Drill Rig Arrival At The Panuco Silver Deposit

VANCOUVER - Zacatecas Silver Corp. reported that the drill rig to commence drilling at the highly prospective Panuco silver deposit and San Gill breccia zone has arrived onsite to immediately begin a Phase One 10,000 meter drill program. Highlights: Phase One drilling will consist of approximately 10,000 meters of drilling; Initial drilling begins at the Panuco Silver Deposit and then at San Gill-San Manuel, two high priority targets within the large Zacatecas Silver land packages; and Access agreements, drill permits, geological mapping and a drill contract with Major Drilling have all been completed in preparation of this drill program.

The Panuco silver deposit is located in the north of the Zacatecas property and is the most advanced prospect. Panuco has an historic inferred mineral resource of 19,472,901 ounces silver equivalent (cut-off 100 grams per tonne AgEq) from 3,954,729 tonnes at 153.2 g/t AgEq (136 g/t Ag, 0.14 g/t gold (Au), 0.012 per cent lead (Pb), 0.11 per cent zinc (Zn)).

The drill program at the Panuco silver deposit will comprise step-out and step-back holes designed to target potential extensions of the vein system outside of the historical resource estimate. A total of three veins will be drilled -- Panuco NW, Panuco Central and Tres Cruces -- which remain open at depth and along strike. These are high-priority drill targets.

The San Gill breccia zone is relatively unexplored. The breccia has a strike length of approximately 800 m, is up to 40 m wide, and has a strongly hematitic and limonitic matrix, most likely after base metal sulphides.  The north-south orientation of the breccia is highly significant as gold-rich epithermal veins within the district are generally oriented north-south. Only four holes of the historic nine drilled targeted the breccia. It is an extremely robust exploration target and significant further work is required.