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Extorre Reports High Grade Gold-Silver Drill Intercepts From The Cerro Moro Project
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Extorre Reports High Grade Gold-Silver Drill Intercepts From The
Cerro Moro Project
Vancouver, B.C., December 14, 2010 – Extorre Gold Mines Limited
(TSX:XG, Frankfurt: E1R, OTC: EXGMF – "Extorre" or the "Company")
is pleased to report assay results from its ongoing drilling
program at the Cerro Moro Project, in Santa Cruz Province,
Argentina.
Recent drilling has focussed on a combination of
discovery drilling on new targets and extensions to known
mineralization, and infill drilling on existing resource areas.
In addition, drilling for infrastructure purposes has also been
conducted.
Results from the discovery diamond drilling program on the
Gabriela, Escondida, Martina and Loma Escondida zones have been
received.
Twelve drill holes returned significant results of
which 5 holes returned the following intercepts:
MD1002 (Gabriela) intersected 0.39 metres ("m") at 200.9 grams
per metric ton ("g/t") gold + 8,785 g/t silver (347.3 g/t gold
equivalent*)
MD0940 (Escondida) intersected 4.40m at 5.4 g/t gold + 668 g/t
silver (16.5 g/t gold equivalent*)
MD0947 (Escondida) intersected 3.25m at 10.4 g/t gold + 788 g/t
silver (23.6 g/t gold equivalent*)
MD0951 (Escondida) intersected 1.10m at 6.2 g/t gold + 702 g/t
silver (17.9 g/t gold equivalent*)
MD0980 (Martina) intersected 0.73m at 14.3 g/t gold + 10 g/t
silver (14.4 g/t gold equivalent*)
Results from 33 drill holes of the infill drilling program at the
Gabriela and Loma Escondida zones have also been received, of
which 25 have significant results.
Highlights from the Loma
Escondida zone include:
MD1030 intersected 0.34m at 74.5 g/t gold + 4,685 g/t silver (88
.1 g/t gold equivalent*)
MD1036 intersected 0.88m at 55.0 g/t gold + 2,408 g/t silver (95
.1 g/t gold equivalent*)
MD1038 intersected 0.50m at 90.4 g/t gold + 6,344 g/t silver (196
.1 g/t gold equivalent*)
MD1046 intersected 0.40m at 74.2 g/t gold + 5,963 g/t silver (173
.6 g/t gold equivalent*)
Eric Roth, Extorre´s President and CEO, stated, "Extorres
drilling programs have been designed to both expand Cerro Moros
high grade gold-silver resources and to infill the Inferred
category resources that formed part of the Preliminary Economic
Assessment ("PEA").
Infill drilling provides the assay data
necessary for Inferred category resources to be upgraded, as
results allow, to the Indicated category.
Indicated resources
can ultimately be reclassified as "mineable reserves" in the Pre
-Feasibility Study ("PFS").
"Separately, infrastructure drilling for water resources and
plant site engineering was completed over the past months as was
necessary for the Environmental Impact Assessment ("EIA") and
the PEA (currently under review by Santa Cruz authorities).
"With the infill drilling program largely complete, the discovery
program is now our highest priority.
Up to 4 drill rigs are
working on a 24 hours basis to establish additional resources on
the property.
Drilling is focussing both on new targets such as
the Martina and Lucia veins and extensions to existing resource
areas at Escondida, Gabriela, and Loma Escondida.
Separately,
drilling to increase the resource on another vein named the
Esperanza zone has now commenced.
"We still have an assay back log amounting to some 100 drill
holes.
To alleviate this problem we are building an onsite
sample preparation facility that will be operated by Acme
Laboratories.
Construction is underway with startup scheduled
for February 2011."
