New gold acquisition in Pinos district, Zacatecas, Mexico



    TORONTO, Sept. 11 /CNW/ - Xtierra Inc. (TSXV - XAG) ("Xtierra" or the
"Company"), is pleased to announce that it has entered into an option
agreement with private Mexican interests whereby it may acquire a 100%
interest in the El Dorado gold project within 2,890 hectares of mining claims
located in the Pinos district of southeastern Zacatecas State, Mexico. The
property is located within the Central Mexican Mineral Belt and has an
existing small-scale underground gold mining operation developed on one level
of the El Dorado vein. It is located close to Xtierra's existing Orca 3
property and some 80 kilometres southeast of Xtierra's Bilbao
silver-zinc-lead-copper development project.

    The El Dorado Property

    The El Dorado property is located 7 kilometers northeast of the historic
Pinos gold deposits where veins with reported bonanza grades of more than
200g/t gold were mined historically on northwest striking veins making the
Pinos district the largest gold producer in the State of Zacatecas during the
Colonial Period. Historic records suggest the average mined grade was 97 g/t
silver and 58.26 g/t gold.
    Gold mineralization at El Dorado occurs as veins and in quartz stockworks
related to late stage extensional faulting developed within an intrusive
quartz-eye rhyolite. The El Dorado vein trends north-northwest and dips
steeply to the west. It comprises one main and several parallel veins of
quartz-hematite. Mineralization noted within the single level adit driven 134
metres on the vein is native gold within a matrix of hematite. Lower grade
gold mineralization has been found in altered wall rocks. The current mining
operation on the El Dorado vein structure produces only small tonnages each
day by selectively hand mining higher grade vein material which is directly
shipped to the Penoles smelter, 400 km to the north, at Torreon.
    Work recently completed by Xtierra during preliminary due diligence has
resulted in the discovery of an extensive gold-bearing stockwork encompassing
the El Dorado vein and several other parallel structures. Soil and rock
geochemistry have demonstrated that this stockwork, formed at the edge of a
linear gold soil anomaly over 1km in strike length, is open-ended to the
north-east and trends directly into a second, newly identified stockwork body,
located over 300 metres away from the El Dorado vein.
    Preliminary work completed by Xtierra confirms the high grade nature of
the El Dorado vein with channel sampling returning values ranging from 0.5 to
57.0 g/t gold over widths of 0.10 to 1.0 metre with individual grab samples as
high as 1,760 g/t gold and 3,590 g/t silver. Such grades indicate the
potential for bonanza deposition zone development within an epithermal boiling
zone. The El Dorado vein and surrounding stockworks do not appear to have been
tested by drilling.
    Prospecting, trenching and soil geochemical sampling indicate the
presence of at least five additional parallel veins underlain by altered and
brecciated, porphyritic rhyolite with well-developed quartz-hematite stockwork
veining which have consistently returned anomalous gold values in the range
0.1 to 80g/t gold within the area of the stockwork.
    Xtierra plans further detailed exploration of the El Dorado and Orca 3
properties over the next six months which will include the drilling of between
4 to 6 diamond drill holes to evaluate the depth extension of the main El
Dorado vein and the extent of the stockwork mineralization.

    Chief Executive's Comments

    Xtierra's Chief Executive Officer, Terence McKillen, stated "The
acquisition of the El Dorado property in the historic Pinos gold district of
Zacatecas adds further diversification to Xtierra's mineral property portfolio
in Zacatecas within a promising gold district with high grade epithermal vein
and lower grade bulk tonnage gold potential. The El Dorado project complements
and broadens Xtierra's earlier focus on development of silver-base metal
resources in Zacatecas."

    Agreement

    Under the terms of the agreement, Golden Dust S.A. de C.V., ("Golden
Dust") an indirect, wholly-owned subsidiary of Xtierra may acquire a 100%
interest in the Eldorado Claims (the "Property") by staged options and
payments (all US Dollar amounts). An initial payment of $32,558 has been made
which grants Golden Dust an option to explore and evaluate the Property until
March 7, 2010. Should Golden Dust exercise the option to purchase the Property
on or before March 7, 2010, a payment of $93,023 would be made, followed by
three equal payments of $268,217 due respectively on January 15 of 2014, 2015
and 2016, for a total consideration of $1 million. If Golden Dust completes a
feasibility study and such study indicates a mineral reserve estimate
containing between 250,001 and 500,000 ounces of gold, a bonus to the purchase
price of $500,000 will be paid, or if such mineral reserve estimate is greater
than 500,000 ounces of gold, a bonus purchase price of $1 million will be
paid, on the same staged basis as the three interim payments. The maximum
purchase price to be paid is $2 million. Golden Dust may conduct whatever
exploration and development work it deems necessary to evaluate the Property.

    Qualified Person

    Information of a scientific or technical nature contained in this release
has been prepared by or under the supervision of Terence McKillen, P.Geo.
and/or Gerald Gauthier, P.Eng., respectively Chief Executive Officer and Chief
Operating Officer of the Corporation and Qualified Persons within the meaning
of National Instrument 43-101 of the Canadian Securities Administrators.

    About Xtierra Inc.

    Xtierra Inc. is a Toronto based exploration and development company
listed on the TSX Venture Exchange. Xtierra's shares trade under the symbol
"XAG". Xtierra has 49,862,003 shares issued and outstanding. Xtierra is
mid-way through a first phase feasibility study on its 100% owned Bilbao
silver-zinc-copper project in Zacatecas, Mexico. Xtierra is currently
conducting a feasibility study on its Bilbao silver-lead-zinc-copper project.
Xtierra's objective is to become a mid-tier producer of precious and base
metals through the development of its Bilbao and Laguna projects, both located
in the Central Mexican Mineral Belt in the State of Zacatecas, as well as
through exploration, organic growth and M & A opportunities.

    
    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 the accuracy of this release.
    




For further information:

For further information: visit www.xtierra.ca or contact: Terence
McKillen, President & Chief Executive, (416) 362-8243; Tim Gallagher,
Director, (416) 925-0090; Alejandro Alaniz, Director Finance & Administration
(Mexico), +52 (492) 925-0804

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XTIERRA INC.

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