-- Posted 31 May, 2011 | |
Vancouver, B.C., May 31, 2011 – Extorre Gold Mines Limited (AMEX:XG; TSX:XG; Frankfurt: E1R, “Extorre” or the “Company”) is pleased to announce that high grade gold-silver results continue to be returned from drilling on the Zoe discovery at Cerro Moro in Santa Cruz Province, Argentina.
Assay highlights include:
MD1220 intersected 8.00 metres (“m”) at 8.4 grams per tonne (“g/t”) gold + 1,332 g/t silver (35.0 g/t gold equivalent*), including 4.15 m at 15.2 g/t gold + 2,419 g/t silver (63.6 g/t gold equivalent*).
MD1234 intersected 2.00 m at 36.3 g/t gold + 1,858 g/t silver (73.5 g/t gold equivalent*), including 0.90 m at 63.5 g/t gold + 3,135 g/t silver (126.2 g/t gold equivalent*).
MD1253 intersected 2.00 m at 37.0 g/t gold + 1,924 g/t silver (75.5 g/t gold equivalent*), including 0.90 m at 80.4 g/t gold + 4,023 g/t silver (160.9 g/t gold equivalent*).
A total of 34 diamond drill holes now define the Zoe structure over a strike length of approximately 1.5 kilometres (“km”). One km of the trend exhibits strongly anomalous to high-grade gold-silver mineralization that is peripheral to a central, bonanza grade zone. Drilling to date on the central zone has traced significant mineralization to a vertical depth of 240 m.
Fernando Chacon, Extorre’s Cerro Moro project manager stated “Relatively shallow drill holes (200–300 m deep) are stepping out in 160 m increments to locate and orientate the Zoe structure along strike. As with the Martina and Escondida Far West zones located west of Zoe, we are finding the near surface mineralization is generally significantly lower grade than what is found at depth. We will therefore begin step back drilling to test for high grade mineralization at more favourable depths.
“As the deeper drilling is slower, management is considering moving two drill rigs to Cerro Moro from Extorre’s Puntudo project, located approximately 220 km to the west. This move is tentatively planned for mid-June, when the western Patagonia winter makes drilling productivity at that site a very marginal economic proposition.”
Of the 34 holes completed to date at the Zoe discovery, 22 have now been publicly released, 4 have returned non-significant results, and 8 are in the system for logging, sample preparation and assaying. New significant results from 9 holes are detailed in the following table.
Significant drilling results from the Zoe Vein (at a 1.0 g/t gold equivalent* cut-off grade):
* Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery.
# Note: The interval 212.10 to 212.50 m in drill hole MD1253 assayed above the 1,000 g/t silver limit, however insufficient sample was available for an additional gravimetric finish to determine the actual result. For this news release the value has been assumed to be 1,000 g/t silver (the final result is expected within a week).
Four drill rigs are operating at Cerro Moro, three at the Zoe discovery and one on other new targets and/or potential extensions to known mineralization. Assays from the other drill sites will be released as available.
Two links are embedded in this news release – a location plan of the Zoe target and a longitudinal section showing the drill hole array.
Quality Control and Assurance
Drill widths presented in the table 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. Samples were prepared at the Acme Analytical Laboratories (“Acme Labs”) preparation facility on-site at Cerro Moro (managed and staffed by Acme Labs), and assayed by fire assay (50 gram charge) at the Acme Labs laboratory in Chile, an ISO-9001:2000 certified laboratory.
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.
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 500 or 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 (“NI”) 43-101, Standards of Disclosure for Mineral Projects, has supervised the preparation of the technical information contained in this news release.
Extorre is a Canadian public company listed on the Toronto and NYSE Amex Exchanges (symbol XG). Extorre’s assets comprise approximately $26 million in cash and a suite of exploration properties that includes the Cerro Morro, Cerro Puntudo and Don Sixto projects in Argentina.
In addition to the four rigs at Cerro Moro, two rigs are operating at Extorre’s 100% owned Cerro Puntudo project. Cerro Puntudo is immediately south of the Joaquin silver discovery owned by Coeur d’Alene Mines and Mirasol Resources.
On April 19, 2010, Extorre announced a NI 43-101 compliant mineral resource estimate for Cerro Moro:
Indicated Category: 357,000 oz. gold + 15.3 million oz. silver (612,000 oz. gold equivalent**), plus Inferred Category: 190,000 oz. gold + 12.0 million oz. silver (390,000 oz. gold equivalent**)
The 612,000 ounce gold equivalent** indicated resource, has an average grade of 32.3 g/t gold equivalent**, a grade considered exceptional by industry standards. The silver contribution is high, accounting for over 40% of the metal value. Additional inferred resources of 390,000 ounces gold equivalent** are also reported from Cerro Moro.
Extorre released the results of a preliminary economic assessment (“PEA”) of the Cerro Moro project on October 19, 2010. The PEA highlighted the robust economics of a future mine expected to produce an average of 133,500 gold equivalent** ounces annually during the first 5 years of operations. The cash cost per ounce (gold equivalent**) is estimated to be US$ 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 received approval of its Environmental Impact Assessment report on May 16, 2011. This approval represents a significant milestone in the development process for a mine at Cerro Moro.
** Gold equivalent grade is calculated by dividing the silver assay result by 60, adding it to the gold value and assuming 100% metallurgical recovery.
You are invited to visit the Extorre web site at www.extorre.com.
EXTORRE GOLD MINES LIMITED
President and CEO