🕐22.02.11 - 15:27 Uhr
New Discovery By Extorre In Santa Cruz Province, Argentina
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New Discovery By Extorre In Santa Cruz Province, Argentina
Vancouver, B.C., February 22, 2011 – Extorre Gold Mines Limited
(TSX:XG, Frankfurt: E1R, OTC: EXGMF – "Extorre" or the "Company")
is pleased to announce the discovery drill results from
reconnaissance drilling on the Falcon property, located 80
kilometres to the northwest of Cerro Moro, and 6 kilometres to
the northeast of Mariana Resources Dos Calandrias project.
Four
of five initial holes have intercepted broad zones of gold -
silver mineralization.
Highlights include:
Hole FD004 intersected 53 metres ("m") at 1.12 grams per tonne (
"g/t") gold + 30 g/t silver (1.62 g/t gold equivalent*).
Significant drilling results from the Falcon reconnaissance
program (at a 0.5 g/t gold equivalent* cut-off grade):
Drill Hole From (m) To (m) Width (m) Gold (g/t) Silver (g/t) Gold
Equivalents*
(g/t) FD001 34 64 30 1.33 6 1.43 FD002 104 160 56 0.81 12 1
.00 FD004 3 56 53 1.12 30 1.62 FD005 17 47 30 0.53 33 1.08
FD005 55 82 27 0.73 10 0.90
* Gold equivalent grade is calculated by dividing the silver
assay result by 60, adding it to the gold value and assuming 100
% metallurgical recovery.
Click Here for the drill plan and section
The Falcon project tenements cover an area of 13,986 hectares.
Drilling to date has focused on the Crest target where initial
reconnaissance rock chip sampling of outcropping alteration
returned anomalous gold and silver assays.
To assist with
defining drill targets grid based surface sampling and a
resistivity geophysical survey were conducted.
A broad zone of
mineralization with a 400 metre strike length has been
delineated by this initial drilling program.
Mineralization
remains open in all directions and follow-up drilling is
proposed for next month.
Mineralization comprises zones of
silica-sulphide matrix breccia within a broader disseminated
mineralized halo associated with silica flooding.
A number of structural targets are yet to be tested for potential
high grade vein style mineralization.
These targets have been
defined by combined surface mapping and rock chip sampling along
with detailed ground magnetic imagery.
Further drilling on the
Crest prospect will be aimed at assessing the continuity of
higher grade zones as well as extending the limits of the
broader lower grade mineralized system.
Deeper drilling at Crest
will aim at testing for blind high grade vein style
mineralization.
Extorres Chief Geologist Glen Van Kerkvoort commented "While
four rigs remain dedicated to expanding the high grade resource
at Cerro Moro we have expanded the regional exploration team in
order to intensify regional exploration, whilst enabling the
successful Cerro Moro team to remain focussed on exploration and
development there.
Falcon is an exciting new project with some
analogies to a lithological controlled system such as deposits
in the Ivanhoe mining district of northern Nevada.
"Both Marianas Dos Calandrias and Extorres Falcon projects have
opened the Deseado Massif to potential for large disseminated
epithermal deposits.
A second drill rig has been contracted in
order to enable the simultaneous drilling of both the Puntudo
and the Falcon properties.
"We have commenced metallurgical testwork of Falcon drillcore to
ascertain if the gold is likely to be recoverable by
conventional extraction and leaching techniques.
We look forward
to results from the next drilling program at Falcon whereby we
expect to gain better information on the size and continuity of
the gold mineralized zone".
Extorre also completed a drilling program on the Verde project
located in the western part of the Deseado Massif and its FDB
project located 8 kilometres south of Falcon, with no
significant results.
Falcon was optioned from Cerro Vanguardia S
.A.
(CVSA) along with the Puntudo, Verde and Azul properties and
all of these are subject to a once only back-in right, whereby
CVSA has the right to earn up to a 70% interest in the
properties by paying Extorre a multiple of expenditure to date
and financing Extorres share of development costs.
Contractual
requirements which require CVSA to determine whether or not to
exercise their back-in right were triggered early this month,
and CVSA is now required to make that decision next month.
In
the event that CVSA does not back-in, Extorre will retain a 100%
ownership and CVSA will retain a 2% NSR.
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 ALS Laboratory ("ALS") preparation
facility in Mendoza, Argentina and assayed by fire assay (50
gram charge) at the ALS laboratory in Chile.
Check assaying of all samples assaying greater than 1.0 g/t gold
is completed by ALS.
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.
Glen Van Kerkvoort, Extorres Chief Geologist 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).
Extorres
assets comprise approximately $40 million in cash, the Cerro
Morro and Don Sixto projects, and other mineral exploration
properties in Argentina.
On April 19, 2010, Extorre announced a National Instrument 43-101
compliant mineral resource estimate for Cerro Moro:
Indicated Category: 357,000 oz.
gold + 15.3 million oz.
silver
(612,000 oz.
gold equivalent*), plus
Inferred Category: 190,000 oz.
gold + 12.0 million oz.
silver
(390,000 oz.
gold equivalent*)
The 612,000 ounce gold equivalent* indicated resource, has an
average grade of 32.3 g/t gold equivalent*, a grade considered
exceptional by industry standards.
The silver contribution is
high, accounting for over 40% of the metal value.
Additional
inferred resources of 390,000 ounces gold equivalent* are also
reported from Cerro Moro.
Extorre released the results of a preliminary economic assessment
("PEA") of the Cerro Moro Project on October 19, 2010.
The PEA
highlighted the robust economics of a future mine expected to
produce an average of 133,500 gold equivalent* ounces annually
during the first 5 years of operations.
The cash cost per ounce
(gold equivalent*) is estimated to be US$ 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.
Extorre submitted an Environmental Impact Assessment for the
Cerro Moro mine development to Santa Cruz Authorities on
September 16, 2010.
Mining permits and approvals for the 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
Latest news
Feb 07, 2011
Extorre Extends High Grade Gold-Silver Zones at Cerro Moro
more
Jan 24, 2011
Cerro Moro Infill Drilling For Pre-Feasibility Study Completed -
Drilling Now Focused Entirely on New Veins and Extensions
more
Dec 14, 2010
Extorre Reports High Grade Gold-Silver Drill Intercepts From The
Cerro Moro Project
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 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
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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