Extorre Gold Mines Limited (TSX:XG)(NYSE Amex:XG)(FRANKFURT:E1R)
("Extorre" or the "Company") releases high grade drilling results
from Cerro Moro and comments on current market conditions as
follows:
-- Extorre is of the view that the current market for the Company's shares
does not reflect the underlying value of its high quality asset at Cerro
Moro.
-- Extorre is evaluating the potential for a staged mine development to
take advantage of the substantial cash flows which would be generated
from the very high grade mineralization accessible by open pit mining.
The Company would then fund the balance of the capital expenditure
reported in PEA-3 through operating cash flow.
-- This initiative is advancing rapidly as the Company is particularly
sensitive to shareholder dilution. The financing alternatives being
pursued will be those that are the least dilutive to shareholders.
-- A public announcement on the parameters for the proposed staged
development initiative is expected before month end.
It should be noted that PEA-3 is preliminary in nature as it
includes inferred mineral resources which are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves, and there is no certainty that PEA-3 will be
realized.
Cerro Moro retains excellent potential for an expansion of the
mineral resource. Below are results for 64 holes for which assays
are currently available. Results for a further +100 drill holes are
awaited. Of the 64 drill holes presented in this release, 50 are
from 12 new or previously poorly tested targets.
Two drill programs are running concurrently - one is to complete
sufficient in-fill drilling to enable all "inferred resources" for
the first two years of mining in PEA-3 to potentially be
recalculated as "indicated resources"; the other program is aimed
at discovering new high-grade veins or vein extensions to add to
the known Cerro Moro resources.
The Company is continuing its program of exploring for new high
grade targets with two of the four rigs currently on site at Cerro
Moro. One rig is completing the in-fill drilling program at
Escondida-Zoe and Gabriela and a second is drilling in-fill holes
and extensions to depth of the Nini-Esperanza vein system.
Assay highlights from Zoe in-fill drilling include:
MD1552 intersected 5.00 metres(#) ("m") at 54.0 grams per tonne
("g/t") gold + 7,155 g/t silver (197.1 g/t gold equivalent(i)),
including 2.45 m(#) at 109.3 g/t gold and 13,561 g/t silver (380.5
g/t gold equivalent(i)).
MD1571 intersected 1.60 m(#) at 22.8 g/t gold + 674 g/t silver
(146.2 g/t gold equivalent(i)), including 0.40 m(#) at 93.4 g/t
gold + 2,638 g/t silver (146.2 g/t gold equivalent(i)).
(#) Estimated true width.
(i) Gold equivalent grade is calculated by dividing silver
grades by 50 and adding this figure to the gold grade and assuming
100% metallurgical recovery.
Mr. Matt Williams, Extorre's Exploration Manager stated, "One
drill rig remains on the infill drilling program on our principal
prospects, namely Zoe, Escondida, Loma Escondida and Gabriela. Our
aim is to ensure that the drilling density is sufficient in areas
that would fall within the first two years of a potential mining
scenario (at 1300 tonnes per day) to estimate "indicated mineral
resources". This program is nearing completion, with the drilling
at Zoe, Loma Escondida and Gabriela essentially complete."
"Our exploration team has been actively exploring in the
immediate Cerro Moro area using mapping, geochemical sampling and
trenching to identify new veins. This has resulted in numerous new
discoveries, including the Guillermina and Seco prospects that are
currently being drill tested. Re-interpretations or additional work
has led to additional testing of many previously known but poorly
tested prospects such as Michelle, Moro, Marina, Barbara and
Barbara North."
"A total of 8 drill holes have been completed looking for "Zoe
East", an extension of the Escondida-Zoe structure. Minor gold
intercepts have been returned but we are of a view that the
principal structure is yet to be located within the +2 kilometre
long and 1 kilometre wide target corridor. Drill testing will
continue."
"Of the 50 holes drilled at the other prospects some require
additional drilling to determine the significance of the initial
intercept or are low grade. We are encouraged by many of the early
results and will focus follow-up drilling on potential structural
orientations favourable to wider intercepts."
Over 100 drill holes from +17 prospects are awaiting assay
results and upon receipt and verification these will be publicly
released.
