Xmet Inc.

Xmet Inc.

October 25, 2011 14:08 ET

Xmet Files NI 43-101 Report Confirming 56% Increase in Gold Resource on Duquesne-Ottoman

TORONTO, ONTARIO--(Marketwire - Oct. 25, 2011) - Xmet Inc. (TSX VENTURE:XME) is pleased to report that the updated National Instrument (NI) 43-101 compliant Mineral Resource estimate for Duquesne-Ottoman Property is now published on SEDAR and can be viewed at www.sedar.com. Highlights of the new NI 43-101 Duquesne-Ottoman Resource estimate, prepared by Watts, Griffis McOuat Limited ("WGM") include:

  • Inferred Resources of 4,171,000 tonnes at an average grade of 5.42 g/t Au (6.36 g/t Au uncut) hosting 727,000 ounces Au cut (853,000 uncut ounces Au)

Further details of the resource estimate can be reviewed in Xmet's news release dated September 8th, 2011 on Xmet's website at www.xmet.ca. The publication of this 727,000 ounces gold cut (853,000 uncut ounces Au) resource represents a 56% increase in NI 43-101 compliant mineral resource from the previous historical resource estimate completed in 2010 by Reddick Consultants Inc (RCI). This high grade resource is ideally located within the mature Rouyn-Noranda Abitibi mining camp and is well established with excellent infrastructure, nearby hydro electric power and milling facilities in Quebec, ranked by the Fraser Institute as one of the most favourable jurisdiction in the world for new mine development.

The updated NI 43-101 resource prepared by WGM incorporated Xmet's previously reported drill results from the 13,000 meter, Phase-1 drilling program that concluded in April, 2011. Bill Yeomans, Senior Vice President Exploration, stated, "The Phase 1 drill program was completed for CDN $ 1.3 million and added 328,000 ounces of gold to the historical RCI resource estimate at an average discovery cost of less than CDN $4.00 per ounce, well below the current industry average. A Phase 2, 7,000 meter drilling program commenced on the property six weeks ago, targeting further resource expansion of the current WGM resource, with two drills operating on the property at this time. New drill results will be reported as they become available."

Resource Statement

A total of 22,749 samples in 135 drill holes, representing approximately 66,750 metres of drilling were used for the estimate. All the drilling used for the estimate was done in the period from 1994 – April, 2011, although older drilling which could not be validated also occurs in the area of the resources. Earlier holes were drilled by Santa Fe Canadian Mining Ltd., Kinross Gold Corporation, Queenston Mining Inc. and Diadem Resources Ltd. The Mineral Resource is constrained by limiting intervals to interpreted, multiple zones that demonstrate continuity of mineralization along strike and down-dip between adjacent drill holes. Metal grades were interpolated using polygons with a maximum radius of 60m using a polygonal estimation method. Metal prices of US$960 per troy ounce of gold, based on the three year trailing average, were used to estimate cut-off grade values for the estimate. Individual zones were modelled that reflected the continuous nature of gold mineralisation in a number of different zones.

Mineral Resources were classified as Inferred in each zone if:

a) the composited interval for a zone had a minimum grade of 3.0 gpt Au (cut) and a minimum horizontal width of 2.5 m; and either
b) a polygon meeting the above criteria was also contiguous with another polygon for the same zone that also met the minimum grade and width criteria; or
c) for isolated polygons; if they occurred up or down dip and along the interpreted plunge line of the zones.

Assay grades were composited to a minimum of 2.5m horizontal width based on the interpreted dip of the zones prior to resource estimation. Unsampled intervals were included in the composites at nil grades. A top cut of 30 g/t Au was applied to the assays before calculation of composite grades on the basis of statistical analysis. The gold grade cut-off value, at 3.0 g/t Au, is based on the assumption that the deposit is of a potential size and nature to allow for possible underground mining. The cut-off value of 3.0 g/t Au was derived from recent technical reports filed on SEDAR and in-house technical data from RCI for similar deposit types. Specific Gravity used in these estimates was 2.70. Recoveries are assumed to be 100%.

The mineral resource estimates which are effective today were completed by Kurt Breede, P.Eng., Senior Resource Engineer and Vice President, Marketing of Watts, Griffis McOuat Limited ("WGM") Consulting Geologists and Engineers of Toronto, Canada, and are based on geological interpretations and data supplied by the Company to WGM and modified by WGM. Kurt Breede is an 'independent qualified persons' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and has verified the data disclosed in this release. David Power-Fardy, M.Sc. P.Geo, Senior Geologist, WGM is qualified as an 'independent qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, has verified the sampling procedures and QA/QC data delivered to WGM and is of the opinion that the data are of good quality and suitable for use in the resource estimates.

About Xmet Inc

Xmet Inc., through its wholly-owned subsidiary Duquesne-Ottoman Mines Inc. ("Duquesne-Ottoman Mines"), carries out gold resource exploration and development. Pursuant to the terms of a mining option agreement between Duquesne-Ottoman Mines and Duparquet Assets Ltd., Duquesne-Ottoman Mines can earn an option to purchase 75% of the common shares in the capital of Duparquet Assets Ltd, which legally and beneficially owns 20 claims (commonly referred to as Duquesne West) and 40 claims (commonly referred to as Ottoman) covering an area of 928.6 hectares located approximately 30 kilometres north of the city of Rouyn-Noranda and 10 kilometres east of the village of Duparquet within the townships of Duparquet and Destor in the Province of Quebec.

Mr. Bill Yeomans, P.Geo., Xmet's Senior Vice-President Exploration, Director, is the designated Qualified Person responsible for this release.

To view property map, please visit the following link: http://media3.marketwire.com/docs/xmet.pdf

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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