Genco Increases Mining Reserves by 76% and Measured and Indicated Resources by 751%



    Trading Symbol TSX: GGC

    VANCOUVER, June 17 /CNW Telbec/ - Genco Resources Ltd. announces the
results of an updated resource and reserve audit for its La Guitarra
silver/gold mine and Temascaltepec Mining District. Reserves and resources are
reported as of March 2008 in accordance with National Instrument 43-101
Standards of Disclosure for Mineral Projects. The Qualified Person under NI
43-101 for this reserve and resource estimate is Glenn R. Clark, P.Eng., of
Glenn R. Clark and Associates Limited. He is arm's length to Genco and has
prepared or supervised the preparation of the information that forms the basis
for this news release and verified the data disclosed.
    The following tabulates the reserve and resources by area and category.
Approximately 200,000 tonnes of the underground reserves are included in the
Creston block model resources.

    
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
     La Guitarra and Temascaltepec Silver Gold Mining District Reserves
                                and Resources
    -------------------------------------------------------------------------
                                     tonnes               Ag      Au    eAg
    Category      Area                ('000)             g/t     g/t    g/t
    -------------------------------------------------------------------------
                  Guitarra          226,000              209    1.89    304
                 ------------------------------------------------------------
    Proven        Santa Ana          90,000              210    0.27    224
    Reserves     ------------------------------------------------------------
                  Nazareno           47,000              198    0.98    247
                 ------------------------------------------------------------
                  Coloso             16,000              257    1.51    333
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Proven                    379,000              210    1.38    279
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Guitarra          445,000              187    1.69    272
                 ------------------------------------------------------------
    Probable      Santa Ana         430,000              190    0.21    201
    Reserves     ------------------------------------------------------------
                  Nazareno           90,000              178    0.55    206
                 ------------------------------------------------------------
                  Coloso             82,000              258    1.49    333
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Probable                1,047,000              193    0.97    241
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total P + P                   1,426,000              198    1.08    251
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
               Creston Open Cut Resources - 20 g/t eAg Cutoff
    -------------------------------------------------------------------------
    Measured                      4,227,000               63    0.66     96
    -------------------------------------------------------------------------
    Indicated                     8,824,000               52    0.57     81
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total M + I                  13,051,000               56    0.60     86
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Inferred                      3,469,000               48    0.71     84
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                       Underground Inferred Resources
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          Ag      Au    eAg
    Area                             tonnes              g/t     g/t    g/t
    -------------------------------------------------------------------------
    La Guitarra Down Dip          1,680,000              284    3.77    473
    -------------------------------------------------------------------------
    La Guitarra SE                1,170,000              260    2.10    365
    -------------------------------------------------------------------------
    La Guitarra NW Extension      1,100,000              284    3.77    473
    -------------------------------------------------------------------------
    Santa Ana                     2,070,000              252    0.32    268
    -------------------------------------------------------------------------
                                                          Ag      Au    eAg
    Area                             tonnes              g/t     g/t    g/t
    -------------------------------------------------------------------------
    El Nuevo Descubrimiento         240,000              606    3.79    796
    -------------------------------------------------------------------------
    Las Animas - Socorro            360,000              551    3.16    709
    -------------------------------------------------------------------------
    Rincon                          230,000              611    3.84    803
    -------------------------------------------------------------------------
    Magdalena - Sayas               240,000              455    0.88    499
    -------------------------------------------------------------------------
    Coloso                          901,000              309    1.79    399
    -------------------------------------------------------------------------
    Nazareno                      1,922,000              267    0.48    291
    -------------------------------------------------------------------------
    Purisima                        110,000              551    3.16    709
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Underground Inferred   10,023,000              305    1.95    403
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Category        Area                   oz Ag       Oz Au         Oz eAg
    -------------------------------------------------------------------------
                  Guitarra             1,519,000      13,700      2,204,000
                 ------------------------------------------------------------
    Proven        Santa Ana              608,000         800        648,000
    Reserves     ------------------------------------------------------------
                  Nazareno               299,000       1,500        374,000
                 ------------------------------------------------------------
                  Coloso                 132,000         800        172,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Proven                       2,558,000      16,800      3,398,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Guitarra             2,676,000      24,100      3,881,000
                 ------------------------------------------------------------
    Probable      Santa Ana            2,627,000       2,900      2,772,000
    Reserves     ------------------------------------------------------------
                  Nazareno               515,000       1,600        595,000
                 ------------------------------------------------------------
                  Coloso                 680,000       3,900        875,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Probable                     6,498,000      32,500      8,123,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total P + P                        9,056,000      49,200     11,516,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
               Creston Open Cut Resources - 20 g/t eAg Cutoff
    -------------------------------------------------------------------------
    Measured                           8,563,000      89,400     13,033,000
    -------------------------------------------------------------------------
    Indicated                         14,754,000     161,200     22,814,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total M + I                       23,317,000     250,600     35,847,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Inferred                           5,350,000      79,000      9,300,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                       Underground Inferred Resources
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Area                                   oz Ag       Oz Au         Oz eAg
    -------------------------------------------------------------------------
    La Guitarra Down Dip              15,340,000     203,000     25,490,000
    -------------------------------------------------------------------------
    La Guitarra SE                     9,780,000      79,000     13,730,000
    -------------------------------------------------------------------------
    La Guitarra NW Extension          10,050,000     133,000     16,700,000
    -------------------------------------------------------------------------
    Santa Ana                         16,770,000      21,000     17,820,000
    -------------------------------------------------------------------------
    Area                                   oz Ag       Oz Au         Oz eAg
    -------------------------------------------------------------------------
    El Nuevo Descubrimiento            4,680,000      29,000      6,130,000
    -------------------------------------------------------------------------
    Las Animas - Socorro               6,380,000      36,000      8,180,000
    -------------------------------------------------------------------------
    Rincon                             4,520,000      28,000      5,920,000
    -------------------------------------------------------------------------
    Magdalena - Sayas                  3,510,000       7,000      3,860,000
    -------------------------------------------------------------------------
    Coloso                             8,950,000      52,000     11,550,000
    -------------------------------------------------------------------------
    Nazareno                          16,500,000      30,000     18,000,000
    -------------------------------------------------------------------------
    Purisima                           1,950,000      11,000      2,500,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Underground Inferred        98,430,000     629,000    129,880,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Underground reserves were calculated using a 135 equivalent silver ("eAg")
grams per tonne ("g/t") cut off, a 20% dilution factor at zero grade.
Underground reserves were further reduced by 10% to reflect a mineable
recovery estimate. The methodology used for the underground reserves was
standard polygonal projections on longitudinal sections. Proven was projected
0-10 metres from data points and Probable was projected 10-25 metres for all
areas except Santa Ana. Proven at Santa Ana was projected 0-10 metres and
Probable 10-50 metres. Gold assays were cut to 15 g/t, and silver assays to
1,500 g/t.

