Vancouver, British Columbia. Timmins Gold is pleased to announce an increase in the Mineral Resource estimate for its wholly owned San Francisco open pit gold mine located in northern Sonora, Mexico. The Measured and Indicated Resources for the San Francisco mine have increased to 895,725 ounces of gold and the Inferred Resource has increased to 154,038 ounces of gold. This represents an increase of 25% to the combined Measured and Indicated Resources.
The Mineral Resource estimate completed by the independent qualified person, Mr. Michael Hester, B.Sc., M.Sc., FAusIMM of Independent Mining Consultants Inc. (IMC), of Tucson, Arizona, was prepared using CIM definitions for Mineral Resources as required by National Instrument 43-101. The Mineral Resource estimate is based on a block model developed by ordinary kriging contained within a floating cone shell and tabulated at a 0.15 g/t gold cutoff grade. The Mineral Resource estimate is:
|Grade g/t gold||0.83||0.71||0.65|
The increase was obtained from improved economics and a limited step-out drill program of 270 holes of reverse circulation drilling totaling 22,216 meters completed up to February 20, 2010 at a cost of only $1.5 million.
The drilling was concentrated in three areas: 1) northwest of the main orebody, 2) southeast of the orebody, and 3) along the southwest flank of the current pit. The Measured and Indicated Resource increases are located contiguous to the northwest and to the southeast of the currently defined pit limits.
An initial 2010 drill program of 50,000 meters of reverse circulation drilling and 20,000 meters of RAB drilling is ongoing and is scheduled to be completed by the end of September 2010. The cost of the ongoing drill program is anticipated to be $4.5 million.
When completed, the drill program will be followed up with a new resource estimate, reserve estimate and mine plan which are scheduled to be completed by Q4 of 2010.
The increased resource follows upon the commencement of commercial production in early April 2010. The size of the gold mineralization zone, its presence within large shear zones and the continuous nature of the gold within the zones form the basis of management's expectation that the planned additional drilling could lead to a significant increase in the resource available to be mined at San Francisco and could potentially also lead to the discovery of additional satellite deposits within the existing land package.
The previous combined Measured and Indicated Resources were 716,785 ounces gold (27.6Mt grading 0.806 g/t Au), as calculated by IMC and reported in the March 2008 Preliminary Feasibility Study prepared by Micon International of Toronto.
About Timmins Gold
Focused solely in Mexico, Timmins Gold Corp is now in commercial gold production at its wholly owned San Francisco gold mine in Sonora, Mexico. The mine is a past-producing open pit heap leach operation from which 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)
Pursuant to National Instrument 43-101, Mr. Michael Hester, B.Sc., M.Sc., FAusIMM. (Independent Mining Consultants Ltd.) is the independent Qualified Person responsible for the Mineral Resource estimate. This press release was reviewed 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. For further information contact Timmins Gold Corp. at 604-682-4002 or go to the website at www.timminsgold.com.
Bruce Bragagnolo, LLB
Chief Executive Officer
Vancouver, BC, Canada
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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.