-- Posted Tuesday, 24 August 2010 | Digg This Article
| | Source: GoldSeek.com
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 08/24/10) - Timmins Gold Corp. (TSX-V:TMM - TMGOF.PK) is pleased to announce that reverse circulation drilling continues to expand the strike length of mineralization at the San Francisco Gold Mine, located in the State of Sonora, Mexico. Additionally, the tenor of the gold grades being encountered are amongst the highest returned to date from drilling on the now-operating gold deposit. Highlights of the assays received from the most current round of drilling completed in May and June include12.19 meters of 4.39 gpt gold in Hole TF-651 and 13.72 meters of 3.88 gpt gold in Hole TF-649 (which were drilled approximately 150 meters to the southwest of the San Francisco pit limit) and 10.67 meters of 6.39 gpt gold in Hole TF-725 and 4.57 meters of 3.46 gpt gold in Hole TF-728 in an area inside the north portion of the current pit limit. These results indicate the potential for expansion of the open pit beyond its current projected limit and indicates that the potential exists to increase the ultimate gold resource contained within the deposit.
The most current round of drilling has continued to take place- since the last update to shareholders (see press release dated May 13, 2010) and has totaled approximately 25,000 meters in 231 drill holes. Drilling has been focused on an infill basis to the north and also focused on extending the known -strike length of the newly-discovered southwest extension. The drilling, which is testing the potential of the San Francisco deposit outside of the limits of the currently-planned final pit, continues to confirm the continuity of mineralization within a 1.2 kilometer wide, major NW-SE trending gold-hosting structure.
The objective of the exploration drilling to the southwest of the pit has been to extend the mineralized zone outside of the currently planned pit limits and beyond a drill hole 50 meters to the southwest of the pit that intersected 13.7 meters of 10.28 gpt gold (see press release dated May 13, 2010). Drilling inside the northern part of the currently planned pit limits was in an area that required a higher density of drilling in order to be considered a part of the mine plan and, until now, was classified largely as waste for mine planning purposes The holes were all relatively shallow and were drilled to a maximum depth of 130 meters.
The table below highlights the better intercepts from the recently completed program to the Southwest of the pit limit:
The table below highlights the better intercepts from the recently completed program at the northern portion of the pit:
Information from the total of over 25,000 meters of drilling is currently being processed to provide an update to the current resource estimate. A new reserve estimate will also be prepared.
The exploration success follows upon the commencement of commercial production at the San Francisco Mine in April 2010. First quarter sales from the mine were 11,319 ounces of gold. The size of the gold mineralization zone, its presence within large shear zones and the continuous nature of the gold within these zones form the basis of management's expectation that the ongoing program could lead to a significant increase in the mineral resource at San Francisco and could potentially also lead to the discovery of additional satellite deposits within the existing land package.
The samples collected during the drilling were prepared and assayed in the San Francisco Mine assay laboratory using fire assay and gravimetric finish. Strict sampling and QA-QC protocol were followed to ensure the best practices in sampling and analysis of the drill samples. Duplicates, standards and blanks were inserted into the sampling stream at intervals of 25 samples. A minimum of fifteen percent of the pulps assayed in the mine lab were also sent to IPL-Inspectorate Lab, for check assays and a minimum of ten per cent of the original samples assayed by IPL will be sent to other independent labs for check assays. The check assays were cross referenced to the mine assays and verified the results.
About Timmins Gold
Timmins Gold Corp is strategically positioned for gold production and development. In April 2010, Timmins Gold commenced commercial production at its wholly owned San Francisco gold mine in Sonora, Mexico. Timmins Gold has projected production at a rate in excess of 80,000 ounces of gold per year at a life of mine cash cost of approximately $412 per ounce. (Micon International Preliminary Feasibility Study, March 2008).
This press release was reviewed and prepared by Lawrence A. Dick, Ph.D., P.Geo, a director of the Company, who is recognized as a Qualified Person under the guidelines of National Instrument 43-101 and by Miguel Soto, P. Geo., a director and the COO of the Company. For further information contact Timmins Gold Corp. at 604-682-4002 or go to the website at www.timminsgold.com.
On behalf of the Board:
Bruce Bragagnolo, LLB, Chief Executive Officer
This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Timmins Gold does not intend to update any forward-looking statements to conform these statements to actual results.
Neither 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 accuracy of this release.
Contact:
Timmins Gold Corp.
Bruce Bragagnolo, LLB
Chief Executive Officer
604-638-8980
bruce@timminsgold.com
www.timminsgold.com
-- Posted Tuesday, 24 August 2010 | Digg This Article | Source: GoldSeek.com
