The
Bull & Bear
FINANCIAL
REPORT
Aura Silver Fast Tracks Drilling
With Confirmation of High-Grade Silver-Gold
at Taviche Project in Mexico
Exploring Prolific San José District in Oaxaca, Mexico
Aura Silver (TSX.V: AUU) has
partnered with successful silver
producers and near producers to
explore some of the best silver ground
in North America – a region that
provides a safe legal and political
environment for mining companies.
One such project is located in mining
friendly Oaxaca, Mexico where Aura
Silver is exploring the exciting Taviche
silver-gold epithermal property with
Intrepid Mines Limited.
Drill Testing Planned of
Multiple Vein Systems
at Taviche Project
Following recent confirmation
of high grade silver and gold
mineralization at its Taviche Project,
Aura Silver is now preparing for drill
testing of several of the vein systems
on the East and West concessions of
the Taviche Project. The successful
reconnaissance sampling program
was operated by Intrepid Mines.
“The property hosts a bounty of riches
with numerous targets to explore,” said
Paul Pitman, President of Aura. “As
with other historical mining camps in
Mexico, the Taviche area is remarkably
endowed with metals.”
Sampling of over 12 kilometers of
exposed vein systems containing areas
of historical workings identified high
silver and gold values in surface veins
and dump material. Historical mining
from Spanish colonial times to about
the year 2000 occurred intermittently
along the vein systems and appears to
be located at structural intersections
of cross-cutting veins. Initial samples
from some of the old mine dumps
commonly contain in excess of 5
grams per tonne gold (g/t Au) and 200
grams per tonne silver (g/t Ag) with
values up to 94.7 g/t Au and 7,148
g/t Ag. The geochemical and textural
results suggest an epithermal vein
environment that is exposed at
relatively high-levels.
The West Taviche concession contains
two significant, north-south trending,
sub-parallel vein systems. The
western vein set has been traced
over seven kilometers and consists
of four distinct veins: La Noria,
El Viejo, San Antonio and San
Martin. A second system, located two
kilometers east, has been traced along
a series of anastamosing veins for
about six kilometers and contains the
Portillo, Donaji/Marias and San
Jose/Corona Veins. The northern
three kilometers of this system
(the San Jose/Corona segment) is
held by Fortuna Silver Mines and
Continuum Resources where both
companies are readying the San Jose
silver-gold deposit for production.
The Taviche West Concession adjoins
and surrounds the Fortuna License.
Drilling along the northern boundary
of the Fortuna/Continuum property
Taviche District... An Area With A Rich Mining Legacy
Extensive historic underground silver and gold mining is recorded for the Taviche
Mining District which extends over an area of 500 sq. km. Over 60 mines are
on record with most mines developed to only shallow depths.
Reprinted from The Bull & Bear Financial Report, P.O. Box 917179, Longwood, FL 32791 • www.TheBullandBear.com • Third Quarter 2007
indicates that the on-strike, down
plunge extension potential for the San
Jose vein system may lie on the West
Concession at depth.
New individual vein prospects not
previously identified were discovered
in detailed geological studies, rock
and dump sampling: the Veta Karina
(Copales) Vein in the Garzona area
on the West Concession, as well as
the Carolina Mine–Rosario Mine
structure, Vichache Mine, San Jose
Mine, Rio Calabaza Vein, Satache
Shaft and South San Carlos Mine
on the East Concession. In total,
over 14 significant quartz-carbonatesulfide veins averaging greater than
500 meters in length have now been
mapped. Nearly all of these veins have
at least minor workings along them, in
some cases with levels developed up to
100 meters below the surface.
In the Garzona area of the West
concession, the Copales (Veta Karina)
Mine was developed on the northnorthwesterly-trending Karina vein.
This vein has been traced over several
hundred meters and is 1 to 2 meters in
width. Grab samples from surface vein
exposures reveal up to 6.34 grams per
tonne gold (g/t Au) and 64.2 grams per
tonne silver (g/t Ag). A publication from
the Servicio Geologico Mexicano states
that their sampling from the ore dumps
assayed up to 500 g/t Ag, 3 to 7% zinc
plus lead, and up to 7 g/t Au.
