Timmins Gold Intersects 19.81 meters of 5.08 gpt Gold in Ongoing Drill Program at San Francisco Mine
Timmins Gold Corp. (TMM, TSX-V) is pleased to announce that its ongoing
drill program continues to extend and expand the mineralization at the San
Francisco Gold Mine, located in the State of Sonora, Mexico. Highlights of
the assays received from the 18,366 meters of drilling completed during
January and February 2011 include 19.81 meters of 5.08 gpt gold in Hole TF-1058, 6.10 meters of 6.98 gpt gold in Hole TF-910, 3.05 meters of 17.19 gpt gold in hole TF-942, and 3.05 meters of
23.39 gpt gold in Hole TF-987 from the East
and Southeast Zone up to 100 meters from the currently planned pit limits.
The North and Northeast Zone returned assays of 10.67 meters of 4.12 gpt gold in Hole TF-1027, 4.57 meters of 3.92 gpt gold in Hole TF-1021 and 4.57 meters of 3.53 gpt gold in Hole TF-1024, also up to 100 meters from the
currently planned pit limits.
The large number of holes which returned anomalous gold values, when
combined with previous drill results indicate the
potential for expansion of the open pit beyond its current projected limit
and indicate that the mineralized system is now open in all directions
around the pit.
As a result of the success of the ongoing drill program, Timmins Gold has
contracted for six reverse circulation drill rigs and three core drill
rigs. Four of the reverse circulation rigs are currently on site and the
remainder will arrive on site by the end of the month. Two of the core rigs
are currently on site while the third will arrive before the end of the
month. By the end of March, the programmed rate of drilling will attain
30,000 meters per month of reverse circulation drilling and 5,000 meters of
core drilling. A new exploration assay laboratory and
sample preparation area are expected to be completed by August of
2011. The drill program and the new assay laboratory will be funded by cash
flow from operations.
Timmins Gold is currently drilling 500 meter holes from inside the pit and
around its periphery These will be the deepest holes drilled to date at the
San Francisco mine. The geological characteristics of the deposit indicate
that the gold mineralization is deep-seated, or mesothermal,
in origin. As such, it is hypothesized by management that the gold
mineralization has the potential to extend to depths much greater than the
140 meter deep present pit bottom where the tenor of mineralization remains
strong. In fact, there is no indication that the bottom of the mineralized
system has been reached or is being approached. As well, mesothermal systems, with their significant depth
extent, have the potential to transform into higher-grade
"feeder" systems with depth, wherein higher-grade, gold-bearing
vein systems at depth act as conduits for lower-grade, higher-level
mineralization.
The tables below highlights the better intercepts from the last two months
of drilling:
Drill Intercepts East and Southeast of the San Francisco Pit
Drill Hole Number
|
From
(m)
|
To
(m)
|
True Width
(m)
|
Au
(g/t)
|
TF-910
|
0.00
|
12.19
|
12.19
|
0.30
|
and
38.10
|
44.20
|
6.10
|
6.98
|
includes
38.10
|
39.62
|
1.52
|
10.49
|
includes
39.62
|
41.15
|
1.53
|
4.67
|
includes
41.15
|
42.67
|
1.52
|
12.23
|
TF-911
|
45.72
|
47.24
|
1.52
|
7.63
|
TF-922
|
65.53
|
71.63
|
6.10
|
2.04
|
includes
68.58
|
70.10
|
1.52
|
6.73
|
TF-926
|
114.30
|
120.40
|
6.10
|
1.63
|
includes
115.82
|
117.35
|
1.53
|
5.42
|
TF-942
|
15.24
|
18.29
|
3.05
|
17.19
|
includes
15.24
|
16.76
|
1.52
|
25.02
|
includes
16.76
|
18.29
|
1.53
|
9.37
|
TF-945
|
70.10
|
74.68
|
4.58
|
2.82
|
