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Extorre Increases Gold-Silver Resources at Cerro Moro
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Extorre Increases Gold-Silver Resources at Cerro Moro Indicated -
357,000 Oz.
Gold + 15.3 Million Oz.
Silver (612,000 Oz.
Gold
Equivalent**)
Inferred - 190,000 Oz.
Gold + 12.0 Million Oz.
Silver (390,000 Oz
.
Gold Equivalent**)
Vancouver, B.C., April 19, 2010 – Extorre Gold Mines Limited (TSX
:XG, Frankfurt: E1R, OTC: EXGMF – "Extorre" or the "Company") is
pleased to provide an updated National Instrument 43-101
compliant mineral resource estimate for its Cerro Moro Project,
Santa Cruz Province, Argentina.
The new estimates comprise:
Indicated Category: 612,000 ounces gold equivalent** (590,000 t
at 18.9 g/t gold and 805 g/t silver, for a gold equivalent grade
of 32.3 g/t*), plus
Inferred Category: 390,000 ounces gold equivalent** (190,000 t at
3.0 g/t gold and 190 g/t silver, for a gold equivalent grade of
6.1 g/t* gold).
The indicated resource is based on infill drilling completed on
the high grade Escondida vein between April, 2009 and February,
2010.
The 612,000 ounce gold equivalent** indicated resource has
a 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 value.
Additional inferred resources of 390,000 ounces gold equivalent**
are reported from the Escondida, Loma Escondida, Gabriela,
Esperanza, and Deborah veins.
The inferred resource totals 1.97
million metric tons (Mt) at a grade of 3.0 g/t gold and 190 g/t
silver, for a gold equivalent grade of 6.1 g/t*.
This equates to
190,000 ounces of gold and 12.0 million ounces of silver, to
total 390,000 gold equivalent ounces**.
This inferred resource
contains new material not previously estimated.
Indicated Mineral Resource for Escondida utilising a 1.0 g/t gold
equivalent cut-off
View online version for tables
Extorres President and CEO, Eric Roth, stated, "We are now able
to raise our resource objective for Cerro Moro to 2 million
ounces gold equivalent.
We have two rigs on site extending the
known mineralization and testing identified targets on the
extensive vein system, which compares favourably with the multi
-million ounce gold systems elsewhere in the province.
"With our focus in 2009-2010 on drilling the high grade Escondida
vein, the effective doubling of both the number of drill holes
and metres drilled has increased the drilling density
sufficiently to convert 86% of the contained gold equivalent
ounces to the indicated resource category.
"The corresponding increase in inferred resources at the other
prospects, notably Gabriela and Esperanza, resulted from
improved three-dimensional geological modelling combined with
geostatistical estimation techniques.
The Deborah vein is a
newly reported inferred resource.
"The updated resource models for Escondida have been delivered to
NCL Ingenieria y Construccion for evaluation of an optimal mine
model.
The results will be used in the Preliminary Economic
Assessment (PEA) scheduled for Q3, 2010.
The PEA will provide
estimated mine operating and capital costs for a potential 100
,000 ounce gold equivalent per annum mining operation.
I believe
that the current size of the indicated resource together with
the PEA will provide our board with sufficient information to
proceed rapidly with a mine development decision.
"Infrastructure studies and flow sheet development for a plant
continue.
This work will allow for detailed cost estimating
which is now commencing.
One rig is currently drilling for water
and engineering studies, and long term pump testing is being
conducted to ensure sufficient water exists for project
requirements."
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* Gold equivalent grade is calculated by dividing the silver
assay result by 60, adding it to the gold value and assuming 100
% metallurgical recovery.
** Gold equivalent ounces are calculated by dividing the silver
ounces by 60, then adding those ounces to the gold-only ounces.
Resource Estimate Authorship and Methodology
The April 2010 resource estimate of the Cerro Moro Project is the
first undertaken by Cube Consulting ("Cube") and follows a
previous estimate undertaken by Snowden Mining Industry
Consultants announced on July 8, 2009.
The mineral resource
estimates were prepared by Mr Ted Coupland, MAusIMM, CPGeo,
Director and Principal Geostatistician of Cube.
The mineral
resource estimates have been classified and reported in
accordance with the CIM guidelines (CIM 2005) and National
Instrument NI 43-101, Standards of Disclosure for Mineral
Projects.
