An Emerging Gold & Silver Producer in Argentina
Extorre Gold Mines Limited is a Canadian public company listed under the symbol XG on the Toronto Stock Exchange (TSX) and the NYSE-AMEX Exchange.
Project Location Map
Cerro Moro Gold-Silver Project, Argentina (100% ownership)
Cerro Moro is Extorre's flagship gold-silver property located in mining friendly Santa Cruz Province. The exploration priority is to expand the known mineral resources with an aggressive +75,000 metres drilling campaign. Four drill rigs are currently operating at Cerro Moro. The Zoe structure has been tested for 2.2 kilometres of strike with significant mineralisation delineated over a 1.1 kilometre long zone. Low grade shallow holes will be followed up with deeper holes to test for high grade mineralised zones in the interval 150-250 metres below surface.
Much of a potential 4 kilometre long easterly strike length of the Zoe structure is covered by a veneer of younger (post mineralisation) volcanic rocks that have no geochemical signature. Detailed geophysics (ground magnetic and CSAMT surveys) are being completed by Extorre in this area in order to assist with prioritising drill targets in this area of “blind” mineralization.
Assays at the very high grade Zoe discover are up to 8.60 meters of 39.9 grams per tonne gold + 4056 grams per tonne silver (107.5 grams per tonne gold equivalent). See the press release dated May 4th, 2011 for more details.
On November 3rd, 2011 an updated NI 43-101 compliant mineral resource estimate was released for Cerro Moro:
Indicated Category: 1.35 million ounces gold equivalent* (2.4 MT at 7.4 g/t gold and 498 g/t silver, for a gold equivalent grade** of 17.4 g/t), plus
Inferred Category: 1.05 million ounces gold equivalent* (4.7 MT at 3.5 g/t gold and 172 g/t silver, for a gold equivalent grade** of 6.9 g/t gold).
The Indicated Category resource includes 757,000 oz gold equivalent* from the Escondida and Loma Escondida sectors at an average grade of 35 g/t gold equivalent*, and 267,000 oz gold equivalent* from Zoe at an average grade of 79 g/t gold equivalent*, grades that are considered exceptional by industry standards. The new resource included maiden mineral resources for the Zoe, Carla, Martina, and Esperanza Northwest-Nini sectors. The drill testing of further new targets at both the Cerro Moro project and on select Santa Cruz Regional prospects is ongoing.
Extorre released the results of an updated preliminary economic assessment ("PEA") of the Cerro Moro Project on April 2nd, 2012. The PEA highlighted the robust economics of a future mine expected to produce an average of 248,000 gold equivalent* ounces (123,125 oz. gold + of 6.25 Moz. silver) annually during the first 5 years of operations. The cash cost per ounce is estimated to be US$303 per ounce gold equivalent*. Initial CAPEX (Direct Costs) $US 207.3M + $US 39.6M VAT (VAT recoverable), Initial Indirect Costs (EPCM, owners’ costs, commissioning) $US 37.2M. The project economics were calculated using gold and silver prices of US$1320/ounce and US$26/ounce, respectively.
A Preliminary Economic Assessment (PEA) for Cerro Moro can be accessed from this website. The report provides estimated mine operating and capital costs for a potential 1300 tonne per day mine to deliver +248,000 ounces gold equivalent* per annum over the initial five years of operations. An Environmental Impact Assessment that incorporates a 750 tpd mining scenario was submitted to Provincial authorities in September 2010 and was approved in May 2011. The Santa Cruz Mines Ministry has indicated that the approval time for an addendum to expand throughput on an existing EIA is considerably shorter than that for a new EIA submission.
*Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery.
Cautionary Note: The Cerro Moro Preliminary Economic Assessment is by definition preliminary in nature as it includes some mineral resources that are too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as reserves at this time. As such there is no certainty that the preliminary assessment and project economics will be realized. A NI 43-101 Technical Report for the Cerro Moro PEA has been filed on SEDAR (www.sedar.com) and is posted on the Company’s website at www.extorre.com
Outside of the Cerro Moro project area, Extorre has completed drilling to realize the discovery potential of its 100% owned Falcon, Union Domes and Puntudo gold-silver properties.
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.
Latest news
- May 16 2012Extorre Reacts to Current Market Conditions and Announces Further High Grade Drilling Results at Cerro Moro
more 273kb - April 19 2012Extorre Comments on YPF Developments in Argentina
more 1745kb - April 16 2012Extorre Appoints Mr. Trevor Mulroney to President and Chief Executive Officer
more 175kb
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