Esperanza Increases Measured and Indicated Gold Resources by 61% at the Cerro Jumil Gold Project
11 September 2012 - 2:00PM
Marketwired Canada
Esperanza Resources Corp. (TSX VENTURE:EPZ) today reported an updated and
increased gold and silver resource at its wholly-owned Cerro Jumil gold project
in Morelos State, Mexico.
Resource Highlights
-- Measured and indicated ("M&I") gold resources of 1.47 million ounces, an
increase of 61% from the September 2010 resource.
-- M&I gold grade of 0.91 grams per tonne ("gpt"), an increase of 10% from
the September 2010 resource.
-- M&I tonnes of 50.34 million tonnes, an increase of 46% from the
September 2010 resource.
-- M&I silver resources increased to 16.01 million ounces.
-- An additional 7.97 million tonnes containing 0.17 million gold ounces
and 2.79 million silver ounces are classified as inferred resources.
-- The deposit remains fully oxidized and mineralization is open in several
directions.
-- The updated resource contains significantly more tonnes at a higher
average grade than the September 2010 resource that was used as the
basis of the September 2011 Cerro Jumil Preliminary Economic Assessment
("PEA").
Cerro Jumil Project - Resource Estimate, June 30, 2012(1)
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Tonnes Gold Grade Silver Gold Ounces Silver Ounces
(million) (gpt) Grade (gpt) (million) (million)
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Measured 30.36 0.97 9.63 0.94 9.40
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Indicated 19.98 0.82 10.30 0.53 6.61
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Measured
and
Indicated 50.34 0.91 9.89 1.47 16.01
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Inferred 7.97 0.66 10.90 0.17 2.79
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1. Resources have been estimated as of June 30, 2012 in accordance with
definitions adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum. The resource estimate was independently prepared by Riaan
Herman Pr.Sci.Nat. of RHC Consulting. Riaan Herman is the Qualified
Person as defined in NI 43-101 for this mineral resource estimate. The
June 30, 2012 resource is presented at a cut-off grade of 0.3 grams per
tonne gold-equivalent using assumed metal prices of $1,200 per gold
ounce and $22.50 per silver ounce and having regard for metallurgical
recoveries. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
The updated resource incorporates all drilling undertaken at Cerro Jumil to the
end of June 2012. It provides an update to the resource estimate announced in
September 2010 that was used as the basis for the September 2011 PEA. The new
resource estimate will form the basis for initial open-pit mine planning and
reserve definition and will be incorporated into the feasibility study for Cerro
Jumil that is currently in progress.
Over 22,000 metres of additional drilling subsequent to the September 2010
resource estimate has increased both the size and quality of the gold and silver
resource at Cerro Jumil. Infill drilling has increased the confidence levels in
the overall resource, improved the understanding and definition of the
mineralization and confirmed overall higher gold and silver grades. Further,
step-out drilling has expanded the area of mineralization and has contributed
additional tonnes and ounces to the updated resource estimate.
Greg Smith, President and CEO, commented, "We are particularly pleased with the
increase in both resource tonnes and average grade in this updated resource for
Cerro Jumil. We expect this updated resource to positively influence the already
strong economics estimated in the September 2011 Cerro Jumil PEA. With
mineralization open in several directions and at depth, there are multiple
opportunities for continued resource growth at Cerro Jumil."
The new resource is reported at a cut-off grade of 0.3 gold-equivalent gpt and
contains 50.34 million tonnes grading 0.91 gpt gold and 9.89 gpt silver in the
measured and indicated category. There is an additional 7.97 million tonnes
grading 0.66 gpt gold and 10.90 gpt silver in the inferred category. Metal
prices used in the estimation are $1,200 per gold ounce and $22.50 per silver
ounce. Complete tables of all resource categories at varying cut-off grades are
attached to this news release.
As a result of additional drilling, the north-west silver dominant zone located
adjacent to and overlapping the primary gold mineralized zone, has been
incorporated into the updated Cerro Jumil resource estimate and will be included
in the future open-pit mine plan and mine reserves. This higher grade silver
resource was previously reported independent of the primary Cerro Jumil resource
and was not included in the mine plan or economic analysis contemplated in the
September 2011 PEA.
The updated resource was estimated based on the following:
-- 64,809 total metres of drilling in 362 drill holes, including 22,822
metres in 121 core holes and 41,987 metres in 241 reverse circulation
holes;
-- Independent checks and assessment of the drilling data, quality
assurance and control results and geologic interpretation of the gold
and silver mineralized and skarn altered zones;
-- A three-dimensional geologically constrained grade block model;
-- Drill hole defined grade continuity verified through variogram analysis;
-- Assay grades capped at 6.5 gpt gold and 70 gpt silver, if greater than
these values; and
-- Gold and silver grade estimation by ordinary kriging.
Quality Control and Assurance
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 gram nominal sample weight. Silver was analyzed by
induction coupled plasma - atomic emission spectroscopy (ICP-AES).
The independent resource estimate complies with National Instrument 43-101 ("NI
43-101") and Canadian Institute of Mining guidelines for reporting mineral
resources. Riaan E. Herman Pr.Sci.Nat., a Qualified Person as defined by NI
43-101 and an independent consultant, is responsible for the updated Cerro Jumil
mineral resource estimate. A NI 43-101 compliant technical report supporting the
updated resource is being prepared by RHC Consulting of Pretoria, South Africa
and Associated Geosciences Limited of Calgary, Alberta and is expected to be
available on SEDAR within 45 days.
William Bond, M.Sc., Geol. is the Qualified Person under NI 43-101 for the
Company and is responsible for the contents of this news release.
The September 2011 PEA is available at www.epzresources.com.
