Monday, April 25, 2011
Extorre Makes Another Significant High Grade Gold-Silver Discovery At Cerro Moro
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Mr. Yale Simpson, Co-Chairman of Extorre Gold Mines talks about Extorre Gold Mines' newest bonanza grade discovery Zoe at the Cerro Moro Gold-Silver Project. The news of this discovery was released earlier in the week and Mr. Simpson goes through in-depth about this particular discovery and its impact on the project going forward.
He also takes the opportunity to talk about Extorre's other exciting regional projects that are just being drilled for the first time with results pending. This is the style of presentation you would expect Mr. Simpson to give at an international resource conference or to a broker or analyst reviewing the Company.
Extorre Gold Mines Limited is a Canadian public company listed on the Toronto Stock Exchange (TSX) under the symbol XG and the NYSE-AMEX under the symbol XG. The Cash position in April, 2011, was $33 million.
Cerro Moro: Extorre's Flagship Project
Extorre's priority is to expand its mineral resources at Cerro Moro with an aggressive drilling campaign of +100,000 meters. Four rigs are drilling at Cerro Moro now with two drill rigs focused on the recent Zoe Discovery. The bonanza grade Zoe Discovery has opened up +2km of new exploration ground on the Cerro Moro property where the company is focused on delineating new high-grade mineralization.
On April 19, 2010, Extorre announced an updated National Instrument 43-101 compliant mineral resource estimate for Cerro Moro:
Indicated: 357,000 Oz. Gold + 15.3 Million Oz. Silver (612,000 Oz. Gold Equivalent*)
Inferred: 190,000 Oz. Gold + 12.0 Million Oz. Silver (390,000 Oz. Gold Equivalent*)
The 612,000 ounce gold equivalent* indicated resource, entirely from the Escondida vein, has an average grade of 32.3 g/t gold equivalent*, a grade considered exceptional by industry standards. The silver contribution is high, accounting for over 40% of the metal value using 60:1 sliver to gold ratios; using a 50:1 ratio, the project becomes silver dominant. Additional inferred resources of 390,000 ounces gold equivalent* are also reported from the Escondida, Loma Escondida, Gabriela, Esperanza, and Deborah veins. This inferred resource contains new material not previously estimated.
The 43-101 report for the Preliminary Economic Assessment (PEA) for Cerro Moro can be accessed from this website and provides estimated mine operating and capital costs for a potential 750 tonne per day mine delivering +130,000 ounce gold equivalent per annum over the initial five years' operations. An Environmental Impact Assessment including this mining scenario is expected to be approved by permitting authorities in Q2, 2011.
Four drill rigs are currently dedicated to expanding the near-mine gold-silver resources at Cerro Moro, providing further high grade resources beyond year five in the currently planned mine schedule. The Escondida and the Gabriela veins together with the newly discovered Lucia vein all show significant potential for expansion both along strike and at depth. In addition, other veins on the property with high silver-gold grades will be tested as we move through Q1 in 2011. Outside of the Cerro Moro project area, Extorre will also initiate drilling to realize the discovery potential of other properties in its portfolio.
*refer to Extorre's April 19, 2010 Press Release.
On October 19, 2010 Extorre announced results for a preliminary economic assessment for Cerro Moro which outlined the following*: Life of Mine: 8 years Average Production: 133,500 ounces of gold equivalent per year for the first five years. Cash Cost: $201 per ounce gold equivalent Capital Expenditure: $131 million Start-Up: 2012
*See Extorre's press release dated October 19th, 2010.
Work on a Pre-feasibility study is underway.
Extorre owns 100% of the Don Sixto gold-silver deposit in Mendoza Province, Argentina. In June 2007, the Mendoza government passed legislation that restricts mining in Mendoza Province. The project has been placed on hold, although the Company is optimistic that in due course mining will be permitted for projects that can be demonstrated to be both economically viable and sustainable for communities.