Significant discovery drilling results using a 1.0 g/t gold
equivalent* cut-off grade are as follows:
Drill Hole From
(m) To
(m) Width
(m) Gold
(g/t) Silver
(g/t) Gold Equivalents*
(g/t) Gold Equivalents*
(oz/ton) Gabriela Zone MD0992 200.15 201.75 1.60 1.5 349 7.4
0.22 including 200.15 200.75 0.60 3.2 775 16.1 0.47 MD996
204.65 207.30 2.65 2.3 376 8.6 0.25 MD1002 217.85 218.24 0.39
200.9 8,785 347.3 10.07 Escondida Zone MD0936 91.60 92.20 0
.60 18.6 1,477 43.2 1.25 and 101.00 105.00 4.00 3.2 29 3.7 0.11
MD0937 112.00 112.60 0.60 38.2 1,147 57.3 1.66 including 112
.30 112.60 0.30 74.0 2,125 109.4 3.17 MD0940 163.30 165.00 1.70
2.6 222 6.2 0.18 and 178.00 182.40 4.40 5.4 668 16.5 0.48
including 178.60 180.00 1.40 15.7 2,045 49.8 1.44 MD0947 206
.35 209.60 3.25 10.4 788 23.6 0.68 including 206.35 207.71 1.36
21.8 1,654 49.3 1.43 MD0951 195.00 203.80 8.80 2.9 280 7.6 0
.22 including 196.00 197.10 1.10 6.2 702 17.9 0.52 including
197.76 198.10 0.34 9.2 796 22.4 0.65 including 203.30 203.80 0
.50 8.6 940 24.2 0.70 MD1017 314.00 314.70 0.70 5.3 12 5.5 0.16
and 316.50 317.02 0.52 4.2 18 4.5 0.13 MD1023 301.00 302.55
1.55 9.3 8 9.5 0.28 including 302.17 302.55 0.38 32.3 21 32.6
0.95 Martina Zone MD0980 244.50 245.23 0.73 14.3 10 14.4 0
.42 Loma Escondida Zone MD0853 57.75 58.15 0.40 3.3 531 12.1
0.35
Significant "infill" drilling results using a 1.0 g/t gold
equivalent* cut-off grade are as follows:
Drill Hole From
(m) To
(m) Width
(m) Gold
(g/t) Silver
(g/t) Gold Equivalents*
(g/t) Gold Equivalents*
(oz/ton) Loma Escondida Zone MD1029 18.30 19.18 0.88 1.5 175
2.8 0.08 MD1030 38.56 38.90 0.34 74.5 4,685 88.1 2.55 MD1032
17.16 19.50 2.34 4.4 355 5.7 0.17 including 18.43 19.50 1.07 9
.5 711 11.1 0.32 MD1034 37.45 38.60 1.15 3.9 430 11.0 0.32
including 37.45 37.76 0.31 13.7 1,291 35.2 1.02 MD1038 20.83
23.30 2.47 20.4 1,522 45.8 1.33 including 21.15 21.65 0.50 90
.4 6,344 196.1 5.69 MD1040 42.42 42.72 0.30 20.3 1,325 42.4 1
.23 MD1042 65.10 65.47 0.37 41.7 1,340 64.0 1.86 MD1044 5.90
7.00 1.10 1.2 81 2.5 0.07 including 5.90 6.25 0.35 3.2 157 5.8
0.17 MD1046 37.23 38.10 0.87 34.3 2,772 80.5 2.33 including
37.23 37.63 0.40 74.2 5,963 173.6 5.03 MD1048 61.00 62.00 1.00
15.1 663 26.2 0.76 including 61.00 61.35 0.35 40.9 1,750 70.1
2.03 MD1061 37.60 38.44 0.84 3.2 321 8.6 0.25 including 38
.10 38.44 0.34 7.1 700 18.7 0.54 MD1063 58.80 59.73 0.93 1.3
166 4.1 0.12 including 59.30 59.73 0.43 2.2 286 7.0 0.20
MD1065 37.00 37.90 0.90 19.7 1,165 39.1 1.13 including 37.55
37.90 0.35 50.3 2,864 98.0 2.84 Gabriela Zone MD1022 28.15
31.90 3.75 5.0 582 11.1 0.32 including 29.90 30.90 1.00 11.1 1
,208 30.0 0.87 MD1026 26.79 27.45 0.66 2.6 366 4.2 0.12
MD1028 47.15 49.00 1.85 2.2 264 6.3 0.18 including 47.15 47.45
0.30 9.9 1,119 29.6 0.86 MD1031 52.00 53.50 1.50 2.9 433 10.1
0.29 including 52.70 53.50 0.80 5.1 771 18.0 0.52 MD1035 51
.15 52.85 1.70 1.4 167 4.2 0.12 including 51.74 52.05 0.31 4.4
565 13.8 0.40 MD1037 33.78 35.40 1.62 4.6 606 14.7 0.43
MD1043 30.70 32.73 2.03 2.6 398 9.2 0.27 MD1047 84.30 86.65 2
.35 5.1 765 17.8 0.52 including 85.00 85.80 0.80 7.9 1,241 28.6
0.83 MD1050 38.00 42.00 4.00 2.9 504 11.3 0.33 including 39
.70 41.50 1.80 5.3 919 20.6 0.60 MD1051 66.45 71.19 4.74 1.9
319 7.2 0.21 including 70.00 70.45 0.45 4.4 588 14.2 0.41
MD1067 153.15 155.20 2.05 1.7 291 6.5 0.19 including 153.15
153.60 0.45 5.9 1,008 22.7 0.66
