Extorre Gold Mines Limited

Extorre Gold Mines Limited

August 24, 2010 09:00 ET

Extorre Reports Major Extensions to Silver-Gold Mineralization at Gabriela Vein, Cerro Moro Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 24, 2010) - Extorre Gold Mines Limited (TSX:XG)(FRANKFURT:E1R)(OTCQX:EXGMF) ("Extorre" or the "Company") is pleased to report that results from 26 new drill holes on the Gabriela vein has extended silver-gold mineralization over 400 metres (1,312 feet) beyond the south-eastern limit of the current National Instrument 43-101-compliant Inferred Resource. This drilling is the first to be completed at Gabriela since 2008. Drilling is continuing with four rigs to test extensions at Gabriela and Escondida Far West, as well as at the recent discovery reported at Martina. The primary focus of the discovery drilling is the delineation of additional high grade gold-silver shoots for inclusion (and/or reclassification) in the next Cerro Moro resource statement. Extorre's 100% owned Cerro Moro Project is located in Santa Cruz Province, Argentina.

The Gabriela vein is located approximately three kilometres (9,840 feet ("ft")) north east of the high grade Escondida Central zone. Fifteen of the 26 diamond drill holes completed to date returned significant results as outlined in the table below. Results from an additional three holes are awaited. Highlights of the current drilling include the following three of the highest grade gold-silver intercepts returned to date from Gabriela:

 MD868 intersected 2.93 metres ("m") @ 4.1 g/t gold + 469 g/t silver (11.9 g/t gold equivalent*) and
            2.19 m @ 7.2 g/t gold and 1,220 g/t silver (27.6 g/t gold equivalent*)
 MD875 intersected 2.35 m @ 6.9 g/t gold + 986 g/t silver (23.3 g/t gold equivalent*)
 MD928 intersected 2.89 m @ 7.4 g/t gold + 1,216 g/t silver (27.7 g/t gold equivalent*).

Significant drilling results from Gabriela using a 1.0 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) Gold Equivalents* (oz/ton)
MD859 186.52 188.70 2.18 2.2 339 7.9 0.23
including 186.52 187.30 0.78 3.7 579 13.3 0.39
MD868 44.20 47.13 2.93 4.1 469 11.9 0.35
including 44.20 45.45 1.25 7.0 783 20.1 0.58
and 54.89 57.08 2.19 7.2 1,220 27.6 0.80
including 55.75 56.06 0.31 21.4 3,500 79.7 2.31
MD871 121.00 126.67 5.67 1.2 210 4.7 0.14
including 125.15 126.20 1.05 3.2 454 10.8 0.31
MD874 72.94 75.72 2.78 3.4 493 11.6 0.34
including 74.65 75.42 0.77 9.4 1,253 30.3 0.88
MD875 126.45 128.80 2.35 6.9 986 23.3 0.68
including 128.15 128.80 0.65 16.4 1,941 48.75 1.41
MD878 127.75 132.00 4.25 2.0 373 8.2 0.24
including 131.36 132.00 0.64 7.3 1,312 29.2 0.85
MD882 188.78 190.63 1.85 2.1 279 6.7 0.19
including 190.03 190.33 0.30 3.3 495 11.5 0.33
MD884 120.08 127.21 7.13 0.9 130 3.1 0.09
including 120.40 121.33 0.93 1.7 267 6.1 0.18
and 126.45 127.21 0.76 2.7 385 9.1 0.26
MD916 112.00 116.08 4.08 0.9 137 3.1 0.09
including 115.10 115.44 0.34 3.3 432 10.5 0.30
and 120.48 125.80 5.32 1.9 391 8.4 0.24
including 120.95 121.93 0.98 3.7 567 13.2 0.38
  125.27 125.80 0.53 3.4 655 14.3 0.41
MD922 113.55 118.00 4.45 2.1 301 7.1 0.21
including 115.95 117.06 1.11 5.5 923 20.9 0.61
MD928 232.70 235.59 2.89 7.4 1,216 27.7 0.80
including 234.75 235.59 0.84 18.2 2,801 64.9 1.88
MD933 197.78 206.13 8.35 1.2 216 4.8 0.14
including 203.07 206.13 3.06 2.5 441 9.8 0.28
including 205.47 206.13 0.66 6.4 1,113 24.9 0.72
MD938 162.00 166.90 4.90 1.6 376 7.8 0.23
including 164.70 165.45 0.75 4.0 867 18.5 0.54
MD944 178.90 187.00 8.10 2.4 385 8.8 0.26
including 181.30 182.40 1.10 8.3 1,018 25.3 0.73
MD948 201.70 206.00 4.30 1.4 167 4.2 0.12
including 204.00 206.00 2.00 3.5 508 12.0 0.35

