Extorre responds to current market conditions and announces further high-grade drill results at Cerro Moro
16.05.2012/1/XNUMX Vancouver, British Columbia - Extorre Gold Mines Limited (NYSE-MKT: XG; TSX: XG; Frankfurt: EXNUMXR) (“Extorre” or the “Company”) is disclosing high grade drill results from Cerro Moro and is responding to the as follows current market conditions:
Extorre believes that the current market for the Company's stock does not reflect the value of high quality assets at Cerro Moro.- Extorre assesses the potential for incremental mine development to benefit from significant capital flows that would be made from the high-grade open-pit mineralization. The company would then finance the remaining capital expenditures reported in the PEA-3 through the working capital flow.
- This initiative is being driven forward as the company is particularly sensitive to stock dilution. It will pursue those financing alternatives that are the least dilutive for shareholders.
- A public communication regarding the parameters for the planned phased development is expected to be issued before the end of the month.
Please note that the PEA-3 is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to provide economic considerations that would allow their classification as mineral reserves. There is also no certainty that the PEA-3 will be realized.
Cerro Moro has excellent potential for expanding the mineral resource. Below are the results of 64 drill holes that are currently available. The results of 100 additional holes are still pending. 64 boreholes reported by the 50 in this news release come from twelve new or previously barely tested targets.
Two drill programs are in progress at the same time - one will provide sufficient infill drilling to recalculate all "inferred resources" in the PEA-3 as "indicated resources" during the first two years of mining, while the other will discover new high grade veins or vein extensions, which are added to the well-known Cerro Moro resources.
The company continues to seek new high-grade targets at Cerro Moro with two of its four rigs. One drill rig completes the infill drill program at Escondida-Zoe and Gabriela, and a second drill drills infill drill holes and depth extensions of the Nini-Esperanza vein system.
The highlights of the infill drilling at Zoe include:
MD1552 intersected 5,00 Meter # with 54,0 grams per ton ("g / t") gold and 7.155 g / t silver (197,1 g / t gold equivalent *), including 2,45 Meter # grading 109,3 g / t gold and 13.561 g / t silver (380,5 g / t gold equivalent *).
MD1571 intersected 1,60 Meter # with 22,8 g / t Gold and 674 g / t Silver (146,2 g / t Gold Equivalent *), including 0,40 Meter # with 93,4 g / t Gold and 2.638 g / t Silver (146,2 g / t Gold Equivalent *) ,
* Estimated true power
* Gold equivalent content is calculated by dividing the silver content by 50 and adding it to the gold content assuming a metallurgical recovery rate of 100%.
Matt Williams, Exploration Manager of Extorre, said, "One drill remains in the Infill drill program in our key exploration areas, namely Zoe, Escondida, Loma Escondida and Gabriela. Our goal is to ensure that drilling density is adequate in those areas that would be mined in the first two years of a potential mining scenario (1.300 tonnes per day) to estimate the 'indicated mineral resources'. This program is nearing completion, with drilling at Zoe, Loma Escondida and Gabriela basically completed. "
"Our exploration team explores the immediate area of Cerro Moro through mapping, geochemical sampling and prospecting to identify new veins. This has led to numerous new discoveries, including the Guillermina and Seco prospect areas, which are currently undergoing trial drilling. New interpretations or additional work led to further trials of many previously known but rarely explored reconnaissance areas, such as Michelle, Moro, Marina, Barbara and Barbara North. "
"A total of eight holes were looking for 'Zoe East', an extension of the Escondida-Zoe structure. Minor gold intersections have been found, but we believe that the main structure will be localized within the two kilometer long and one kilometer wide target corridor. The test wells will continue. "
"Boreholes drilled by the 50 on other reconnaissance areas may either require additional drilling to determine the importance of the first section, or are low grade. We are very pleased with many of the early results and will focus our attention on subsequent drilling on potential structural alignments that are favorable for more powerful sections. "
Xnumx drill holes from 100 reconnaissance areas are still pending; these will be published as soon as they arrive and have been verified.
