NYSE MKT: TGD • $0.39     TSX: TMM • $0.52     Gold: 1284.56

2006

2006 Drilling at San Francisco Gold Project Confirms Project Potential


December 7, 2006

Timmins Gold Corp. (the "Company") reports the results of its 2006 core and reverse circulation drilling on its San Francisco gold project, a past-producing, open pit deposit located in northern Sonora, Mexico.

Analytical and assay results from 57 of the 59 holes comprising the 2006 drill program have now been received, including hole TFD-27, located directly to the west of the San Francisco pit, which returned a 110.75 metre interval averaging 3.078 grams per tonne (g/t) gold, including 8.05 metres of 26.25 g/t gold.

The 2006 program, totaling 4,215 metres of diamond and 3,095 metres of reverse circulation ("RC") drilling, was designed to confirm and expand the historical project resource estimate, in preparation for a new, NI 43-101 compliant, resource estimate. The new resource estimate will support a pre-feasibility study that is now in process.

While backlogs in the laboratory processing of drill samples delayed the receipt of assay results, the new project resource estimate and pre-feasibility study are expected to be completed early in 2007. Based upon the results of drilling, Company management believes that the results of the current drill program, at a minimum, will confirm the historical resource estimate for the deposit of 20.3 million tonnes, grading 1.05 g/t gold (683,000 ounces at a cutoff grade of 0.5 g/t).

From 1995 to 2001, the San Francisco mine produced 13,490,184 tonnes at a grade of 1.13 g/t gold for a total of 488,680 contained ounces of gold. Upon receipt of the pre-feasibility study, the Company will assess its options for resuming production from the deposit.

Detailed Drilling Results

North Extension of San Francisco Pit

Results from the 2006 drill program have confirmed the continuation of several, near surface, north-west striking, mineralized lenses, previously identified in the San Francisco pit. In addition, the drilling identified several other mineralized lenses at depth, extended the length along strike of the mineralized zone from the north edge of the pit by approximately 160 metres, and confirmed the width of the zone at approximately 80 metres. The mineralized zone remains open along strike and at depth. These results are expected to increase the total project mineral resources beyond the historical estimate. See San Francisco Drilling Location Map.

 

TABLE 1

DRILL RESULTS
NORTH SAN FRANCISCO PIT & CRUSHER AREA

Hole No. Total Depth (m) Angle Az Cross
Section
From (m) To (m) Interval (m) True width (m) Au
g/t
TFD-01 227.50 -70° 205° 880NE
 
 
Includes
77.85
115.40
147.65
147.65
176.95
186.91
78.35
116.82
160.00
150.50
178.50
189.72
0.500
1.420
12.350
2.850
1.550
2.810
0.500
1.420
12.350
2.850
1.550
2.810
1.075
0.782
2.580
7.800
1.060
1.401
TFD-02 300.15 -70° 205° 900NE 10.05
116.32
153.15
171.10
252.20
271.00
298.20
20.95
121.90
161.10
174.10
262.80
276.40
300.15
10.900
5.580
7.950
3.000
11.000
5.400
1.950
10.90
5.580
7.950
3.000
11.00
5.400
1.950
2.481
1.590
0.378
3.302
1.708
1.010
0.685
TFD-03 300.65 -70° 205° 920NE 140.50
151.00
166.00
187.00
228.60
235.10
246.60
254.15
259.00
276.65
292.40
142.00
152.50
167.50
188.50
230.25
236.65
248.40
255.80
261.86
279.30
293.90
1.500
1.500
1.500
1.500
1.650
1.550
1.800
1.650
2.860
2.650
1.500
1.500
1.500
1.500
1.500
1.650
1.550
1.800
1.650
2.860
2.650
1.500
0.904
0.374
0.368
0.698
0.352
0.518
0.365
0.828
0.559
0.412
0.363
TFD-04 285.05 -70° 205° 940NE 10.80
55.40
70.00
79.00
174.40
19.90
59.00
76.60
96.10
178.05
9.100
3.600
6.600
17.10
3.650
9.100
3.600
6.600
17.10
3.650
0.690
1.792
1.464
1.224
0.370
TFD-05 250.05 -70° 205° 1000NE 4.90
159.75
209.25
223.00
234.60
241.25
8.40
144.00
210.35
224.50
238.55
247.25
3.500
4.250
1.100
2.500
3.950
6.000
3.500
4.250
1.100
2.500
3.950
6.000
2.975
0.363
5.071
2.183
0.405
0.816
TFD-06 250.05 -70° 205° 1040NE 102.65
159.40
226.00
110.10
163.90
239.50
8.050
4.500
13.500
8.050
4.500
13.500
0.914
0.399
0.551
TFD-07 200.15 -70° 205° 920 NE
 