Mr Ted Coupland is independent and a qualified
person as defined by NI 43-101.
Updated mineral resource estimates were undertaken for the
Escondida, Loma Escondida, Esperanza, Gabriela and Deborah
prospects.
All drilling data available as of March 25,, 2010 was
used for the resources estimates.
A summary of drilling data for
each prospect is as follows:
Escondida 523 drill holes for 65,407m (Exeter 65,302m, Mincorp
105m) Loma Escondida 27 drill holes for 2,032m (Exeter 1,908m,
Mincorp 124m) Gabriela 42 drill holes for 5,005m (Exeter 5
,005m) Esperanza 46 drill holes for 4,114m (Exeter 3,925m,
Mincorp 188m) Deborah 21 drill holes for 1,266m (Exeter 1,163m
, Mincorp 102m)
The Escondida resource estimate was primarily based on Exeter
diamond drilling and a small number of selected reverse
circulation drill holes.
The Loma Escondida estimate was based
on Exeter diamond drilling and selected surface trench sampling.
The Gabriela, Esperanza and Deborah estimates were based on a
mixture of Exeter diamond drilling and reverse circulation drill
holes.
A small number of Mincorp diamond holes were used within
Inferred areas of the resource estimate.
Exeter and Cube worked collaboratively on producing a set of 3D
geological wireframe models defining the key mineralized
components of each prospect.
In most cases, a clear distinction
between a main epithermal quartz vein structure and surrounding
stockwork mineralization could be determined based on detailed
geological logging and core photography.
The resulting 3D
mineralization model reflects an in-situ geological model
whereby no cut-off grade or minimum mining width criteria has
been applied.
The epithermal vein structures at Cerro Moro are relatively
narrow with horizontal widths typically ranging between 0.1m and
5m (Escondida 1.4m, Loma Escondida 1.0m, Gabriela 2.0m,
Esperanza 1.7m and Deborah 4.6m).
It is likely that the full
width of the epithermal vein structure will be mined by either
open pit or underground methods with little or no selectivity
across the structure.
Cube has adopted a 2D metal accumulation approach to the
estimation for the all epithermal vein structures at Cerro Moro.
Samples within the epithermal vein zones are assigned a unique
code that is used to generate a single composite across the vein
structure.
The geological composites are projected onto a
vertical 2D plane approximately parallel with the vein structure
.
The mid-point of each geological composite is assigned the
horizontal width of the vein structure and used to compute a
metal accumulation variable.
The accumulation a(x) is defined
as the product of thickness t(x) and grade z(x): a(x) = t(x) .
z
(x)
Exploratory data analysis was undertaken on raw samples,
geological composites and accumulation variables to determine
appropriate capping of grade outliers.
Variography was used to
characterise the spatial continuity of the horizontal width and
accumulation variables within the plane of the vein structure
and to determine appropriate estimation inputs to the
interpolation process.
Gabriela, Esperanza and Deborah demonstrated relatively moderate
grade variability within the plane of the main epithermal vein
structure.
Block grade estimates of gold and silver for these
veins were achieved using Ordinary Kriging ("OK") of the
accumulation and horizontal width variables into X=20m, Y=2m and
Z=20m blocks (local grid).
An estimation of this type is based
on the interpolation of two variables, the accumulation a(x) and
the thickness t(x).
Final block grade is calculated by dividing
the estimated accumulation by the estimated thickness.
Escondida
and Loma Escondida are characterised by distinct shoot like
bonanza zones within the plane of the main epithermal vein
structure effectively creating two mineralisation styles:
Main Zone ("MZ") – continuous material characterised by classic
epithermal vein textures including crustiform/colloform chalky
white quartz-adularia sulphide banded and brecciated veining
typically grading 0.5 to 10 g/t gold; Bonanza Zone ("BZ") – semi
-continuous identifiable zones within the MZ.
Characterised by
brecciated quartz-adularia sulphide banded vein ginguro
material typically grading 10 to 200g/t gold.
Associated with
this bonanza zone are gold grades averaging around ten times
higher than the surrounding MZ.
The bonanza zones appear to have sharp boundaries requiring
separate domaining to avoid the over-smoothing properties of OK.
Cube adopted an Indicator Simulation (Sequential Indicator
Simulation) approach to objectively define the BZ and MZ domains
.
