Gitennes Exploration Receives Urumalqui Resource Estimate

VANCOUVER, Nov. 15, 2011 /CNW/ - Gitennes Exploration Inc. (TSXV-GIT) ("Gitennes") is pleased to announce that it has received an initial mineral resource estimate for the Urumalqui Vein Zone at the Urumalqui silver-gold exploration project located in north-central Peru. The resource estimate was prepared on behalf of Gitennes and AndeanGold Ltd. ("AndeanGold"), which has an option to earn a 60% interest in the project.

Summary of Inferred Mineral Resource Estimate - Urumalqui Project

           
Silver Cut-
Off Grade
(g/t)
Tonnes Silver
Grade
(g/t)
Ounces
Silver
Gold Grade
(g/t)
Ounces
Gold
120.00 1,535,000 188.47

171.01

162.15
9,299,000

10,692,000

11,192,000
1.513

1.378

1.340
74,700

86,200

92,500
90.00 1,945,000
60.00 2,147,000

Notes:

1.      Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the estimated Mineral Resources will be converted into Mineral Reserves.
2.      The mineral resource was estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM"), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the Standards Committee on Reserve Definitions and adopted by the CIM Council on December 11, 2005.
3.      Inferred Mineral Resources are that part of a Mineral Resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. It is uncertain if further exploration will result in upgrading them to an indicated or a measured mineral resource.
4.      Mineral Resources tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add up due to rounding.
5.      The Estimate is based on 66 diamond drill holes collared on the Urumalqui Vein. These included 35 holes (5,835 metres) drilled by Minera Corimalqui S.A. (a subsidiary of Gitennes) during the period 2003 - 2008, and 31 holes (5,071 metres) drilled by PeruGold Resources S.A.C. (a subsidiary of AndeanGold) in 2011.
6.      The density utilized in the mineral resource estimate was 2.37 tonnes per cubic metre.
7.      Equal length one-metre assay sample composites were calculated from capped assay gold and silver values for all drill holes. Based upon geostatistical results, capping levels were determined to be 850 g/t silver and 8.6 g/t gold.
8.      A modeling cut-off grade of 60 g/t AgEQ ("silver equivalent") was only used to create a three-dimensional assay domain solid (the "Domain") for later interpolation. The silver equivalent grade was calculated based on a combination of a gold value at a 3-year trailing average price of US $1,300 / troy oz and 85% metallurgical recovery rate, and a silver value at a 3-year trailing average price of US $26 / troy oz and 65% metallurgical recovery rate.
9.      A block model was created with 5x5x5 metre blocks. Mineral resources were classified as Inferred within a maximum true distance of 70 metres from an interpolated block to the nearest capped grade composite sample point.
10.      The mining cut-off grade of 90 g/t Ag for the estimated inferred mineral resource was based upon reported mining operation cut-off grades for similar gold-silver vein deposits currently in production elsewhere in Peru and South America.
11.      The Inferred Mineral Resource was estimated using GEMS software.

Qualified Persons & Technical Report

The Inferred Mineral Resource Estimate announced in this release, with an effective date of November 8, 2011, meets the guidelines and form as set out in NI 43-101 and was prepared for AndeanGold Ltd. and Gitennes Exploration Inc. by Mine and Quarry Engineering Services, Inc. ("MQes"). The assignment was carried-out by Mr Chris Kaye, FAusIMM, B.Eng Chemical, President and Principal Process Engineer, the modelling and estimates were carried out by Mr Doug Blanchflower, P.Geo of Minorex Consulting Limited and Mr. James McCrea, P.Geo. Messrs. Kaye, Blanchflower and McCrea are all qualified persons as defined under NI 43-101 reporting requirements and have consented to applicable disclosure contained herein regarding the Inferred Mineral Resource Estimate. MQes, Minorex, and Messrs. Kaye, Blanchflower and McCrea are independent of both AndeanGold and Gitennes.

MQes is preparing the NI43-101 Technical Report in support of the Resource Estimate. This report will be filed by the company in its entirety on SEDAR (www.sedar.com) within 45 days of the date of this news release.

Urumalqui Project

AndeanGold has an option to acquire a 60% interest in the Urumalqui Project from Gitennes. The subject of this initial Inferred Resource Estimate is the principal target on the property, the "Urumalqui Vein", a continuous structure containing one to two quartz-adularia veins within a envelope of altered and variably mineralized volcanic rock. The near-vertical Urumalqui Vein structure is exposed at surface over a strike length of 1,500 metres, is from 0.5 to 11 metres wide (averaging 3 metres). Mineralogy, rock textures and associated alteration are characteristic of low-sulphidation, epithermal mineralization. Mineralization at the Urumalqui Project is hosted in Calipuy Group volcanic rocks.

The exploration potential at the Urumalqui Project remains very good. The Urumalqui Vein has only six drill holes that intersected the structure below 200 metres, all mineralized, while the northwestern end has only widely-spaced, near-surface holes that are too shallow to properly test the extension in this direction. The southeastern limit of the zone has yet to be determined, with two holes there encountering grades and thicknesses that are included within the Inferred Resource Estimate. The Urumalqui Vein itself is just one of several targets on the property. Earlier work at Urumalqui recognized two dominant vein orientations - a NW to SE set that includes the Urumalqui Vein, La Mariscala West Vein, La Mariscala South Vein, and the Penélope Vein, and an east to west set that includes La Mariscala East Vein, Candual East Vein, the Candual West vein zone, and the Candual Vein. These other veins are all located south of the Urumalqui Vein and have had little exploration drilling.

The majority of Gitennes' drilling programmes (2003 - 2008) was focused on the Urumalqui Vein (35 core holes, 5,835 metres) and in particular the 1,000 metre long central and southeastern segment of the main Urumalqui Vein (27 core holes,4,884 metres) and from the surface down to about 200 metres vertical depth. Based upon vein textures all holes are in the "boiling zone" indicating that the potential for expansion is considered to be good.

AndeanGold completed its Phase I drill programme in July 2011. AndeanGold's programme was focused on infill drilling to a depth of 200 metres so as to provide a drill spacing of approximately 50 metres along the central and southeastern segments of the Urumalqui Vein structure. This programme included 31 core holes for a total meterage of 5,071 metres. All 31 holes intersected the Urumalqui Vein as predicted in cross sections prepared by the Company. Including Gitennes' related drilling results, the programme confirmed good continuity of mineralization for the subject 1,000 metre Urumalqui Vein strike, down to 200 metres below surface.

The technical information in this release has been reviewed by J. Blackwell (P.Geo.), a Qualified Person as defined by National Instrument 43-101.

Please refer Gitennes' website at www.gitennes.com for further information on the Company's projects and activities.

Neither the 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.

DISCLAIMER: This news release includes certain statements, other than historical information, that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including, without limitation, statements regarding future plans and objectives of the companies are forward-looking statements that involve various risks and uncertainties. Although Gitennes believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include general economic, market or business conditions, and other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Mineral exploration and development of mines is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. Historical information necessarily is not current and is provided for your reference only. No warranty whatsoever is made that any of the historical information is accurate, precise, or up-to-date. For more information on Gitennes and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.

This press release does not constitute an offer to sell or a solicitation to buy any of the securities of Gitennes in the United States.

 

SOURCE Gitennes Exploration Inc.

For further information:

Jerry Blackwell, President 
604 682 7970

Profil de l'entreprise

Gitennes Exploration Inc.

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