Numerous silver-gold bearing veins
have recently been rediscovered on the
East Taviche concession. Cubilete is
a robust northwesterly trending vein
that has a strike length of at least
1,500 meters. It is the site of historical
mining activity with several adits still
accessible on either side of a prominent
hill. Production of gold, silver and base
metals occurred from levels developed
over about 140 meters of relief. In
the San Carlos and Rio Calabaza
areas, several veins with widths from
1 to 2 meters were sampled. Material
from the San Carlos area contains
from 1.34 to 5.58 g/t Au and from 179
to 620 g/t Ag. Sampling of the veins
at Rio Calabaza revealed relatively
lower gold values (less than 0.318 g/t
Au) but important silver values (from
391 to 548 g/t Ag). These significant
silver grades in veins exhibiting classic
epithermal textures will be the focus
of additional detailed work.
The Rosario Mine is by far the
largest vein system discovered to
date on the East concession. This
vein extends northeasterly to the
Carolina Mine, a distance of about
one kilometer. Historic data obtained
Exploring for Silver in the United States, Canada and Mexico
Pine Creek Property in Silver Valley
Aura Silver is exploring a silver property in the
famed Coeur d'Alene Mining District.
Left:
Greyhound Lake
Project in Nunavut
Aura Silver is exploring a
25,000 acre property that is
highly prospective for silver
and base metals.
Right, Left
and Below:
Taviche
Property in
Mexico
Old silver mine
workings point
the way to new
discoveries
Reprinted from The Bull & Bear Financial Report, P.O. Box 917179, Longwood, FL 32791 • www.TheBullandBear.com • Third Quarter 2007
from the Mexican Consejo date back to
1908. The mine was developed to the
fifth level, or about 100 meters below
surface. Contoured silver data reveals
that a large part of the vein contained
silver in excess of 300 g/t. A vein on the
fifth level contained an average of 2.8 g/t
Au and 887 g/t Ag over one meter. In the
deepest level, composite samples over
1.44 meters containing 5.69 g/t Au and
1,277 g/t Ag were reported. Composite
averages from all historical sampling
on four of the five levels indicate an
average of 2.40 g/t Au and 607 g/t Ag.
Individual samples ranged from 0.87 to
37.9 g/t Au and nil to 7,148 g/t Ag (7.1
kilograms per tonne silver). Reported
widths in the stopes vary from 0.5 to
2.1 meters. Detailed sampling and
trenching will be carried out as a second
phase of work during the summer to be
followed by diamond drilling.
Antimony Discovered at
East Taviche Concession
Sampling in the southern part
of the East Taviche concession has
identified silicified limestone exposures
over several square kilometers. The
silicified and intensely veined areas
have been widely prospected and
contain numerous pits and former
antimony mines. To date, 14 rock
samples collected over this large area
have yielded up to 1.53 g/t Au, 198 g/t
Ag, 6090 ppm arsenic (As) and 4650
ppm antimony (Sb). These limestone
units will be examined further for their
San Martin Mine Site on the
West Taviche Concession
NORTH AMERICAN
PROJECTS
Aura Silver operates
in historic mining
districts in Idaho and
Mexico, as well as at a
Canadian property with
bluesky potential in an
unexplored Archean
Greenstone Belt in
Canada.
nCANADA
Greyhound Property
nUSA
Coeur d’Alene,
Silver Valley
MEXICO n
Taviche Silver
Property
potential for skarn-type mineralization,
buried epithermal precious metal
mineralization as well as for primary
antimony mineralization.
Antimony prices have tripled over
the past 5 years with a price today of
about US $3.00 per pound. Market
demand is growing at 6.8% per year
with China supplying 90% of world
production. Although subordinate
to the focus on silver and gold, the
antimony potential could be exciting
and will be examined further.
Investment Considerations
The Taviche Property was acquired
by Aura Silver and Intrepid Mines
in 2006 and is held under option
from Plata Panamericana S.A. de
C.V., a wholly owned subsidiary of
Pan American Silver Corporation
(TSX: PAA). The Property comprises
two concessions: West Taviche with
6,254 hectares and East Taviche with
7,494 hectares. The Concessions are
located in central Oaxaca, Mexico
about ten kilometers south of the City
of Ocotlan. Taviche is the flagship
project for Aura Silver.
“In less than 6 months, Aura Silver
and partner Intrepid Mines completed
a due diligence of the vein systems
which is leading to a significant drill
program. To have advanced this
project to the drill-stage is a credit to
the expertise of our field crews,” added
Paul Pitman, President of Aura.
