Latest Drill Results underline potential of Extorre’s Cero Moro Gabriela Vein

Yesterday, Extorre Gold Mines (TSX: XG, OTC: EXGMF) reported that the latest drilling results from their flagship Cero Moro Project have confirmed major extensions of gold and silver mineralisation at the Gabriela Vein. The results from 26 new drill holes on the vein have extended mineralisation by some 400 metres (1,312 feet) beyond the south eastern limit of the current NI 43-101 compliant inferred resource. This drilling is the first to be completed at Gabriela since 2008, and now bodes well for additional exploration efforts at the site. The news comes fresh on the back of the earlier finding this month of a new zone of mineralisation in the Martina Zone or Cero Moro.

In these latest results, 15 of the 26 diamond drill holes completed returned significant intercepts, ranging from a 7.13 metre intercept grading 3.1 grams per tonne (g/t) gold equivalent, to a 2.9 metre intercept grading 27.7g/t gold equivalent. Results from three additional holes are awaited. On the highlights in this latest batch of results, Extorre calls attention to several of the highest grade intercepts returned to date at Gabriela, including hole MD868, which intersected 2.93 metres (considering a 1g/t gold equivalent cut off) grading 4.1g/t gold and 469g/t silver (11.9g/t gold equivalent) and 2.19 metres grading 7.2g/t gold and 1,220g/t silver (27.6g/t gold equivalent).

Other highlights include hole MD875, which intersected 2.35 metres grading 6.9g/t gold and 986g/t silver (23.3g/t gold equivalent), and hole MD928, which intersected 2.89 metres grading 7.4g/t gold and 1,216g/t silver (27.7g/t gold equivalent).

Of the individual intercepts found from the drilling, the highest gold and silver grades found were 21.4g/t and 3,500g/t respectively, over a 0.3 metre length of hole MD868, at a depth of around 55 metres, giving a gold equivalent of 79.7g/t, or 2.3 ounces per tonne (oz/t).

Speaking of the significance of the Gabriela Vein, Eric Roth, Extorre’s President and CEO said “Gabriela is a key vein in the Cerro Moro vein field and, in contrast to the Escondida vein, is predominantly silver-rich. Results to date indicate that approximately 70% of the precious metal content of the Gabriela vein occurs as silver, whereas in the Escondida vein, silver accounts for around 40% of the total precious metal content of the vein”, adding “our current drill program at Gabriela has been successful in extending silver-gold mineralization over 400 metres to the south east, in addition to confirming the presence of higher grade silver-gold ore shoots within, and adjacent to, the relatively lower grade, potentially open pittable, Inferred Resource at Gabriela”.

Going forward, drill testing at the south eastern extension of the Gabriel vein, where it remains open at depth and along strike, is expected to continue during the second half of this year. The company is planning a quick development of the Cerro Moro project, with Roth suggesting development may potential commence in early 2011.

To this end, Extorre note the plant has been designed in a modular form to facilitate expansion, and this latest batch of drilling results will allow the company to increase gold and silver production as development continues.

The 100% owned Cerro Moro project is located within the Deseado Massif gold and silver mining district in north east Santa Cruz, approximately 70 kilometres southwest of the town and deep water port of Puerto Deseado.

Potential for the area can already be viewed by Extorre’s neighbours in the area (including AngloGold Ashanti and Pan American Silver), with three mines (Cerro Vanguardia, Manantial Espejo and San Jose) currently in operation in the Deseado Massif. These mines had a combined precious metal production in 2009 of 350,000 ounces of gold, and 12 million ounces of silver.

In April this year, Extorre announced the latest NI 43-101 compliant resource estimate for Gabriela, which showed an inferred resource of 521,000 tonnes grading 2.4g/t gold and 347g/t silver (for 40,000 ounces of gold and 5.8 million ounces of silver).

The company reiterated that the primary goal of the current diamond drill program at Gabriela is to increase the global gold-silver resource, with follow-up infill drilling designed to assist with the conversion of a portion of the gold-silver resource from the inferred to indicated resource category.

Extorre Gold Mines is a Canadian based exploration company, with a market capitalisation of C$188 million, a spin out from Exeter Resource Corporation that began independent trading in March this year.

  The company’s primary asset is the aforementioned high grade Cerro Moro Gold and Silver Project in Santa Cruz, Argentina, as well as the Don Sixto projects, and other mineral exploration properties in Argentina.