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VANCOUVER, BRITISH
COLUMBIA--(Marketwire - March 8, 2010) - X-Cal's (TSX:XCL) Nevada Gold
properties are in areas that are known for commercial gold production.
The professionals involved in documenting X-Cal's properties are
pictured in a presentation at www.x-cal.com. Two members of the generative group have major Nevada Gold
Mines bearing their names.
The Sleeper Gold Property, located in Humboldt County has advanced. NI 43-101 gold and silver
resources at Sleeper have received a positive Preliminary Economic
Assessment.
Addition of a development team to build on the work of the generative
team is the next stage for this project. There are a number of parallel
discussions ongoing aimed at this objective.
Potential new operations at Sleeper should look at "all" gold
and silver bearing material.
Efficient heap leaching operations and concentration of sulphide ores
should be part of an overall development strategy for the Sleeper
district.
Historic mining at Sleeper profitably focused on milling of high-grade
ores. Historic heap leach operations were secondary and inefficient.
Treatment of sulphide ores by floatation was non-existent.
Substantially less then half of the gold mined and only a fraction of the
silver mined at Sleeper was recovered. Operations were carried by the
very high-grade gold ores, which formed part of the Sleeper gold and
silver deposit and achieved life of mine average cash cost of $158 per
ounce of gold.
New pods of Sleeper high-grade could become extreme bonus material if
renewed operations are based on efficient processing of the other types
of ore,which occur on the property.
Current NI 43-101 in-ground resources at Sleeper are 1.26 million
ounces ofgold and 13.26 million ounces of silver "indicated"
plus 1.24 million ounces of gold and 21.4 million ounces of silver,
which are "inferred".
The in ground "indicted" and the "inferred"
resources are based on approx 2,300 drill holes.
Above-ground NI 43-101 inventory at Sleeper is approximately 720,000
ounces of gold and 3.1 million ounces of silver.
A test heap leach to process a combination of the in-ground Facilities
AreaResource and the stockpile contained in the historic heaps is
recommended.
Preliminary economics also suggest that the precious metals inventory
in thetailings pond at Sleeper may be the basis for establishing a
profitable sulphideconcentration plant. Later processing of other
sulphide resources from theproperty could benefit. X-Cal is embarking
on a series of tests to determine if amarketable concentrate can be
produced.
The report recommends expanding in-ground resources adjacent to the pit
atSleeper by modeling of assayed drill data, which has yet to be
counted.
A chart on pg.144 of the Preliminary Economic Assessment illustrates
assayed drill data in proximity to the Sleeper pit to be modeled. The
chart demonstratesthat the NI 43-101 in-ground resources in the mine
site area are based on approximately 50% of the un-mined drill data.
Richard Sillitoe PhD is an authority on economic gold systems
worldwide.Dr. Sillitoe's January 2006 and August 2009 papers summarize
the exploration upside and near term production potential of the
Sleeper District. (The 2009 Sillitoe paper is an appendix to the
current NI 43-101 report on Sleeper and is also available at www.x-cal.com)
On page 8 of his 2009 Sleeper paper Dr Sillitoe comments, "The
Sleeper district might also be considered as a legitimate large-tonnage
low-grade exploration proposition at the current gold price." He
refers to a relevant historic gold endowment study by Placer Dome to
illustrate his point.
The historic Placer Dome calculations estimated the total gold and
silver content of the mined pits at Sleeper using 380,000 blast hole
assays from mining and also estimated the gold and silver content
outside of the mined area, in immediate proximity to the pit, based on
exploration drill data.
The historic calculations showed a large difference between the total
gold and silver content of the mined pits and the recorded production
figures for Sleeper and also outlined substantial un-mined
mineralization in proximity to the pits.
Since the time of the historic Placer Dome calculations, X-Cal and
associates have drilled more than 400 new holes in the mine site area.
X-Cal's drilling has documented NI 43-101 resource and resulted in a
new understanding of the mineral system at Sleeper.
