X-Ore: Scoping Study confirms economic potential for gold production at Croinor Gold Deposit



    VAL-D'OR, QC, May 26 /CNW Telbec/ - X-Ore Resources (TSX-V: XOR) and
First Gold Exploration (TSX-V: EFG) are pleased to announce the results of a
Scoping Study (Preliminary Economic Evaluation) on the Croinor Gold Deposit
located near Val-d'Or, Quebec.
    The study was prepared by Francois Chabot, Eng., M.S., a Qualified Person
under NI 43-101 guidelines, under engineering firm Golder Associates
("Golder"). The study confirms that the Croinor Gold Deposit is potentially
economic at current gold prices with production achievable within one year.

    
    Scoping Study Highlights

    - Production of approximately 35,000 ounces per year at a cash cost of
      US $492 per ounce (US$-CAD$ exchange rate of 1.2);
    - Pre-tax internal rate of return of 205% at US $850 gold price
      (US$-CAD$ exchange rate of 1.2);
    - Total capital investment of CAD $11 million, of which CAD $4.8 million
      is for underground exploration and bulk sampling (pre-production);
    - 10 month pre-production period;
    - Fully permitted plants located within 100 km of site available for
      custom milling.
    

    The Scoping Study makes the case for the potential to develop a robust
underground mining operation at a US $850 per ounce gold price with
considerable upside potential to expand resources.
    The report, which will be filed on Sedar within 45 days, is based on the
2005 measured and indicated resource estimate of 504,878 tonnes grading 10.21
grams gold per tonne for approximately 165,633 ounces at 5 g/t cut off)
prepared by Carl Pelletier, P.Geol. of Innovexplo Inc. and independent
Qualified Person as defined under NI 43-101 guidelines (see report filed on
www.sedar.com November 8, 2005). Note that this preliminary assessment is
preliminary in nature and includes mineral resources that are not mineral
reserves and do not have demonstrated economic viability. There is no
certainty that the preliminary assessment will be realized as presented since
certain engineering parameters related to construction, environment and rocks
mechanics will have to be validated at the preproduction phase.
    The potential to delineate additional resources at Croinor over that
reported in the 2005 resource estimate is excellent as the Scoping Study data
is based on information down to the 200 metre level only, whereas the results
of subsequent drilling campaigns conducted by First Gold in 2007 and 2008
totalling 16,481 metres have extended the mineralization from 200 metres to a
depth of approximately 300 metres, intersecting economic values (see press
release November 21, 2008). A new resource estimate incorporating these
results is already in progress.
    Many of today's Abitibi producing mines have started on small-scale
production plans culminating in significantly larger scope operations. In the
case of Richmont's Beaufor Mine, located in proximity to and displaying
similar mineralization to Croinor, production commenced in January 1996 with
reserves estimated to provide for production through 2001 at an average rate
of 31,000 ounces per year. The mine continues to be in production today having
produced approximately 1 million ounces. Pelletier observes in the case of
Croinor "the presence of continuous high grade gold-bearing zones. Indicated
and measured resources at 5.00 g/t Au cut-off are averaging a grade of over
10.00 g/t Au, which is better than deposits such as Beaufor, Ferderber, Sigma
and Lamaque that were exploited in the Val-d'Or mining camp."
    The Scoping Study also recommends an underground exploration program to
upgrade and expand the current resource, as well as bulk sampling and
metallurgical work towards a feasibility report. In addition, work will focus
on ramp development from an existing portal.
    "What makes the Croinor gold project particularly attractive is the short
lead time to start up and low capital required due to existing underground
infrastructure which includes a ramp to the 125 ft level and a shaft to the
525 ft level. In addition, with more than 2 km of drifts on four levels
(125-250-375-500 ft) put in place by previous operators, all-weather access
roads, water sedimentation pond and building; the project can rapidly progress
to production at reasonable costs", added senior management of both X-ORE and
First Gold, Leon Methot and Eric Leboeuf. The mining lease was obtained in
2004 and permitting is currently underway.

