🕐11.02.10 - 13:29 Uhr
Xtierra Inc. (TSXV:XAG) announces increased resource estimate for Bilboa project
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Press Release
XTIERRA announces INCREASED RESOURCE ESTIMATE FOR BILBAO PROJECT
・ INDICATED RESOURCES INCREASE BY 169%; INFERRED RESOURCES INCREASE
BY 68%
Toronto, February 10, 2010, Xtierra Inc.
(TSX-V - XAG) (“Xtierra” or the
“Company”), is pleased to announce that it has received a new independent
resource estimate, compliant with National Instrument 43-101, for the Bilbao
zinc-lead-silver-copper-gold deposit located in Zacatecas, Mexico.
The new resource estimate shows a 169% increase from the November 2008
estimate in the Indicated resources to 9.68 million tonnes and an increase
of 68% in the Inferred resources to 4.04 million tonnes.
The following table summarises the overall results of the resource
estimation completed for the Bilbao Deposit, using a 3% ZnEq cut off
(includes sulphide, oxide and mixed ore categories):
Resource Category
Tonnage
Lead
Copper
Zinc
Silver
(million tonnes)
(%)
(%)
(%)
(gpt)
Indicated Resources
9.68
2.09
0.21
2.43
59.40
Inferred Resources
4.04
1.55
0.18
1.43
53.64
In the Indicated category, sulphide ore types represent 35%, mixed oxide and
sulphide ore types represent 22% and oxide ore types represent 44% of the
total Indicated resource.
For the purpose of determining resources at
various cutoff grades, zinc equivalent values were determined, based on the
average LME metal prices during the months of October to December 2009.
The report was prepared by independent consulting mining geologist, Richard
T.G.
Parker, C.Eng., a ‘qualified person’ within the meaning of NI 43-101
- Standards of Disclosure for Mineral Projects of the Canadian Securities
Administrators.
Mr.
Parker also prepared the previously published resource
estimate for the Bilbao project (November 2008).
The new resource estimate has been calculated at a 3% ZnEq cut off rather
than a 6% ZnEq cut off used previously due to the intention to develop the
deposit primarily by open pit mining methods.
Revised density values were
also applied for each of the designated ore-types.
Results of subsequent
infill drilling have also been included and additional sampling of the
existing surface pits and historic underground development, including
detailed surveying, has enabled additional resources to be categorized as
Indicated.
The block models were filtered by ore type and grade to allow resource
estimations according to domain, resource category, ore type and cut-off
grade.
The 50 metre drill grid used at Bilbao is considered adequate for geological
and grade continuity between intersections in adjacent drill holes to be
reasonably assumed within the Core Domain.
Blocks interpolated by 40m search
ellipsoid within the Core Domain are therefore considered to fulfill the
criteria for Indicated Resources.
Most mineral zones outside the Core Domain are defined by single drill
intersections allowing geological and grade continuity to be assumed with a
lower level of confidence.
Blocks interpolated by 50m search ellipsoid both
within and outside the Core Domain are therefore considered to fulfill the
criteria for Inferred Resources.
Relevant diamond drill data (based on 53 holes totaling 13,650 metres) were
reviewed, validated and incorporated into a Datamine database that comprised
assays (including ore type), geology, surveys and collars.
Composite samples
were calculated for 1 metre intervals.
Interpolation into 10mx10mx10m Block
models was carried out for a Core Domain and for an Outer Domain using
search ellipsoids with appropriate ranges and orientations.
Grade model
plots were combined or overlain with drillhole plots and geological cross
sections to enable verification that the block grades in most areas are in
close conformity to the geological interpretation and in particular to the
extent and orientation of interpreted mineral zones.
The following table outlines the Bilbao resource estimate by ore type and
category:
INDICATED CATEGORY
ORE TYPE
Cutoff
%
%
%
g/t
tonnes
tonnes
tonnes
tonnes
ZnEq
tonnes
Pb
Cu
Zn
Ag
Pb
Cu
Zn
Ag
SULPHIDE
3
3,298,802
2.02
0.21
2.89
61.62
66,488
6,858
95,302
203
MIXED
3
2,156,057
1.81
0.16
2.58
59.73
38,982
3,384
55,656
129
OXIDE
3
4,229,459
2.28
0.25
1.99
57.51
96,475
10,405
84,038
243
TOTAL
3
9,684,317
2.09
0.21
2.43
59.40
201,945
20,647
234,996
575
INFERRED CATEGORY
Cutoff
%
%
%
g/t
tonnes
tonnes
tonnes
tonnes
ZnEq
tonnes
Pb
Cu
Zn
Ag
Pb
Cu
Zn
Ag
SULPHIDE
3
820,294
1.29
0.13
1.54
31.06
10,621
1,092
12,659
25
MIXED
3
1,371,743
1.25
0.15
1.48
61.78
17,180
2,049
20,333
85
OXIDE
3
1,843,949
1.89
0.20
1.34
57.63
34,893
3,760
24,660
106
TOTAL
3
4,035,987
1.55
0.17
1.43
53.64
62,694
6,901
57,652
216
The average grade of the indicated resources decreased from 10.1% to 6.7%
zinc equivalent (ZnEq) as a result of the lower cut off used.
