🕐01.06.11 - 13:27 Uhr
EXTORRE ANNOUNCES A SILVER-GOLD DISCOVERY AT ITS PUNTUDO PROJECT IN WESTERN SANT
A CRUZ PROVINCE, ARGENTINA
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Extorre Announces A Silver-Gold Discovery At Its Puntudo Project
In Western Santa Cruz Province, Argentina
Vancouver, B.C., June 1, 2011 – Extorre Gold Mines Limited (AMEX
:XG; TSX:XG; Frankfurt: E1R, "Extorre" or the "Company") reports
the discovery of significant silver-gold mineralization at its
100% owned Puntudo project, located immediately south of the
Joaquin silver project owned by Coeur dAlene Mines and Mirasol
Resources, and 200 kilometres west of Cerro Moro.
Extorre has
completed thirty two drill holes to date, with assays in hand
for the first fifteen holes.
Mineralization has been intersected
in drill holes that test the potential strike extension to the
south, onto Extorre property, of both the La Negra and La
Morocha veins of the Joaquin project.
Highlights from the drilling include:
RD0001 on the La Morocha structure intersected 42.3 metres ("m")
(138.8 feet ("ft")) at 16 grams per tonne ("g/t") silver + 0.60 g
/t gold (46 g/t silver equivalent*), including 6.9 m (22.6 ft) at
32 g/t silver + 1.01 g/t gold (83 g/t silver equivalent*).
RD0004 on the La Negra structure intersected 3.0 m (9.8 ft) at
695 g/t silver + 0.66 g/t gold (728 g/t silver equivalent*).
RD0015, also on the La Negra structure, intersected 9.0 m (29.5
ft) at 211 g/t silver + 1.19 g/t gold (271 g/t silver equivalent
*), including 5.71 m (18.7 ft) at 320 g/t silver + 1.82 g/t gold
(411 g/t silver equivalent*).
The discovery site, termed the Renaldo Prospect, is located in
the northeast quadrant of the Companys 29,500 hectare Puntudo
project.
The adjacent Joaquin project has a NI43-101 compliant
resource** of 19.6 million ounces of silver in the Indicated
category, and 47.9 million ounces of silver in the Inferred
category.
This resource is derived from the La Negra and La
Morocha veins
which have been drilled as far south as Extorres Renaldo
Prospects northern boundary.
With the onset of the southern winter, the two Puntudo drilling
rigs and supervising teams will now be relocated to Cerro Moro,
where drilling can continue year round, to supplement the four
rigs operating there.
We anticipate five rigs to be testing the
new high grade Zoe discovery and the sixth on regional drilling
at Cerro Moro from mid-June.
Click to see a figure showing a plan view of drilling at the
Renaldo discovery and its relationship to the adjacent Coeur
–Mirasol Joaquin project.
Drill targeting on Extorres Renaldo Prospect at Puntudo was
based on extrapolating along strike from the La Negra and La
Morocha veins
at Joaquin in conjunction with in-house ground magnetic data.
The resultant magnetic imagery shows a southwest striking linear
magnetic low approximately 100 m (328 ft) wide and +1,000 m (3
,280 ft) long extending to the southeast following the La Negra
trend.
The extension to the La Morocha trend is observed as a
magnetic discontinuity extending +1,500 m (4,920 ft) into the
Extorre property.
Additional targets in the Renaldo area,
including the intersection of the La Morocha and La Negra
structural trends have been identified.
Glen van Kerkvoort, Extorres Chief Geologist commented "There is
a saying in the mining business that the best place to find
mineralization is alongside a known deposit.
That has certainly
been the case for our Renaldo Prospect.
Boosted by the success
of the Couer dAlene and Mirasol discovery to the north we were
able to fast track the discovery process at Renaldo.
We are
encouraged by the fact that Coeur dAlene has notified Mirasol
of its intention to proceed with a Bankable Feasibility Study on
Joaquin project.
"The main focus of drilling to date has been the south-eastern
extension of the La Negra structure in an area obscured by sand
and gravel cover.