* Gold equivalent grade is calculated by dividing the silver
assay result by 60, adding it to the gold value and assuming 100
% metallurgical recovery.
A discussion of the drilling results follows:
Gabriela Zone Drilling
Extorres drill strategy at Gabriela has been to expand the
existing resource through drilling both at depth and along
strike to the southeast, and secondly, to complete infill
drilling of the existing resource area for the PFS.
New resource
drilling continues to confirm continuity of the Gabriela vein to
depth, especially beneath the eastern end of the current
resource area.
New geological mapping and drilling data suggest that the step
-out drill holes designed to extend near surface mineralization
to the southeast have been too shallow.
Current results suggest
that mineralization in this sector has either been faulted
downwards or may plunge towards the southeast.
Follow-up
drilling is a high priority.
The infill drill program at
Gabriela consisted of 5,383m in 48 holes and focussed on the
conversion of the existing Inferred category mineral resource to
the higher confidence categories.
Escondida Zone Drilling
Recent drilling at Escondida in the Far West and West sectors has
focused on two main areas: a "Gap area", where an unmineralized
dyke has been interpreted to cross-cut the highly mineralized
Escondida structure, and secondly, step-out drilling to the west
along the Fomicruz JV Extension.
In the "Gap area", extensions
to known high grade gold-silver mineralization were intersected
and remain open at depth.
Follow-up drilling is planned.
On the
Fomicruz JV extension, drilling has intersected quartz veining
within the Escondida structure, but without the sulphide phase
typically associated with high grade gold-silver mineralization.
Further drilling in this sector will be undertaken when all the
available geological and geochemical data have evaluated.
Martina Zone Drilling
Further high grade mineralization has been intersected at a depth
of 220m.
Significant results were received from drill hole
MD0980, located 160m to the east of previously reported high
grade mineralization.
Drilling completed 70m below the MD0989
intercept did not intersect significant mineralization,
suggesting that high grade mineralization in this zone occurs at
180m to 250m below surface.
Follow-up drilling in this depth
range is planned.
Loma Escondida Zone Drilling
Drilling has been limited to step-out holes to the west of the
existing resource and a short infill program within the known
resource.
Hole MD0853 was drilled 160m west of the existing
resource and approximately 150m to the east of the intersection
of the Loma Escondida vein with the Escondida vein.
The drill
hole successfully intersected high grade gold-silver
mineralization, demonstrating the upside potential of the Loma
Escondida zone.
Follow-up drilling in the MD0853 sector is
planned.
The infill drill program at Loma Escondida consisted of 1,567m in
32 holes and focussed on upgrading the existing Inferred
category mineral resource to the higher confidence categories.
As ore from the Loma Escondida zone is scheduled to be mined
early in the Cerro Moro mining schedule, the completion of this
infill drill program was considered to be a priority.
Infrastructure Drilling
To complete the EIA and the PEA, 48 drill holes (mostly reverse
circulation percussion holes) were completed.
