VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 8, 2010) - Extorre Gold Mines Limited (TSX:XG) (FRANKFURT:E1R) (OTCQX:EXGMF) ("Extorre" or the "Company") has engaged GR Engineering Services Pty Ltd ("GRES") of Perth, Australia, an internationally recognised engineering firm, to carry out the pre-feasibility study ("PFS") on its Cerro Moro gold-silver project in Santa Cruz Province, Argentina. The PFS is expected to be completed to a standard that will allow the Extorre board to make a development decision.
The study will consider the development of an 8 year, 750 metric tons/day mine producing 133,500 ounces gold equivalent* annually for the first 5 years. The delivery date for the study is scheduled for Q2-2011.
GRES has excellent experience in feasibility studies, detailed engineering engagements and EPC / EPCM contracts on both small and medium scale precious and base metals projects. In 2008 GRES designed, constructed and commissioned the Higginsville Gold Mine in Western Australia, a very successful on time/on budget project for Avoca Resources.
Eric Roth, Extorre's CEO said, "GRES is well suited to perform the Cerro Moro PFS, and importantly has undertaken to complete the study within 6 months. The level of engineering requested by Extorre is to a level that will enable the project to proceed directly to a construction decision and detailed engineering. As Extorre has already submitted an Environmental Impact Assessment report to Provincial authorities, the Board is optimistic that a decision to proceed with commercial development could be made by June 30, 2011.
"The commencement of the PFS process is clearly a milestone for Extorre. Importantly however, we will maintain an aggressive discovery drilling program through 2011 and 2012. This four rig program is designed to increase the resource base and to bring such new resources into the current mining plan or such expanded plan as results dictate."
The decision to proceed to the PFS stage follows the October 19, 2010 Preliminary Economic Assessment ("PEA") which indicated potential for a very low cost combined open pit/underground gold-silver mine. This PEA has now been filed on SEDAR and is publicly available for review. The PEA was based on the following main parameters:
Qualified Persons Statement
Mr. Eric Roth, President and CEO of Extorre Gold Mines Ltd, is the qualified person as defined in NI 43-101 and is responsible for preparing the information contained in this news release.
About Extorre
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 $47 million in cash, the Cerro Morro and Don Sixto projects, and other mineral exploration properties in Argentina.
On April 19, 2010, Extorre announced an updated National 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.
* Gold equivalent grade / resource is calculated by dividing the silver assay/ resource result by 60, adding it to the gold value and assuming 100% metallurgical recovery.
You are invited to visit the Extorre web site at www.extorre.com.
EXTORRE GOLD MINES LIMITED
Eric Roth, President and CEO
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, including our 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 normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures.
NEITHER THE TSX NOR ITS REGULATION 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.
For more information, please contact
Extorre Gold Mines Limited
Rob Grey
VP Corporate Communications
604.681.9512 or Toll Free: 1.888.688.9512
604.688.9532 (FAX)
extorre@extorre.com
www.extorre.com
orThe study will consider the development of an 8 year, 750 metric tons/day mine producing 133,500 ounces gold equivalent* annually for the first 5 years. The delivery date for the study is scheduled for Q2-2011.
GRES has excellent experience in feasibility studies, detailed engineering engagements and EPC / EPCM contracts on both small and medium scale precious and base metals projects. In 2008 GRES designed, constructed and commissioned the Higginsville Gold Mine in Western Australia, a very successful on time/on budget project for Avoca Resources.
Eric Roth, Extorre's CEO said, "GRES is well suited to perform the Cerro Moro PFS, and importantly has undertaken to complete the study within 6 months. The level of engineering requested by Extorre is to a level that will enable the project to proceed directly to a construction decision and detailed engineering. As Extorre has already submitted an Environmental Impact Assessment report to Provincial authorities, the Board is optimistic that a decision to proceed with commercial development could be made by June 30, 2011.
"The commencement of the PFS process is clearly a milestone for Extorre. Importantly however, we will maintain an aggressive discovery drilling program through 2011 and 2012. This four rig program is designed to increase the resource base and to bring such new resources into the current mining plan or such expanded plan as results dictate."
The decision to proceed to the PFS stage follows the October 19, 2010 Preliminary Economic Assessment ("PEA") which indicated potential for a very low cost combined open pit/underground gold-silver mine. This PEA has now been filed on SEDAR and is publicly available for review. The PEA was based on the following main parameters:
Qualified Persons Statement
Mr. Eric Roth, President and CEO of Extorre Gold Mines Ltd, is the qualified person as defined in NI 43-101 and is responsible for preparing the information contained in this news release.
About Extorre
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 $47 million in cash, the Cerro Morro and Don Sixto projects, and other mineral exploration properties in Argentina.
On April 19, 2010, Extorre announced an updated National 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.
* Gold equivalent grade / resource is calculated by dividing the silver assay/ resource result by 60, adding it to the gold value and assuming 100% metallurgical recovery.
You are invited to visit the Extorre web site at www.extorre.com.
EXTORRE GOLD MINES LIMITED
Eric Roth, President and CEO
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, including our 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 normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures.
NEITHER THE TSX NOR ITS REGULATION 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.
For more information, please contact
Extorre Gold Mines Limited
Rob Grey
VP Corporate Communications
604.681.9512 or Toll Free: 1.888.688.9512
604.688.9532 (FAX)
extorre@extorre.com
www.extorre.com
Extorre Gold Mines Limited
Suite 1260, 999 West Hastings St.
Vancouver, BC Canada V6C 2W2
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