An emerging Gold & Silver producer in Argentina
Extorre Gold Mines Limited is a Canadian public company listed on the Toronto Stock Exchange (TSX) under the symbol XG and the OTCQX in the United States under the symbol EXGMF. The Company intends to file a registration statement with the Securities and Exchange Commission and seek listing on the NYSE-Amex. The cash position on June 11, 2010 was $20 million.
Extorre is a spin-out from Exeter Resource Corporation (“Exeter”), a transaction that facilitated taking the high grade Cerro Moro Project to a mine development decision in 2010. Dr. Eric Roth is the new Chief Executive Officer and President.
Cerro Moro: Extorre’s Flagship Project
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. 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 updated resource model for the Escondida vein has been delivered to Extorre’s consultants, Santiago-based NCL Ingenieria y Construccion, for mine design and ore scheduling. The results will be used in a Preliminary Economic Assessment (PEA) for the project which is scheduled to be complete in Q3-2010. The PEA will provide estimated mine operating and capital costs for a potential 100,000 ounce gold equivalent per annum mine. The submission of an Environmental Impact Assessment to Provincial authorities for permitting is also scheduled for Q3-2010.
Three drill rigs are currently dedicated to expanding the near-mine gold-silver resources at Cerro Moro. The Escondida vein in particular, has significant potential for expansion both along strike and at depth. In addition, other veins on the property with high gold-silver grades have only been partially evaluated to date. Outside of the Cerro Moro project area, Extorre will also initiate drilling to realize the discovery potential of other properties in its portfolio.
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.
*refer to Extorre’s April 19, 2010 Press Release.
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