includes
70.10
|
71.63
|
1.53
|
6.30
|
includes
71.63
|
73.15
|
1.52
|
2.17
|
and
94.49
|
97.54
|
3.05
|
2.53
|
TF-947
|
9.14
|
10.67
|
1.53
|
0.33
|
and
42.67
|
45.72
|
3.05
|
3.78
|
includes
42.67
|
44.20
|
1.53
|
6.09
|
and
67.06
|
70.10
|
3.04
|
2.16
|
includes
68.58
|
70.10
|
1.52
|
4.16
|
and
92.96
|
100.58
|
7.62
|
0.51
|
TF-950
|
10.67
|
12.19
|
1.52
|
3.50
|
and
30.48
|
42.67
|
12.19
|
1.09
|
include
38.10
|
39.62
|
1.52
|
5.60
|
and
80.77
|
82.30
|
1.53
|
2.17
|
TF-960
|
0.00
|
4.57
|
4.57
|
2.11
|
includes
1.52
|
3.05
|
1.53
|
3.97
|
include
32.00
|
33.53
|
1.53
|
4.29
|
TF-987
|
41.15
|
42.67
|
1.52
|
1.03
|
and
70.10
|
73.15
|
3.05
|
1.27
|
includes
70.10
|
71.63
|
1.53
|
2.20
|
and
85.34
|
92.96
|
7.62
|
0.64
|
and
114.30
|
117.35
|
3.05
|
23.39
|
includes
114.30
|
115.82
|
1.52
|
45.70
|
TF-1001
|
16.76
|
22.86
|
6.10
|
2.35
|
includes
16.76
|
18.29
|
1.53
|
8.55
|
TF-1005
|
24.38
|
28.96
|
4.58
|
1.34
|
includes
25.91
|
27.43
|
1.52
|
3.71
|
Drill Intercepts North and NE of the San Francisco Pit
Drill Hole Number
|
From
(m)
|
To
(m)
|
True Width
(m)
|
Au
(g/t)
|
TF-1021
|
10.67
|
12.19
|
1.52
|
0.32
|
and 15.24
|
19.81
|
4.57
|
3.92
|
includes 16.76
|
18.29
|
1.53
|
9.53
|
TF-1024
|
71.63
|
76.20
|
4.57
|
3.53
|
includes 73.15
|
74.68
|
1.53
|
8.34
|
and 117.35
|
121.92
|
4.57
|
0.72
|
TF-1027
|
6.10
|
9.14
|
3.04
|
4.33
|
includes 6.10
|
7.62
|
1.52
|
6.81
|
and 83.82
|
94.49
|
10.67
|
4.12
|
includes 88.39
|
89.92
|
1.53
|
4.11
|
includes 89.92
|
91.44
|
1.52
|
21.16
|
and 96.01
|
100.58
|
4.57
|
1.07
|
includes 97.54
|
99.06
|
1.52
|
2.34
|
TF-1035
|
38.10
|
51.82
|
13.72
|
1.33
|
includes 38.10
|
39.62
|
1.52
|
5.38
|
includes 45.72
|
47.24
|
1.52
|
2.16
|
includes 50.29
|
51.82
|
1.53
|
2.89
|
and 128.02
|
131.06
|
3.04
|
1.06
|
TF-1053
|
88.39
|
91.44
|
3.05
|
2.05
|
includes 89.92
|
91.44
|
1.52
|
4.00
|
TF-1058
|
15.24
|
22.86
|
7.62
|
0.99
|
includes 15.24
|
16.76
|
1.52
|
2.04
|
includes 19.81
|
21.34
|
1.53
|
2.32
|
and 36.58
|
56.39
|
19.81
|
5.08
|
includes 38.10
|
39.62
|
1.52
|
9.15
|
includes 41.15
|
42.67
|
1.52
|
7.12
|
includes 48.77
|
50.29
|
1.52
|
38.22
|
includes 50.29
|
51.82
|
1.53
|
3.74
|
includes 51.82
|
53.34
|
1.52
|
2.15
|
includes 53.34
|
54.86
|
1.52
|
3.24
|
includes 60.96
|
62.48
|
1.52
|
0.61
|
TF-1059
|
68.58
|
71.63
|
3.05
|
0.25
|
and 74.68
|
83.82
|
9.14
|
1.58
|
includes 76.20
|
77.72
|
1.52
|
4.83
|
The exploration success follows upon the commencement of commercial
production at the San Francisco Mine in April 2010. The size of the gold
mineralization zone, its presence within large shear zones and the
continuous nature of the gold within these zones form the basis of
management's expectation that the ongoing drill program could lead to a
significant increase in the mineral resource at San Francisco and could
potentially also lead to the discovery of additional satellite deposits
within the existing land package.
The samples collected during the drilling were prepared and assayed in the
San Francisco Mine assay laboratory using fire assay and gravimetric
finish. Strict sampling and QA-QC protocol were followed to ensure the best
practices in sampling and analysis of the drill samples. Duplicates,
standards and blanks were inserted into the sampling stream at intervals of
25 samples. A minimum of fifteen percent of the pulps assayed in the mine
lab were also sent to IPL-Inspectorate Lab, for check assays and a minimum
of ten per cent of the original samples assayed by IPL will be sent to
other independent labs for check assays. The check assays were
cross-referenced to the mine assays and the results verified.