 

 

 

*

TFD-08 200.65 -70° 205° 1000 NE 62.65 67.00 4.350 4.350 0.284
TFD-23 150.25 -70° 205° 1040 NE         *
TFD-24 121.35 -70° 205° 900 NE
includes
45.20
46.30
53.60
48.60
8.400
2.300
8.400
2.300
0.685
1.148
TFD-25 120.85 -70° 205° 960 NE         *
TDF-26 120.50
 
-70° 205° 960NE
 
 
Includes
16.70
45.70
88.10
98.90
21.80
48.70
102.80
102.80
8.100
3.000
14.70
3.900
8.100
3.000
14.70
3.900
1.531
0.533
0.563
1.169
TFD-28 100.80 -70° 205° 980 NE         *
TF-15 249.93
 
-70° 205° 880NE
Includes
19.81
86.87
32.00
89.92
12.192
3.048
12.192
3.048
0.550
0.495
TF-16 240.79
 
-70° 205° 900NE 73.15
82.30
79.25
94.49
6.096
12.192
6.096
12.192
0.558
0.334
TF-18 249.93
 
-70° 205° 940NE 7.62
82.29
9.144
85.34
1.524
3.050
1.524
3.050
1.320
3.200
TF-19 219.45 -70° 205° 980NE 10.67 19.81 10.67 10.67 0.5
TF-20 249.93
 
-70° 205° 1040 NE 1.524
27.43
92.96
4.57
33.53
96.01
3.048
6.100
3.054
3.048
6.100
3.054
0.598
1.339
1.129
TOTAL 3,838.03 metres              

 


* No significant intervals

 

West Extension of the San Francisco Pit

Results from the 2006 drill program have confirmed the presence of higher grade gold mineralization in a zone west of the San Francisco pit, first identified in 2005. Most notably, diamond drill hole TFD-27 intersected 3.07 g/t gold over 110.75 metres. See San Francisco Drilling Location map.

 

TABLE 2

DRILL RESULTS
NORTH WEST / SOUTH & EAST EXTENSIONS FROM SAN FRANCISCO PIT

Hole No. Total Depth (m) Angle Az Cross Section From (m) To (m) Interval (m) True width (m) Au
g/t
TFD-09 152.95
 
-70° 205° 1500 NE 45.20
58.20
55.95
61.35
10.750
3.150
10.750
3.150
0.559
0.330
TFD-10 150.50 -70° 205° 1520 NE 64.35 71.85 9.000 9.000 0.334
TFD-22 121.50
 
-70° 205° 1520 NE         *
TFD-27
 
**
110.75
 
-70° 205° 1200 NE
includes
0.00
3.40
8.75
32.70
55.60
86.40
110.75
5.60
16.80
40.90
81.90
97.20
110.75
2.200
8.050
8.200
26.300
15.500
110.75
2.200
8.050
8.200
26.300
15.500
3.078
0.743
26.250
0.574
3.784
2.482
TF-21 80.77 -70° 205° 1200 NE         *
TF-22 80.77 -70° 205° 1300 NE 39.62
77.72
44.19
79.24
4.57
1.524
4.57
1.524
1.840
0.429
TF-23 50.29 -70° 205° 400 NE 4.57 6.09 1.524 1.524 0.433
TF-24 50.29 -70° 205° 400 NE         *
TF-42 53.00 -70° 205° 500 NE         *
TOTAL 850.82 Metres              

 


* No significant intervals
** Twin core hole of reverse circulation hole TF-13 (2005 program).

 

La Chicharra Pit Extension

Four holes located north of the La Chicharra pit encountered several significant intersections, including 20 metres grading over one g/t gold. Drilling confirmed the extension of a 100 metre-wide mineralized zone north of the pit, along strike, for at least 200 metres. The zone remains open both along strike and at depth and is believed to represent an extension of the La Chicharra pit. Infill and step out drilling is expected to commence early in 2007. See La Chicharra Drilling Location Map.

