Press Release
$B!&(B XTIERRA INTERSECTS 11.5 g/t GOLD OVER 4 METRES AT EL DORADO
$B!&(B EXERCISES OPTION TO ACQUIRE EL DORADO PROJECT
Toronto, April 15, 2010, Xtierra Inc. (TSXV ? XAG) ($B!H(BXtierra$B!I(B or the $B!H(BCompany$B!I(B), reports that it has completed a preliminary diamond drilling programme at El Dorado which has resulted in the identification of several new vein structures, the intersection of significant gold and silver mineralization and the Company has exercised an option to acquire the El Dorado gold project located in the historic Pinos gold district within the Central Mexican Mineral Belt in southeastern Zacatecas.
Drill Results
Xtierra has completed a preliminary diamond drilling programme at El Dorado as part of its initial due diligence evaluation. Five inclined holes were drilled at angles between -35 and -45 degrees for a total of 1,384.55 metres, of which two holes were collared underground in the main El Dorado adit.
The number of mineralized veins identified on the property has been increased to twelve with a combined strike length in excess of 1,300m. The veins have a north-south orientation and trend parallel or sub-parallel with the main El Dorado gold-bearing structure. The veins are emplaced within a quartz-stockwork at the southern margin of a rhyolitic intrusive host. The drilling was carried out over a surface area of 600 m by 200 m along the stockwork contact and to a maximum vertical depth of about 200 m.
Some of the widths on the veins are significantly greater than had been anticipated with a zone of 7.80 m occurring in hole ED-1 averaging 4.72g/t gold on the Gavilan vein and a 4.00 m intersection averaging 11.55g/t gold on the newly found El Oro vein (hole ED-5). In addition, excavation of the drill pad in the underground adit on the El Dorado vein has demonstrated that the mineralized zone extends well into the hangingwall as evidenced by the discovery of an additional high grade vein containing 189.0 g/t gold within a 6.0 m wide zone of mineralization (previously reported March 4, 2010).
Of the two remaining, surface drill-holes, ED-4 was a stratigraphic hole in a separate area and was not expected to intersect auriferous vein structures. However, minor veinlets of anomalous gold in the 0.1-0.3 g/t gold range were encountered. This hole also intersected two zones of highly anomalous mercury content. The zones occurred in brecciated, carbonaceous limestone near the contact with tuffs. One zone of 35.0 m between 250.0 m and 285.0 m averaged 9.90g/t mercury and a zone of 6.0 m between 227.0 m and 233.0 m averaged 14.27 g/t mercury. Analytical results for drill-hole ED-6 are awaited.
The El Dorado project is at an early exploration phase and further work will have to be undertaken in order to ascertain the full potential of the prospect which has potential for high grade epithermal gold and silver veins as well as lower grade stockwork mineralization.
Commenting on the results of the initial exploration/drilling phase, Mr. Terence McKillen CEO of Xtierra Inc. said, $B!H(BThe results obtained from Xtierra$B!G(Bs preliminary due diligence work, including the results of the first few drill holes is very encouraging. The drilling demonstrates the presence of many additional vein systems parallel and sub-parallel to the original high grade El Dorado vein which is currently developed on a single adit level. Results indicate that the veins can vary from a few centimeters to almost 8 metres in width. The highly anomalous mercury levels detected over a width of 35 metres in hole ED-4 are very intriguing and may reflect mineralization at deeper levels.$B!I(B Mr. McKillen added, $B!H(BXtierra will allocate a significant budget to additional exploration work at El Dorado through the balance of 2010.$B!I(B
Analytical results are now available for the first four drill-holes. The main intersections of these are listed in the tables below.
