Aura Silver Resources Inc. (TSX VENTURE:AUU - News; "Aura
Silver" or the "Company") is pleased to report that it has
discovered a new and potentially large gold zone approximately 25 kilometers
to the west of Aura Lake, the current area of previously reported high-grade
gold and silver mineralization. The new prospect is a 5-6 kilometer long zone
of discontinuous units of iron formations adjacent to a thrust fault that
juxtaposes Paleoproterozoic or Archean
quartzite and conglomerate with the Archean metavolcanic/metasedimentary
sequence. Where sulphidized, the iron formation
contains anomalous contents of gold. Samples from a total of ten occurrences
contain from 0.1 to 4.09 g/t Au. Snow cover prevented extensive sampling,
however the presence of individual zones of strongly gossanous soils extended
from a minimum of several hundred meters to over a kilometer indicating that
the potential for gold mineralization is extensive and characterized by a
robust sulphidization event. Our airborne EM
geophysical data indicate conductive zones that correlate with the sulphide zones.
This area is comprised of similar
geological attributes as at the Meadowbank mine, as
evidenced by the presence of a probable thrust fault, complex tight folds and
highly strained rocks of amphibolite grade,
intermittent but multiple parallel magnetite-iron formations and pyrrhotite dominated sulphides
with quartz veins and quartz-vein stockworks. The
two highest assays of 3.85 and 4.09 g/t Au come from two showings on separate
units of iron formation roughly one kilometer apart (see http://media3.marketwire.com/docs/Map_of_East_Greyhound.pdf
which illustrates the extensive nature of the iron formation and multiple
gold and/or sulphidized prospects).
The highest value is from highly altered
bedrock with irregular quartz veins containing massive pyrite, pyrrhotite and minor arsenopyrite.
The second value is a grab sample from a broad gossanous iron formation
measuring 150 meters in width and traced over 1,200 meters in strike length
in contact with sheared amphibolite gneiss.
Lateness of the season precluded more detailed sampling, but Aura Silver will
add this to the planned program of intense exploration next summer.
"A major portion of the 2010 summer
work included prospecting, soil and IP geophysical surveys and has resulted
in fast-tracking our gold and silver exploration efforts around Aura and
Greyhound Lakes. The newly discovered gold prospects at the eastern end of
the greenstone belt will be a focus for further exploration in the summer of
2011. We hold all necessary permits to test these new targets, said Robert
Boaz, CEO. He added, "Advanced work on the high grade copper-zinc VMS
district, 1.4 km to the east of the all-weather road to the Meadowbank mine will also be contemplated. Our geologists
have increased their understanding of the potential of this Archean greenstone belt very rapidly and we now approach
the drill phase to test for gold and silver, as well as base metal
mineralization".
The Company's Greyhound property
currently comprises 25,333 hectares located approximately 38 kilometers north
of the community of Baker Lake and 46 kilometers south of Agnico-Eagle's Meadowbank mine. Additional staking has recently been
completed to provide additional coverage of the new prospects. The Meadowbank Mine contains proven and probable reserves of
3.7 million ounces of gold at an average grade of 3.5 g/t (www.agnico-eagle.com).
Infrastructure is excellent; the all-weather road from Baker Lake to the Meadowbank mine crosses through the Greyhound property,
lying within one kilometer of the original gold/silver zone discovery.
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. Rock and soil samples collected by Aura Silver have been analyzed by
ALS Canada Inc. in Vancouver and Yellowknife, Canada.
About Aura Silver
Aura Silver is a TSX Venture listed
company engaged in the acquisition, exploration and development of precious
metal prospects in Canada (100% owned Greyhound project) and in Oaxaca,
Mexico. Aura Silver has 76,962,790 common shares outstanding.
Silver's web site is located at
www.aurasilver.com.
FORWARD-LOOKING STATEMENTS
This press release may contain forward
looking statements that are made as of the date hereof and are based on
current expectations, forecasts and assumptions which involve risks and
uncertainties associated with our business including the uncertainty as to
whether further exploration will result in the target(s) being delineated as
a mineral resource, capital expenditures, operating costs, mineral resources,
recovery rates, grades and prices, estimated goals, expansion and growth of
the business and operations, the private placement financing activities of
the Company, plans and references to the Company's future successes with its
business and the economic environment in which the business operates. All
such statements are made pursuant to the 'safe harbour'
provisions of, and are intended to be forward-looking statements under,
applicable Canadian securities legislation. Any statements contained herein
that are statements of historical facts may be deemed to be forward-looking
statements. By their nature, forward-looking statements require us to make
assumptions and are subject to inherent risks and uncertainties. We caution
readers of this news release not to place undue reliance on our
forward-looking statements as a number of factors could cause actual results
or conditions to differ materially from current expectations. Please refer to
the risks set forth in the Company's most recent annual MD&A and the
Company's continuous disclosure documents that can be found on SEDAR at www.sedar.com.
Aura Silver does not intend, and disclaims any obligation, except as required
by law, to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Contact:
Robert Boaz
Aura Silver Resources Inc.
President and CEO
905-403-8010
boaz@aurasilver.com
www.aurasilver.com |