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Oro Gold Resources Intersects 0.6 G/T Gold Over 84 M at Cimarron Gold Project in Mexico

Oro Gold Resources Ltd. (TSX VENTURE:OGR) reports completion of a 14-hole, 1,200-metre reverse circulation drill program on its 100%-owned Cimarron property near Mazatlan, Mexico.

Drilling focused on expanding known gold mineralization at the Calerita target located in the central part of the 82 km2 property. Cimarron is situated on trend and approximately 10km northwest of the Rosario mine- the most prolific past producer of gold and silver in a region that became renowned as the Gold Coast.

The Company continues to focus its exploration efforts on its flagship Trinidad property. Drilling was delayed on the Trinidad gold project due to severe rainy conditions, and therefore one RC rig was temporarily moved to Cimarron. Drilling has resumed at Taunus with two drill rigs.

Cimarron Project Highlights

  • Positive historic drill results on its most advanced target (Calerita) include:

    • CIMRC08-001: 0.6 g/t gold over 84m (surface to 84.0m)

    • CIMRC08-002: 0.9 g/t gold over 90m (surface to 90.0m), including 1.8 g/t gold over 24m

    • CIMRC08-004: 0.7 g/t gold over 60m (surface to 60.0m)

    • CIMRC08-006: 0.5 g/t gold over 76m (surface to 76.0m) (news release dated September 4, 2008)

  • Calerita target has the potential to be a significant gold resource

  • Calerita target is centered on a 1km by 300m northeast-trending gold-in-soil anomaly with gold grades locally exceeding > 500ppb

  • Appears to be porphyry-related; gold mineralization associated with epidote, chlorite, and silica alteration

  • Recent drilling appears to have expanded the known gold mineralization at depth and in all directions, showing a footprint approaching 500m by 500m in size (see attached figures)

  • Excellent infrastructure: near paved major highway, powerline, international airport and port

  • Located in a significant historic mining camp, near a multi-million ounce past producing mine at Rosario

Recent Work and Background

The Cimarron property has been explored sporadically over the past 11 years. Hecla Mining tested the Calerita prospect in 1999 by completing 25 RC drill holes. Oro Gold acquired a 100% interest in the concession in 2008. In 2008 the property was optioned to Mazorro Resources, which funded a 4,373-sample soil geochemical and magnetic survey covering 326 line-kilometres. Resulting data suggests that mineralization in the Calerita area may be related to an intrusive body at depth. The surface work was followed up with 12 RC holes (2,600m) and 2 diamond drill holes completed by Mazorro. The property was subsequently returned to Oro Gold. In 2010, Oro Gold re-evaluated the Calerita data, which led to a follow-up drill program that included 14 RC drill holes (1,200m) aimed at expanding the Calerita gold target. Assays from this recent program are expected shortly, and will be released once they have been interpreted.

The 2008 work at Cimarron also identified other large-scale gold and copper soil anomalies in four other target areas: Huanacaxtle, El Prado, Betty and El Bolante. The geochemical and geophysical anomalies defined northeast and northwest-trending regional structures which can be traced over a distance of 12 kilometres. The primary targets are high-level porphyry and epithermal veins with bulk-tonnage gold potential.

Upcoming Plans

Oro Gold's plans for the fourth quarter of 2010 include metallurgical test-work and completion of a preliminary mineral inventory of the Calerita target. The next phase of drilling will target the potential expansion of the gold mineral inventory in the Calerita area and test additional targets on the property. At Calerita, surface gold anomalies suggest the zone is open to the north and east with kilometre-scale potential. Mark Pryor, Pr.Sci.Nat., a qualified person as designated by National Instrument 43-101, has reviewed the technical content of this news release.

Rosario's Bonanza History

Gold was first discovered at Rosario by herdsmen in 1655, and the mine was operated by Conquistadors until the 19th century. While Rosario produced mostly silver with some base metals, it could have survived solely as a gold mine. The town of Rosario developed alongside the mine and the area prospered. When ore extraction began to undermine the nearby church, it was rebuilt, relocated and its interior gilded in gold. The church is still a popular tourist attraction. Historically significant, the Rosario mining camp produced ore valued at US$150M to $250M prior to WW I from a one-square mile-area. Reports from 1882 indicate annual production reached 200,000 tonnes. Silver grades averaged 40 ounces per ton, gold averaged 2.75 ounces per ton and lead graded 7% (Dahlgren, 1882). Production declined slowly from 1905 onwards, and the mines closed in the early 1940's. Grades for the period 1907 to 1939 (from total production of 2.95M tonnes) averaged 4.38 oz/t (136.0g/t) silver and 0.17 oz/t (5.3g/t) gold (Chase 1941). Production for this 30-year period totalled 13 million ounces of silver and 0.5 million ounces of gold.

The mine was developed down to the 700ft (below surface) level, with 98% of the historic production coming from above the 550ft level. These lower levels were flooded during the WW I period. Labour disputes and costs associated with increasing depth and flooding led to the gradual demise of the mines. No systematic, modern exploration has been conducted since the 1940's. The mineral rights in this area are currently held by Industrias Peñoles.

Source: Oro Gold Resources Ltd.

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