Twenty holes were
dedicated to sterilization (or condemnation) drilling of the
proposed processing plant site and 22 to further evaluate water
sources.
Click Here for the long sections and plans
Quality Control and Assurance
Drill widths presented above are drill intersection widths and
may not represent the true widths of mineralization.
Gold assay results presented above are preliminary with no
cutting of high grades.
All diamond drill core samples are split
on regular metre intervals or on geological contacts and
represent sawn half HQ-size core.
Reverse circulation drill
samples are collected using a cyclone in one metre intervals.
Samples were prepared at the Acme Analytical Laboratories (
"AcmeLabs") preparation facility in Mendoza, Argentina and
assayed by fire assay (50 gram charge) at the AcmeLabs
laboratory in Chile, both ISO-9001:2000 certified laboratories.
Check assaying of all samples assaying greater than 1.0 g/t gold
is completed by Acme Labs.
Samples returning greater than 10 g/t
gold and/or greater than 100 g/t silver are assayed using
gravimetric analyses.
Standard and blank samples are used
throughout the sample sequence as checks for the diamond
drilling reported in this release.
Standard, blank and duplicate
samples are used throughout the sample sequence as checks for
the RC percussion drilling.
Assaying by the screen fire assay method has been implemented in
conjunction with standard 50 gram fire assaying, for diamond
drill cores that contain visible gold.
The procedure for screen
fire assaying involves crushing and sieving of a nominal 1,000
gram sample to a particle size of 100 microns.
All material
which does not pass through the 100 micron sieve is then assayed
.
Two fire assays are undertaken on the undersize material as a
check on homogeneity.
The total gold content is then calculated.
Matthew Williams, Extorres Exploration Manager and a "qualified
person" within the definition of that term in National
Instrument 43-101, Standards of Disclosure for Mineral Projects,
has supervised the preparation of the technical information
contained in this news release.
About Extorre
Extorre is a Canadian public company listed on the Toronto Stock
Exchange (symbol XG) and on the OTCQX (symbol EXGMF).
Extorres
assets comprise approximately $46 million in cash, the Cerro
Morro and Don Sixto projects, and other mineral exploration
properties in Argentina.
On April 19, 2010, Extorre announced an updated National
Instrument 43-101 compliant mineral resource estimate for Cerro
Moro:
Indicated Category: 357,000 oz.
gold + 15.3 million oz.
silver
(612,000 oz.
gold equivalent*), plus
Inferred Category: 190,000 oz.
gold + 12.0 million oz.
silver
(390,000 oz.
gold equivalent*)
The 612,000 ounce gold equivalent* indicated resource, has an
average grade of 32.3 g/t gold equivalent*, a grade considered
exceptional by industry standards.
The silver contribution is
high, accounting for over 40% of the metal value.
Additional
inferred resources of 390,000 ounces gold equivalent* are also
reported from Cerro Moro.
Extorre released the results of a PEA of the Cerro Moro Project
on October 19, 2010.
The PEA highlighted the robust economics of
the future Cerro Moro mine, in which an average of 133,500 gold
equivalent* ounces would be produced during the first 5 years of
operation at a cash cost of US$ 201 per ounce (net of silver
credits).
Project CAPEX has been estimated at US$ 131 million
(of which 21% is tax that is refundable after production
commences), with a payback period of 1.8 years.
The project
economics were calculated using gold and silver prices of US$
950/ounce and US$ 16/ounce, respectively.
Extorre also submitted its Environmental Impact Assessment for
the Cerro Moro mine development to Santa Cruz Authorities on
September 16, 2010.
Mining permits and approvals for the Cerro
Moro mine are expected to be received by the end of Q1-2011.
You are invited to visit the Extorre web site at www.extorre.com
Latest news
Dec 08, 2010
Extorre Initiates Pre-Feasibility Study At Cerro Moro
more
Dec 06, 2010
Extorre Discovers New Silver Rich Vein at Cerro Moro Project
more
Oct 19, 2010
Extorre Announces Results For Cerro Moro Preliminary Economic
Assessment
more
Contact
EXTORRE GOLD MINES LIMITED
Eric Roth
President and CEO
[]
Suite 1260, 999 West Hastings St.