The new
Indicated resource contains 84% more zinc, 104% more lead, 95% more copper
and 81% more silver than the November 2008 estimate.
Additional Resource Potential
The independent report confirms that potential exists to increase the Bilbao
resource, particularly at depth to the south and southwest where drill hole
X40, intersected 13.4 metres grading 6.8% lead, 5.1% zinc and 79.5 g/t
silver and hole X26 (not included in the resource) intersected high grade
silver veins, including 3.0 metres grading 1.3 kilograms per tonne silver.
These holes lie on the southern boundary of the drill grid.
The report also indicates further potential to increase the resource may
also exist to the northwest where hole X42, collared more than 100 metres
outside the drilled grid, intersected 8.75 metres of massive pyrite with
only minor base metals from 149.25 metres to 157.00 metres.
This hole
intersected several low grade base metal zones and a higher grade
intersection over 1.0 metre from 181.0 metres to 182.0 metres, assaying
7.32% lead and 170g/t silver (not included within the present resource
estimate).
The intersections in drill hole X42 occur beneath almost 50m of
granite and indicate blind, untested potential in this direction.
Step-out
drilling in this area has confirmed an extension of thin mineralization at
the granitic contact.
Xtierra is planning an additional drilling programme as part of the final
phase of the Feasibility Study which will better define the oxide resource
in the northern part of the deposit which is currently classified as
Inferred with sufficient confidence to elevate it to the Indicated category
as well as additional deep holes to the south to ascertain if further
sulphide resources persist south of the existing drill grid and also on the
eastern side of the deposit.
Commenting on the updated resource estimate, Xtierra’s President & CEO,
Terence McKillen, stated, “We are very pleased to report the substantial
increases in both Indicated and Inferred resource categories at Bilbao and
confirmation of the excellent upside for additional resources to be found to
the southwest and northwest where step-out drilling is planned.”
“The independent report also concludes that the potential to identify
additional mineralized bodies within Xtierra’s large exploration holdings
in the general Bilbao area is excellent.”
Feasibility Study
The new resource estimate is a component part of a two phase Feasibility
Study currently being conducted on the Bilbao project.
Other component parts
include metallurgical testing (including a pilot plant test of the oxide
process), environmental and socio-economic studies, hydrological and
geotechnical studies, civil engineering and preliminary economic analyses.
Qualified Person
Information of a scientific or technical nature contained in this release
has been prepared by or under the supervision of Gerald Gauthier, P.Eng.,
the Chief Operating Officer of the Company or Terence McKillen, P.Geo., the
President & Chief Executive Officer of the Company, both Qualified Persons
within the meaning of National Instrument 43-101 of the Canadian Securities
Administrators.
Richard T.G.
Parker
Richard T.G.
Parker is an independent consulting mining geologist.
He
received the degree of Bachelor of Science in Geology from the University of
Newcastle upon Tyne, England in 1968 and is a Chartered Engineer registered
with the Engineering Council (UK), a Professional Member of the Institute of
Materials, Minerals and Mining and a Fellow of the Geological Society of
London.
Mr.
Parker has practiced as a geologist specializing in Mineral
Exploration and Development for 38 years and as a Chartered Engineer for 26
years.
A copy of the Parker report will be filed on SEDAR.
About Xtierra Inc.
Xtierra Inc.
is a Toronto based exploration and development company listed
on the TSX Venture Exchange.
Xtierra’s shares trade under the symbol
“XAG”.
Xtierra has 49,862,003 shares issued and outstanding.
Xtierra is
conducting a Feasibility Study on its Bilbao silver‐zinc‐copper project in
Zacatecas, Mexico.
Xtierra’s objective is to become a mid‐tier producer of
precious and base metals through the development of its Bilbao project
located in the Central Mexican Mineral Belt in the State of Zacatecas, as
well as through exploration, organic growth and M & A opportunities.
This news release may include certain "forward-looking statements".
All
statements other than statements of historical fact, included in this
release, including, without limitation, statements regarding potential
mineralization, resources and reserves, exploration results, and future
plans and objectives of Xtierra, are forward-looking statements that involve
various risks and uncertainties.
There can be no assurance that such
statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements.
Important
factors that could cause actual results to differ materially from Xtierra’s
expectations are exploration risks detailed herein and from time to time in
the filings made by Xtierra with securities regulators.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or the accuracy of this release.
For further information visit www.xtierra.ca or
contact:
Terence N.
McKillen, President & Chief Executive
+1 (416) 362-8243
Tim Gallagher, Director
+1 (416) 925-0090
Alejandro Alaniz, Director Finance & Administration (Mexico) + 52
(492) 925-0804
Brett Whitelaw
+1 (778) 836-5891
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