| September 29, 2008 |
| X-Cal Resources Ltd.: Results of Annual Meeting |
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 29, 2008) - X-Cal Resources Ltd. (TSX:XCL) -
The Annual General Meeting of the Shareholders was held in Toronto, on September 26, 2008.
More than 96% of the votes cast at the meeting were in favor of the resolutions proposed by management. The board of directors was re-elected and all resolutions were passed. The total number of shares voted was 44,578,329 representing 32.5% of 136,926,323 issued shares.
X-Cal President, Shawn Kennedy noted that the new NI 43-101 Technical Report on the Sleeper Gold Project, located in Humboldt County, Nevada was filed to SEDAR on September 25, 2008 and is also available at www.x-cal.com.
Gold and Silver Resources with near term economic potential and exploration upside are evident in the document.
A permit application for a new heap leach pad and on site bulk testing, is recommended in the Technical Report, provided that a positive internal rate of return results from a proposed preliminary economic assessment.
The potential for renewed heap leaching at Sleeper is discussed in an appendix. The conclusions in the attached reference paper are encouraging. They are not in NI 43-101 format and should be considered historical (see appendix paper by Dr. E. Zoutomou in the Technical Report).
X-Cal carried out a sonic drill program on the heaps that collected material for assay and metallurgical work. The results of this work to date are encouraging and are also documented in the new Technical Report. The engineering work should be continued.
The economic potential of 583,000 ounces of inferred gold resource and 1,249,000 ounces of inferred silver resource, located in the Heap Leach Pads, becomes more attractive if this material can be blended with other, additional nearby resource.
The 2007 definition drilling program of the nearby Facilities Area resulted in an additional 220,000 ounces of "indicated gold resource" with an average grade of 0.686 g/t Au, and (plus) 370,000 ounces of "inferred gold resource" with an average grade of 0.587 g/t Au. The in-ground Facilities Area resources may be able to be blended with the Heaps resource, which is located in close proximity.
A new heap leach operation using a combination of the already mined resource in the Heaps and the in-ground Facilities resource should be considered.
A separate 130,000 ounces of inferred gold resource and 1,476,000 ounces of inferred silver resource are also above ground in tailings at Sleeper. This material is mentioned as part of inventory, but would likely require a different form of processing.
In addition to evaluating the potential for renewed heap leach operations at Sleeper, the possible benefits of a ramp to access higher-grade material at West Wood needs to be evaluated.
The West Wood area contains high-grade intercepts such as 110 ft averaging 21.72 g/t Au and 209 ft averaging 10.67g/t Au, which are listed in the 2007 X-Cal Annual Report.
A ramp could provide access to high-grade portions of the West Wood Resource for bulk sampling and new underground drill stations.
Sleeper is noted for some exceptional concentrations of gold. Potential revenue from shipping of bulk samples could be beneficial.
The West Wood area currently has an "indicated resource" of 380,000 ounces of gold with an average grade of 1.519 g/t Au and 1,750,000 ounces of silver with an average grade of 7.021 g/t Ag. Additionally, there is also a modest "inferred" gold and silver resource at West Wood, which is described in the Technical Report.
The requirement for step out and exploration drilling between the West Wood Area and the North West Target is apparent in the data. In light of the new geologic understanding, drilling of these areas should be a high priority.
The gold resource in the block model, both at West Wood and in the Facilities Area, conforms to the new understanding of mineralization controls at Sleeper. This knowledge should improve the success rate of both definition and exploration drilling.
The exploration upside of the Sleeper Gold District for new epithermal gold deposits is documented and very attractive.
The SW Target Area is 2 km long, located south west of the mine site. It is an example of a completely untested target, which is equal in area to the historic Sleeper mine site. SW is one of several areas, which illustrate the district scale potential of the Sleeper Gold Property.
Management wishes to thank shareholders who mailed in their votes and express appreciation to those who attended the meeting and voted in person. The very high percentage of the votes, which approved all resolutions, is noteworthy.
The Sleeper resource, Nevada location and the infrastructure are in contrast to X-Cal's market capitalization.
A comprehensive data package is being made available to mining companies, which includes the new block model of Sleeper gold and silver resource.
In addition to the Sleeper Gold Project, X-Cal also has well located properties in the Cortez Area and the Spring Valley Area in Nevada.
The contents of this release have been reviewed by Larry G. Martin CPG, who is a "Qualified Persons" as defined by NI 43-101. Mr. Martin is X-Cal's Senior Geologist.
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. The portion of 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.
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.
(1) 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. | |