However, approximately half of the total
resource for the Joaquin project to the north is derived from
the La Morocha structure and, with the encouraging result in our
drill hole RD0001 we have initiated testing of that trend.
"Geologically we interpret the Renaldo discovery to be a silver
dominant, high level, low sulfidation epithermal vein
system.
Wider intercepts of lower grade silver mineralization
appear to correlate with oxidized material, similar to the
geological descriptions provided for the Joaquin property.
Assays and rock sampling around RD0006, located one kilometre
south from Joaquin, suggest that the La Negra vein may become
gold rich in this area, and that is now being drill tested."
Drilling results from the Renaldo Prospect (at a 25.0 g/t silver
equivalent* cut-off grade):
Drill Hole From
(m) To
(m) Width
(m) Silver
(g/t) Gold
(g/t) Silver
Equivalents*
(g/t) Silver
Equivalents*
(oz/ton) RD0001 25.00 26.00 1.00 41 0.93 88 2.55 including 25
.00 25.45 0.45 77 1.66 159 4.65 RD0001 64.00 66.00 2.00 11 0.50
36 1.04 RD0001 84.70 127.00 42.30 16 0.60 46 1.35 including
90.10 97.00 6.90 32 1.01 83 2.41 and 99.00 102.00 3.00 16 0.76
54 1.57 and 112.00 115.00 3.00 14 1.58 93 2.71 RD0001 134.00
136.00 2.00 13 0.41 34 0.99 RD0001 138.00 139.00 1.00 5 0.52
31 0.92 RD0002 13.00 15.00 2.00 91 0.08 95 2.76 RD0003 58.00
59.00 1.00 64 0.12 70 2.03 RD0003 63.00 71.00 8.00 82 0.34 99
2.89 including 63.00 64.00 1.00 78 0.16 86 2.50 and 67.00 71
.00 4.00 125 0.53 151 4.40 RD0004 87.00 89.00 2.00 78 0.05 80 2
.34 including 87.00 88.00 1.00 132 0.06 135 3.93 RD0004 102
.00 108.00 6.00 61 0.08 65 1.91 RD0004 128.00 129.00 1.00 147 0
.04 149 4.35 RD0004 136.00 139.00 3.00 695 0.66 728 21.24
RD0005 43.00 45.00 2.00 40 0.19 49 1.44 including 43.00 44.00
1.00 53 0.37 72 2.09 RD0005 47.00 52.00 5.00 122 0.07 125 3.66
including 47.00 50.30 3.30 166 0.07 169 4.93 RD0006 24.00 29
.00 5.00 13 0.23 25 0.73 RD0006 34.00 49.41 15.41 17 0.71 53 1
.54 including 40.00 49.41 9.41 17 0.95 64 1.88 RD0006 57.00
60.00 3.00 8 0.43 29 0.86 RD0006 64.00 65.00 1.00 6 0.55 34 0
.98 RD0006 67.00 81.00 14.00 10 1.21 70 2.06 including 69.00
80.00 11.00 11 1.38 80 2.34 RD0007 No significant result
RD0008 12.80 13.45 0.65 32 0.13 38 1.12 RD0009 25.00 26.00 1
.00 2 1.55 79 2.31 RD0009 37.95 38.35 0.40 765 8.86 1208 35.24
RD0010 22.00 23.00 1.00 41 0.01 42 1.22 RD0010 111.00 112.50
1.50 2 0.83 44 1.28 RD0011 16.00 17.00 1.00 28 0.01 28 0.83
RD0015 96.00 97.00 1.00 40 0.02 41 1.20 RD0015 100.00 109.00 9
.00 211 1.19 271 7.90 including 101.14 106.85 5.71 320 1.82 411
11.99 RD0017 155.70 169.00 13.30 27 0.17 35 1.02 including
155.70 156.54 0.84 47 0.32 63 1.84 and 158.95 160.20 1.25 44 0
.21 54 1.58 and 165.00 166.70 1.70 45 0.15 52 1.52 RD0017 179
.00 180.00 1.00 18 0.19 27 0.79 RD0017 186.00 188.00 2.00 34 0
.03 36 1.05 RD0018 91.00 93.00 2.00 63 0.38 82 2.39 RD0018
100.00 101.00 1.00 27 0.01 27 0.79 RD0019 137.00 138.00 1.00
48 0.01 48 1.41 RD0019 143.00 149.25 6.25 62 0.13 68 1.99
including 143.00 144.00 1.00 63 0.07 66 1.93 and 147.00 149.25
2.25 115 0.13 121 3.53
* Silver equivalent grade is calculated by multiplying the gold
assay result by 50, adding it to the silver value and assuming
100% metallurgical recovery.
** The NI43-101 resources for the Joaquin project reported in
Mirasol Resources News Release dated May 9, 2011, are presented
in the table below.
Prospect Resource Type Tonnes
(Kt) Silver
(g/t) Silver
(Koz) Gold
(g/t) Gold
(Koz) La Negra Indicated 6,875 86 18,931 0.16 36 Inferred 6
,017 79 15,267 0.12 23 La Morocha Indicated 329 72 762 0.08 1
Inferred 7,778 131 32,685 0.08 19 Total Indicated 7,204 85 19
,693 0.16 36 Inferred 13,794 108 47,952 0.10 43
Assays from additional Extorre drill holes will be released as
they become available.
Quality Control and Assurance
Drill widths presented in the table above are drill intersection
widths and may not represent the true widths of mineralization.
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.
Samples were prepared at the Acme Analytical
Laboratories ("Acme Labs") preparation facility on-site at Cerro
Moro (managed and staffed by Acme Labs), and assayed by fire
assay (50 gram charge) at the Acme Labs laboratory in Chile, an
ISO-9001:2000 certified laboratory.
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.
Glen van Kerkvoort, Extorres Chief Geologist and a "qualified
person" within the definition of that term in National
Instrument ("NI") 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 and
NYSE Amex Exchanges (symbol XG).
Extorres assets comprise
approximately $26 million in cash, the Cerro Morro, Puntudo and
Don Sixto projects, and other mineral exploration properties in
Argentina.
In addition to the two drill rigs operating on the Puntudo
project, four rigs are drilling at Cerro Moro.
Three rigs are
testing the Zoe discovery where high grade to bonanza grade gold
-silver intercepts are being recorded.
On April 19, 2010, Extorre announced a NI 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.
*** Gold equivalent grade is calculated by dividing the silver
assay result by 60, adding it to the gold value and assuming 100
% metallurgical recovery.
Extorre released the results of a preliminary economic assessment
("PEA") of the Cerro Moro project on October 19, 2010.
The PEA
highlighted the robust economics of a future mine expected to
produce an average of 133,500 gold equivalent*** ounces annually
during the first 5 years of operations.
The cash cost per ounce
(gold equivalent***) is estimated to be US$201 per ounce.
Project
CAPEX has been estimated at US$131million.
The project economics
were calculated using gold and silver prices of US$950/ounce and
US$16/ounce, respectively.
The Province of Santa Cruz formally approved the Cerro Moro
Environmental Impact Assessment report on May 16, 2011.
That
report approves the mining plan put forward to the Province in
September 2010.
The Company anticipates receipt of its Cerro
Moro Pre-feasibility Study in Q2-2011.
You are invited to visit the Extorre web site at www.extorre.com
Latest news
May 31 2011
High Gold-Silver Grades Continue For The Zoe Discovery At Cerro
Moro
more
May 17 2011
Extorre Receives Approval For Cerro Moro Mine Development
more
May 04 2011
High Gold-Silver Grades Continue For Zoe Discovery At Cerro Moro
more
Contact
EXTORRE GOLD MINES LIMITED
Eric Roth
President and CEO
[]
Suite 1660, 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 financial
statements and MD&A for the fiscal period ended December 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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