Tuesday, 6 March 2012

Extorre announces high-grade drill results at Cerro Moro

Extorre Gold Mines (TSE:XG)(AMEX:XG) said Monday it intersected more high-grade drill results at its Cerro Moro project in the Santa Cruz province of Argentina, particularly on the Zoe target.

Significant results from the 36 in-fill and step-out drill holes that the company completed at Zoe include MD1434A, which

intersected 2.5 metres grading 41.4 grams per tonne (g/t) gold and 2,234 g/t silver, including 108.1g/t gold and 5,812 g/t silver over 0.35 metres.

MD1447 hit 52.8 g/t gold and 4,299 g/t silver over 3.72 metres, including 1.37 metres at 131.4 g/t gold and 9,521 g/t silver, while MD1498 intersected 1.8 metres grading 13.1 g/t gold and 1,111 g/t silver, including 0.5 metres grading 25.1 g/t gold and 1,641 g/t silver.

The assays are among the latest 83 received by the company from its drilling on Zoe and other veins at Cerro Moro. The Zoe vein drilling is part of a program designed to increase the density of drill holes within the known mineralized envelope.

MD1452, which intersected 4.52 metres at 8.2 g/t gold and 1,819 g/t silver, including 1.18 metres grading 27.9 g/t gold and 5,794 g/t silver, was collared just 60 metres vertically from surface, while MD1457, which intersected 1.5 metres grading 50.7 g/t gold and 6,426 g/t silver, including 137.0 g/t gold and 17,419 g/t silver over 0.54 metres, was collared only 40 metres vertically from surface.

Extorre also completed 47 drill holes throughout 19 prospects on the property. Ten of these prospects will require follow-up.

At the Mosquito prospect, which is located four kilometres north of the Escondida Far West area, MD1392 intersected 0.3 metres grading 8.0 g/t gold and 1,935 g/t silver, while MD1501 hit 1.7 metres at 0.7 g/t gold and 589 g/t silver, including 0.7 metres grading 1.33 g/t gold and 1,270 g/t silver.

Follow-up drilling has started at this prospect, with MD1542 intersecting visual silver and base metal mineralization, though
Extorre still awaits assays. Overall, the Mosquito vein structure is confirmed for over 600 metres in length, and remains open to the southeast.

Meanwhile, on the Carlita vein, MD1404A intersected 3.38 metres at 4.3 g/t gold and 46 g/t silver, while MD1490 on the Belen vein hit 1.3 g/t gold and 84 g/t silver over 4.0 metres.

On the Tres Lomas NW veins, MD1449 intersected 1.0 metre grading 19.4 g/t gold and 7.0 g/t silver, and on the Gabriela SE vein, MD1436 hit 1.75 metres at 14.0 g/t gold and 1,959 g/t silver, including 0.73 metres at 32.6 g/t gold and 4,556 g/t silver.

Extorre has scheduled the release of its preliminary economic assessment (PEA) for March 31. The PEA will include mineral resource estimates for the Escondida-Zoe, Loma Escondida, Gabriela, Nini-Esperanza, Carla and Deborah mineralized zones.

The latest PEA from August, which was based on a resource estimate from April that did not include results from the Zoe discovery, indicated a proposed mine production plan of 1,000 tonnes per day for a total of 206,300 ounces of gold equivalent per year for the first three years of an 8.25 year life, at a cash cost of US$236 per ounce of gold equivalent.

Four rigs remain active at Cerro Moro, devoted to both new resource and mine development-related drilling at the property. At Zoe, infill drilling is continuing to convert the inferred resources to the indicated category. Meanwhile, discovery-stage drilling at the Zoe East, Tres Lomas, Mosquito, Alejandra, and Carlita targets is progressing.

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