Timmins Gold Corp.

Timmins Gold Corp.

March 15, 2010 06:30 ET

Timmins Gold Corp.: Gold Mineralization Extended at San Francisco Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 15, 2010) - Timmins Gold Corp. (TSX VENTURE:TMM) is pleased to announce that an extension to gold mineralization at its San Francisco Mine has been confirmed by recent drilling. The recent drill program consisted of an 85 hole program totaling 6,750 meters of systematic surface reverse circulation drilling which was completed in January of 2010. The San Francisco Mine, which is 100 percent owned by Timmins Gold, is located in the northern Mexican State of Sonora. The purpose of the drill program was to confirm whether in-pit mineralization continues along the strike of a major gold-hosting structure outside of the confines of the currently planned pit limits.

During late 2009, drilling by the Company identified gold mineralization NW of the pit. The current program was designed to follow up on those positive results. The results of the drill program show that the gold mineralization continues NW for at least 200 meters beyond the currently planned pit limit and includes multiple intersections of gold mineralization consistent with the width and grade of mineralization which is contained within the San Francisco pit and which is included in the current mine plan.

The table below highlights the better intercepts from the recently completed program:

Hole Number   From (m)   To (m)   True Width (m)   Au g/t  
TF-173   54.00   57.00   3.04   1.73  
TF-240   1.52   10.50   9.00   1.01  
TF-260   100.00   103.50   3.00   3.02  
TF-261   Surface   15.00   15.00   1.16  
and   24.00   42.00   18.00   2.25  
TF-270   39.62   62.48   22.80   0.92  
TF-280   19.81   24.38   4.92   4.56  
and   60.96   64.00   3.04   3.83  
TF-289   27.43   35.05   7.60   3.22  

Holes testing whether this mineralization extends to the SW have also intersected mineralization. The major mineralized structure is now known to extend 650 meters at its widest dimension inside the pit plus 200 meters to the NW of the currently planned pit limit and also extends to the SW. This structural zone now presents high priority exploration targets which will be further explored by drilling with the objective of increasing the resource at the San Francisco Mine.

An updated resource estimate is expected in April, 2010.

This exploration success follows upon the completion of construction and successful commissioning of the process plant and first gold pour in late 2009. The size of the gold mineralization zone, its presence within large shear zones and the continuous nature of the gold within the zones form the basis of management's expectation that planned additional drilling 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.

A 50,000 meter drill program using two reverse circulation drill rigs has been designed to infill and extend upon the success of the recently completed program. A percentage of the drill program will also be used to explore extensions in the E-W direction and to test the depth extension of the mineralized zone.

All 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. Fifteen percent of the pulps were sent to IPL-Inspectorate Lab, an independent assay lab in Vancouver, Canada, 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. Focused solely in Mexico, Timmins Gold is currently ramping up to commercial production at its wholly owned San Francisco gold mine in Sonora, Mexico.

The mine is a past-producing open pit heap leach operation from which 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. 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.

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