Exploratory data analysis showed that a gold grade indicator of
10 g/t gold resulted in excellent definition of the BZ shoots.
The MZ domain was further split into a low grade and moderate
grade domain using a gold grade indicator of 2 g/t gold.
All 2D models were subsequently re-located into 3D block models.
Stockwork domains were estimated for Escondida, Gabriela and
Esperanza.
The stockwork mineralization surrounding the main
epithermal vein zones was estimated using traditional 3D OK of 1
to 1.5m downhole composites depending on the zone.
All estimates were visually and statistically validated and
compared to a variety of alternative estimation methods
resulting in acceptable comparisons.
Densities have been directly assigned to each model on a
geological basis.
Significant density testwork has been carried
out for the various rock types and prospects.
Cube has classified a substantial proportion of the Escondida
mineral resources as "Indicated" where drill spacing is 20m x
20m or closer.
Cube believes that this level of drill hole
spacing is sufficient to demonstrate acceptable confidence in
the geometry, continuity and grade of the Escondida deposit.
Surrounding areas of Escondida have been classified as Inferred
where drill spacing is wider or where unresolved geological
complexity exists.
Inferred resources at Escondida have an
appropriate level of drilling information to support
classification into the Inferred category.
Cube is currently finalising a NI 43-101 compliant technical
report, which will be available on SEDAR at www.sedar.com
shortly.
Competent Persons Statement
Information in this report relating to Mineral Resources has been
estimated and complied by Mr Ted Coupland, Director and
Principal Geostatistician of Cube Consulting Pty Ltd of Perth,
Western Australia.
Ted Coupland is a member of The Australasian
Institute of Mining and Metallurgy (AusIMM) and has sufficient
experience that is relevant to the style of mineralization and
type of deposit under consideration and to the activity which he
is undertaking to qualify as a "Qualified Person" as defined in
"National Instrument 43-101" of the Canadian Securities
Administrators.
Matthew Williams, Extorres 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 Gold Mines Limited is a Canadian public company listed on
the Toronto Stock Exchange under the symbol "XG".
It is a spin
-out entity from Exeter Resource Corporation ("Exeter") pursuant
to a March 11, 2010 shareholder vote to split Exeter into two
independently focussed companies.
Extorres assets comprise approximately $24 million in cash plus
the Cerro Morro and Don Sixto projects, and all other Exeter
exploration properties in Argentina.
Exeter retained all assets
relating to the Caspiche gold-copper discovery in Chile,
together with approximately $45 million in working capital.
The Cerro Moro Project in Santa Cruz Province, Argentina is 100%
owned by Extorre.
The Santa Cruz Government mining company,
Fomicruz S.E.
is entitled to a 5% participating interest on
completion of mine permitting.
Three drills are operating on the
project, performing exploration to develop additional resources,
and to a lesser extent to perform engineering related testwork.
You are invited to visit the Extorre web site at www.extorre.com
EXTORRE GOLD MINES LIMITED
Eric Roth
President and CEO
[mailto:]
For further information, please contact:
Rob Grey, VP Corporate Communications
Tel: 604.681.
9512 Fax: 604.688.9532
Toll-free: 888.681.9512
Suite 1260, 999 West Hastings St.
Vancouver, BC Canada V6C 2W2
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 in relation
to the Companys belief as to the extent and timing of its
drilling programs, various studies including engineering,
environmental, infrastructure and other studies, and exploration
results, budgets for its exploration programs, the potential
tonnage, grades and content of deposits, timing, establishment
and extent of resources estimates, potential for financing its
activities, potential production from and viability of its
properties, permitting submission and timing and expected cash
reserves.
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 the
Company has based these forward-looking statements on its
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 misjudgements in the course of preparing forward-looking
information.
In addition, there are known and unknown risk
factors which could cause the Companys 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 officers, directors or promoters of the
Company with certain other projects; the absence of dividends;
currency fluctuations; competition; dilution; the volatility of
the Companys common share price and volume; tax consequences to
U.S.
investors; and other risks and uncertainties, including
those described in Exeters Information Circular dated February
26, 2010 filed with the Canadian Securities Administrators and
available at www.sedar.com.
Although the Company has 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.
The Company is 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 U.S.,
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.
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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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