Timmins Gold Corp.
TSX VENTURE : TMM

Timmins Gold Corp.

August 24, 2010 06:30 ET

Timmins Gold Corp.: 12.19 Meters Grading 4.39 gpt Gold and 13.72 meters Grading 3.88 gpt Gold Intercepted Up to 250 meters Southwest of San Francisco Pit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 24, 2010) - Timmins Gold Corp. (TSX VENTURE:TMM) is pleased to announce that reverse circulation drilling continues to expand the strike length of mineralization at the San Francisco Gold Mine, located in the State of Sonora, Mexico. Additionally, the tenor of the gold grades being encountered are amongst the highest returned to date from drilling on the now-operating gold deposit. Highlights of the assays received from the most current round of drilling completed in May and June include12.19 meters of 4.39 gpt gold in Hole TF-651 and 13.72 meters of 3.88 gpt gold in Hole TF-649 (which were drilled approximately 150 meters to the southwest of the San Francisco pit limit) and 10.67 meters of 6.39 gpt gold in Hole TF-725 and 4.57 meters of 3.46 gpt gold in Hole TF-728 in an area inside the north portion of the current pit limit. These results indicate the potential for expansion of the open pit beyond its current projected limit and indicates that the potential exists to increase the ultimate gold resource contained within the deposit.

The most current round of drilling has continued to take place­ since the last update to shareholders (see press release dated May 13, 2010) and has totaled approximately 25,000 meters in 231 drill holes. Drilling has been focused on an infill basis to the north and also focused on extending the known ­strike length of the newly-discovered southwest extension. The drilling, which is testing the potential of the San Francisco deposit outside of the limits of the currently-planned final pit, continues to confirm the continuity of mineralization within a 1.2 kilometer wide, major NW-SE trending gold-hosting structure.

The objective of the exploration drilling to the southwest of the pit has been to extend the mineralized zone outside of the currently planned pit limits and beyond a drill hole 50 meters to the southwest of the pit that intersected 13.7 meters of 10.28 gpt gold (see press release dated May 13, 2010). Drilling inside the northern part of the currently planned pit limits was in an area that required a higher density of drilling in order to be considered a part of the mine plan and, until now, was classified largely as waste for mine planning purposes The holes were all relatively shallow and were drilled to a maximum depth of 130 meters.

The table below highlights the better intercepts from the recently completed program to the Southwest of the pit limit:

Drill Intercepts SW of the San Francisco Pit

    Drill Intersections
Drill Hole Number Depth (m) From (m) To (m) Width (m) Au g/t
TF-644 131.06 12.19 13.72 1.53 0.93
    and 50.29 54.86 4.57 0.36
    and 56.39 59.44 3.05 0.87
    and 100.58 106.68 6.10 5.07
    includes 100.58 102.11 1.53 4.33
    includes 102.11 106.63 1.52 8.47
    includes 103.63 105.16 1.53 6.97
TF-647 91.44 0.00 1.52 1.52 0.20
    and 71.63 79.25 7.62 2.29
    includes 73.15 74.68 1.53 2.90
    includes 74.68 76.20 1.52 3.33
    includes 76.20 77.72 1.52 3.37
    and 83.82 91.44 7.62 0.34
TF-648 100.58 92.96 97.54 4.58 1.16
    includes 92.96 94.49 1.53 2.67
TF-649 121.92 96.01 109.73 13.72 3.88
    includes 96.01 97.54 1.53 4.73
    includes 97.54 99.06 1.52 11.17
    includes 99.06 100.58 1.52 4.83
    includes 100.58 102.11 1.53 4.50
    includes 102.11 103.63 1.52 3.17
    includes 103.63 105.16 1.53 2.80
    includes 106.68 108.20 1.52 2.17
TF-650 85.34 73.15 83.82 10.67 0.74
TF-651 100.58 0.00 10.67 10.67 0.85
    includes 3.05 4.57 1.52 3.65
    and 54.86 67.06 12.20 0.31
    and 88.39 100.58 12.19 4.39
    includes 89.92 91.44 1.52 6.83
    includes 92.96 94.49 1.53 5.10
    includes 94.49 96.01 1.52 3.93
    includes 96.01 97.54 1.53 3.60
    includes 97.54 99.06 1.52 3.65
    includes 99.06 100.58 1.52 9.07
TF-652 137.16 48.77 51.82 3.05 0.47
    and 53.34 54.86 1.52 2.97
    and 96.01 117.35 21.34 2.52
    includes 96.01 97.54 1.53 5.60
    includes 97.54 99.06 1.52 14.43
    includes 99.06 100.58 1.52 11.67