    The following tabulates the parameters used to create the Creston block
model grade interpolations.

    -------------------------------------------------------------------------
    Parameter                                      Value, Distance or Method
    -------------------------------------------------------------------------
    Grade Estimation Method                                             IDP3
    -------------------------------------------------------------------------
    Block Size (length x width x bench Height)                 10x3x3 metres
    -------------------------------------------------------------------------
    Composite Length                                                3 metres
    -------------------------------------------------------------------------
    Gold Outlier Cap                           6 to 12 g/t depending on area
    -------------------------------------------------------------------------
    Gold Outlier Capping Distance                                  15 metres
    -------------------------------------------------------------------------
    Silver Outlier Cap                      250 to 625 g/t depending on area
    -------------------------------------------------------------------------
    Silver Outlier Capping Distance                                15 metres
    -------------------------------------------------------------------------
    Measured Distance                                              20 metres
    -------------------------------------------------------------------------
    Minimum Number of Composites for Measured                              2
    -------------------------------------------------------------------------
    Indicated Projection Distance                               20-50 metres
    -------------------------------------------------------------------------
    Minimum Number of Composites for Iindicated                            2
    -------------------------------------------------------------------------
    Inferred Projection Distance                                 + 50 metres
    -------------------------------------------------------------------------
    Model Constraint                             3D Solid/Wire Framing Model
    -------------------------------------------------------------------------

