Extorre Gold Mines Limited

Extorre Gold Mines Limited

February 07, 2011 09:01 ET

Extorre Extends High Grade Gold-Silver Zones at Cerro Moro

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 7, 2011) - Extorre Gold Mines Limited (TSX:XG) (FRANKFURT:E1R) (OTCQX:EXGMF) ("Extorre" or the "Company") is pleased to report that discovery drilling continues to extend gold-silver mineralization at its 100% owned Cerro Moro Project, in Santa Cruz Province, Argentina. The latest drilling has returned high grade to "bonanza" grade intersections from the Esperanza, Gabriela and Martina veins.

Highlights from the new drilling include a deep drill hole, MD1127 on the Martina vein. The most noteworthy intercepts from the program include:

MD1126 (Esperanza vein) intersected 1.90 metres ("m") at 12.2 grams per tonne ("g/t") gold + 1,079 g/t silver (30.2 g/t gold equivalent*) including 0.30 m at 31.1 g/t gold + 2,501 g/t silver (72.8 g/t gold equivalent*).

MD1127 (Martina vein) intersected 0.85m at 310.1 g/t gold + 5,295 g/t silver (313.8 g/t gold equivalent*).

MD1052 (Gabriela vein) intersected 4.46m at 10.3 g/t gold + 1,440 g/t silver (34.2 g/t gold equivalent*), including 1.13m at 36.8 g/t gold + 5,295 g/t silver (125.1 g/t gold equivalent*).

The 11 drill holes reported in this release represent the final results from 2010 drilling. 

Eric Roth, Extorre´s President and CEO, stated "The Company continues to advance the Cerro Moro pre-feasibility study, anticipating delivery by June 2011. Concurrently, we have initiated a 100,000 meter "discovery drilling" program to expand the high grade resources. With four rigs operating on a 24 hour a day basis, the contractors are exceeding 5,000 meters of drilling per month.

"The Esperanza vein has been tested previously by only limited drilling to a depth of approximately 80 metres (compared to 200 metres at Escondida and 160 metres at Gabriela, where drilling continues to return extensions to the resources). The latest Esperanza assays provide solid support for the presence of additional near surface gold-silver mineralization on the vein, particularly to the northwest of earlier drilling. Given the new results we have deferred in-fill drilling of the vein until we have more thoroughly evaluated the +2 kilometre long strike of the vein structure. Follow up drilling will also focus on testing the vein below 80 metres.

"A new Cerro Moro resource estimate update will be deferred to Q3-2011 to accommodate the new drilling at Martina, Gabriela and Esperanza."

Significant drilling results from the Esperanza vein (at 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)
MD1113 50.06 54.13 4.07 3.5 250 7.6 0.22
including 51.07 51.92 0.85 8.0 503 16.4 0.48
MD1115 40.70 46.00 5.30 2.7 253 6.9 0.20
including 41.53 42.10 0.57 5.2 481 13.2 0.38
and 43.20 44.68 1.48 4.7 389 11.2 0.33
MD1122 130.85 131.15 0.30 6.0 531 14.9 0.43
and 132.75 134.00 1.25 6.4 798 19.7 0.57
MD1126 62.20 64.10 1.90 12.2 1,079 30.2 0.88
including 62.20 62.50 0.30 31.1 2,501 72.8 2.11
and 96.80 97.40 0.60 10.8 1,293 32.4 0.94
including 96.80 97.10 0.30 21.0 2,487 62.5 1.81
MD1140 94.59 97.97 3.38 1.8 39 2.4 0.07

Significant drilling results from the Martina vein using a 4.0 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)
MD1111 192.20 193.00 0.80 6.5 3 6.6 0.19
MD1120A 234.40 235.10 0.70 6.3 282 11.0 0.32
MD1127 253.70 254.55 0.85 310.1 222 313.8 9.10

(Note: a higher cut-off grade is utilised at Martina due to the depth of the mineralization, where it is assumed that the vein will be only mined via underground methods).

Significant drilling results from Gabriela Extension using a 1.0 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)
MD1052 174.00 178.46 4.46 10.3 1,440 34.3 0.99
including 175.72 176.85 1.13 36.8 5,295 125.1 3.63
MD1060 218.30 221.40 3.10 2.6 434 9.8 0.28
including 219.20 219.55 0.35 8.8 1,288 30.3 0.88
MD1114 245.20 247.00 1.80 6.0 959 22.0 0.64
including 245.60 246.00 0.40 9.4 1,278 30.7 0.89

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

Recent drilling on the Lucia vein consisted of widely spaced holes over a two kilometre long strike length. 14 drill holes returned no significant values, diminishing the potential for shallow mineralization. In the short term follow up drilling has been deferred in favour of other targets.

Click Here for the long sections and plans

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 $42 million in cash, the Cerro Morro and Don Sixto projects, and other mineral exploration properties in Argentina. 

On April 19, 2010, Extorre announced a 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.

Extorre released the results of a preliminary economic assessment ("PEA") of the Cerro Moro Project on October 19, 2010. The PEA highlighted the robust economics of a future mine expected to produce an average of 133,500 gold equivalent* ounces annually during the first 5 years of operations. The cash cost per ounce (gold equivalent*) is estimated to be US$ 201 per ounce. Project CAPEX has been estimated at US$ 131 million (of which 21% is a VAT that is refundable after production commences). The project economics were calculated using gold and silver prices of US$ 950/ounce and US$ 16/ounce, respectively.

Extorre submitted an Environmental Impact Assessment for the Cerro Moro mine development to Santa Cruz Authorities on September 16, 2010. Mining permits and approvals for the mine are expected to be received by the end of Q1-2011.

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


Eric Roth, President and CEO

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 PFS, 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, production costs 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
    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