Significant drill results from the Zoe vein using a 1,0 g / t gold equivalent * cut-off:
Other exploration areas at Cerro Moro (which are not part of the current resource statement) yielded gold equivalent * using a cut-off grade of 1,0 g / t *:
To enlarge please click on the slides:
Quality control and assurance
The gold values mentioned above are preliminary assay results without high grade capping. All diamond core samples were split into regular intervals or geological compounds and are half HQ core size. The samples were prepared at the Acme Analytical Laboratories ("AcmeLabs") processing plant at Cerro Moro's site (directed and performed by AcmeLabs) and assayed by a fire assay (50 gram charge) at the AcmeLabs laboratory in Chile; both are certified laboratories according to ISO-9001: 2000. Acme Labs is independent of Extorre.
Check examinations of all samples containing 1,0 g / t gold are performed by AcmeLabs. Samples containing more than 10 g / t gold and / or more than 100 g / t silver are analyzed by gravimetric analysis.
Standard and blank samples will be used during the sample sequence to verify diamond drilling described in this news release.
Analyzes of diamond core cores containing visible gold were performed similarly using the sieve fire assay method as with standard 50 gram fire samples. The sieve fire assay procedure involves breaking and sifting a nominal 500 or 1.000 gram sample to 100 micron particle size. All materials that did not pass through the 100 micron screen were examined. Two fire tests are performed as check and homogeneity samples on the smaller material. Thereafter, the total gold content is calculated.
For a more detailed description of Extorre's Quality Control and Quality Assurance programs, please refer to the 30 Technical Report entitled "Preliminary Economic Assessment for the Cerro Moro Gold-Silver Project, Santa Cruz Province, Argentina". March 2012, which can be accessed on the company's website or via the SEDAR submission system.
Matthew Williams, Exploration Manager of Extorre and "Qualified Person" ("QP") under National Instrument 43-101 (Standards of Disclosure for Mineral Projects) oversaw the preparation of the technical information that forms the basis of this press release. Drill core samples are taken in accordance with industry standards, under the supervision of company geologists. The QP regularly reviews this process during site visits. In addition, annual or biennial audits are conducted by an independent QP, which involves the collection of additional samples that are analyzed in another laboratory to ensure that the performance of the Acme Labs laboratory meets the required standards. The QP receives the raw data results directly from the independent lab (as well as the company's geologists) and performs full visual inspections to ensure there are no data entry issues in the main database. The QP personally verifies the results of quality assurance and quality control samples (standard and blanks). Nuclear extraction is also being tested, and if it is below the 90% reported for the mineralized intersections, it will appear below the tables (however, for most sections, Cerro Moro does not seem to have any correlation between the survey results and the core recovery rate). The QP calculates all salary weighted averages using a 1,0 g / t gold equivalent * cut-off grade (see table of meaningful results). The QP compiles and validates all figures in this press release.
About Extorre
Extorre is a Canadian company listed under the symbol XG on the Toronto Stock Exchange and the NYSE Amex Exchange. The main projects of the company are the projects Cerro Moro, Puntudo and Falcon in Argentina. The company has cash of 35 million C $.
On the 2. In April 2012, Extorre announced the results of a Preliminary Economic Assessment ("PEA-3") on a potential mine development at Cerro Moro. The study was based on the November 43 NI 101-2011 mineral resource estimate. This study modeled a nine-year mine with a production of 850.000 ounces of gold and 47 million ounces of silver. The proposed mine would produce an average of 248.000 ounces of gold equivalent * per year over the first five years at an investment cost of 303 US $ per ounce gold equivalent *.
At Cerro Moro, exploration continues with four rigs. This program aims to increase the total resources on the property and drill certain areas for mine planning through infill drilling. The results of the current drilling will be released as they become available.
Please note that the PEA-3 is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to provide economic considerations that would allow their classification as mineral reserves. There is also no certainty that the PEA-3 will be realized.
