VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 07/14/11 — Timmins Gold Corp. (TSX: TMM) is pleased to announce that its ongoing drill program continues to extend, expand and deepen the mineralization at the San Francisco Gold Mine, located in the State of Sonora, Mexico.
During the four months from March to the end of June, 2011, the Company completed 38,623 metres of reverse circulation drilling in 268 holes and 10,015 metres of core drilling in 26 holes. The ongoing drill program is focused around the existing pit in a zone 2 kilometres E-W by 1 km N-S, and also beneath the presently planned pit depth of 240 metres. Drilling has also started around the La Chicharra pit 2 kilometres to the west of the San Francisco pit. Significant gold values have been intersected in all directions around the San Francisco pit including beneath the planned San Francisco pit bottom.
As a result of the success of the ongoing program the Company has expanded the drill program and has on site 6 reverse circulation drill rigs and 3 core drill rigs, one of which is capable of drilling to depths of 1,000 metres. The Company has engaged independent consulting firm Micon International Inc. of Toronto to provide an updated NI 43-101 Reserve and Resource Estimate which will incorporate assay results obtained from over 85,000 metres of drilling conducted from June 30, 2010 to July 15, 2011.
Significant mineral intercepts from the program around the San Francisco pit are as follows: 4.57 metres of 11.932 gpt gold and 39.62 metres of 1.613 gpt gold in Hole TF-1280, 6.09 metres of 4.27 gpt gold in hole TF-1099; 10.67 metres of 1.62 gpt gold and 6.09 metres of 1.43 gpt gold, both in hole TF-1100; 7.62 metres of 1.52 gpt gold in hole TF-1117; 6.10 metres of 2.28 gpt gold in hole TF-1119. Hole TF-1168 had multiple mineral intercepts including 6.10 metres of 1.65 gpt gold, 7.62 metres of 1.43 gpt gold and 4.57 metres of 8.31 gpt gold including an interval of 1.53 metres of 24.63 gpt gold. Hole TF-1196 intercepted three mineralized zones including, 4.57 metres of 3.25 gpt gold. Hole TF-1234 intersected 6.09 metres of 3.41 gpt gold and 6.10 metres of 1.082 gpt gold. Hole TF-1240 intersected multiple zones including 12.19 metres of 2.0 gpt gold, 3.05 metres of 8.294 gpt gold, 3.05 metres of 1.12 gpt gold and 7.62 metres of 1.40 gpt gold.
The drill program has included exploring below the currently planned pit bottom of 240 metres using reverse circulation drilling and core drilling for holes deeper than 250 metres. The returned assays indicate the mineralization is extending in parallel mineral bodies up to 40 metres in width below the currently planned pit bottom and has shown mineralized zones at depths of 100 metres below the currently planned pit bottom.
Results from deep core drilling underneath the planned pit bottom were very encouraging. The previously stated Hole TF-1280 intersected 4.57 metres of 11.932 gpt gold and 39.62 metres of 1.613 gpt gold. Hole TFD-90 intersected 4.50 metres of 2.219 gpt gold at a depth of 385 metres and Hole TFD-80 intersected 1.50 metres of 3.097 gpt gold at a depth of 421.50 metres. Directly underneath the planned pit bottom hole TF-1246 intersected 12.19 metres of 1.031 gpt gold and hole TF-1279 intersected several intervals including 4.57 metres of 1.036 gpt gold, 4.57 metres of 1.89 gpt gold and 6.09 metres of 2.48 gpt gold.
The current exploration below the planned pit bottom supports the theory from the Company-s geological team, that the mineralized system may extend to greater depths. This is consistent in „Mesothermal“ systems, which have significant depth extent, and have the potential to yield high grade feeder systems at depth.
Core drilling continuing along strike in a zone 600 metres to the east of the pit returned values as high as 25.5 metres of 1.908 gpt gold in hole TFD-71. Results of holes in this new zone are confirming the continuity of the gold mineralization at least 600 metres to the East of the current pit limit. The Company has extended the core drill program in order to cover the next 400 metres to the east to determine whether the mineralization extends at least 1 kilometer to the east of the SF pit.
The table below highlights the better intercepts from the last four months of drilling:
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 drill 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 by The Company and assayed by Inspectorate Lab using fire assay and AA finish Gold values above 10 g/t Au are re-assayed and checked by 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.
About Timmins Gold
Timmins Gold Corp. is a gold production and development company. 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 of approximately 100,000 ounces of gold per year at a life of mine cash cost of approximately $489 per ounce. (Micon International Preliminary Feasibility Study, November 2010).
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 .
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. Such statements include estimates, forecasts and statements as to management-s expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production, exploration drilling, exploitation activities and events or future operations. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when, and if, a project is actually developed.
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 the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this news release.
Contacts: Timmins Gold Corp. Bruce Bragagnolo, LLB Chief Executive Officer 604-638-8980
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