Vancouver, BC Canada V6C 2W2
For further information, please contact:
Rob Grey
VP Corporate Communications
T: 604.681.9512
F: 604.688.9532
Toll-free: 1.888.688.9512
Safe Harbour Statement – This news release contains "forward
-looking information" and "forward-looking statements" (together,
the "forward-looking statements") within the meaning of
applicable securities laws and the United States Private
Securities Litigation Reform Act of 1995, including our belief
as to the extent and timing of its drilling programs, various
studies including the PFS and the Environmental Impact
Assessment, and exploration results the potential tonnage,
grades and content of deposits, timing, establishment and extent
of resources estimates, potential production from and viability
of its properties, production costs and permitting submission
and timing.
These forward-looking statements are made as of the
date of this news release.
Readers are cautioned not to place
undue reliance on forward-looking statements, as there can be no
assurance that the future circumstances, outcomes or results
anticipated in or implied by such forward-looking statements
will occur or that plans, intentions or expectations upon which
the forward-looking statements are based will occur.
While we
have based these forward-looking statements on our expectations
about future events as at the date that such statements were
prepared, the statements are not a guarantee that such future
events will occur and are subject to risks, uncertainties,
assumptions and other factors which could cause events or
outcomes to differ materially from those expressed or implied by
such forward-looking statements.
Such factors and assumptions
include, among others, the effects of general economic
conditions, the price of gold and silver, changing foreign
exchange rates and actions by government authorities,
uncertainties associated with legal proceedings and negotiations
and misjudgments in the course of preparing forward-looking
information.
In addition, there are known and unknown risk
factors which could cause our actual results, performance or
achievements to differ materially from any future results,
performance or achievements expressed or implied by the forward
-looking statements.
Known risk factors include risks associated
with project development; the need for additional financing;
operational risks associated with mining and mineral processing;
fluctuations in metal prices; title matters; uncertainties and
risks related to carrying on business in foreign countries;
environmental liability claims and insurance; reliance on key
personnel; the potential for conflicts of interest among certain
of our officers, directors or promoters of with certain other
projects; the absence of dividends; currency fluctuations;
competition; dilution; the volatility of the our common share
price and volume; tax consequences to U.S.
investors; and other
risks and uncertainties, including those relating to the Cerro
Moro project and general risks associated with the mineral
exploration and development industry described in our interim
financial statements and MD&A for the fiscal period ended March
31, 2010 filed with the Canadian Securities Administrators and
available at www.sedar.com.
Although we have attempted to
identify important factors that could cause actual actions,
events or results to differ materially from those described in
forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated,
estimated or intended.
There can be no assurance that forward
-looking statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated
in such statements.
Accordingly, readers should not place undue
reliance on forward-looking statements.
We are under no
obligation to update or alter any forward-looking statements
except as required under applicable securities laws.
Cautionary Note to United States Investors - The information
contained herein and incorporated by reference herein has been
prepared in accordance with the requirements of Canadian
securities laws, which differ from the requirements of United
States securities laws.
In particular, the term "resource" does
not equate to the term "reserve".
The Securities Exchange
Commissions (the "SEC") disclosure standards normally do not
permit the inclusion of information concerning "measured mineral
resources", "indicated mineral resources" or "inferred mineral
resources" or other descriptions of the amount of mineralization
in mineral deposits that do not constitute "reserves" by SEC
standards, unless such information is required to be disclosed
by the law of the Companys jurisdiction of incorporation or of
a jurisdiction in which its securities are traded.
U.S.
investors should also understand that "inferred mineral
resources" have a great amount of uncertainty as to their
existence and great uncertainty as to their economic and legal
feasibility.
Disclosure of "contained ounces" is permitted
disclosure under Canadian regulations; however, the SEC normally
only permits issuers to report mineralization that does not
constitute "reserves" by SEC standards as in place tonnage and
grade without reference to unit measures.
NEITHER THE TSX NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
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