Significant drilling results from the Zoe vein (at a 1.0 g/t gold
equivalent(i) cut-off grade):
----------------------------------------------------------------------------
Gold Gold
Equiv- Equiv-
Core True alents alents
From To Length Width Gold Silver (i) (i)
Drill Hole (m) (m) (m) (m)(#) (g/t) (g/t) (g/t) (oz/ton)
----------------------------------------------------------------------------
MD1496 343.45 345.56 2.11 1.80 0.7 72 2.1 0.06
----------------------------------------------------------------------------
including 344.65 345.56 0.91 0.80 1.2 114 3.5 0.10
----------------------------------------------------------------------------
MD1525 362.15 362.70 0.55 0.35 1.8 73 3.2 0.09
----------------------------------------------------------------------------
MD1532(ii) 119.50 123.00 3.50 1.40 18.5 3,965 19.2 0.56
----------------------------------------------------------------------------
including 122.20 123.00 0.80 0.30 52.5 8,743 53.7 1.56
----------------------------------------------------------------------------
MD1535A 335.00 336.40 1.40 1.10 1.8 237 6.5 0.19
----------------------------------------------------------------------------
and 407.00 409.00 2.00 1.60 1.1 94 3.0 0.09
----------------------------------------------------------------------------
MD1546(##) 15.80 24.20 8.40 5.50 3.0 793 18.8 0.55
----------------------------------------------------------------------------
including 15.80 18.10 2.30 1.50 10.0 2,714 64.3 1.86
----------------------------------------------------------------------------
and 16.40 16.90 0.50 0.35 17.6 4,104 99.7 2.89
----------------------------------------------------------------------------
and 17.35 17.77 0.42 0.30 16.5 5,667 129.8 3.76
----------------------------------------------------------------------------
MD1549 37.70 42.90 5.20 5.00 7.3 2,107 49.4 1.43
----------------------------------------------------------------------------
including 39.42 40.00 0.58 0.55 11.0 3,025 71.5 2.07
----------------------------------------------------------------------------
and 41.93 42.60 0.67 0.65 19.0 6,882 156.7 4.54
----------------------------------------------------------------------------
MD1552 60.60 68.00 7.40 5.00 54.0 7,155 197.1 5.72
----------------------------------------------------------------------------
including 62.60 66.20 3.60 2.45 109.3 13,561 380.5 11.03
----------------------------------------------------------------------------
MD1554 116.43 118.27 1.84 1.20 4.7 706 18.8 0.55
----------------------------------------------------------------------------
including 117.80 118.27 0.47 0.30 10.4 1,081 32.0 0.93
----------------------------------------------------------------------------
MD1563 135.50 137.00 1.50 0.90 4.3 484 14.0 0.41
----------------------------------------------------------------------------
including 136.00 136.50 0.50 0.30 10.3 1,083 32.0 0.93
----------------------------------------------------------------------------
MD1566 182.60 185.70 3.10 1.60 2.1 289 7.9 0.23
----------------------------------------------------------------------------
MD1571 232.90 236.00 3.10 1.60 22.8 674 36.3 1.05
----------------------------------------------------------------------------
including 234.50 235.24 0.74 0.40 93.4 2,638 146.2 4.24
----------------------------------------------------------------------------
(#) True widths have been estimated in cross sectional view utilising
Micromine software following the construction of an interpretation of the
mineralization using geological logging, surface information and adjacent
drill holes.
(ii) Diamond drill hole MD1532 was primarily drilled to provide geotechnical
data to assist in designing pit walls and as such was drilled in the
opposite direction to the other Zoe holes (i.e.: to the south) at -60
degrees, but extended to intersect the mineralization to provide
confirmatory assay data. The non-optimal drill direction is reflected in the
estimated true widths. All other Zoe holes are drilled at -55 degrees to the
north.
(##) The diamond drill holes from MD1546 onwards represent the first drill
holes from a 26 hole in-fill drilling program.
Other Prospects at Cerro Moro (not part of the current resource statement)
at a 1.0 g/t gold equivalent(i) cut-off grade:
----------------------------------------------------------------------------
Gold Gold
Equiv- Equiv-
Core alents alents
From To Length Gold Silver (i) (i)
Drill Hole (m) (m) (a)(m) (g/t) (g/t) (g/t) (oz/ton)
----------------------------------------------------------------------------
Mosquito Vein
----------------------------------------------------------------------------
MD1527 181.00 182.70 1.70 1.5 37 2.3 0.07
----------------------------------------------------------------------------
including 182.30 182.70 0.40 3.8 37 4.6 0.13
----------------------------------------------------------------------------
MD1539 192.30 193.75 1.45 4.6 253 9.6 0.28
----------------------------------------------------------------------------
including 193.37 193.75 0.38 11.3 224 15.8 0.46
----------------------------------------------------------------------------
MD1542 219.50 221.70 2.20 3.5 12 3.8 0.11
----------------------------------------------------------------------------
including 220.95 221.37 0.42 12.2 36 12.9 0.37
----------------------------------------------------------------------------
MD1550 300.90 301.30 0.40 1.2 16 1.5 0.04
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Belen Vein
----------------------------------------------------------------------------
MD1524 115.23 116.60 1.37 1.2 59 2.4 0.07
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Carlita Vein
----------------------------------------------------------------------------
MD1538 71.00 72.85 1.85 4.0 33 4.7 0.14
----------------------------------------------------------------------------
MD1551 47.00 52.50 5.50 5.3 55 6.4 0.19
----------------------------------------------------------------------------
including 48.60 49.15 0.55 33.6 324 40.1 1.16
----------------------------------------------------------------------------
MD1559 49.85 50.55 0.70 1.5 9 1.7 0.05
----------------------------------------------------------------------------
MD1562 113.00 114.50 1.50 3.7 123 6.2 0.18
----------------------------------------------------------------------------
including 114.03 114.50 0.47 4.5 263 9.8 0.28
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Guillermina Vein
----------------------------------------------------------------------------
MD1534 33.25 34.47 1.22 3.8 4 3.9 0.11
----------------------------------------------------------------------------
MD1536 27.60 28.42 0.82 2.2 6 2.3 0.07
----------------------------------------------------------------------------
MD1537 58.00 58.78 0.78 14.3 11 14.5 0.42
----------------------------------------------------------------------------
including 58.40 58.78 0.38 25.6 16 25.9 0.75
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Michelle Vein
----------------------------------------------------------------------------
MD1558A 12.00 13.00 1.00 1.9 4 2.0 0.06
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Silvia Vein
----------------------------------------------------------------------------
MD1511 40.00 41.90 1.90 2.3 96 4.2 0.12
----------------------------------------------------------------------------
including 41.50 41.90 0.40 6.1 288 11.8 0.34
----------------------------------------------------------------------------
MD1572 51.35 54.50 3.15 4.9 171 8.3 0.24
----------------------------------------------------------------------------
including 52.88 53.44 0.56 14.9 397 22.9 0.66
----------------------------------------------------------------------------
(a) NOTE: The significant results from the other prospects are at an early
stage of drilling and as such, the details to estimate the true widths
require additional follow up surface work or drilling. Since the beginning
of 2008 the majority (over 90%) of exploration diamond drill holes have a
dip of -55 degrees. Refer to the drill trace orientations on the
accompanying plans for the location and azimuth of the significant results
presented above.
