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Xmet hits near-surface high gradeXmet hits near-surface high grade gold at Shaft zone, Duquesne Ottoman gold at Shaft zone, Duquesne Ottoman

Xmet (CVE:XME) announced Friday positive drill results from the first seven holes as part of the ongoing phase two program at the Duquesne-Ottoman project in Quebec.

Phase two drilling began in early September, with two rigs targeting the expansion of Xmet's current inferred resource at the project of 727,000 ounces of gold, or 853,000 ounces uncut.

The company said drill intersections show good continuity of high grade gold mineralization identified previously by surface trenching during this past summer's exploration program.

Highlights of the results from the Shaft Zone reported today include drill-hole DO-11-38, which intersected 11.66 grams per tonne (g/t) of gold (8.77 g/t Au cut) over 5.10 metres, while hole DO-11-41 returned 7.84 g/t gold over 2.75 metres.  True widths are considered to be 80 percent of reported core lengths, Xmet said.

Senior VP of exploration for the company, Bill Yeomans, said: "These latest results demonstrate excellent continuity of mineralization down dip from high grade gold mineralization exposed on surface during the 2011 trenching program.

"Current drilling is targeting potential extensions of shallow mineralization below and to the southwest of exposed Shaft Zone mineralization, which trends at N070 degrees and dips 75 degrees southeast."

A second drill rig is also testing potential extensions of mineralization on the Fox zone, considered to be another high priority target, the company added.

Xmet has completed 2,900 metres of the 7,000 metre phase two drilling program, with additional results to be reported as they become available. Mineralization on the Shaft Zone has been exposed for over 150 metres along strike and the system is open in both directions.

Xmet, through its subsidiary Duquesne-Ottoman Mines, carries out gold resource exploration and development. Under the terms of a mining option agreement between Duquesne-Ottoman Mines and Duparquet Assets, Duquesne-Ottoman Mines can earn an option to purchase 75% of Duparquet Assets, which owns the Duquesne-Ottoman project.

The property consists of 20 claims (commonly referred to as Duquesne West) and 40 claims (commonly referred to as Ottoman) covering an area of 928.6 hectares, located within the townships of Duparquet and Destor in Quebec.