Esperanza Increases Measured and Indicated Resources by 46% for the Cerro Jumil Gold-Silver Project
September 16 2010 - 6:00AM
Marketwired Canada
Esperanza Resources Corp. ("Esperanza" or the "Company") (TSX VENTURE:EPZ) is
pleased to announce the results of its updated resource estimate on its Cerro
Jumil gold project in Morelos State, Mexico. The new estimate represents a 46%
increase in measured and indicated gold-equivalent resource ounces in comparison
to the initial estimate announced in 2008 (N.R., Sept 30, 2008). The newly
calculated independent estimate includes 935,000 gold equivalent ounces in the
measured and indicated categories and 233,000 gold equivalent ounces in the
inferred category. Esperanza is now seeking drill permits for new exploration
adjacent to the defined resource zones to test for extensions of mineralization.
Bill Pincus, Esperanza's President said, "This is an important milestone for
Esperanza and now allows it to advance a feasibility study. This resource will
be the basis for subsequent mine planning and scheduling. These, together with
on-going pilot-scale metallurgical testing and geotechnical investigation, will
be used for feasibility design parameters and associated cost estimates. The
Company intends to complete a feasibility study in 2011 while also working to
expand the resource."
The resource estimate incorporates the results of the recently completed infill
and expansion drilling programmed focused primarily on the Las Calabazas zone.
It can now be demonstrated that mineralization is continuous between the Las
Calabazas and Southeast zones. The new estimate, based on a 0.3 gram per tonne
Au equivalent cutoff, is:
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Table 1. Cerro Jumil Resource Estimate - September 2010
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Tonnes Au Ag Au Eq(i) Au Ag Au Eq(i)
Category (000) g/t g/t g/t oz (000) oz (000) oz (000)
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Measured 10,111 0.87 0.9 0.88 282 296 285
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Indicated 24,295 0.81 2.1 0.83 630 1,655 649
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M & I Total 34,406 0.83 1.8 0.85 913 1,951 935
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Inferred 8,596 0.83 6.9 0.84 230 1,904 233
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(i) Gold equivalent (AuEq) values are based upon a Ag:Au price ratio of
56:1, and a Ag:Au metal recovery ratio of 0.62. Totals may not sum to
100% due to rounding.
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The Cerro Jumil geologic and resource models were based upon independent checks
and assessment of the drilling data, quality assurance/quality control results,
and geologic interpretation of the gold-silver mineralized and skarn altered
zones. The modeling procedures, grade estimation parameters, and resulting
mineral resource estimate and classification were based upon: 1) over 41,500
total meters of drilling in 250 drill holes, 2) a three-dimensional geologically
constrained grade block model, 3) drill hole defined grade continuity verified
through variogram analysis, 4) capping of assay grades over 10 grams/tonne gold
and 125 grams/tonne silver, 5) a gold equivalent cutoff grade of 0.3
grams/tonne, and 6) gold grade estimation by ordinary kriging and silver grade
estimation by inverse distance interpolation. The independent resource estimate
complies with National Instrument 43-101 and Canadian Institute of Mining (CIM)
guidelines for reporting mineral resources. Dean Turner, P.Geo., a Qualified
Person as defined by National Instrument 43-101 and an independent consulting
geologist, is responsible for the Cerro Jumil mineral resource estimate.
An additional silver resource adjacent to the primary gold zone contains a
further 2,392,000 tonnes averaging 43.2 g/t silver (3,322,000 million contained
silver ounces) at a silver cutoff grade of 25 grams per tonne. This silver rich
zone is outside of and is generally adjacent to or in the hanging wall of the
gold mineralized zone. It is not contained in the estimate presented above.
The base-case resource estimate was based on a 0.3 grams Au equivalent per tonne
cut off grade. Resource estimate results based on a range of cut-off grades are
shown in Table 2. The most appropriate cut-off grade will be determined as part
of the up-coming feasibility study.
