NEW DISCOVERY BY EXTORRE IN SANTA CRUZ PROVINCE, ARGENTINA
Vancouver, B.C., February22, 2011 –
Extorre Gold Mines Limited (TSX:XG, Frankfurt: E1R, OTC: EXGMF – “Extorre” or the “Company”)is pleased
to announce thediscovery drill results from reconnaissance drilling on the Falcon property, located 80
kilometres to the northwest of Cerro Moro, and 6 kilometres to the northeast of Mariana Resources’ Dos
Calandrias project. Four of five initial holes have intercepted broad zones of gold - silver
Hole FD004 intersected 53 metres(“m”) at1.12 grams per tonne
(“g/t”) gold + 30 g/t silver (1.62 g/t gold equivalent*).
Please find the table with the results
under the following link: http://www.irw-press.com/dokumente/Extorre-22211eng.pdf
Click Here for the
drill plan and section
The Falcon project
tenementscover an area of 13,986 hectares. Drilling to date has focused on the Crest target where
initial reconnaissance rock chip sampling of outcropping alteration returned anomalous gold and silver
assays. To assist with defining drill targets grid based surface sampling and a resistivity geophysical
survey were conducted. A broad zone of mineralization with a 400 metre strike length has been delineated
by this initial drilling program. Mineralization remainsopen in all directions and follow-up drilling is
proposed for next month. Mineralization comprises zones of silica-sulphide matrix breccia within a
broader disseminated mineralized halo associated with silica flooding.
A number of structural
targets are yet to be tested for potential high grade vein style mineralization. These targets have been
defined by combined surface mapping and rock chip sampling along with detailed ground magnetic
imagery.Further drilling on the Crest prospect will be aimed at assessing the continuity of higher grade
zones as well as extending the limits of the broader lower grade mineralized system. Deeper drilling at
Crest will aim at testing for blind high grade vein style mineralization.
Extorre’s Chief Geologist
Glen Van Kerkvoort commented “While four rigs remain dedicated to expanding the high grade resource at
Cerro Moro we have expanded the regional exploration team in order to intensify regional exploration,
whilst enabling the successful Cerro Moro team to remain focussed on exploration and development there.
Falcon is an exciting new project with some analogies to a lithological controlled system such as
deposits in the Ivanhoe mining district of northern Nevada.
“Both Mariana’s Dos Calandrias and
Extorre’s Falcon projects have opened the Deseado Massif to potential for large disseminated epithermal
deposits. A second drill rig has been contracted in order to enable the simultaneous drilling of both
the Puntudo and the Falcon properties.
“We have commenced metallurgical testwork of Falcon drillcore
to ascertain if the gold is likely to be recoverable by conventional extraction and leaching techniques.
We look forward toresults from the next drilling program at Falcon whereby we expect to gain better
information on the size and continuity of the gold mineralized zone”.
Extorre also completed a
drilling program on the Verde project located in the western part of the Deseado Massif and its FDB
project located 8 kilometres south of Falcon, with no significant results. Falcon was optioned from
Cerro Vanguardia S.A.(CVSA) along with the Puntudo, Verde and Azul properties and all of these are
subject to a once only back-in right, whereby CVSA has the right to earn up to a 70% interest in the
properties by paying Extorre a multiple of expenditure to date and financingExtorre’s share of
development costs. Contractual requirements which require CVSA to determine whether or not to exercise
their back-in right were triggeredearly this month, and CVSAis nowrequired to make that decision next
month.In the event that CVSA doesnot back-in, Extorre will retain a 100% ownership and CVSA will retain
a 2% NSR.
Quality Control and Assurance
Drill widths presented above are drill intersection widths
and may not represent the true widths of mineralization.
Gold assay results presented above are
preliminary with no cutting of high grades. All diamond drill core samples are split on regular metre
intervals or on geological contacts and represent sawn half HQ-size core.Reverse circulation drill
samples are collected using a cyclone in one metre intervals. Samples were prepared at the ALS
Laboratory(“ALS”) preparation facility in Mendoza, Argentina and assayed by fire assay (50 gram charge)
at the ALS laboratory in Chile.
Check assaying of all samples assaying greater than 1.0 g/t gold is
completed by ALS. Samples returning greater than 10 g/t gold and/or greater than 100 g/t silver are
assayed using gravimetric analyses. Standard and blank samples are used throughout the sample sequence
as checks for the diamond drilling reported in this release.
Glen Van Kerkvoort, Extorre’s Chief
Geologist and a “qualified person” within the definition of that term in National Instrument 43-101,
Standards of Disclosure for Mineral Projects, has supervised the preparation of the technical
information contained in this news release.
Extorre is a Canadian public company
listed on the Toronto Stock Exchange (symbol XG) and on the OTCQX (symbol EXGMF). Extorre’s assets
comprise approximately $40 million in cash, the Cerro Morro and Don Sixto projects, and other mineral
exploration properties in Argentina.
