Timmins Gold Corp.: 10.67 Meters of 7.51 gpt Gold Intersected in Ongoing Drill Program Which Continues to Extend and Expand Mineralized Zones at San Francisco Mine
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/08/11 -- Timmins Gold Corp. (TSX VENTURE: TMM) is pleased to announce that its ongoing drill program continues to extend and expand the strike length of mineralization at the San Francisco Gold Mine, located in the State of Sonora, Mexico. Highlights of the assays received from the 27,240 meters of drilling completed from July to December, 2010 include 10.67 meters of 7.51 gpt gold in Hole TF-826 and 6.09 meters of 2.88 gpt gold in Hole TF-845 from the Southeast (SE) Zone. The Southwest (SW) Zone returned assays of 9.14 meters of 3.69 gpt gold and 10.66 meters of 2.44 gpt gold in Hole TF-809 and 4.57 meters of 3.46 gpt gold in Hole TF-728. Infill drilling in areas inside the currently planned pit limit returned assays of 7.62 meters of 3.93 gpt gold in Hole TF-860, 21.34 meters of 1.46 gpt gold in Hole TF-863 and 16.77 meters of 1.82 gpt gold in Hole TF-869. Condemnation drilling conducted approximately 400 meters to the Northwest of the pit limit failed to condemn the area as anomalous gold values were encountered in a majority of the holes including 4.57 meters of 1.47 gpt gold from Hole TF-800.
The large number of holes which returned anomalous gold values indicate the potential for expansion of the open pit beyond its current projected limit and indicate that the mineralized system is open to the Northwest, Southwest, Southeast and East of the currently planned pit limit. Details of an extensive drill program currently under way for 2011 will be released shortly.
The most current round of drilling has taken place since June 2010, and the results are not included in the most recent resource and reserve update published in November 2010. The July to December program totaled approximately 27,240 meters in 214 drill holes. Drilling has been focused on extending the known strike length of the Northwest, Southwest and Southeast extensions. Further, condemnation drilling to the Northwest returned anomalous gold values which will require further drilling. The extension drilling, which is testing the potential of the San Francisco deposit outside of the limits of the currently planned final pit, continues to confirm the continuity of mineralization within a 1.2 kilometer wide, major NW-SE trending gold-hosting structure. The holes were all relatively shallow and were drilled to a maximum depth of 130 meters.
Drilling was also undertaken inside the currently planned pit limits in areas that required a higher density of drilling in order to be considered a part of the mine plan and, until now, were classified largely as waste for mine planning purposes.
The table below highlights the better intercepts from the recently completed program:
Drill Intercepts SW of the San Francisco Pit
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Drill Hole Number From(m) To(m) True Width(m) Au(g/t)
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TF-355 28.96 36.58 7.62 1.71
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TF-471 24.38 27.43 3.05 2.60
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TF-472 1.52 6.10 4.58 2.24
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TF-636 30.48 38.10 7.62 3.49
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TF-637 103.63 108.20 4.57 4.36
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TF-685 36.58 39.62 3.04 5.18
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TF-754 0.00 6.10 6.10 1.88
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TF-792 89.92 108.20 18.28 1.15
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TF-793 70.10 82.30 12.20 2.14
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TF-799 118.87 123.44 4.57 1.76
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TF-800 12.19 16.76 4.57 1.47
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TF-803 92.96 99.06 6.10 1.54
and 109.73 123.44 13.71 1.58
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TF-805 30.48 35.05 4.57 1.50
and 160.05 175.26 15.21 2.05
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TF-809 117.35 126.49 9.14 3.69
and 128.02 138.68 10.66 2.44
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Drill Intercepts SE of the San Francisco Pit
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Drill Hole Number From(m) To(m) True Width(m) Au(g/t)
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TF-813 109.73 123.44 13.71 1.46
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TF-822 12.19 27.43 15.24 1.11
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TF-824 6.09 18.28 12.19 1.19
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TF-826 6.09 16.76 10.67 7.51
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TF-833 124.97 129.54 4.57 2.39
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TF-845 33.53 39.62 6.09 2.88
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TF-896 62.48 67.06 4.58 1.51
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TF-897 35.05 36.58 1.53 2.19
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Drill Intercepts to the SW and inside of the San Francisco Pit
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Drill Hole Number From(m) To(m) True Width(m) Au(g/t)
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TF-860 42.67 50.29 7.62 3.93
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TF-863 16.76 38.10 21.34 1.46
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TF-869 9.14 16.75 7.61 1.68
and 21.33 38.10 16.77 1.82
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Drill Intercepts to the NW and inside of the San Francisco Pit
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Drill Hole Number From(m) To(m) True Width(m) Au(g/t)
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TF-878 45.72 48.77 3.05 5.38
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TF-882 50.29 53.34 3.05 5.18
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TF-883 30.48 33.52 3.04 2.70
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TF-884 77.72 82.30 4.58 3.23
and 85.34 91.44 6.10 1.26
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TF-885 27.43 35.05 7.62 1.29
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The exploration success follows upon the commencement of commercial production at the San Francisco Mine in April 2010. The size of the gold mineralization zone, its presence within large shear zones and the continuous nature of the gold within these zones form the basis of management's expectation that the ongoing drill program could lead to a significant increase in the mineral resource at San Francisco and could potentially also lead to the discovery of additional satellite deposits within the existing land package.
The samples collected during the drilling were prepared and assayed in the San Francisco Mine assay laboratory using fire assay and gravimetric finish. Strict sampling and QA-QC protocol were followed to ensure the best practices in sampling and analysis of the drill samples. Duplicates, standards and blanks were inserted into the sampling stream at intervals of 25 samples. A minimum of fifteen percent of the pulps assayed in the mine lab were also sent to IPL-Inspectorate Lab, for check assays and a minimum of ten per cent of the original samples assayed by IPL will be sent to other independent labs for check assays. The check assays were cross referenced to the mine assays and verified the results.
About Timmins Gold
Timmins Gold Corp is a gold production and development company. In April 2010, Timmins Gold commenced commercial production at its wholly owned San Francisco gold mine in Sonora, Mexico. Timmins Gold has projected production at a rate of approximately 100,000 ounces of gold per year at a life of mine cash cost of approximately $489 per ounce. (Micon International Preliminary Feasibility Study, November 2010).
This press release was reviewed and prepared by Lawrence A. Dick, Ph.D., P.Geo, a director of the Company, who is recognized as a Qualified Person under the guidelines of National Instrument 43-101 and by Miguel Soto, P. Geo., a director and the COO of the Company. For further information contact Timmins Gold Corp. at 604-682-4002 or go to the website at www.timminsgold.com.
On behalf of the Board:
Bruce Bragagnolo, LLB, Chief Executive Officer
This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as 'may', 'should', 'expects', 'plans, 'anticipates', believes', 'estimates', 'predicts', 'potential', or 'continue' or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Timmins Gold does not intend to update any forward-looking statements to conform these statements to actual results.
Neither 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 accuracy of this release.
Contacts:
Timmins Gold Corp.
Bruce Bragagnolo, LLB
Chief Executive Officer
604-638-8980
bruce@timminsgold.com
www.timminsgold.com