Extorre Gold Mines (AMEX:XG) (TSE:XG) announced Tuesday it intersected over 8,000 grams per tonne (g/t) silver on its Puntudo project in Santa Cruz province, Argentina, during an additional 20-hole drill program.
The new holes were drilled in the Renaldo area, and results indicate the presence of a mineralized body, approximately 750 metres long, which remains open to the southeast, the company said.
Assays from the drill program found 3.8 metres of 2,154 g/t silver and 3.34 g/t gold, including 0.95 metres of 8,516 g/t silver and 9.4 g/t gold, in hole RD0020A, in the La Negra structure.
Other notable results included 5.0 metres of 236 g/t silver and 0.39 g/t gold, including 3.86 metres grading 300 g/t silver and 0.42 g/t gold, from hole RD0026, also at La Negra.
From hole RD0032, on the La Marocha structure to the west, assays returned 32 g/t silver and 1.11 g/t gold over 9.4 metres, including 5.65 metres grading 46 g/t silver and 1.61 g/t gold. The hole was one of the best reported to date on the structure, but further work is required to look into extensions of this mineralization, Extorre said.
"We are very pleased with the results from this being our first drill campaign on the Renaldo Area," said chief geologist, Glen van Kerkvoort.
"The primary focus of the company continues to be at Cerro Moro but given the technical depth of our exploration team, we will continue to explore our regional projects for the next high grade gold-silver discovery."
Indeed, step back drilling on the La Negra mineralization is scheduled, as evidence suggests there could be another mineralized zone further to the southeast. The October drilling program will define the limits of the mineralization, and test additional targets, the company said.
"It will be important for us to establish the ultimate potential of the property, not just the immediate potential of the Renaldo Area discovery," van Kerkvoort added.
Extorre is a Canadian company, whose properties include the Cerro Morro, Puntudo and Don Sixto projects, and other mineral exploration properties in Argentina.
The net present value of the Cerro Morro project is forecast at $581 million and the pre-tax internal rate of return is estimated at 89.3%, for a mine producing an average of 206,300 ounces gold equivalent per year for the first 3 years, at a cash cost of $US236/ounce gold equivalent.