    A 50 to 1 silver to gold ratio representing a gold price of US$600/oz gold
and a silver price of US$12/oz was used in the eAg calculation. Silver and
gold recoveries are essentially the same, 82%-89% using the existing flotation
circuit averages and in test work using cyanide leaching.

    The following is a further breakdown of the Creston measured and indicated
resources at 10 g/t eAg intervals.

    -------------------------------------------------------------------------
                     Creston Resource by Class and Cutoff
    -------------------------------------------------------------------------
      Cutoff                                              Ag      Au    eAg
      eAg g/t     Class              tonnes              g/t     g/t    g/t
    -------------------------------------------------------------------------
                  Measured        6,145,000               46    0.47     70
                 ------------------------------------------------------------
                  Indicated      11,435,000               42    0.45     65
        0        ------------------------------------------------------------
                  M + I          17,580,000               43    0.46     66
                 ------------------------------------------------------------
                  Inferred        4,590,000               38    0.55     66
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Measured        5,077,000               54    0.57     83
                 ------------------------------------------------------------
                  Indicated      10,382,000               46    0.49     71
        10       ------------------------------------------------------------
                  M + I          15,459,000               49    0.52     75
                 ------------------------------------------------------------
                  Inferred        4,117,000               42    0.61     73
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Measured        4,227,000               63    0.66     96
                 ------------------------------------------------------------
                  Indicated       8,824,000               52    0.57     81
        20       ------------------------------------------------------------
                  M + I          13,051,000               56    0.60     86
                 ------------------------------------------------------------
                  Inferred        3,469,000               48    0.71     84
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Measured        3,508,000               72    0.77    111
                 ------------------------------------------------------------
                  Indicated       7,396,000               59    0.65     92
        30       ------------------------------------------------------------
                  M + I          10,904,000               63    0.69     98
                 ------------------------------------------------------------
                  Inferred        2,870,000               54    0.82     95
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Measured        3,033,000               80    0.86    123
                 ------------------------------------------------------------
                  Indicated       6,179,000               66    0.73    103
        40       ------------------------------------------------------------
                  M + I           9,212,000               71    0.77    109
                 ------------------------------------------------------------
                  Inferred        2,382,000               61    0.93    108
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Measured        2,547,000               89    0.97    138
                 ------------------------------------------------------------
                  Indicated       5,136,000               73    0.82    114
        50       ------------------------------------------------------------
                  M + I           7,683,000               78    0.87    122
                 ------------------------------------------------------------
                  Inferred        1,993,000               67    1.05    120
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Measured        2,162,000               98    1.09    153
                 ------------------------------------------------------------
                  Indicated       4,226,000               81    0.93    128
        60       ------------------------------------------------------------
                  M + I           6,388,000               87    0.98    136
                 ------------------------------------------------------------
                  Inferred        1,710,000               72    1.17    130
    -------------------------------------------------------------------------

