Tuesday, April 19, 2011

Extorre Gold Mines (XG) Soars on Gold/Silver Discovery

Shares of Extorre Gold Mines Limited (AMEX:XG) are hopping today after the company announced it has discovered a new high grade gold-silver discovery at Cerro Moro, Santa Cruz Province, Argentina.

Assay highlights include:

MD1204 intersected 4.84 metres ("m") at 64.6 grams per tonne ("g/t") gold + 7,530 g/t silver (190.1 g/t gold equivalent(i)), including 1.36 m at 227.3 g/t gold + 25,428 g/t silver (651.1 g/t gold equivalent(i)).

The Zoe discovery is situated on the Escondida structure, 2.5 kilometres (km) east of the last known significant Escondida mineralization (the Martina shoot). The target is interpreted to be an east-west dilation zone, some 2 km in strike length. The discovery is essentially "blind" from surface, with the shallowest high grade mineralization appearing at a vertical depth of 80 metres.

In all respects the mineralization appears to be typical of the known Escondida deposit to the west. Specifically, the silver mineral acanthite is observed in many of the drill cores, with five holes showing electrum (metallic gold-silver). Base metals and pyrite are accessory minerals.

At present two drill rigs are defining the discovery. One rig is performing 160 metre step outs, with the other drilling at 80 metre centres to quickly determine the size potential.

Extorre was trading at $9.02, soaring $1.53, or 20.43 percent, as of 12:17PM EDT.

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