Click here to view Project and target maps and Zoe long
sections: http://www.extorre.com/pdf/release/diagram_33.pdf
Quality Control and Assurance
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. Acme Labs is independent of
Extorre.
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.
For a more detailed description of Extorre's quality control and
assurance programs please refer to the technical report titled
"Preliminary Economic Assessment for the Cerro Moro Gold-Silver
Project, Santa Cruz Province, Argentina" with an effective date of
March 30, 2012, located on the Company's website or through the
SEDAR filing system.
Matthew Williams, Extorre's Exploration Manager and a "qualified
person" ("QP") 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 that
forms the basis for this news release. Drill core samples are
collected under the supervision of Company geologists in accordance
with standard industry practice. The QP regularly audits this
process during site visits. In addition yearly or every two year
audits by an independent QP are conducted, which includes the
collection of additional samples that are analyzed at another
laboratory to ensure Acme Labs laboratory performance meets
required standards. The QP receives the raw data results directly
from the independent laboratory (as do the relevant Company
geologists) and significant visual checks are performed to ensure
there are no data entry issues in the main database. The QP
personally verifies the results of the quality assurance and
quality control samples (standards and blanks). Core recovery is
also checked and if below 90% for the reported mineralized
intervals this is highlighted below the tables (however at Cerro
Moro there appears to be no correlation between assay results or
core recovery for the majority of intervals). The QP calculates all
of the weighted grade average intervals using a 1.0 g/t gold
equivalent(i) cut-off that are presented in the tables of
significant results. The QP also prepares and validates all of the
figures presented in the release.
About Extorre
Extorre is a Canadian public company listed on the Toronto and
NYSE Amex Exchanges (symbol XG). The principal assets of the
Company comprise CDN $30 million in cash and the Cerro Moro,
Puntudo and Don Sixto projects in Argentina.
On April 2, 2012 Extorre announced the results of a Preliminary
Economic Assessment ("PEA-3") for a potential mine development at
Cerro Moro. The study was based on the November 2011, NI 43-101
mineral resource estimate. That study modelled a nine year mine to
produce 850,000 ounces gold and 47 million ounces silver. The
proposed mine would produce an average of 248,000 ounces gold
equivalent(i) per year for the first 5 years at a cash cost of US
$303/ounce gold equivalent(i).
Exploration with four drills continues at Cerro Moro, a program
designed to increase the total resources on the property and to
in-fill drill certain areas for mine planning purposes. Results
from current drilling will be released when available.
It should be noted that PEA-3 is preliminary in nature as it
includes inferred mineral resources which are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves, and there is no certainty that PEA-3 will be
realized.
(i) Gold equivalent ounces are calculated by dividing the silver
ounces by 50 and adding it to the gold value.
You are invited to visit the Extorre web site at
www.extorre.com.
EXTORRE GOLD MINES LIMITED
Mr. Trevor Mulroney, President and Chief Executive Officer
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 related
to potential mine development, timing of the staged development
report 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; foreign exchange
restrictions; 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 the Company's
Annual Information Form for the fiscal period ended December 31,
2011, dated March 30, 2012 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
Contacts: Extorre Gold Mines Limited Mr. Trevor Mulroney
President and Chief Executive Officerextorre@extorre.com Extorre
Gold Mines Limited Rob Grey VP Corporate Communications
604.681.9512 or Toll-free: 1.888.688.9512 604.688.9532 (FAX)
www.extorre.com
Grafico Azioni Extorre Gold Mines Ltd. Ordinary Shares (Canada) (AMEX:XG)
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Da Mag 2024 a Giu 2024
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