Cortez Gold Corp.

Cortez Gold Corp.

August 29, 2011 15:25 ET

Cortez Gold Corp.: Further Clarification and Retraction of Previously Issued Technical Disclosure Regarding Petlacala and Real de Guadalupe Projects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2011) - Cortez Gold Corp (TSX VENTURE:CUT) ("Cortez" or the "Company") announces that, further to its news release of August 3, 2011 and as a result of a review by the British Columbia Securities Commission, the Company is issuing this news release to further clarify its disclosure and to retract certain historical technical disclosure regarding the Petlacala Project contained in its amended management discussion and analysis for the financial year ended February 28, 2011 that was filed on SEDAR at on August 2, 2011 (the "Amended 2011 MD&A").

The Amended 2011 MD&A continued disclosure of a 2005 estimate by the Exploration Department of Servicios Industriales Peñoles of a potential that the Company designated as being a historical estimate (the "Petlacala Historical Estimate Disclosure"), and which also applied the terms "potential resource" and "ore resources". The Petlacala Historical Estimate Disclosure does not comply with the historical estimates disclosure requirements set out in NI 43-101. The Petlacala Historical Estimate Disclosure contained in the Amended 2011 MD&A and any subsequent disclosure of the Company should not be relied on. The Company previously retracted the Petlacala Historical Estimates Disclosure in its August 3, 2011 news release, and the Company is further amending and re-filing the Amended 2011 MD&A to reflect such retraction. With this retraction of the Petlacala Historical Estimates Disclosure, the Company confirms that the technical report on the Petlacala Property dated July 16, 2010 that was filed on SEDAR at on July 19, 2010 (the "Petlacala Report") remains a current technical report under National Instrument 43-101.

At this time the Company does not have data and information about any historical resource estimates suitable for disclosure under NI 43-101. In the event the Company receives a material mineral resource estimate on any of its existing mineral properties, it will promptly disclose the results and file a supporting technical report if required by NI 43-101.

The Company has determined not to proceed with the Phase II program at this time. The exploration results from the Phase I drilling program, coupled with the significant property payments due, do not support proceeding with the proposed Phase II program. The Company intends to focus on whether an alternative exploration approach would be more effective, or whether opportunities for the joint venture or sale of its interest in the Petlacala property exists before determining whether to proceed with additional work on this property. In addition, after initial review of the technical information available on the Real de Guadalupe Property, the Company has determined that it will not proceed with any exploration on this property at this time. The Company is currently focusing on opportunities for the joint venture or sale of its interest in the Real de Guadalupe property. The Company intends to focus its efforts on the acquisition and development of the Matehuala, Mexico processing plant announced February 17, 2011. The Company is reviewing other opportunities for the Petlacala and Real de Guadalupe projects.

Piotr Lutynski, P. Eng., an independent consultant, is the qualified person (as defined in NI 43-101) who approved the scientific and technical information contained in this news release.

ON BEHALF OF THE BOARD of Cortez Gold Corp.

Robert Eadie, President & Chief Executive Officer

Neither the 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

  • Cortez Gold Corp.
    Robert Eadie
    President and CEO
    (604) 602-4935
    (604) 602-4936 (FAX)

    Cortez Gold Corp.
    Suite 750, 580 Hornby Street, Box 113
    Vancouver, British Columbia V6C 3B6