Infill drilling at Extorre Gold Mines‘ (XG-T) Cerro Moro project in Argentina’s Santa Cruz province captured the attention of investors this week with high-grade intercepts including 11.15 metres of 36.3 grams gold per tonne and 4,412 grams silver including 0.65 metre at 487.4 gram gold and 37,993 grams silver in drill hole MD1391.
Other highlights from assays include hole MD1405, which returned 4.6 metres of 27.5 grams gold and 3,424 grams silver including 0.80 metre at 128.5 grams gold and 12,199 grams silver, and intersections in hole MD1411 of 3.55 metres at 32.8 grams gold and 2,819 grams silver including 0.32 metre of 136.2 grams gold and 10,792 grams silver.
The high grade results come from 17 of 28 new holes drilled on the Zoe zone of Cerro Moro. Two drill rigs are active at Zoe, one for testing for extensions at depth and the other exploring for repetitions of the Zoe deposit as far as three km away.
The deepest intercept of significant mineralization at Zoe was drill hole MD1433, which intersected 9 metres of 1.3 grams gold and 261 grams silver including 1.4 metres of 2.3 grams gold and 953 gram silver at a vertical depth of 420 metres.
Extorre is working on its third preliminary economic assessment of the project, which it expects to finish in the first quarter of 2012. The upcoming PEA will be based on an updated resource estimate released on Nov. 3.
The second preliminary economic assessment was based on an interim resource estimate that did not include any resources from the Zoe discovery, which Matt Williams, the company’s exploration manager, says “represents 24% of the total indicated mineral resource and 37% of the inferred mineral resource” for Cerro Moro. Two of the four drill rigs at the project are focused on Zoe.
At presstime in Toronto Extorre was trading at $9.55 per share within a 52-week band of $4.23 and $14.84 per share. The company has about 92.5 million shares outstanding.
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