The 2009 Sillitoe paper refers to Allied Nevada's Hycroft Gold Mine as
an example of current bulk mining, which is processing ore with grades
that were considered secondary, or ignored during initial operations at
Sleeper.
A large and robust major gold system occurs within X-Cal's 20,000 acre
Sleeper land holding. The potential for discovery of new gold deposits
is documented in current reports and geologic information systems.
The Sleeper District Data is separate from the mine site area data set.
The district data includes encouraging drill data, geochemical surveys,
rock samples, mapping and geophysical surveys which have defined
priority exploration targets for new deposits within the large claim
block.
The SW Target is an attractive example. SW is equal in size to the
Sleeper mine site area. The target is 2km in length, located approx
1.5km southwest of the Sleeper mine site.
The company's Cortez Area Properties and its Spring Valley area
property are also noteworthy.
Larry Kornze P. Eng who is a qualified person as defined by NI 43-101
has reviewed the contents of this release.
The preliminary economic assessment is preliminary in nature. The study
includes some inferred mineral resources which are considered too
speculative geologically to have the economic considerations applied to
them that would enable them to be categorized as reserves. There is no
certainty that the preliminary economic assessment will be realized.
Investors should note that mineral resources are not mineral reserves
and do not have demonstrated economic viability.
Quality control and data verification consistent with good industry
practice, including use of accredited labs for assays, insertion of
standards and check assays have been completed and are documented in
detail in the pending NI-43-101 technical report. Drill data
attributable to Amax and Placer Dome, which preceded NI-43-101, does
not have documentation for sample preparation, bagging, security, and
transportation practices. However, summary data sheets and summary
reports prepared by these companies and by the analytical labs are
available.
Cautionary Note to U.S. Investors concerning estimates of Measured,
Indicated and Inferred Resources: This press release uses the terms
"measured", "indicated" and "inferred"
"resources." We advise U.S. investors that while these terms
are recognized and required by Canadian regulations, the U.S.
Securities and Exchange Commission does not recognize them.
"Inferred resources" have a great amount of uncertainty as to
their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to a higher category. Under
Canadian rules, estimates of inferred mineral resources may not form
the basis of a feasibility study or prefeasibility studies, except in rare
cases. U.S. investors are cautioned not to assume that any part or all
of a measured, indicated or inferred resource exists or is economically
or legally mineable.
Caution Concerning Forward-Looking Statements
This release and related documents may contain certain
"forward-looking statements" including, but not limited to,
statements relating to interpretation of drilling results and potential
mineralization, future exploration work at the Sleeper Gold Project,
the Mill Creek Gold Project, the Reese River Project and the Spring
Valley Area Project and the expected results of this work. Forward
looking statements are statements that are not historical facts and are
subject to a variety of risks and uncertainties which could cause
actual events or results to differ materially from those reflected in
the forward-looking statements, including, without limitation: risks
related to fluctuations in gold prices; uncertainties related to
raising sufficient financing to fund the planned work in a timely
manner and on acceptable terms; changes in planned work resulting from
weather, logistical, technical or other factors; the possibility that
results of work will not fulfill expectations and realize the perceived
potential of the Sleeper Gold Project, the Mill Creek Gold Project, the
Reese River Project and the Spring Valley Area Project; uncertainties
involved in the interpretation of drilling results and other tests; the
possibility that required permits may not be obtained in a timely
manner or at all; risk of accidents, equipment breakdowns or other
unanticipated difficulties or interruptions; the possibility of cost
overruns or unanticipated expenses in the work program; the risk of
environmental contamination or damage resulting from the exploration
operations at the Sleeper Gold Project, the Mill Creek Gold Project,
the Reese River Project and the Spring Valley Area Project.
Forward-looking statements contained in this release and related
documents are based on the beliefs, estimates and opinions of management
on the date the statements are made. There can be no assurance that
such statements will prove accurate. Actual results may differ
materially from those anticipated or projected. X-Cal Resources Ltd.
and X-Cal USA, Inc. undertake no obligation to update these
forward-looking statements if management's beliefs, estimates or
opinions, or other factors, should change.
Shawn Kennedy, President
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