Hole # | Inclination (degrees) | From (m) | To (m) | Interval (m) | Type | Gold (g/t) | Silver (g/t) | Correlation |
ED-1 | -30 | 0.00 | 4.00 | 4.00 | Vein | 1.05 | 17.10 | El Dorado Footwall |
underground | | 21.85 | 63.00 | 41.15 | Stockwork | 1.33 | 3.74 | Main Stockwork |
hole | | 49.20 | 57.00 | 7.80 | Vein + Stockwork | 4.72 | 14.83 | Gavilan Vein |
| | 80.00 | 85.00 | 5.00 | Stockwork | 0.30 | 0.60 | Dissemination |
| | 89.00 | 90.00 | 1.00 | Stockwork | 2.92 | 1.00 | Dissemination |
| | 95.00 | 97.00 | 2.00 | Veins | 1.36 | 0.50 | Polvorin Vein |
| | 114.00 | 115.00 | 1.00 | Stockwork | 0.96 | 0.00 | Dissemination |
| | 201.00 | 206.00 | 5.00 | Stockwork | 0.90 | 4.00 | Dissemination |
| | 201.00 | 202.00 | 1.00 | Dissemination | 1.36 | 8.00 | Pirules Vein + Disseminations |
| | 205.00 | 206.00 | 1.00 | Vein | 2.26 | 10.00 | Pirules Vein split |
| | 227.00 | 229.00 | 2.00 | Vein | 1.24 | 18.00 | Roble Vein |
Hole # | Inclination (degrees) | From (m) | To (m) | Interval (m) | Type | Gold (g/t) | Silver (g/t) | Correlation |
ED-3 | -45 | 40.60 | 43.00 | 2.40 | Vein | 1.48 | 34.00 | Pozo Vein |
surface | | 91.60 | 92.65 | 1.05 | | 1.39 | 6.00 | Roble hangingwall |
hole | | 96.50 | 97.70 | 1.20 | Vein | 13.04 | 73.33 | Roble Vein |
| | 143.60 | 145.00 | 1.40 | Vein | 2.06 | 2.57 | Pirules Vein |
| | 154.00 | 155.00 | 1.00 | Vein | 1.56 | 90.00 | Pirules Vein |
| | 155.00 | 156.00 | 1.00 | Vein | 0.04 | 121.00 | Pirules Vein |
| | 181.35 | 182.00 | 0.65 | Vein | 1.14 | 12.00 | Polvorin |
| | 326.00 | 327.00 | 1.00 | Veinlet | 0.002 | 73.00 | Calcite Vein |
Hole # | Inclination (degrees) | From (m) | To (m) | Interval (m) | Type | Gold (g/t) | Silver (g/t) | Correlation |
ED-5 | -30 | 17.00 | 18.00 | 1.00 | Vein | 1.50 | 0.78 | Nueva Vein |
underground | | 55.00 | 59.00 | 4.00 | Vein | 11.55 | 2.59 | El Oro Vein |
hole | | 119.00 | 120.50 | 1.50 | Vein | 0.81 | 4.72 | Lagarto Vein |
| | 139.75 | 141.00 | 1.25 | Vein | 2.48 | 1.32 | Coronado Vein |
| | 152.00 | 153.00 | 1.00 | Vein | 3.15 | 2.36 | Leonel Vein |
| | 159.00 | 161.00 | 2.00 | Fault | 1.19 | 8.25 | Fault Zone |
| | 254.20 | 254.60 | 0.40 | Breccia | 0.80 | 33.00 | Breccia Zone |
| | 301.00 | 301.60 | 0.60 | Fracture | 0.55 | 6.74 | Fractured Tuffs |
[Note: true thicknesses cannot be calculated on the basis of single hole intersections]
Samples were prepared at the Stewart Group laboratory in Zacatecas and fire assayed with AA finish ? (Au) and ICP ? (multi-element) by Stewart Group in Kamloops, British Columbia. Standards and blanks were used regularly for quality control.
Exercise of Option
Golden Dust S.A. de C.V., ($B!H(BGolden Dust$B!I(B) an indirect, wholly$B!>(Bowned subsidiary of Xtierra will acquire the interest in the El Dorado property by staged payments (all US Dollar amounts). Two payments totaling $42,558 have previously been made. With the election to purchase the property, Golden Dust has made a further payment of $83,023. The full purchase price will be satisfied by three additional equal payments of $268,217 due respectively on January 15 of 2014, 2015 and 2016, for a total consideration of $1 million. If Golden Dust completes a feasibility study and such study indicates a mineral reserve estimate containing between 250,001 and 500,000 ounces of gold, a bonus to the purchase price of $500,000 will be paid, or if such mineral reserve estimate is greater than 500,000 ounces of gold, a bonus purchase price of $1 million will be paid on the same staged basis as the three interim payments. The maximum purchase price to be paid is $2 million.
Qualified Person
Information of a scientific or technical nature contained in this release has been prepared by or under the supervision of Terence McKillen, P.Geo., the President & Chief Executive Officer of the Company, and the drilling program is under the supervision of Dr. Anthony Gallon, C.Eng., Chief Geologist, both of whom are $B!F(Bqualified persons$B!G(B within the meaning of National Instrument 43-101 ? Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.
About Xtierra Inc.
Xtierra Inc. is a Toronto based exploration and development company listed on the TSX Venture Exchange. Xtierra$B!G(Bs shares trade under the symbol $B!H(BXAG$B!I(B. Xtierra has 75,637,003 shares issued and outstanding. Xtierra is conducting a feasibility study on its Bilbao silver$B!>(Bzinc$B!>(Blead-copper project in Zacatecas, Mexico. Xtierra$B!G(Bs objective is to become a mid$B!>(Btier producer of precious and base metals through the development of its Bilbao project as well as through exploration, organic growth and M & A opportunities.
This news release may include certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization, resources and reserves, exploration results, and future plans and objectives of Xtierra, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Xtierra$B!G(Bs expectations are exploration risks detailed herein and from time to time in the filings made by Xtierra with securities regulators.
Neither the 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 the accuracy of this release.
For further information visit www.xtierra.ca or contact:
Terence N. McKillen, President & Chief Executive +1 (416) 362-8243
Tim Gallagher, Director +1 (416) 925-0090
Alejandro Alaniz, Director Finance & Administration (Mexico) + 52 (492) 925-0804
Brett Whitelaw +1 (778) 836-5891
We respect your privacy. If you wish to be removed from XAG email distribution list please reply to this email by typing $B!H(BUNSUBSCRIBE$B!I(B in the subject line and you will be removed from future mailings.