Extorre Discovers New Silver Rich Vein at Cerro Moro Project
VANCOUVER, BC -- (Marketwire) -- 12/06/10 -- Extorre Gold Mines Limited (TSX:XG,
Frankfurt: E1R, OTC: EXGMF - 'Extorre' or the 'Company') is pleased to
report
assay results from the first six diamond drill holes completed on the
new,
silver rich, Lucia vein at Cerro Moro in Santa Cruz Province,
Argentina. The
vein is a new discovery located approximately 10 kilometres (6.2
miles)
northeast of the high grade Escondida zone. The target structure at
Lucia is
over 2.5 kilometres (1.6 miles) long on the basis of geophysical
(ground
magnetic) data. At surface it consists of a poorly outcropping, quartz-
adularia
vein/stockworks zone that strikes northwest-southeast, a trend common
to the
majority of the high grade veins on the property.
The initial drill holes at Lucia were targeted on a 250 metre ('m'), (820
feet)
long section of the vein, below a high grade surface outcrop. Highlights
from
two of the six diamond drill holes follow:
MD998 intersected 5.15m at 5.9 g/t gold 1,083 g/t silver
(23.9 g/t
gold equivalent*)
MD1003 intersected 0.4m at 5.1 g/t gold 1,247 g/t silver
(25.9 g/t
gold equivalent*)
Extorre´s Co-Chairman, Bryce Roxburgh stated, 'The discovery of a
second silver
dominant vein in the northern sector of the Cerro Moro vein field
(Gabriela was
the first) has significant implications for the project. Historically,
40% of
the project value lies with silver, yet with increasing silver prices
and the
identification of additional silver dominant veins, Cerro Moro has the
potential
to transition to a silver dominant deposit. The intersection of bonanza
silver
and gold values within the intercept quoted above for the first hole,
MD998, of
0.45m at 51.8 g/t gold and 10,987 g/t silver (234.9 g/t gold
equivalent*)
clearly supports drill testing the entire length of the Lucia target to
test for
Escondida-style bonanza shoots. In a separate news release, we will
provide an
update on drill results from the other veins being drilled on the
property.'
The Lucia vein occupies an interpreted boundary fault that separates a
block of
volcanic rocks from a sedimentary sequence. Lucia appears to be a
similar
structure with a like geological setting to the Escondida vein, 10
kilometres
(6.2 miles) to the southwest, which hosts 60% of the total currently
reported
Cerro Moro resource. Results presented also suggest that the
Lucia
mineralization may occur in irregular shaped shoots similar to
those at
Escondida.
Northwestern and southeastern extensions to the Lucia structural
zone are
clearly evident in our geophysical data. These extensions are currently
being
evaluated with widely spaced (160m (525 feet) apart) diamond drill holes
over a
2.5 km (1.6 mile) distance.
Pre-feasibility study infill drilling, with the aim of converting
existing
Inferred resource category mineralization to higher confidence
categories at
both the Gabriela Central and Loma Escondida zones, is now essentially
complete.
The Company will now deploy three of the four diamond drill rigs
currently on
site to defining new gold and silver resources on the property. Priority
targets
for new resource drilling include the Lucia, Gabriela extensions,
Esperanza,
Carla and Martina zones. Extorre remains on track to release a new
resource
estimate in Q2-2011.
For consistency in reporting the Company will continue to report gold
equivalent
grades. The results below from the six holes at Lucia use a 1.0 g/t
gold
equivalent* cut-off grade:
---------- ------ ------ ----- ----- ------ ----------------- ------------
----
| | From | To |Width|Gold |Silver|Gold Equivalents*| Gold
|
|Drill Hole| | | | | | |
Equivalents* |
| | (m) | (m) | (m) |(g/t)|(g/t) | (g/t) |
|
| | | | | | | | (oz/ton)
|
---------- ------ ------ ----- ----- ------ ----------------- ------------
----
| MD998 |33.00 |38.15 |5.15 | 5.9 |1,083 | 23.9 | 0.76
|
---------- ------ ------ ----- ----- ------ ----------------- ------------
----
| including|33.90 |34.35 |0.45 |51.8 |10,987| 234.9 | 7.56
|
---------- ------ ------ ----- ----- ------ ----------------- ------------
----
| and|35.20 |35.70 |0.50 | 4.9 | 673 | 16.2 | 0.52
|
---------- ------ ------ ----- ----- ------ ----------------- ------------
----
| MD1003 |69.00 |69.70 |0.70 | 0.4 | 70 | 1.5 | 0.05
|
---------- ------ ------ ----- ----- ------ ----------------- ------------
----
| and|78.85 |80.55 |1.70 | 0.4 | 103 | 2.1 | 0.06
|
---------- ------ ------ ----- ----- ------ ----------------- ------------
----
| and|85.45 |85.85 |0.40 | 5.1 |1,247 | 25.9 | 0.83
|
---------- ------ ------ ----- ----- ------ ----------------- ------------
----
| MD1009 |62.60 |63.80 |1.20 | 1.5 | 3 | 1.5 | 0.04
|
---------- ------ ------ ----- ----- ------ ----------------- ------------
----
| and|67.22 |69.00 |1.78 | 0.5 | 65 | 1.6 | 0.05
|
---------- ------ ------ ----- ----- ------ ----------------- ------------
----
| MD1014 |74.90 |75.70 |0.80 | 0.8 | 296 | 5.8 | 0.19
|
---------- ------ ------ ----- ----- ------ ----------------- ------------
----
| MD1018 |165.20|167.00|1.80 | 0.7 | 30 | 1.2 | 0.04
|
---------- ------ ------ ----- ----- ------ ----------------- ------------
----
| MD1025 |50.90 |52.55 |1.65 | 1.2 | 108 | 3.0 | 0.10
|
---------- ------ ------ ----- ----- ------ ----------------- ------------
----
* Gold equivalent grade is calculated by dividing the silver assay
result by
60, adding it to the gold value and assuming 100% metallurgical recovery.
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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 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, Extorre's 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). Extorre's assets comprise
approximately $47 million in cash, the Cerro Morro and Don Sixto projects,
and
other mineral exploration properties in Argentina.
On April 19, 2010, Extorre announced an updated National Instrument
43-101
compliant mineral resource estimate for Cerro Moro:
Indicated Category: 357,000 oz. gold 15.3 million oz. silver (612,000 oz.
gold
equivalent*), plus
Inferred Category: 190,000 oz. gold 12.0 million oz. silver (390,000 oz.
gold
equivalent*)
The 612,000 ounce gold equivalent* indicated resource, has an average
grade of
32.3 g/t gold equivalent*, a grade considered exceptional by industry
standards.
The silver contribution is high, accounting for over 40% of the metal
value.
Additional inferred resources of 390,000 ounces gold equivalent* are
also
reported from Cerro Moro.
Extorre released the results of a Preliminary Economic Assessment (PEA)
of the
Cerro Moro Project on October 19, 2010. The PEA highlighted the
robust
economics of the future Cerro Moro mine, in which an average of 133,500
gold
equivalent* ounces would be produced during the first 5 years of operation
at a
cash cost of US$ 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.
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
PEA 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 Commission's (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
Company's 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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other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Extorre Gold Mines Limited via Thomson Reuters ONE
[HUG#1469109]
EXTORRE GOLD MINES LIMITED
Eric Roth
President and CEO
Email Contact
Suite 1260, 999 West Hastings St.
Vancouver, BC Canada V6C 2W2
For further information, please contact:
Rob Grey
VP Corporate Communications
Tel: 604.681.9512
Fax: 604.688.9532
Toll-free: 1.888.688.9512