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Extorre
Gold Mines Limited (TSX:XG
- News; AMEX:XG - News; FRANKFURT:E1R - News; OTCQX:EXGMF)
("Exeter" or the "Company") is pleased to announce that
drilling is underway at its Union Domes gold project and its Cerro Puntudo silver project in Santa Cruz Province, Argentina.
Union Domes is located 18 km. south of the Company's Cerro Moro discovery,
whereas Cerro Puntudo is located 220 km. west of
Cerro Moro and immediately south of the Coeur d'Alene Mines/Mirasol Resources' Joaquin silver discovery.
Union Domes is a bulk tonnage gold-silver target related to a rhyolite dome complex. The Company has completed 8
diamond drill holes and expects to be able to report assays within 4 weeks.
Drilling is continuing.
At Cerro Puntudo, the Company is operating
one drill rig, with a second rig due to arrive shortly. The program will test
structures that are potential extensions to the high grade silver system on
the Joaquin property to the north. Potential extensions to both the La Marocha and the La Negra trends
have been defined on the basis of exploration that included geological
mapping, geochemistry and ground magnetics. Two
holes have been completed to date.
Separately, effective March 19, 2011, Cerro Vanguardia
("CVSA") has advised the Company that it has elected not to
exercise its back-in right on the Cerro Puntudo
silver and other regional projects in Santa Cruz Province that the Company
acquired from it. Extorre now owns 100% of the
projects and CVSA retains only a 2% net smelter return.
About Extorre
Extorre is
a Canadian public company that trades under the symbol "XG" on both
the Toronto Stock Exchange and the NYSE-Amex Exchange. Extorre's
assets comprise approximately $36 million in cash, the Cerro Morro and Don Sixto deposits, and a suite of very prospective mineral
exploration properties in Argentina.
On April 19, 2010, Extorre announced a National
Instrument 43-101 compliant mineral resource estimate for Cerro Moro:
Indicated Category: 357,000 oz. gold + 15.3 million oz. silver
(612,000 oz. gold equivalent(i)), plus Inferred
Category: 190,000 oz. gold + 12.0 million oz. silver (390,000 oz. gold
equivalent(i))
The 612,000 ounce gold equivalent(i) indicated resource, has an average grade of 32.3 g/t
gold equivalent(i), a grade considered exceptional
by industry standards. The silver contribution is high, accounting for
approximately 50% of the metal value. Additional inferred resources of
390,000 ounces gold equivalent(i)
are also reported from Cerro Moro.
On October 19, 2010 Extorre released the
results of a preliminary economic assessment ("PEA") of the Cerro
Moro Project. The PEA highlighted the robust economics of a future mine to
produce an average of 133,500 gold equivalent(i) ounces annually during the first 5 years of
operations. The cash cost per ounce (gold equivalent(i)) is estimated to be US$ 201 per ounce. Project CAPEX
has been estimated at US$ 131 million. The project economics were calculated
using gold and silver prices of US$ 950/ounce and US$ 16/ounce, respectively.
Extorre
has 6 drills rigs operating, four on the Cerro Moro property and two on
discovery drilling elsewhere in Santa Cruz Province.
(i)Gold equivalent grade is calculated by
dividing the silver assay or resource by 60, adding it to the gold value and
assuming 100% metallurgical recovery.
You are invited to visit the Extorre web
site at www.extorre.com.
EXTORRE GOLD MINES LIMITED
Eric Roth, President and CEO
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
PFS, 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)
Suite 1660, 999 West Hastings St.
Extorre Gold Mines Limited
Vancouver, BC Canada V6C 2W2
extorre@extorre.com
www.extorre.com
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