Press Release
XTIERRA PLANS NEW DRILLING AT BILBAO
Toronto, May 4, 2010, Xtierra Inc. (TSXV ? XAG) ($B!H(BXtierra$B!I(B or the $B!H(BCompany$B!I(B), is pleased to announce that a new drilling program will commence at Bilbao during the second week of May. The program will comprise approximately 5,000 metres of core drilling in approximately 40 holes. The contract has been awarded to Intercore S. de R.L. de C.V.
The drilling will comprise four components: (1) step-out drilling to the south and southwest of the existing silver-zinc-lead-copper deposit to define additional sulphide resources and follow up previously intersected high silver vein mineralization; (2) in-fill drilling within the current resource to upgrade resource categorization and for geotechnical data; (3) condemnation drilling in the area of the proposed mine installations; and (4) initial exploration drilling at the Gaby Marina and Cata Negra prospects, both within 5km of Bilbao.
Step-Out Drilling
The planned step-out drilling will comprise 12 holes around the southern and southwestern margins of the existing Bilbao resource which remains open in that direction. In addition to the potential to discover additional sulphide resources, the drilling will follow up an intersection of high grade silver mineralization encountered in hole X-26 (previously reported 1.3kg/t Ag over 3m).
Infill Drilling
A further 12 large diameter holes will be drilled within the central part of the Bilbao deposit to better define the morphology and characteristics of the oxide resource within the area of the proposed open pit and to facilitate the reclassification of the oxide resources and reserves. Such holes will also form part of the geotechnical and rock mechanics studies.
Condemnation Drilling
Condemnation drilling will be carried out in areas proposed for the location of the process plant, tailings disposal, waste rock stockpiles and other site buildings to ensure there is no potential ore located beneath such infrastructure. Approximately 10 holes will be drilled.
Exploration Drilling
Recent exploration work in the Bilbao area has resulted in the discovery of several significant exploration targets that have not yet been tested by drilling. The Cata Negra and Gaby Marina prospects are located about 5 km east-southeast of the Bilbao deposit where geochemical sampling has outlined two distinct zinc-lead anomalies. Both are located on the eastern contact of the La Blanca granodiorite in a similar geological setting to that of the main Bilbao deposit (on the western contact) and are prospective for skarn-type precious and base metal replacement mineralization within the adjacent carbonate rocks. Extensive mineralized float has been located as well as significant zinc-lead soil geochemical anomalies outlined over 450-700 metres in length.
Several lead-zinc-silver geochemical anomalies along the limestone-granite contact have also been located at a third site, on the Bilbao II claims, located immediately east of the Bilbao deposit. An association with tin and tungsten anomalies suggests contact skarn mineralization may be present as at Bilbao. All three of these new targets will be subject to initial testing in the planned drill program.
Commenting on the resumption of drilling at Bilbao, Terence McKillen, CEO of Xtierra Inc. said, $B!H(BThis further phase of drilling is a logical next step for us in completing the feasibility study at Bilbao. It will give us the final inputs for optimizing economic studies and for final mine planning purposes. We are particularly keen to follow up on the high silver values encountered in the last phase of drilling and to carry out initial first drilling on three new targets located on the contact of the La Blanca granodiorite intrusive, in a similar geological setting to the Bilbao deposit.$B!I(B
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 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
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