Mexoro Minerals Ltd Announces Resource Estimate of 1.1 Million Measured and Indicated Gold Equivalent Ounces and 0.02 Million Inferred Gold Ounces at the Cieneguita Gold Project
Meeting for Shareholder Vote to Change the Company's Name to Pan American Goldfields Ltd Scheduled for May 24, 2010
BROOMFIELD, CO, May 10 /PRNewswire-FirstCall/ - Mexoro Minerals Ltd (OTCBB:"MXOM") (the "Company") is pleased to announce that it has received an updated NI 43-101 compliant resource estimate, along with an NI 43-101 Technical Report, including an estimate of 1.1 million Measured and Indicated gold equivalent ounces and 0.02 Million Inferred gold equivalent ounces at its Cieneguita Project in Chihuahua State, Mexico. The estimate is based on the previous drilling results from 2008 and 2009 at the Cieneguita Project. The Cieneguita project is in commercial production under a joint venture between the Company and Minero Rio Tinto, a private Mexican company. The estimate includes 20,087,000 Measured and Indicated tonnes grading 1.54 g/t gold equivalent and 453,000 Inferred tonnes grading 1.47 g/t gold equivalent.
The estimate is based on drilling results of 17,833 meters of drilling in 90 holes, and outlines a mineralized zone containing potentially economic gold, silver and base metal sulfide resources over a strike length of 1000 meters by 300 meters in width, and to a depth of approximately 250 meters from the crest of the hill which hosts the mineralization.
Table 1: Estimated gold, silver and base metal resource tonnages with their associated grades:
Cieneguita Deposit In Situ Resource Estimate Within Optimized Pit Shell @
0.8 g/t AuEq Cut-Off
Classifica-
tion Tonnes Au Ag Cu Pb Zn AuEq
g/t g/t % % % g/t
Measured 3,128,000 0.71 61.8 0.03 0.24 0.29 1.86
Indicated 16,959,000 0.74 50.0 0.03 0.21 0.25 1.69
Meas. &
Ind. 20,087,000 0.74 51.8 0.03 0.21 0.26 1.71
Inferred 453,000 0.99 34.2 0.02 0.13 0.17 1.63
Classific
tion Au Ag AuEq
oz oz oz
Measured 71,400 6,215,000 186,600
Indicated 403,500 27,262,000 920,900
Meas. &
Ind. 474,900 33,477,000 1,107,500
Inferred 14,400 498,000 23,800
(1) Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources
may be materially affected by environmental, permitting, legal,
title, taxation, socio-political, marketing, or other relevant
issues.
(2) The quantity and grade of reported Inferred resources in this
estimation are uncertain in nature and there has been insufficient
exploration to define these inferred resources as an Indicated or
Measured mineral resource and it is uncertain if further exploration
will result in upgrading them to an indicated or measured mineral
resource category.
(3) The mineral resources in this press release were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM
Standards on Mineral Resources and Reserves, Definitions and
Guidelines prepared by the CIM Standing Committee on Reserve
Definitions and adopted by CIM Council December 11, 2005.
(4) The metal prices used in this estimate were an approximate 2 year
trailing average as follows: Au $945/oz, Ag $14.75/oz, Cu $2.75/lb,
Pb $0.85/lb and Zn $0.80/lb. Mining costs were $2.50 per tonne of
rock, Processing $15/tonne and G&A $7 per tonne.
(5) This in situ resource was defined within an optimized pit shell at a
0.8 gt AuEq cut-off.
In the recently completed Technical Report by Douglas R. Wood, Licensed Professional Geologist, Utah #5557261, Dana C. Durgin, Certified Professional Geologist #10364, Eugene J. Puritch, P. Eng and Antoine Yassa, P. Geo., an NI 43-101 compliant resource estimate was carried out by Puritch and Yassa of P & E Mining Consultants Inc., using inverse distance grade estimation and a geologic model developed from data from the Company's drill programs, except for 6 holes from which assays are still pending. The current calculation uses a 0.8 g/t gold equivalent cutoff, which is considered to be somewhat conservative compared to the average of cutoffs used for resource calculations for similar deposits in the region.