Aura Silver can earn a 50% interest
of Intrepid’s interest in the property.
Aura Silver has fulfilled the first year
commitment with only one further
option payment due Pan American
in the second year. Intrepid Mines
is managing the field programs and
has a five year option to earn a 70%
interest in the property. The Joint
Venture must spend US $4 million in
exploration and provide US $790,000
cash to Pan American, which can
recover 40% of the project if 50 million
ounces of silver is discovered.
Aura Silver is budgeting over
$1.5 million this year to explore its
highly prospective properties located
in safe jurisdictions within major
silver mining districts. Outstanding
in-the-money warrants are expected
to provide additional funding of about
$1.3 million to double the exploration
budget. The company recently
completed a $1.87 million private
placement that will be used primarily
to fund drilling on the Taviche Project
and potential acquisitions.
Only 20% of the company’s shares
float publicly with the remainder held
by insiders and close associates. As a
result, says CEO Jeffrey Klenda, the
stock is “very responsive to buying on
the upside.”
Disclaimer: This material is for distribution only under such circumstances as may be permitted by applicable law. It has no regard to the specific investment objectives,
financial situation or particular needs of any recipient. It is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any
securities or related financial instruments. References made to third parties are based on information obtained from sources believed to be reliable but are not ­guaranteed as
being accurate. Recipients should not regard it as a substitute for the exercise of their own judgement. The opinions and recommendations are those of the writers and are not
necessary endorsed by The Bull & Bear Financial Report. Any opinions expressed in this material are subject to change without notice and The Bull and Bear Financial Report is
not under any ­obligation to update or keep current the information contained herein. All information is correct at the time of publication, additional ­information may be available
upon request. Aura Silver Resources Inc. paid The Bull & Bear Financial Report a fee for their investor awareness program. The directors and employees of The Bull & Bear
­Financial Report do not hold a position in the securities referred to in this report.
Reprinted from The Bull & Bear Financial Report, P.O. Box 917179, Longwood, FL 32791 • www.TheBullandBear.com • Third Quarter 2007
AuraSilver
R E S O U R C E S
Quick FACTS
AURA SILVER
RES0URCES INC.
TSX.V: AUU
Contact: Paul Pitman,
President
341 Main Street North,
Suite 206
Brampton, ON,
Canada L6X 3C7
Phone: 905-456-5436
Fax: 905-456-7180
E-Mail:
[email protected]
Web Site:
www.aurasilver.com
Shares Outstanding:
33.39 million
I N C
Aura Silver Resources Inc. is an exploration company engaged
in discovery of precious metal deposits with a focus on silver.
The Company is concentrating its search to precious metal
districts in the safe jurisdictions of North America – the United
States, Canada and Mexico.
Aura Silver has adopted a unique strategy by partnering with
other successful juniors who have built up years of experience in
specific countries and mineral belts. By acting as an exploration
arm for its partners, Aura Silver not only is the risk shared but
Aura Silver is sharing country experience, including established
political contacts and knowledge of cultural issues, as well as
using local staff and offices already put in place by its joint
venture partners.
Company Highlights
n Pine Creek Silver Project / Silver Valley / Sterling Mining Co.
Aura Silver has completed an option agreement with Sterling
Mining Co. to explore their Pine Creek Holdings in the Silver
Valley of Idaho. Since the beginning of mining of lead-zincsilver ores in the Silver Valley well in excess of 1.5 billion
ounces of silver has been recovered.
n Taviche Project / Oaxaca, Mexico / Intrepid Mines Ltd.
52 Week Trading Range:
Hi: C$0.54 Low: C$0.145
Aura Silver has entered into an Agreement with Intrepid
on the Taviche Property in Oaxaca State, Mexico – two
concessions totaling 13,724 hectares held by Intrepid under
option from Plata Panamericana S.A. de C.V., a wholly
owned subsidiary of Pan American Silver Corporation. Aura
and Intrepid have formed a joint venture to jointly earn a
70% interest in the Pan American properties.
n Greyhound Lake Project / Nunavut / Intrepid Mines Ltd.
Intrepid Mines has partnered with Aura Silver on a Canadian
property in Nunavut called Greyhound. One season of
prospecting and an airborne EM survey has been completed
to date. In addition, the company has partnered with Intrepid
Mines on an exciting silver-gold epithermal property in Mexico.