October 6, 2008
Aura Silver Resources Reports Update on the Taviche Property and Announces Acquisition in High Grade Antimony District in Oaxaca, Mexico
Aura Silver Resources Inc. ("Aura Silver") (TSX VENTURE: AUU) wishes to report a strategic change to their joint venture ("JV") program with Intrepid Mines Limited ("Intrepid") on the Taviche properties in Oaxaca, Mexico. As recently reported ("Aura Silver to Focus on Emerging Higo Blanco Jasperoid Prospect", August 27, 2008), the JV has determined that the size and potential of the Higo Blanco project is greater than previously anticipated. The JV has been undertaking geologic mapping, sampling and trenching within and adjacent to the several kilometer long Higo Blanco jasperoid-vein complex. This work continues to garner positive results for both silver and gold anomalies with the preliminary observation that both are increasing at depth. At the Santo Nino prospect, a window of jasperoid in the altered volcanics measuring about 150m by 75m, 15 rock samples averaged 182 g/t Ag and 0.35 g/t Au. Eight jasperoid samples collected from the lowest part of the Cerro La Mina zone averaged 362 g/t Ag and 0.34 g/t Au. Both of these mineralized exposures are from lower elevations at the Higo Blanco prospect. Further, our team of geologists has determined that this mineralized zone is far more aerially extensive than previously observed. As a result, the JV has determined that the most effective exploration program is to undertake an IP/Resistivity geophysical survey of the Higo Blanco prospect in order to better define drill targets. This program is expected to begin within the next few weeks once mapping and sampling is complete.
The JV has also concluded that the several prospects within the East and West Taviche concessions, where our initial exploration studies and drill program reported encouraging results, continue to represent potential for new discoveries of silver and gold especially those adjacent to and continuous with the emerging San Jose gold-silver discovery currently controlled by Fortuna Silver Mines Limited. The JV will subsequently realign its drilling program to optimize the allocation of budgeted exploration expenditures for all prospects, including Higo Blanco, which is partially located in the Alma Delia concession. It is anticipated that Aura Silver's present cash position of approximately US $900,000 will be sufficient to fund JV program activities well into 2009.Santo Domingo Concession
The JV is pleased to announce that it has received formal approval of its Santo Domingo exploration application located in western Oaxaca. The "Santo Domingo" concession has a surface area of 19,920 hectares and is valid until July 3, 2058. The concession contains the historical Tejocotes antimony district, historically the most significant antimony (stibnite) occurrence in North America. The district, which consists of several small historical mines hosted by limestone, is contained within a rectangle measuring about 12 km (east-west) by 15 km (north-south) or 180 square kilometers.
The Tejocotes District has been exploited for antimony since the late 16th Century from at least four mines: El Aguila, Los Dolores, La Providencia and Penna Blanca. The most productive period was brief and occurred from 1938 to 1943 when 4,300 tons of ore were produced at an average grade of about 56% Sb. Since that time, production grades have ranged from 40 to 58% Sb (these high grades are most likely due to hand sorting). Artisanal miners scavenging dumps and talus and working high grade outcrops within the previously productive areas are currently producing stibnite-rich ore at a rate of about 25 tonnes per month. Examination of the area, supported by a few historical reports, indicates that exploitation was done mostly from surface operations. The antimony ore was processed via standard floatation techniques.
The basement for the Tejocotes district is a lower Paleozoic greenschist-assemblage metamorphic sequence composed dominantly of schist and phyllite and traversed by mylonite zones. Overlying the basement is a Middle Jurassic sequence of fine-grained sandstone and shale which is in disconformable contact with Upper Jurassic-Lower Cretaceous limestone with intercalated fine-grained clastic and epiclastic rocks. This limestone sequence is intruded by small rhyolite (quartz porphyry) plugs which are spatially associated with the antimony occurrences and alteration. The sedimentary rocks have been folded into NNW-trending anticlines and synclines. Physical inspection of the district reveals numerous faults which have not been defined by the Consejo.
Antimony is known to be a pathfinder element for gold-(silver) deposits throughout the world and in many geologic environments. Regionally, antimony has been well documented to be associated with gold and silver deposits, i.e. East Taviche, and at Tejocotes there is a clear spatial association with rhyolite plugs. Additionally, antimony prices are at historical highs and global demand is projected to increase 7% annually. The Tejocotes district is the most significant Sb deposit known in North America.
Robert Boaz, President and CEO of Aura Silver Resources Inc. stated that "this is another example of our team of geologists uncovering potential value in Mexico on properties where there has been no recent exploration. The significance of the large antimony occurrence could not be ignored. We feel that as a pathfinder there is a reasonable chance for a sizeable gold/silver deposit at deeper levels."
Representatives from the JV have already made contact with the local communities to ensure good community relations prior to starting our exploration program. Initial exploration activities may include: visit and sample the historical mines and prospects of the district; conduct a stream sediment survey over the entire district (drainages emanate outwards from mineralized zones); and work with local communities, including the artisanal miners, to better define social projects beneficial to the residents.
Dr. James M. Franklin, P. Geo. is Aura Silver's qualified person (as defined by National Instrument 43-101) and has reviewed and approved the scientific and technical information in this press release.
About Aura Silver
Aura Silver is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects in North America with a focus on silver. The Company has 38,208,902 common shares outstanding.
FORWARD LOOKING STATEMENTS
This Press Release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has not approved or disapproved of the information contained in this press release.
Contacts: Aura Silver Resources Inc. Robert Boaz, President and CEO 905-403-8010 [email protected]www.aurasilver.com
SOURCE: Aura Silver Resources Inc.