About Esperanza
Esperanza is a precious metals exploration and development company focused on
advancing its principal property, the wholly-owned Cerro Jumil gold project in
Morelos State, Mexico.
Forward Looking Statements
Certain statements and information contained in this press release constitute
"forward-looking statements" within the meaning of applicable U.S. securities
laws and "forward-looking information" within the meaning of applicable Canadian
securities laws, which we refer to collectively as "forward-looking statements".
The United States Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for certain forward-looking statements. Forward-looking statements
are statements and information regarding possible events, conditions or results
of operations that are based upon assumptions about future economic conditions
and courses of action. All statements and information other than statements of
historical fact may be forward-looking statements. In some cases,
forward-looking statements can be identified by the use of words such as "seek",
"expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast",
"intend", "believe", "predict", "potential", "target", "may", "could", "would",
"might", "will" and similar words or phrases (including negative variations)
suggesting future outcomes or statements regarding an outlook. Forward-looking
statements in this and other press releases include, but are not limited to
statements and information regarding: the Company's future mining activities,
the preparation of future reports, production and mine life; the Company's
mineral resource estimates; the Company's exploration and development plans,
including anticipated costs and timing thereof; the Company's plans for growth
through exploration activities, acquisitions or otherwise; and expectations
regarding future maintenance and capital expenditures, and working capital
requirements. Such forward-looking statements are based on a number of material
factors and assumptions and involve known and unknown risks, uncertainties and
other factors which may cause actual results, performance or achievements, or
industry results, to differ materially from those anticipated in such
forward-looking information. You are cautioned not to place undue reliance on
forward-looking statements contained in this press release. Some of the known
risks and other factors which could cause actual results to differ materially
from those expressed in the forward-looking statements are described in the
section entitled "Risk Factors" in our Annual Report on Form 20-F filed with the
U.S. Securities and Exchange Commission, which is available at www.sec.gov and
is filed on SEDAR at www.sedar.com. The Company undertakes no obligation to
update or revise any forward-looking statements included in this press release
if these beliefs, estimates and opinions or other circumstances should change,
except as otherwise required by applicable law.
CAUTIONARY NOTE TO U.S. INVESTORS REGARDING MINERAL RESOURCE ESTIMATES
The Company is subject to the reporting requirements of applicable Canadian
securities laws, and as a result it reports mineral resources in accordance with
Canadian reporting requirements for disclosure of mineral properties as set out
in National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI
43-101"). The requirements of NI 43-101 are materially different from the
mineral reserve reporting requirements of the Securities and Exchange Commission
(the "SEC") as set out in Industry Guide 7. While the terms "Mineral Resource,"
"Measured Mineral Resource," "Indicated Mineral Resource" and "Inferred Mineral
Resource" are recognized and required to be disclosed by NI 43-101, they are not
defined terms under standards of the SEC and, generally, U.S. companies are not
permitted to report mineral resource estimates of any kind in the documents that
they file with the SEC. Accordingly, the information contained in this press
release concerning descriptions of mineralization and mineral resource estimates
under NI 43-101 is not comparable to similar information that would be included
in reports filed by U.S. companies with the SEC. Investors are cautioned that
they should not assume that all or any part of Measured or Indicated Resources
will ever be converted into mineral reserves. Further, investors should not
assume that all or any part of an Inferred Mineral Resource will ever be
upgraded to a higher category. An Inferred Mineral Resource has a great amount
of uncertainty as to its existence and as to its economic and legal feasibility.
Investors are, therefore, cautioned that they should not assume that all or any
part of an Inferred Mineral Resource exists, or that it is economically or
legally mineable.
Measured Resources, June 2012
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Cut-off Tonnes Gold Grade Silver Gold Ounces Silver Ounces
Grade (gpt) (million) (gpt) Grade (gpt) (million) (million)
----------------------------------------------------------------------------
1.0 14.19 1.44 10.19 0.66 4.65
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0.5 25.53 1.09 9.82 0.89 8.06
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0.3 30.36 0.97 9.63 0.94 9.40
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0.2 32.25 0.92 9.50 0.95 9.85
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0.1 36.25 0.83 9.04 0.96 10.53
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Indicated Resources, June 2012
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Silver
Cut-off Grade Tonnes Gold Grade Silver Gold Ounces Ounces
(gpt) (million) (gpt) Grade (gpt) (million) (million)
----------------------------------------------------------------------------
1.0 6.63 1.46 10.33 0.31 2.20
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0.5 14.95 0.99 10.82 0.48 5.20
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0.3 19.98 0.82 10.30 0.53 6.61
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0.2 23.25 0.73 10.27 0.54 7.68
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0.1 32.36 0.54 9.12 0.56 9.49
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Measured and Indicated Resources, June 2012
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Silver
Cut-off Grade Tonnes Gold Grade Silver Gold Ounces Ounces
(gpt) (million) (gpt) Grade (gpt) (million) (million)
----------------------------------------------------------------------------
1.0 20.82 1.45 10.23 0.97 6.85
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0.5 40.48 1.05 10.19 1.37 13.26
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0.3 50.34 0.91 9.89 1.47 16.01
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0.2 55.49 0.84 9.82 1.50 17.53
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0.1 68.62 0.69 9.08 1.53 20.02
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Inferred Resources, June 2012
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Silver
Cut-off Tonnes Gold Grade Silver Gold Ounces Ounces
Grade (gpt) (million) (gpt) Grade (gpt) (million) (million)
----------------------------------------------------------------------------
1.0 1.81 1.43 12.99 0.08 0.76
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0.5 4.88 0.90 11.13 0.14 1.74
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0.3 7.97 0.66 10.90 0.17 2.79
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0.2 12.24 0.48 11.27 0.19 4.44
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0.1 29.81 0.24 8.53 0.23 8.17
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Some numbers may not sum due to rounding.
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