On April 19, 2010, Extorre announced aNational Instrument
43-101 compliant mineral resource estimate for Cerro Moro:
Indicated Category: 357,000 oz. gold +
15.3 million oz. silver (612,000 oz. gold equivalent*), plus Inferred Category: 190,000 oz. gold + 12.0
million oz. silver (390,000 oz. gold equivalent*)
The 612,000 ounce gold equivalent* indicated
resource, has an average grade of 32.3 g/t gold equivalent*, a grade considered exceptional by industry
standards. The silver contribution is high, accounting for over 40% of the metal value. Additional
inferred resources of 390,000 ounces gold equivalent* are also reported from Cerro Moro.
released the results of a preliminary economic assessment (“PEA”) of the Cerro Moro Project on October
19, 2010. The PEA highlighted the robust economics of a future mine expected to produce an average of
133,500 gold equivalent* ounces annually during the first 5 years of operations. The cash cost per ounce
(gold equivalent*) is estimated to be US$ 201 per ounce. Project CAPEX has been estimated at US$ 131
million (of which 21% is a VAT that is refundable after production commences). The project economics
were calculated using gold and silver prices of US$ 950/ounce and US$ 16/ounce, respectively.
Extorre submitted an Environmental Impact Assessment for the Cerro Moro mine development to Santa
Cruz Authorities on September 16, 2010. Mining permits and approvals for the mine are expected to be
received by the end of Q1-2011.
You are invited to visit the Extorre web site at
EXTORRE GOLD MINES LIMITED
For further information, please contact:
Rob Grey, VP Corporate
Tel: 604.681.9512 Fax: 604.688.9532
Suite 1260, 999 West
Vancouver, BC Canada V6C 2W2
Safe Harbour Statement – This news release contains
“forward-looking information” and “forward-looking statements” (together, the “forward-looking
statements”) within the meaning of applicable securities laws and the United States Private Securities
Litigation Reform Act of 1995, includingour belief as to the extent and timing of its drilling programs,
various studies including the PFS, and the Environmental Impact Assessment, and exploration results, the
potential tonnage, grades and content of deposits, timing, establishment and extent of resources
estimates, potential production from and viability of its properties, production costs and permitting
submission and timing. These forward-looking statements are made as of the date of this news release.
Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no
assurance that the future circumstances, outcomes or results anticipated in or implied by such
forward-looking statements will occur or that plans, intentions or expectations upon which the
forward-looking statements are based will occur. While we have based these forward-looking statements on
our expectations about future events as at the date that such statements were prepared, the statements
are not a guarantee that such future events will occur and are subject to risks, uncertainties,
assumptions and other factors which could cause events or outcomes to differ materially from those
expressed or implied by such forward-looking statements. Such factors and assumptions include, among
others, the effects of general economic conditions, the price of gold and silver, changing foreign
exchange rates and actions by government authorities, uncertainties associated with legal proceedings
and negotiations and misjudgments in the course of preparing forward-looking information. In addition,
there are known and unknown risk factors which could cause our actual results, performance or
achievements to differ materially from any future results, performance or achievements expressed or
implied by the forward-looking statements. Known risk factors include risks associated with project
development; the need for additional financing; operational risks associated with mining and mineral
processing; fluctuations in metal prices; title matters; uncertainties and risks related to carrying on
business in foreign countries; environmental liability claims and insurance; reliance on key personnel;
the potential for conflicts of interest among certain of our officers, directors or promoters of with
certain other projects; the absence of dividends; currency fluctuations; competition; dilution; the
volatility of the our common share price and volume; tax consequences to U.S. investors; and other risks
and uncertainties, including those relating to the Cerro Moro project and general risks associated with
the mineral exploration and development industry described in our interim financial statements and MD&A
for the fiscal period ended March 31, 2010 filed with the Canadian Securities Administrators and
available at www.sedar.com. Although we have attempted to identify important factors that could cause
actual actions, events or results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward-looking statements. We are
under no obligation to update or alter any forward-looking statements except as required under
applicable securities laws.
Cautionary Note to United States Investors - The information contained
herein and incorporated by reference herein has been prepared in accordance with the requirements of
Canadian securities laws, which differ from the requirements of United States securities laws. In
particular, the term “resource” does not equate to the term “reserve”. The Securities Exchange
Commission’s (the “SEC”) disclosure standards normally do not permit the inclusion of information
concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources”
or other descriptions of the amount of mineralization in mineral deposits that do not constitute
“reserves” by SEC standards, unless such information is required to be disclosed by the law of the
Company’s jurisdiction of incorporation or of a jurisdiction in which its securities are traded. U.S.
investors should also understand that “inferred mineral resources” have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and legal feasibility. Disclosure of
“contained ounces” is permitted disclosure under Canadian regulations; however, the SEC normallyonly
permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in
placetonnage and grade without reference to unit measures.
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SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX EXCHANGE) ACCEPTS RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE