GFM Resources Limited

GFM Resources Limited

April 06, 2006 09:00 ET

GFM Commences Exploration Work at Atexcaco

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 6, 2006) - GFM Resources Limited (NEX:GFM.H) ("the Company") is pleased to announce the start of exploration activities at the Atexcaco volcanogenic massive sulphide ("VMS") project located in the state of Puebla, central Mexico.

The Company retained Canadian based Energold Drilling Corp. to carry out approximately 3,000 meters of diamond drilling in the immediate vicinity of the Aire Libre mine. Six targets representing potential extensions to historically mined mineralization, at depths ranging between 300 and 550 meters, were selected on the basis of detailed three dimensional modelling of the old mine workings, historical drilling and geological mapping. Core is being logged and split on site under the supervision of GFM Resources geologists. Samples are being prepared by ALS Chemex in Guadalajara, Mexico and then shipped to their facilities in Vancouver for analysis. The Company anticipates that this initial program of drilling will be completed by mid-June.

The Atexcaco project is divided into two distinct project areas, Aire Libre and Guadalupe. The Aire Libre VMS deposit was mined in the period between 1887 and 1939 by the Teziutlan Copper Company and then Asarco, with total historical production reported to have been about 2.3 million tonnes at a grade of 14% zinc, 3-10% copper, 5% lead, 100 grams silver per tonne and 2 grams gold per tonne. The Guadalupe project area, located approximately 10 kilometres northwest of Aire Libre, includes an exploration drift within which a VMS-style massive sulphide horizon is exposed, although there is no recorded production. Both areas are considered to have excellent potential for the discovery of an economic VMS deposit.


In August 2002, GFM engaged Mr. Chris Staargaard, P.Geo., as an independent consulting geologist to prepare a NI 43-101 compliant qualifying report on the Atexcaco VMS project and the proposed work program is based on the recommendations in his report. Mr. Staargaard has reviewed the contents of this news release and is serving as the Qualified Person as defined by NI 43-101.

Please refer to the Company's press release dated November 18, 2005, filed on SEDAR, for background information regarding the Atexcaco option agreement or at the Company's web site at

GFM Resources Limited is an emerging mineral exploration company focused on the acquisition and development of high-potential exploration properties in Mexico and Latin America. Its shares are listed on the NEX Board of the TSX Venture Exchange under the symbol GFM.H. The Company's majority shareholder, Grupo Ferrominero, S.A. de C.V. ("Grupo") is a private Mexican holding company that also controls Compania Minera Autlan S.A. de C.V. ("Autlan"), a company listed on the Mexican Stock exchange and active in manganese and ferroalloy operations in Mexico and South America. Grupo also controls other companies in domains such as electronics and investment banking.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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