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Extorre Gold expands high grade zones at Cerro Moro

|Includes: Yamana Gold Inc. (AUY)

Canadian explorer Extorre Gold Mines (AMEX:XG) (TSE:XG) said Wednesday that drilling at its Cerro Moro project in Santa Cruz, Argentina continues to extend gold-silver mineralization, reporting additional drill results from the second quarter.

The latest results found extensions to known mineralization at Escondida, Gabriela and Esperanza-Nini, while infill drilling returned encouraging finds at the Martina and Carla prospects, in addition to reconaissance drilling at the Deborah, Agostina, Michelle prospects, and more. The results did not include drilling from the recent Zoe discovery.

Highlights include 7.37 metres of 23.4 grams per tonne (g/t) of gold equivalent, including 0.76 metres at 51.8 g/t gold equivalent and 1.46 metres at 63.4 g/t gold equivalent in hole MD1254 at the Gabriela vein.

Another hole at Gabriela, MD1265, returned 4.5 metres at 24.6 g/t gold equivalent, including 2 metres of 49.8 g/t gold equivalent.

Other notable results include 10 metres at 28.3 g/t gold equivalent in hole MD1261 at the Carla vein, including 2.05 metres of 103.2 g/t gold equivalent; 5 metres of 15.3 g/t gold equivalent, including 0.8 metres at 73.2 g/t gold equivalent in hole M1211 at the Esperanza vein; and 0.70 metres of 97.4 g/t gold equivalent in hole MD1174 at the Agostina vein.

In addition, at the Martina vein, hole MD1159B intersected 0.9 metres of 18.5 g/t gold equivalent, including 0.3 metres of 43.4 g/t gold equivalent.

“Drilling the extensions of the known veins at Cerro Moro has successfully expanded multiple areas of mineralization that with further drilling could lead to additional resources on the property," said exploration manager, Matt Williams.

"Importantly, this drilling demonstrates that very high grades are not confined to a particular vein or site on the property.

“The Cerro Moro vein field is extensive, covering an area of +100 square kilometres. Our geologists assign priority rankings to the various regional targets, a process that ranked the Zoe vein as #11. With our recent success we have reassigned priorities and placed five rigs on the Zoe discovery.

"We will leave one rig on the regional targets as there is scope for additional significant discoveries on the property.”

An updated resource estimate is expected on the property in the fourth quarter, which will include the high grade Zoe vein, as well as most of the veins from drilling reported today, the company said.

As of April last year, Cerro Moro was estimated to have 662,440 ounces of gold equivalent in the indicated category, as well as inferred resources of 430,880 ounces of gold equivalent.

Aside from Cerro Moro, Extorre’s assets comprise of the Puntudo and Don Sixto projects, and other mineral exploration properties in Argentina.