large clay alteration
zone suggests the upper part of a potentially large epithermal
system (see map 2) has been preserved and that the main precious
and base metal mineralized zones could exist at depth in the
vicinity of the El Compas mine.
GEOPHYSICAL STUDIES
Geophysical surveys were conducted to help understand the
geology, structure and possible orientations of the mineralized
veins. Induced Polarization (IP) and magnetometry (mag) geophysical
orientation surveys were conducted over the El Compas mine and
other important target structures, to determine the effectiveness
of geophysics as a prospecting and subsurface mapping tool.
North-south oriented IP lines identified the northwest trending
Escuadra Fault as a strong southwest dipping resistivity low, to a
depth of more than 300m. East-west oriented mag lines delineated
magnetic lows coincident with the main trend of the El Compas ore
body. IP appears to be an effective method for identifying and
mapping the Escuadra Fault and possibly other less obvious but
potentially important northwest structures. Magnetometry,
demonstrated an ability to map alteration zones associated with
north-south trending vein systems such as El Compas. These surveys
will allow the Company to identify and delineate prospective target
structures below the El Compas mine and elsewhere on the
property.
STRUCTURAL GEOLOGICAL STUDIES
The Zacatecas district hosts several, high-grade, silver
deposits along the Fresnillo Trend primarily within northwest
trending structures. In nearby mines sites such as El Bote,
Cozamin, Veta Grande, and Fresnillo, tectonic uplift and subsequent
erosion over millions of years has removed the upper gold rich
zone; consequently these deposits are all characterized by low
gold, high silver, and high base metal content representing the
deeper parts of an epithermal system (see maps 2 and 3). More
recent discoveries along the Fresnillo Trend include MAG Silver's
Juanicipio project.
At both El Compas and Juanicipio, post-mineral erosion has not
removed the higher elevation (upper), gold-rich portion of the
epithermal vein system (see map 2). At El Compas, one hole
completed in 2006, by another explorer, intersected the northwest
striking Escuadra Fault. A 0.9-metre wide quartz vein sample within
this fault (structure) returned 4.1 g/t gold and 703 g/t silver at
a vertical depth of 425 metres below surface. This is similar to
the first exploration holes drilled at Juanicipio in terms of
width, grade, and depth. Subsequent deeper drilling at Juanicipio
discovered a silver-rich bonanza zone about 150 metres below the
first exploration holes. Similarities to MAG Silver's Juanicipio
property, and past-producing Cantera and El Bote mines (historical
production of 250-300 million ounces silver, 7 kilometres to the
north) coupled with survey results provide strong support for
discovering high-grade silver and gold mineralization at depth
below the El Compas mine. Mr. Thomas Bagan, P. Eng is a qualified
person as defined by National Instrument 43-101 and has reviewed
the content of this press release.
About Oro Silver
Oro Silver is a silver exploration company pursuing early and
advanced stage silver-based opportunities in Mexico. Oro Silver's
mandate is to develop properties toward silver production through a
strategic business arrangement and development plan focused on
advanced-stage projects with known silver resources that exhibit
potential for expansion. The El Compas mine continues to be the
cornerstone for Oro Silver's growth strategy in the Zacatecas
silver district. The Zacatecas silver district is the world's
largest silver district and is well known for its silver production
as the Fresnillo Mine 45km to the northeast, held by Industrias
Penoles, currently produces over 31 million ounces of silver
annually from high-grade (23 oz/T Ag plus up to 0.1 oz/T Au) veins.
Fresnillo commenced mining around 1560 and has produced about 800
million ounces of silver.
ON BEHALF OF THE BOARD OF DIRECTORS,
Tom Bagan, P.Eng., Chief Operating Officer
Some statements in this release may contain forward-looking
information. These statements include, but are not limited to,
statements with respect to future exploration, resource estimation,
development and production activities and future expenditures.
These statements address future events and conditions and, as such,
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements to
be materially different from any future results, performance or
achievements expressed or implied by the statements. Such factors
include, among others, the time and success of future exploration,
development and production activities and the timing and amount of
expenditures.
To view Map 1: Zacatecas District, please visit the following
link: http://media3.marketwire.com/docs/osr_0211_map_1.pdf
To view Map 2: El Compas Comparison, Zacatecas District, please
visit the following link:
http://media3.marketwire.com/docs/osr_0211_map_2.pdf
To view Map 3: Idealized Vein Model Zacatecas District, please
visit the following link:
http://media3.marketwire.com/docs/osr_0211_map_3.pdf
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
Contacts: Oro Silver Resources Ltd. Ariel Cobangbang (604)
646-1586 Oro Silver Resources Ltd. Suite 1400-625 Howe Street,
Vancouver, BC V6C 2T6 604 646-1585 604 642-2411 (FAX)
www.orosilver.com
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