Important Information
This press release does not constitute an offer to sell or the solicitation
of an offer to buy any securities or a solicitation of any vote or
approval. This press release relates to a business combination transaction
with Capital Gold proposed by Timmins Gold. This material is not a
substitute for the prospectus/offer to exchange Timmins Gold has filed with
the SEC regarding the exchange offer and will send or give to Capital Gold
shareholders when the exchange offer is commenced or for any other document
which Timmins Gold may file with the SEC and Canadian securities regulators
and send to Timmins Gold or Capital Gold shareholders in connection with
the exchange offer. INVESTORS AND SECURITY HOLDERS OF TIMMINS GOLD AND
CAPITAL GOLD ARE URGED TO READ THE PROSPECTUS/OFFER TO EXCHANGE AND ANY
OTHER DOCUMENTS FILED WITH THE SEC AND CANADIAN SECURITIES REGULATORS
CAREFULLY IN THEIR ENTIRETY, BECAUSE THEY CONTAIN IMPORTANT INFORMATION
ABOUT THE EXCHANGE OFFER. Such documents, as well as solicitation
statements relating to the Consent Solicitation and the Proxy Solicitation,
are available free of charge through the web site maintained by the SEC at www.sec.gov, by calling the SEC at telephone number 800-SEC-0330, or at the web
site maintained by the Canadian securities regulators at www.sedar.com, or by directing a request to Timmins Gold at Suite 520-609
Granville Street, Vancouver, BC, Canada V7Y-1G5 or at www.timminsgold.com.
Timmins Gold and its directors and executive officers and other persons may
be deemed to be participants in any solicitation of proxies from Capital
Gold's shareholders in respect of the proposed transaction with Capital
Gold. Information regarding Timmins Gold's directors and executive officers
is available in a prospectus/proxy statement Timmins Gold filed with the
SEC regarding the proposed transaction. Other information regarding
potential participants in such proxy solicitation and a description of
their direct and indirect interests, by security holdings or otherwise,
will be contained in any proxy statement or other documents filed with the
SEC and Canadian securities regulators in connection with the proposed
transaction.
About Timmins Gold
Timmins Gold Corp is a gold production and development company. In April
2010, Timmins Gold commenced commercial production at its wholly owned San
Francisco gold mine in Sonora, Mexico. Timmins Gold has projected production
at a rate of approximately 100,000 ounces of gold per year at a life of
mine cash cost of approximately $489 per ounce. (Micon
International Preliminary Feasibility Study, November 2010).
This press release was reviewed and prepared by Lawrence A. Dick, Ph.D., P.Geo, a director of the Company, who is recognized as
a Qualified Person under the guidelines of National Instrument 43-101 and
by Miguel Soto, P. Geo., a director and the COO of the Company. For further
information contact Timmins Gold Corp. at 604-682-4002 or go to the website
at www.timminsgold.com.
On behalf of the Board:
Bruce Bragagnolo, LLB
Chief Executive Officer
604-638-8980
bruce@timminsgold.com
Neither 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
accuracy of this release.
This News Release contains forward-looking statements. Forward-looking
statements are statements which relate to future events. Such statements
include estimates, forecasts and statements as to management's expectations
with respect to, among other things, business and financial prospects,
financial multiples and accretion estimates, future trends, plans,
strategies, objectives and expectations, including with respect to
production, exploration drilling, exploitation activities and events or
future operations. Information inferred from the interpretation of drilling
results and information concerning mineral resource estimates may also be
deemed to be forward-looking statements, as it constitutes a prediction of
what might be found to be present when, and if, a project is actually developed.
In some cases, you can identify forward-looking statements by
terminology such as "may", "should",
"expects", "plans, "anticipates", believes",
"estimates", "predicts", "potential", or
"continue" or the negative of these terms or other comparable terminology.
These statements are only predictions and involve known and unknown risks,
uncertainties and other factors that may cause our or our industry's actual
results, level of activity, performance or achievements to be materially
different from any future results, levels of activity, performance, or
achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which
they are based, are made in good faith and reflect our current judgment
regarding the direction of our business, actual results will almost always
vary, sometimes materially, from any estimates, predictions, projections,
assumptions or other future performance suggestions herein. Except as
required by applicable law, Timmins Gold does not intend to update any
forward-looking statements to conform these statements to actual results.
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