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.
Neither the TSX Venture Exchange nor the Investment Industry
Regulatory Organization of Canada accepts responsibility for the
adequacy or accuracy of this release.
Contacts: Esperanza Resources Corp. Bill Pincus President and
CEO Toll Free: (866) 890 5509 info@epzresources.com
www.epzresources.com
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