BRAMPTON, ONTARIO - (CCNMatthews - Oct. 2, 2006) - Aura Silver Resources Inc. (TSX VENTURE:AUU) announced today that the Company has entered into an agreement with Sterling Mining Company (Sterling: OTCBB: SRLM) to explore the Pine Creek Area Properties, which are part of Sterling's extensive Silver Valley land holdings situated in the famed Coeur d'Alene Mining District, Idaho, USA . The parties have undertaken to complete a formal agreement and certain terms are subject to TSX Venture approval. The Silver Valley Pine Creek claims lie adjacent to the New Bunker Hill Mine property and Sterling's Sunshine Mine property. In addition to these exploration rights, Aura Silver will have access to Sterling's extensive geological database on the Silver Valley. It is anticipated that a thorough review and assessment of the data will generate new exploration programs starting in 2007. Exploration will fall within the defined area of interest and may extend into areas beyond Sterling's current Pine Creek land holdings. The Coeur d'Alene Mining District is a premier mining camp with historic silver production in excess of 1 billion ounces of silver.
"We believe that this agreement with Sterling Mining is an excellent opportunity for Aura Silver and will help to build value for our shareholders. We are able to use our talents to explore and develop new discoveries within one of the world's significant silver districts. This is an excellent opportunity for Aura Silver as a junior exploration company to fast-track the company by exploring in a significant silver district," commented Paul Pitman, President of Aura Silver.
The companies believe that renewed exploration utilizing modern geochemical and airborne geophysical methods will lead to important new silver discoveries. Aura Silver will provide exploration expertise and conduct the exploration programs from 2006 to 2010 to earn a 50% interest in certain mining claims. Subject to TSX Venture approval, during the first year, Aura Silver has committed to exploration expenditures of US$200,000 and the issuance of 150,000 common shares. During the four year earn in period, at Aura Silver's option, exploration expenditures would total up to US $3 million and the issuance of up to an additional 850,000 Aura Silver common shares. If a NI 43-101 compliant deposit of greater than 25 million ounces of silver is discovered, Sterling Mining will become operator to develop and mine the deposit.
Sterling Mining's current exploration and development work is focused on its Sunshine Mine in the heart of the Silver Valley. The Sunshine Mine property includes several mine shafts, over 100 miles of underground workings and a 1,000 ton per day mill. Historically, this Mine has produced over 350 million ounces of silver. Historical exploration focused primarily on the West Chance and Sunshine veins and Sterling is actively exploring for silver-bearing structures in the vicinity of these old workings. Drill programs conducted in 2004 confirmed the presence of significant new mineralization and proved that with the application of modern exploration technologies, near-surface silver-bearing structures can still be discovered.
More information about Sterling Silver can be found at www.sterlingmining.com.
About Aura Silver
Aura Silver Resources is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects. The Company has 26,887,187 common shares outstanding.
FORWORD LOOKING STATEMENTS
This Press Release may contain forward looking statements that may 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 neither approved nor disapproved the information contained in this press release.
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