The table below highlights the better intercepts from the recently completed program at the northern portion of the pit:

Drill Intercepts on the Northern portion of the San Francisco Pit

    Drill Intersections
Drill Hole Number Depth (m) From (m) To (m) Width (m) Au g/t
TF-724 121.92 9.14 12.19 3.05 2.700
    includes 10.67 12.19 1.52 4.640
    and 24.38 27.43 3.05 0.740
    and 33.53 41.15 7.62 0.900
    and 47.24 51.82 4.58 1.090
    and 56.39 62.48 6.09 0.670
    and 91.44 94.49 3.05 1.050
    and 96.01 121.92 25.91 1.260
    includes 97.54 99.06 1.52 2.260
    includes 99.06 100.58 1.52 2.650
    includes 108.20 109.73 1.53 7.420
    includes 117.35 118.87 1.52 2.480
TF-725 131.06 53.34 64.01 10.67 6.390
    includes 57.91 59.44 1.53 40.730
    and 70.10 80.77 10.67 0.280
TF-726 82.29 0.00 6.10 6.10 0.360
    and 27.43 33.53 6.10 2.000
    includes 27.43 28.96 1.53 6.410
    and 70.10 74.68 4.58 0.950
TF-728 70.1 0.00 7.62 7.62 0.600
    and 30.48 35.05 4.57 1.260
    and 36.58 41.15 4.57 3.460
    includes 38.10 39.62 1.52 2.360
    includes 39.62 41.15 1.53 7.850
    and 50.29 53.34 3.05 0.440
    and 64.01 70.10 6.09 0.690
TF-733 100.58 1.52 4.57 3.05 0.210
    and 82.30 83.82 1.52 2.250
    and 85.34 91.44 6.10 1.120
    Includes 88.39 89.92 1.53 3.010

Information from the total of over 25,000 meters of drilling is currently being processed to provide an update to the current resource estimate. A new reserve estimate will also be prepared.

The exploration success follows upon the commencement of commercial production at the San Francisco Mine in April 2010. First quarter sales from the mine were 11,319 ounces of gold. The size of the gold mineralization zone, its presence within large shear zones and the continuous nature of the gold within these zones form the basis of management's expectation that the ongoing program could lead to a significant increase in the mineral resource at San Francisco and could potentially also lead to the discovery of additional satellite deposits within the existing land package.

The samples collected during the drilling were prepared and assayed in the San Francisco Mine assay laboratory using fire assay and gravimetric finish. Strict sampling and QA-QC protocol were followed to ensure the best practices in sampling and analysis of the drill samples. Duplicates, standards and blanks were inserted into the sampling stream at intervals of 25 samples. A minimum of fifteen percent of the pulps assayed in the mine lab were also sent to IPL-Inspectorate Lab, for check assays and a minimum of ten per cent of the original samples assayed by IPL will be sent to other independent labs for check assays. The check assays were cross referenced to the mine assays and verified the results.

About Timmins Gold

Timmins Gold Corp is strategically positioned for gold production and development. In April 2010, Timmins Gold commenced commercial production at its wholly owned San Francisco gold mine in Sonora, Mexico. Timmins Gold has projected production at a rate in excess of 80,000 ounces of gold per year at a life of mine cash cost of approximately $412 per ounce. (Micon International Preliminary Feasibility Study, March 2008). 

This press release was reviewed and prepared by Lawrence A. Dick, Ph.D., P.Geo, a director of the Company, who is recognized as a Qualified Person under the guidelines of National Instrument 43-101 and by Miguel Soto, P. Geo., a director and the COO of the Company. For further information contact Timmins Gold Corp. at 604-682-4002 or go to the website at www.timminsgold.com.

On behalf of the Board:

Bruce Bragagnolo, LLB, Chief Executive Officer

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Timmins Gold does not intend to update any forward-looking statements to conform these statements to actual results.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information