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Table 2. Measured and Indicated Resource Comparison by Cutoff Grade
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Cutoff Tonnes Au Ag Au Eq(i) Au Ag Au Equiv
Au Equiv (000) g/t g/t g/t oz (000) oz (000) oz (000)
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0.10 47,390 0.66 1.3 0.68 1,007 1,961 1,030
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0.20 43,746 0.70 1.4 0.72 989 1,959 1,010
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0.25 39,404 0.76 1.5 0.77 956 1,957 978
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0.30 34,406 0.83 1.8 0.85 913 1,951 935
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0.50 18,248 1.22 2.9 1.25 715 1,693 734
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1.0 11,240 1.59 3.0 1.62 573 1,071 585
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(i) Au Eq is gold equivalent grade. Totals may not sum to 100% due to
rounding.
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Feasibility Progress
The project is now in the feasibility stage with work centering on completion of
pilot-scale metallurgical tests, process optimization and continuation of
geotechnical investigation for foundations and pit-slope design. Significant
work has been completed in collecting an environmental database. The Company is
also preparing permits for continued exploration drilling in the west zone.
Subsequent cost estimation and other work will lead to a feasibility study in
the coming year.
Community Relations
In parallel with the work described above the Company is actively making
progress in the effort necessary to reach long-term agreements with the local
community and other stakeholders for the development of Cerro Jumil. It
continues its long-term program of community-information and outreach.
It has identified and is in discussion with important local stakeholders and has
enrolled in a locally sponsored program to foster agreement for development
between local communities and investor groups known as the Public/Private
Investment Promotion Plan.
Finally, the Company has sponsored an archeological investigation in cooperation
with the National Institute of Archeology and History with an aim toward
cataloging and, if required, excavating minor, known sites in the Cerro Jumil
area. Field work is largely completed and results from this study will be used
in preparation of the final environmental impact statement.
About Esperanza
Esperanza is an emerging producer company focused on advancing the development
of its two principal properties: the San Luis gold and silver joint venture in
Peru and the 100%-owned Cerro Jumil gold project in Morelos State, Mexico. It is
also actively investigating 17 other exploration interests in Peru and Mexico.
QUALIFIED PERSON: William Bond, M.Sc., Geol. and Vice President of Exploration,
Esperanza Silver Corp. is the Qualified Person (QP) under NI 43-101 responsible
for the Cerro Jumil exploration program. He has verified the drill results and
other data disclosed in this news release, including sampling, analytical and
test data. Field work has been conducted under his supervision. All samples were
submitted to ALS Chemex laboratories for analysis in Vancouver, Canada. Gold
samples were analyzed by fire assay and atomic absorption spectroscopy with a 30
g nominal sample weight. Silver is analyzed by induction coupled plasma - atomic
emission spectroscopy (ICP-AES). A description of quality control and quality
assurance protocols can be found at: http://www.epzresources.com/protocols.php.
SAFE HARBOR: Some statements in this release are forward-looking in nature. The
United States Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for certain forward-looking statements. Such statements include
statements as to the potential of the Cerro Jumil property, the ability to
finance further exploration, permit drilling and other exploration work, and the
availability of drill rigs. The forward-looking statements involve risks and
uncertainties and other factors that could cause actual results to differ
materially, including those relating to exploration and bringing properties into
production. Please refer to a discussion of some of these and other risk factors
in Esperanza's Form 20-F filed with the U.S. Securities and Exchange Commission.
The forward-looking statements contained in this document constitute
managements' current estimates as of the date of this release with respect to
the matters covered herein. Esperanza expects that these forward-looking
statements will change as new information is received and that actual results
will vary, possibly in material ways. Forward-looking statements are based on
the beliefs, expectations and opinions of management on the date the statements
are made, and the company does not assume any obligation to update
forward-looking statements if circumstances or management's beliefs,
expectations or opinions should change. For these reasons, investors should not
place undue reliance on forward-looking statements.
The terms "measured resource", "indicated resource" and "inferred resource" used
in this news release are Canadian geological and mining terms as defined in
accordance with National Instrument 43-101, Standards of Disclosure for Mineral
Projects under the guidelines set out in the Canadian Institute of Mining,
Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral
Reserves, adopted by the CIM Council as may be amended from time to time by the
CIM.
We advise U.S. investors that while such terms are recognized and permitted
under Canadian regulations, the SEC does not recognize them. U.S. investors are
cautioned not to assume that any part or all of the mineral deposits in the
measured and indicated categories will be converted into reserves.
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