- NI 43-101 RESOURCE ESTIMATE COMPLETED - STEP-OUT DRILLING EXTENDS MINERALIZED ZONE
TORONTO, Dec. 9 /CNW/ - Xtierra Inc. (TSXV - XAG) ("Xtierra"), is pleased to provide an update on its Bilbao Silver-Zinc-Lead-Copper Project in Zacatecas, Mexico.
Southampton Associates Inc. in a report dated, November 3, 2008, has provided the Company with an independent resource estimate in compliance with NI 43-101. This estimate is based on the first two phases of diamond drilling comprising over 11,000 metres. It does not include any additional mineralization encountered in the recently completed initial step-out drilling program.
A program of step-out drilling undertaken to evaluate a possible extension of the mineralized zone to the northwest has intersected additional mineralization and indicates that the known body of mineralization extends for at least a further 270 metres in that direction. The newly identified mineralization has not yet been added to the mineral resource estimate. The deposit also remains open to the south were additional step-out drilling is planned.
Resource Estimate -----------------
Southampton Associates have updated an earlier NI 43-101 Technical report on the Bilbao Project which now includes a NI 43-101 compliant resource estimate for sulphide, mixed and oxides resources in the indicated and inferred categories.
The resource estimate was completed by Mr. R.T.G. Parker, B.Sc., MIMMM, C.Eng., FGS, Senior Geological Associate, Southampton Associates using a manual method of estimation. A cut off value of 6% zinc equivalent using spot metal prices as of July 11, 2008.
Although metal prices have softened significantly in recent months, Southampton believes the long term outlook for metal prices is good. The current unprecedented period of uncertainty in the market place makes it impossible to determine when the situation will normalize. Southampton therefore believes that the metal prices presented in this estimate to establish metal equivalents are reasonable anticipating a normalization of the economy and supply and demand fundamentals over the next three to five years.
Gold and tin credits have not been included in the resource estimate.
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Metal Prices and Zinc Equivalents
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January November July 11th 2008:
2007 19th 2008 (used for present resource estimate)
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Zn
US$ per Equivalent
US$/lb US$/lb US$/lb US$/t percent %
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Zinc 1.97 0.53 0.91 2,007 20.1 1.00
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Copper 3.31 1.59 3.83 8,445 84.4 4.21
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Lead 0.78 0.57 0.88 1,940 19.4 0.97
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(ounce) (ounce)
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Silver 13.00 9.51 18.84
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(gram) (gram)
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Silver 0.42 0.31 0.61 605,720 0.61 0.0302
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Table 1: Metal Prices and Zinc Equivalent Values
The following table summarizes the results of the resource estimation and
dated July 11, 2008.
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Resource Zinc
Category Tonnage Zinc Lead Copper Silver Equivalent
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(tonnes) (%) (%) (%) (g/t) (%)
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Indicated
Resources 3,600,000 3.53 2.75 0.29 88.23 10.10
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Inferred
Resources 2,380,000 2.52 2.79 0.28 83.08 8.95
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Table 2: Summary of Resources by Category
Recent step-out drilling has extended the mineralized zones over 270
metres to the northwest and the deposit also remains open to the south. The
results of this recent drilling have not been included in the current resource
estimate.
Table 3 summarizes the resource estimation by resource category and by
mineral phase.