 

TABLE 3

DRILL RESULTS
LA CHICHARRA PIT EXTENSION

Hole No. Total Depth (m) Angle Az Cross Section From (m) To (m) Interval (m) True width (m) Au
g/t
TFD-11 176.25 -70° 205° 2600 NE 19.05
90.00
110.70
164.00
20.40
102.10
116.70
167.00
1.35
9.10
6.00
3.00
1.350
12.10
6.00
3.00
8.494
1.443
2.109
0.406
TFD-12 130.85 -70° 205° 2700 NE 16.60
54.82
61.90
100.40
115.20
20.40
58.30
72.20
103.40
125.15
3.80
3.48
10.30
3.00
9.00
3.80
3.48
10.30
3.00
9.00
0.338
0.972
0.924
0.978
0.332
TFD-13 110.70 -70° 205° 2800 NE 76.80
87.15
84.20
89.55
7.40
2.40
7.40
2.40
0.970
0.285
TFD-16 60.60 -70° 205° 2500 NE *        
TFD-17 62.10 -70° 205° 2600 NE *        
TF-25 146.30 -70° 205° 2500 NE 16.74 21.36 4.57 4.57 0.370
TF-26 155.45 -70° 205° 2600 NE 96.01
118.87
134.11
99.06
132.58
138.68
3.05
13.72
3.05
3.05
13.72
3.05
0.340
1.974
1.926
TF-29 60.96 -70° 205° 2500 NE *        
TF-30 60.06 -70° 205° 2600 NE 12.19 15.24 3.04 3.04 0.301
TF-31 60.96 -70° 205° 2700 NE *        

TOTAL

1,024.23 

metres

 

           

 


* No significant intervals

 

Future Programs and Other Targets:

In addition to establishing the strike length and down dip extent of the San Francisco and La Chicharra mineralization, future programs will concentrate on establishing continuity between the two zones. See Location Drilling Map-General View Map. As well, several other exploration targets identified within the project property boundaries are currently being assessed. 20 exploratory holes not included in the above results, were drilled in the 2006 program to test geochemical anomalies. These holes contained values ranging from zero to 1.78 g/t over 1.524 metres. The Company continues to evaluate these targets by mapping, prospecting, geochemical and geophysical programs.

Quality Assurance and Quality Control

Darcy Krohman, P.Geo., C.A,. the Company's Executive Vice-President and CFO, is the "Qualified Person", as defined in National Instrument 43-101 ("NI 43-101"), responsible for the disclosure in this news release. Field work has been conducted by the Company and its contractors.

The Company observes standard industry practices in its handling, preparation and processing of samples. This includes, but is not limited to, the separation of functions and the use of blanks, standards and duplicates samples. The Company has contracted Acme Analytical Laboratories Ltd., an ISO 9001:2000 accredited lab, to complete geochemical analysis of the samples.

Preparation of the samples occurs in Acme's facility in Hermosillo, Senora, Mexico prior to secure shipment to Vancouver, BC for analysis. In Vancouver, each sample is subjected to gold analyses by a lead collection fire-assay for total sample decomposition, finalizing with ICP-ES (Inductively Coupled Plasma-Emission Spectrometry) analysis.

The historical resource estimate for the San Francisco deposit referred to herein was prepared in 2001, pre-dates NI 43-101 and, accordingly, does not comply with its requirements. While the Company has no reason to doubt its accuracy, the estimate is included solely for reference purposes and no reliance should be placed upon it.

For Further information, contact:

Arturo Bonillas, B.Sc.(Eng)
President & CEO
Hermosillo, Sonora, Mexico
Tel: 011-52-662-262-1132
arturo@timminsgold.com

Darcy Krohman, P.Geo., C.A.
Vice-President & CFO
Vancouver, BC, Canada
Tel: 604-682-4002
darcy@timminsgold.com

For Investor Relations, contact:

Derek Thomson
Corporate Development
Vancouver, BC, Canada
Tel: 604-682-4002
derek@timminsgold.com


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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 out 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 suggests herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results.





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