    
    Key input parameters

    - Gold price of US $850 per ounce and exchange rate of US $1 =
      CAD $1.15;
    - Gold recovery of 97.5%;
    - Production rate of about 400 tonnes per day over a 2.3 year underground
      mine life;
    - Cumulative production of 309,800 tonnes at 8.32 grams gold per tonne
      for 80,800 ounces;
    - Cash costs of CAD $154 per tonne (includes fixed expenses, development,
      stoping, transport, milling);
    - Total costs of CAD $191 per tonne;
    - Preproduction capital costs of CAD $4.8M and sustainable capital costs
      of CAD $6.1M including CAD $0.4 for reclamation;
    - No provision for Quebec Refundable Exploration Tax Credit (up to 47%),
      which may be generated from underground exploration expenditures;
    - A 15% NPI is included in the IRR and net profit before tax.
    

    The financial analysis has been estimated based on the diluted measured
and indicated resources, and production rates, development quantities and cost
estimates calculated using tender offers from mining contractors.
    The potential "mineable" tonnes were estimated by Golder using measured
and indicated resources, 15% dilution at 0.00 g/t Au for long hole stopes (40%
of stope tonnage) and 5% dilution for room and pillar stopes (60% of stope
tonnage). A mining recovery factor of 80% was used for both methods. These
factors will need to be confirmed by further analysis but are reasonable based
on past mining experience in the camp.
    The cost estimates assume contract mining and processing of the mined ore
at milling facilities located roughly 100 kilometres from the mine site and
are based on tender offers. Gold recovery parameters were based on results
obtained from previous open-pit mining operations conducted by X-Ore Resources
in 2004 and 2005.

    Sensitivity Analysis

    The internal rate of return is highly sensitive to the incremental
increase in gold price as shown in the table below.

    
    Exchange Rate US $1.15

         ------------------------------------------------------------
          Gold Price            Pre-Tax Profit             IRR
             US$                     CAD$                   %
         ------------------------------------------------------------
            1000                  30,848,850               311
         ------------------------------------------------------------
             950                  26,899,457               262
         ------------------------------------------------------------
             900                  22,950,064               217
         ------------------------------------------------------------
             850                  19,000,671               174
         ------------------------------------------------------------
             800                  15,051,278               133
         ------------------------------------------------------------
             750                  10,526,479                91
         ------------------------------------------------------------
             700                   5,880,134                51
         ------------------------------------------------------------

    Gold Price US$
    @ US $850

         ------------------------------------------------------------
          Expenses              Pre-Tax Profit             IRR
              %                      CAD$                   %
         ------------------------------------------------------------
             120                   7,985,430                57
         ------------------------------------------------------------
             110                  13,902,299               110
         ------------------------------------------------------------
             100                  19,000,671               174
         ------------------------------------------------------------
              90                  23,985,633               258
         ------------------------------------------------------------
              80                  28,970,596               378
         ------------------------------------------------------------
    

    About X-Ore Resources Inc.

    X-Ore Resources is a mineral exploration company with 16 properties
located in known gold regions of Mexico and Canada, including the prolific
Sierra Madre Gold Belt and the Val-d'Or region of Quebec.

    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. This press
release contains "forward-looking statements" not based on historical facts.
Forward-looking statements express, as of the date of this press release, our
estimates, forecast, projections, expectations and opinions as to future
events or results. Forward-looking statements herein expressed are reasonable,
but involve a number of risks and uncertainties, and there can be no assurance
that such statements will prove to be accurate. Therefore, actual results and
future events could differ materially from those anticipated in such
statements. Factors that could cause results or events to differ materially
from current expectations expressed or implied by the forward-looking
statements include, but are not limited to, fluctuations in the market price
of precious metals, mining industry risks, uncertainty as to calculation of
mineral resources and requirements of additional financing and the capacity of
the Company to obtain financing.




For further information:

For further information: please visit X-Ore's website at www.x-ore.com
or contact: Mr. Léon Méthot, President and CEO, (819) 824-5422; Mr. Paul
Goulet, Investor Relations, (514) 710-8290, gouletp@commgo.com

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