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Detailed Resource Category by Mineral Phase
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Resource Tonnes zinc lead copper silver
Category and ----------------------------------------------------------
Classification (%) (%) (%) (gpt)
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Indicated
Resources
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Oxide 1,030,000 2.35 3.10 0.39 85.08
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Mixed 757,000 3.52 2.70 0.21 88.67
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Sulphide 1,815,000 4.20 2.56 0.27 89.84
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TOTAL 3,601,000 3.53 2.75 0.29 88.23
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Inferred
Resources
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Oxide 1,324,000 2.28 2.86 0.31 84.55
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Mixed 516,000 2.58 2.94 0.25 89.14
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Sulphide 538,000 3.05 2.49 0.26 73.65
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TOTAL 2,378,000 2.52 2.79 0.28 83.08
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Detailed Resource Category by Mineral Phase
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Resource zinc lead copper silver
Category and -------------------------------------------
Classification (tonnes) (tonnes) (tonnes) (tonnes)
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Indicated
Resources
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Oxide 24,227 31,932 4,042 88
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Mixed 26,595 20,464 1,593 67
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Sulphide 76,299 46,504 4,869 163
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TOTAL 127,122 98,900 10,503 318
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Inferred
Resources
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Oxide 30,199 37,884 4,064 112
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Mixed 13,328 15,173 1,281 46
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Sulphide 16,400 13,376 1,393 40
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TOTAL 59,927 66,433 6,738 198
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Table 3: Summary of Resource Estimation by Resource
Category and Mineral Phase
Step-out Drilling
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A recent step-out drilling program comprising 5 additional holes for 1,500 metres of drilling was completed to the northwest of the deposit to follow up mineralization encountered in drill hole X-42 which was not included in the resource estimate. The area to the northwest is also underlain by an extensive zinc-lead-silver geochemical soil anomaly which extends for over 1,200 metres. Silver-zinc-lead mineralization was encountered in drill holes X53, X43 and X47/47A in skarnified limestones and is also found within the granite itself in drill holes X45 and X56. The mineralization occurs as a skarn envelope at the main granitic batholith contact suggesting that it may persist as a continuous blanket in the area between X47A and X28. The mineralized zone has been extended to the northwest by a further 270 metres, the results of which have not been included in the recent resource estimate. Intersections from drill holes X47A, X43 and X45 include the following:
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DDH From (m) To (m) m Ag (g/t) Pb (%) Zn (%) Cu (%)
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X47A 350.00 354.65 4.65 185 1.25 2.09 0.23
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X43 161.85 163.00 1.15 3 3.37 0.04 1.61
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X43 236.00 236.55 0.55 138 0.39 0.05 0.58
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X45 65.60 66.05 0.45 167 4.89 4.31 0.84
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X45 199.20 200.00 0.80 193 0.24 0.05 0.11
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Table 3: Mineralized intersections in step-out drill holes
Comment by CEO
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Commenting on the update, Xtierra's President & CEO, Terence McKillen, said, "The NI 43-101 compliant resource estimate is very similar to that completed internally and which we have been using as a working model for preliminary mine planning and for development of capital and operating cost estimates. We are currently finalizing the parameters and specifications required for a full feasibility study on Bilbao to be implemented in the new year." Mr. McKillen added, "The preliminary step-out drilling just completed extends the known mineralization at Bilbao a further 270m to the north-west of the main deposit and will add to the resource tonnage. Additional resource tonnage can also be expected to the south, where the deposit also remains open."
About Xtierra Inc. ------------------
Xtierra Inc. is a Toronto based exploration and development company listed on the TSX Venture Exchange. Xtierra's shares trade under the symbol "XAG". Xtierra has 49,862,003 shares issued and outstanding.
Xtierra's objective is to become a mid-tier producer of silver and base metals through the development of its Bilbao and Laguna projects, both located in the Central Mexican Silver Belt in the State of Zacatecas, as well as through organic growth and M & A opportunities.
Qualified Person ----------------
Dr. Anthony C. Gallon, C.Eng., and Mr. Terence N. McKillen, P.Geo., Qualified Persons (as defined in National Instrument 43-101) who, unless otherwise indicated, supervised the preparation of the scientific and technical information reflected in this press release. Preparation and assaying of the above-reported samples was performed at SGS Laboratories in Durango, Mexico using industry standard preparation procedures; fire assay analysis with gravimetric finish for gold and silver; initial ICP-EOS finish with aqua regia digestion for base metals; and ICP-OES finish by sodium peroxide fusion for reassays of significant base metal values. Under Xtierra's QA/QC program, duplicate samples, blanks and standards are submitted to BSi/Inspectorate Laboratories in Durango, Mexico, for preparation and onward shipment to BSi/Inspectorate's laboratory located in Reno, Nevada for analysis, with acceptable results to date.
Cautionary Notes: -----------------
This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this release.