      Cutoff
      eAg g/t     Class                    Oz Ag       Oz Au         Oz eAg
    -------------------------------------------------------------------------
                  Measured             9,089,000      93,500     13,764,000
                 ------------------------------------------------------------
                  Indicated           15,443,000     165,500     23,718,000
        0        ------------------------------------------------------------
                  M + I               24,532,000     259,000     37,482,000
                 ------------------------------------------------------------
                  Inferred             5,608,000      81,200      9,668,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Measured             8,870,000      93,100     13,525,000
                 ------------------------------------------------------------
                  Indicated           15,356,000     163,600     23,536,000
        10       ------------------------------------------------------------
                  M + I               24,226,000     256,700     37,061,000
                 ------------------------------------------------------------
                  Inferred             5,560,000      80,800      9,600,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Measured             8,563,000      89,700     13,048,000
                 ------------------------------------------------------------
                  Indicated           14,754,000     161,700     22,839,000
        20       ------------------------------------------------------------
                  M + I               23,317,000     251,400     35,887,000
                 ------------------------------------------------------------
                  Inferred             5,354,000      79,200      9,314,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Measured             8,121,000      86,900     12,466,000
                 ------------------------------------------------------------
                  Indicated           14,031,000     154,600     21,761,000
        30       ------------------------------------------------------------
                  M + I               22,152,000     241,500     34,227,000
                 ------------------------------------------------------------
                  Inferred             4,983,000      75,700      8,768,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Measured             7,802,000      83,900     11,997,000
                 ------------------------------------------------------------
                  Indicated           13,113,000     145,000     20,363,000
        40       ------------------------------------------------------------
                  M + I               20,915,000     228,900     32,360,000
                 ------------------------------------------------------------
                  Inferred             4,672,000      71,200      8,232,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Measured             7,289,000      79,400     11,259,000
                 ------------------------------------------------------------
                  Indicated           12,056,000     135,400     18,826,000
        50       ------------------------------------------------------------
                  M + I               19,345,000     214,800     30,085,000
                 ------------------------------------------------------------
                  Inferred             4,294,000      67,300      7,659,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Measured             6,813,000      75,800     10,603,000
                 ------------------------------------------------------------
                  Indicated           11,007,000     126,400     17,327,000
        60       ------------------------------------------------------------
                  M + I               17,820,000     202,200     27,930,000
                 ------------------------------------------------------------
                  Inferred             3,959,000      64,200      7,169,000
    -------------------------------------------------------------------------


    The following table shows the growth of resources and reserves by area and
category.

    -------------------------------------------------------------------------
                 Resource and Reserve Growth from End of 2006
    -------------------------------------------------------------------------
                                                          oz      oz     oz
    Category                          tonnes              Ag      Au    eAg
    -------------------------------------------------------------------------
    Reserves                            170%              74%     87%    76%
    -------------------------------------------------------------------------
    Measured and Indicated              935%             723%    808%   751%
    -------------------------------------------------------------------------
    Underground Inferred                 72%              47%     18%    39%
    -------------------------------------------------------------------------
    

    Genco's President Gregory K. Liller stated

    "I extremely pleased with the large growth of both reserves and resources
in the last year. Genco is executing its plan in a timely manner to develop
the full potential of La Guitarra Mine and the Temascaltepec Mining District.
    "These estimates will be incorporated into the ongoing feasibility study
which is scheduled for completion in the third quarter of this year. The
feasibility study will include an open pit mine and processing plan for the
Creston deposit and I expect a significant amount of the 35.8 million
equivalent silver ounces contained in the Creston measured and indicated
resource to be converted to a proven and probable reserve.
    "The feasibility study is on track to be completed in Q3 of 2008, and
Kappes, Cassiday & Associates are focused on designing a suitable plant for
the 3,000 t/d ball mill that we have already purchased. Vector Engineering is
completing the design work for a tailings storage facility, a heap leach pad
and associated ponds.
    "We are assuming a positive outcome to the feasibility study and are
currently exploring several project financing options including equity and
debt. Genco remains focused and on track to greatly expand production at La
Guitarra in 2010."

    The Toronto Stock Exchange does not accept responsibility for the
    adequacy or accuracy of this release.




For further information:

For further information: Gregory K. Liller, President, (604) 682-2205,
gencoinfo@telus.net; Renmark Financial Communications Inc.: Neil Murray-Lyon:
nmurraylyon@renmarkfinancial.com; Dan Symons: dsymons@renmarkfinancial.com,
(514) 939-3989, Fax: (514) 939-3717; www.renmarkfinancial.com

Organization Profile

GENCO RESOURCES LTD.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890