Potential increases to the number of estimated resource ounces could result from a number of additional sources, including:
- the 6 holes for which assays are still pending could represent
additional mineralization containing additional resources
- the mineralized area is open to the north and west, and additional
drilling in that quadrant could result in increases to the resource
estimate
- drill spacing in a portion of the mineralized area is on 80 meter
centers, and in-fill drilling in that area could also result in
increases to the resource estimate and classification.
- a lower cutoff grade demonstrated by recent historic operating costs
and parameters could also result in increases to the resource
estimate
- changes in assumptions or estimates of the pit wall slopes, pit
design, mining dilution, and metals recoveries all could generate
additional resources in the estimate.
"We are delighted with the completion of the current resource estimate consistent with the production activities and operations at Cieneguita, giving the Company an estimate of potentially economic gold equivalent ounces.," said George Young, president of Mexoro. "Since Cieneguita is in production, we can utilize this resource estimate as well as estimated operating costs as a reliable picture of the economic potential of project operations. With the complete and current NI 43-101 Technical Report in hand, we are also able to move the Company forward toward an application to list on the TSX or TSX Venture Exchange, and continue to create value for our shareholders."
Proxy Statement
The Company also announced that it has mailed proxy statements to shareholders in preparation for the shareholder meeting set for May 24 for the purpose of voting on the proposed change of the name of the Company to Pan American Goldfields Ltd., the reincorporation of the Company from Colorado to Delaware, and other related matters.
Qualified Person
Mario Ayub is a director of the company and is a 'qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Properties of the Canadian Securities Administrators. He has verified the data (including sampling, analytical and test data) and prepared or supervised the preparation of the information contained in this news release.
Quality Assurance & Control
The Company has implemented a quality assurance and control (QA/QC) program to ensure sampling and analysis of all exploration work is conducted in accordance with the best possible practices. Sampling and analysis of all drill samples is conducted in accordance with best possible practices and only internationally certified laboratories are used. Half of all drill core is retained for future assay verification. The QA/QC policy includes the chain of custody monitoring, insertion of blanks, standards and duplicates in the initial samples submitted. The results of the QA/QC sample analyses are carefully monitored.
About Pan American Goldfields/Mexoro Minerals
Pan American Goldfields/Mexoro Minerals is a Chihuahua, Mexico based gold producer and exploration company. It is a specialist in exploration, mine development and production in Mexico's booming Sierra Nevada Gold Belt. The company's most advanced project is its now producing Cieneguita Gold Mine where a feasibility study to significantly increase the mine's already growing production profile is underway. Pan American plans to utilize cash flow from its gold production to fund its current exploration programs now underway at Cieneguita South, Piedras Blancas, and Sahuayacan as well as at the Encino Gordo Project.
On behalf of the Board of Directors,
George S. Young, President
Safe Harbor Disclosure
The information in this press release contains forward-looking statements regarding future events or the future financial performance of the Company. Please note that any statements that may be considered forward-looking are based on projections; that any projections involve judgment, and that individual judgments may vary. Moreover, these projections are based only on limited information available to us now, which is subject to change. Although those projections and the factors influencing them will likely change, we are under no obligation to inform you if they do. Actual results may differ substantially from any such forward looking statements as a result of various factors, many of which are beyond our control, including, among others, the timing and outcome of our feasibility study on our Cieneguita Project; the costs and results of our initial production activities on our Cieneguita Project; the future financial and operating performances of our projects; the estimation of mineral resources and the realization of mineral reserves, if any, on our existing and any future projects; the timing of exploration, development, and production activities and estimated future production, if any; estimates related to costs of production, capital, operating and exploration expenditures; requirements for additional capital and our ability to raise additional capital on a timely basis and on acceptable terms; government regulation of mining operations, environmental risks, reclamation and rehabilitation expenses; title disputes or claims against our existing and any future projects; and the future price of gold, silver, or other minerals. These and other factors can be found in our filings with the SEC. The Company undertakes no obligation to release publicly the results of any revision to these forward-looking statements to reflect events or circumstances following the date of this release.
Corporate Headquarters
Mexoro Minerals Ltd.
Mountain View Center
12303 Airport Way
Suite 200
Broomfield, CO 80021
Tel: +1 (303) 327-1587
E-mail: [email protected]
SOURCE Mexoro Minerals Ltd.
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