* Gold equivalent grade is calculated by dividing the silver assay result by 60, adding it to the gold value and assuming 100% metallurgical recovery.

Eric Roth, Extorre´s President and CEO, stated, "Gabriela is a key vein in the Cerro Moro vein field and, in contrast to the Escondida vein, is predominantly silver-rich. Results to date indicate that approximately 70% of the precious metal content of the Gabriela vein occurs as silver, whereas in the Escondida vein, silver accounts for around 40% of the total precious metal content of the vein. 

"Our current drill program at Gabriela has been successful in extending silver-gold mineralization over 400 metres to the south-east, in addition to confirming the presence of higher grade silver-gold ore shoots within, and adjacent to, the relatively lower grade, potentially open pittable, Inferred Resource at Gabriela. 

"The south-eastern extension to the Gabriela vein remains open both at depth and along strike, with drill testing of this area expected to continue during the second half of 2010.

"Extorre is planning expeditious development of the Cerro Moro project, with potential development commencing early 2011. The plant has been designed in a modular form to facilitate expansion, and these new discoveries will allow the Company to increase gold and silver production going forward."

Click Here for the long sections and plans: http://www.extorre.com/pdf/release/diagram_05.pdf

In April, 2010, Extorre announced a National Instrument 43-101 compliant Inferred Resource of 521,000 metric tonnes @ 2.4 g/t gold and 347 g/t silver (for 40,000 ounces of gold and 5.8 million ounces of silver) at Gabriela. The primary goal of the current diamond drill program at Gabriela will be to increase the global gold-silver resource, with follow-up infill drilling designed to assist with the conversion of a portion of the gold-silver resource from the Inferred to Indicated resource category. 

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 Acme Analytical Laboratories ("AcmeLabs") preparation facility in Mendoza, Argentina and assayed by fire assay (50 gram charge) at the AcmeLabs laboratory in Chile, both ISO-9001:2000 certified laboratories.

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. Standard, blank and duplicate samples are used throughout the sample sequence as checks for the RC percussion drilling.

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 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 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). Extorre's assets comprise approximately $15 million in cash, the Cerro Morro and Don Sixto projects, and other mineral exploration properties in Argentina.

On April 19, 2010, Extorre announced an updated 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.

The updated resource model for the Escondida vein has been delivered to Santiago-based NCL Ingenieria y Construccion, Extorre's consultants for mine design and ore scheduling. The results will be used in a Preliminary Economic Assessment (PEA) for the project which is scheduled to be completed in Q3-2010. The PEA will provide estimated mine operating and capital costs for a potential 100,000 ounce/year (gold equivalent) mine. The submission of an Environmental Impact Assessment to Provincial authorities for permitting is also scheduled for Q3-2010.

You are invited to visit the Extorre web site at www.extorre.com.

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 PEA 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, 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 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.


Contact Information

  • Extorre Gold Mines Limited
    Eric Roth
    President and CEO
    Extorre Gold Mines Limited
    Rob Grey
    VP Corporate Communications
    604.681.9512 or Toll-free: 1.888.688.9512
    604.688.9532 (FAX)
    Extorre Gold Mines Limited
    Suite 1260, 999 West Hastings St.
    Vancouver, BC Canada V6C 2W2