🕐17.05.11 - 12:54 Uhr
EXTORRE RECEIVES APPROVAL FOR CERRO MORO MINE DEVELOPMENT
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Extorre Receives Approval For Cerro Moro Mine Development
Vancouver, B.C., May 17, 2011 – Extorre Gold Mines Limited (AMEX
:XG; TSX:XG; Frankfurt: E1R, "Extorre" or the "Company") is
pleased to announce the formal approval of the Cerro Moro
Environmental Impact Assessment ("EIA") by the Santa Cruz
provincial government.
The EIA was submitted to authorities in
September 2010.
This approval together with the receipt of the
Project Pre-Feasibility Study expected in June 2011 will enable
Extorre to proceed with advanced engineering and mine
development.
Eric Roth, Extorres President and CEO stated: "The successful
permitting of the Cerro Moro gold-silver mine represents an
important milestone for Extorre, and is the first step in what
we expect will be a straight-forward mine development.
Cerro
Moros ideal geographic location and very high grade gold-silver
veins should allow Extorre to obtain near term, low cash cost
gold-silver production from a relatively modest capital
investment.
"We would like to acknowledge the support we have received from
the Santa Cruz government and local communities for the
development of Cerro Moro.
"With our ongoing exploration success, including the recently
announced high grade gold-silver discovery at Zoe, the Company
will now have an opportunity to evaluate the potential for
expanding the scope and the life of the proposed mine."
Separately, Extorre is pleased to announce completion of the
purchase of the 14,000 hectare Estancia (ranch) that covers the
principal vein zones at the Cerro Moro Project.
The purchase of
the property provides Extorre with full ownership of the surface
rights that cover the Escondida, Zoe, Loma Escondida, Esperanza,
and Gabriela vein zones.
It also covers those areas selected for
the construction of the mineral processing facilities and
general mine infrastructure.
About Extorre
Extorre is a Canadian public company listed on the Toronto Stock
and NYSE Amex Exchanges (symbol XG).
Extorres assets comprise
approximately $28 million in cash, the Cerro Morro and Don Sixto
projects, and other mineral exploration properties in Argentina.
On April 19, 2010, Extorre announced a National Instrument ("NI")
43-101 compliant mineral resource estimate for Cerro Moro:
Indicated Category: 357,000 oz.
gold + 15.3 million oz.
silver
(612,000 oz.
gold equivalent*), plus
Inferred Category: 190,000 oz.
gold + 12.0 million oz.
silver
(390,000 oz.
gold equivalent*)
The 612,000 ounce gold equivalent* indicated resource, has an
average grade of 32.3 g/t gold equivalent*, a grade considered
exceptional by industry standards.
The silver contribution is
high, accounting for over 40% of the metal value.
Additional
inferred resources of 390,000 ounces gold equivalent* are also
reported from Cerro Moro.
An updated mineral resource statement
for the Cerro Moro project is expected to be completed during Q3
, 2011.
Extorre released the results of a preliminary economic assessment
("PEA") of the Cerro Moro Project on October 19, 2010.
The PEA
highlighted the robust economics of a future mine expected to
produce an average of 133,500 gold equivalent* ounces annually
during the first 5 years of operations.
The cash cost per ounce
(gold equivalent*) is estimated to be US$ 201 per ounce.
Project
CAPEX has been estimated at US$ 131 million (of which 21% is a
VAT that is refundable after production commences).
The project
economics were calculated using gold and silver prices of US$
950/ounce and US$ 16/ounce, respectively.
Four drill rigs are currently dedicated to expanding the known
gold-silver mineral resources at Cerro Moro.
In addition, two
drill rigs are currently operating at Extorres 100% owned Cerro
Puntudo project located 200 km (124 miles) west of Cerro Moro.
Cerro Puntudo is immediately south of the Joaquin Silver
Discovery owned by Coeur dAlene Mines and Mirasol Resources.
* Gold equivalent grade is calculated by dividing the silver
assay result by 60, adding it to the gold value and assuming 100
% metallurgical recovery.
Matthew Williams, Extorres Exploration Manager and a "qualified
person" within the definition of that term in NI 43-101,
Standards of Disclosure for Mineral Projects, has supervised the
preparation of the technical information contained in this news
release.
You are invited to visit the Extorre web site at www.extorre.com
Latest news
May 04 2011
High Gold-Silver Grades Continue For Zoe Discovery At Cerro Moro
more
April 19 2011
New High Grade Gold-Silver Discovery At Cerro Moro
more
March 22 2011
Extorre Drilling at Union Domes and Cerro Puntudo Projects
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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