www.extorre.com
Extorre Gold Mines is an emerging gold & silver producer in Argentina, which is listed under the symbol XG on the Toronto Stock Exchange (TSX) and the NYSE-AMEX Exchange. The cash position on November 1, 2011, is $35 million. Cerro Moro is Extorre's flagship gold-silver property located in mining friendly Santa Cruz Province.
Extorre hits 227.3 g/t gold, 25,428 g/t silver over 1.36m at new Cerro Moro discovery
Extorre Gold Mines (TSE:XG)(AMEX:XG) said Tuesday that it has hit bonanza grade gold and silver in the first three diamond drill holes completed on the Zoe discovery at its Cerro Moro property in Santa Cruz, Argentina.
Highlights from the first three of 21 holes include 4.84 metres at 64.6 g/t gold and 7,530 g/t silver, including 1.36 metres at 227.3 g/t gold and 25,428 g/t silver, in hole MD1204. The intervals yield 190.1 g/t of gold equivalent and 651.1 g/t gold equivalent, respectively.
The company said that visual inspection of the core suggests that drilling has just entered the mineralized zone, and that mineralization continues at depth.
The Zoe discovery, interpreted to be some 2 kilometres in strike length, is situated on the Escondida structure, 2.5 kilometres east of the last known area of significant Escondida mineralization, known as the Martina shoot.
In addition to the bonanza grades seen in hole MD1204, Extorre said it also saw a dramatic increase in gold and silver grades in hole MD1196, which was a 40 metre step out of discovery hole MD1191.
MD1196 intersected 1.27 metres of 13.4 g/t gold and 1,750 g/t silver, or 42.6 g/t gold equivalent, including 0.75 metres of 21.9 g/t gold and 2,832 g/t silver, or 69.1 g/t gold equivalent.
"We have made another blind discovery of spectacular mineralization. The surface expression of Zoe is an outcrop that assays only 0.34 g/t gold and 115 g/t silver," said exploration manager, Mathew Williams.
Williams went on to say that the results support the company's decision to concentrate 50% of its drill rigs and team on the Zoe find. At present, two drill rigs are working on Zoe, with one focusing on 160-metre step outs, with the other drilling at 80 metre centres.
"Every effort will be made to ensure that this new discovery will be included in the revised resource scheduled for Q3 this year," added Williams.
In April last year, the company released an NI 43-101 compliant resource report for Cerro Moro, which estimated 357,000 ounces of gold and 15.3 million ounces of silver in the indicated category, plus 190,000 ounces of gold and 12.0 million ounces of silver in the inferred category.
A preliminary economic assessment for the project also projected a cash cost of US$201 per ounce of gold equivalent.
Aside from Cerro Moro, Extorre also holds the Don Sixto deposit, and a suite of mineral exploration properties in Argentina.
