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Extorre Gold Mines Limited (TSX:XG - News; FRANKFURT:E1R - News; OTCQX:EXGMF) -
("Extorre" or the "Company")
reports that it has granted an aggregate of 900,000 stock options to four
directors and seven officers exercisable at a price of Cdn$
6.80 for five years.
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 Cdn$ 44 million in cash, the Cerro Morro and Don Sixto projects, and other mineral exploration properties
in Argentina.
On April 19, 2010, Extorre
announced an updated 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(i)), plus
Inferred Category: 190,000 oz. gold + 12.0 million oz. silver
(390,000 oz. gold equivalent(i))
The 612,000 ounce gold equivalent(i) indicated
resource, has an average grade of 32.3 g/t gold equivalent(i), 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(i) are also reported from Cerro Moro.
Extorre released the results of a PEA of the
Cerro Moro Project on October 19, 2010. The PEA highlighted the robust
economics of the future Cerro Moro mine, in which an average of 133,500 gold
equivalent(i) ounces would be produced during the
first 5 years of operation at a cash cost of US$ 201 per ounce (net of silver
credits). Project CAPEX has been estimated at US$ 131 million (of which 21%
is tax that is refundable after production commences), with a payback period
of 1.8 years. The project economics were calculated using gold and silver
prices of US$ 950/ounce and US$ 16/ounce, respectively.
Extorre also submitted its Environmental Impact
Assessment for the Cerro Moro mine development to Santa Cruz Authorities on
September 16, 2010. Mining permits and approvals for the Cerro Moro 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.
EXTORRE GOLD MINES LIMITED Suite 1260, 999 West Hastings St.
Eric Roth, President and CEO Vancouver, BC Canada V6C 2W2
extorre@extorre.com
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 PEA 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.
NEITHER THE TSX NOR ITS REGULATION
SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS
RELEASE.
Contact:
Rob Grey
Extorre Gold Mines Limited
VP Corporate Communications
604.681.9512 or Toll-free: 1.888.688.9512
604.688.9532 (FAX)
www.extorre.com |
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