Xtierra Inc.: Bilbao Project Update
28 April 2011 - 7:57AM
Marketwired
Xtierra Inc. (TSX VENTURE: XAG) ("Xtierra" or the "Company"), is
pleased to announce that 1,725,476 of outstanding warrants
(representing 98.6%) with an expiry date of April 15, 2011 have
been exercised to raise further proceeds of US$517,642, bringing
the total proceeds of recently exercised warrants to US$3.8
Million.
With the exercise of the warrants, the issued and outstanding
share capital of the Company is now 103,262,142 shares. There are
14,331,210 warrants and 4,755,000 share options currently
outstanding and "in the money." The proceeds of the warrant
conversion brings Xtierra's current working capital to
approximately US$9.5 Million.
Bilbao Update
Drilling - Current drilling at Bilbao is focussed on several
silver-rich zones in the southern and southwestern margins of the
deposit. The first drill-hole was sited to confirm whether there
was continuity of the silver-rich breccia zone intersected by
drill-holes CG4 and X85. Drill-hole X92, located mid-way between
the holes has been completed to a depth of 278.45m and encountered
a similar brecciated limestone with disseminated sulphides over a
thickness of 5.25m, between 139.35 and 144.60m.
Extremely rich silver mineralization encountered previously in
drill-hole X26 at a depth of 382m is the target of drill-hole X86A
which is currently in progress at a depth of 190m. The main
objective of this angled hole is to determine the structural
elements of the mineralised veins and to locate a possible feeder
conduit.
In addition to the planned 2,000m of drilling on the high grade
silver zones, further exploration drill-holes will test geophysical
anomalies (ground magnetic) south of the Bilbao deposit as well as
at the Ardillas silver-lead prospect, situated 1.5km north-east of
Bilbao.
Feasibility Study-An updated and independent NI-43-101 compliant
resource estimate, final hydrological and geotechnical (rock
mechanics) reports, mine plans and power supply reports will be
completed during May.
Metallurgical test work on the oxide ore is still in progress.
The milling and wet high intensity magnetic separation (WHIMS)
processes are currently being optimized in order to obtain maximum
payable metal in the pre-concentrate at optimum acid consumption.
These tests are being conducted at the SGS Mineral Service's
Laboratory in Durango, Mexico. Upon completion, locked cycle test
work will also be conducted at the SGS facilities. Pilot plant
testing, also to be conducted at SGS, will allow finalised
industrial design to be completed and the tailings and geochemical
characteristics generated by the pilot plant will facilitate the
completion of an environmental assessment report, risk analysis and
tailings management final design. The final feasibility study
should be completed within three months after completing the pilot
plant test work.
Incentive Stock Options
Pursuant to the Company's stock option plan, the board of
directors has granted 4,225,000 options to purchase common shares
in the capital stock of the Company to directors, officers,
consultants and employees of the Company at an exercise price of
$0.51 per share for a period of five years. Of the total grant,
2,000,000 options were granted to directors, 1,400,000 to officers
and senior employees and the balance to employees and
consultants.
Qualified Person
Information of a scientific or technical nature contained in
this release has been prepared by or under the supervision of
Terence N. McKillen, P.Geo., Chief Executive Officer, Gerald J.
Gauthier, P.Eng., Chief Operating Officer and Dr. Anthony C.
Gallon, C.Eng., Chief Geologist, all 'qualified persons' within the
meaning of National Instrument 43-101 - Standards of Disclosure for
Mineral Projects of the Canadian Securities Administrators.
About Xtierra Inc.
Xtierra Inc. is a Toronto based exploration and development
company listed on the TSX Venture Exchange under the symbol "XAG".
There are 103,262,142 shares issued and outstanding. The Company is
conducting a feasibility study on its Bilbao
silver-zinc-lead-copper project in Zacatecas, Mexico. Xtierra's
objective is to become a mid-tier producer of precious and base
metals through the development of its Bilbao project as well as
through exploration, organic growth and M & A
opportunities.
For further information visit www.xtierra.ca.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or the
accuracy of this release.
Contacts: Xtierra Inc. Terence McKillen President & Chief
Executive +1 (416) 362-8243 Xtierra Inc. Tim Gallagher Director +1
(416) 925-0090 Xtierra Inc. Alejandro Alaniz Director Finance &
Administration (Mexico) +52 (492) 925-0804 www.xtierra.ca
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