* The gold equivalent ounces are calculated by dividing the silver ounces by 50 and then adding them to the gold value.
You can also visit Extorre on the Internet: www.extorre.com.
EXTORRE GOLD MINES LIMITED
Trevor Mulroney
President and Chief Executive Officer
[email protected]
Suite 1660, 999 West Hastings St.
Vancouver, BC
Canada V6C 2W2
For more information please contact:
Rob Gray, VP Corporate Communications
Tel: + 1 604.681.9512 Fax: + 1 604.688.9532
Toll Free: 1.888.688.9512
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Safe Harbor Statement - This press release contains "forward-looking information" and "forward-looking statements" (collectively the "forward-looking statements") in accordance with applicable securities laws and the 1995 United States Private Securities Litigation Reform Act, including our views as to the extent and nature of the same Schedule of drilling programs, various studies related to potential mine development, the timeline of the progress report and impact assessment, exploration results, potential tonnages, levels and contents of deposits, timetable, generation and scope of resource estimates, potential production on its properties and their feasibility, production costs and the submission and timetable of permits. These forward-looking statements were made as of the date of this press release. Readers must not rely on forward-looking statements, as there can be no assurance that the future circumstances, events or results expressed or implied by such forward-looking statements, or that plans, intentions or expectations, on which the forward-looking statements are based actually become reality. As our forward-looking statements are based on our expectations regarding future events when such statements are made, such statements are not guarantees of future performance and are also subject to risks, uncertainties, assumptions and other factors that could cause actual results to change Significantly differentiate events from those explicitly or implicitly expressed in such forward-looking statements. Such factors and assumptions include, but are not limited to, the effects of the general economic situation, the price of gold and silver, changes in foreign exchange rates and actions by government agencies, uncertainties surrounding legal procedures, and misperceptions in the preparation of forward-looking information. In addition, there are known and unknown risk factors that could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The known risk factors involve risks related to project development; the need for further financing; operational risks associated with mining and mineral processing; Fluctuations in metal prices; legal matters; Uncertainties and risks associated with doing business abroad; Restrictions on foreign exchange; environmental liability claims and uncertainties; the reliability of important personnel; the potential for conflicts of interest of certain officers, directors or promoters of the Company with respect to certain other projects; the absence of dividends; Currency fluctuations; Competition; Dilution; the volatility of the price and volume of ordinary shares of the company; tax consequences for US investors; and other risks and uncertainties, including those relating to the Cerro Moro project, and the general risks associated with the mineral exploration and development industry included in the 30's Annual Information Form. March 2012 for the on 31. December 2011 closed fiscal year published with the Canadian Securities Administrators and available at www.sedar.com. Although we have attempted to identify the important factors that could cause actual events or results to differ materially from those expressed in forward-looking statements, there may still be factors that could cause the events or results not as accepted, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate; actual results and future events may differ materially from such statements. Therefore, readers should not rely on forward-looking statements when investing.
Cautionary Note to US Investors - The information contained herein and the information referred to herein was prepared in accordance with the provisions of the securities laws of Canada, which differ from the provisions of the securities laws of the United States. In particular, the term “resource” should not be equated with the term “reserve”. The Securities Exchange Commission's (“SEC”) disclosure requirements generally do not allow information regarding “Measured Resources,” “Indicated Resources,” or “Inferred Resources” or other descriptions of mineralized amounts in the deposits that are not, by SEC standards, “ Reserves ”are set out in filings with the SEC. This is permissible if the disclosure of this information is necessary under the laws of the country in which the company is domiciled or of the country in which the company's securities are traded. US investors should also bear in mind that “inferred resources” are subject to great uncertainty as to their existence and their eligibility from an economic and legal point of view. A publication of the “contained ounces” is a publication permitted by Canadian regulations. The SEC, on the other hand, usually only allows issuers to report mineralization that does not qualify as “reserves” for the purposes of SEC regulations, in terms of pro forma tonnages and ore grades and without reference to any unit of measure.
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