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- Extorre Gold Mines Limited– ("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*), 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 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* 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.
For more information, please contact
Extorre Gold Mines Limited
Rob Grey
VP Corporate Communications
604.681.9512 or Toll-free: 1.888.688.9512
604.688.9532 (FAX)
www.extorre.com
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