- XTIERRA INC. TO COMMENCE TRADING ON TSXV
- XTIERRA INCREASES INTEREST IN BILBAO SILVER-LEAD-ZINC PROJECT TO
TORONTO, Sept. 2 /CNW/ - Xtierra Inc. (TSXV - XAG) ("Xtierra"), formerly
Antamena Capital Corp., is pleased to announce that trading of its shares will
commence on the TSX Venture Exchange under the symbol "XAG" on Wednesday,
September 3, 2008.
In order to satisfy regulatory requirements and to avoid possible
confusion, the name of Antamena Capital was changed to Xtierra Inc. and not
Xtierra Resources Limited as previously announced.
Xtierra Increases Interest in Bilbao Project to 100%
Xtierra is also pleased to announce that it has acquired the remaining
25% interest in the Bilbao silver-lead-zinc project, Zacatecas, Mexico that it
did not already own.
Xtierra already held a 75% interest acquired through a joint venture
earn-in agreement between its subsidiary, Orca Minerals Limited (Orca
Minerals), and Shoshone Mexico, S.A. de C.V. (Shoshone Mexico), a subsidiary
of Shoshone Silver Corporation of Wallace, Idaho.
The outstanding 25% interest was acquired through the recent purchase
from Shoshone Silver Corporation of all of the outstanding shares of Shoshone
Mexico by Xtierra's subsidiary Orca Minerals. Shoshone Mexico has been renamed
Bilbao Resources, S.A. de C.V. and is now an indirect wholly owned subsidiary
The consideration is US$5 million, satisfied by payment of US$2.5 million
on closing, a further payment of US$500,000 in August 2009 and the balance to
be paid in four equal annual payments of US$500,000, commencing at the time of
mine construction. The first such US$500,000 annual payment will be made not
less than six years after the closing date (August 2014) with the remaining
balance to be paid no later than ten years (August 2018).
The Bilbao Property is located northwest of Mexico City in the State of
Zacatecas, 50km east of the state capital, Zacatecas. The deposit is a
sulphide replacement with a skarn overprint and is located adjacent to the La
The upper 70-90 metres of the deposit has been oxidised. Prior to Xtierra
(Orca) involvement at Bilbao in 2006, no drilling appears to have been carried
out although historical intermittent mining of direct shipping ore may have
amounted to 1 million tonnes of near surface oxides.
A total of 12,149 metres of diamond drilling was completed between
May 2006 and April 2008 by Orca Minerals, including 4,138 metres of in-fill
drilling completed in April 2008. This drilling confirmed an earlier oxide
resource estimate and enabled a preliminary sulphide resource (not NI 43-101
compliant) to be compiled by Mining and Exploration Geosystem Associates
(MEGA) and R.T.G. Parker of approximately 3,670,384 tonnes of oxides at an
average grade of 85.0g/t silver, 3.28% zinc, 2.61% lead and 0.34% copper and
2,117,079 tonnes of sulphides at an average grade of 86.3g/t silver 4.25%
zinc, 2.75% lead and 0.25% copper.
An independent resource estimate utilizing the in-fill drilling and
compliant with NI 43-101, is currently being completed by Mr. Parker and
A.C.A. Howe International Limited.
The Bilbao sulphide deposit remains open to the northwest, southwest and
to depth. Xtierra plans to commence step-out drilling to explore the
extensions of the deposit as well as to conduct test work on the metallurgy
and options for commercial recoveries of the near-surface oxide
mineralization. These programs will form part of a full feasibility study
planned for completion by early 2009.
The Bilbao property is held subject to a 1.5% net smelter royalty in
favour of Minera Portree S.A. de C.V., commencing after the second year of
commercial production and on which the Company holds a first right of refusal.
About Xtierra Inc.
Xtierra Inc. is a Toronto based exploration and development company with
a Tier 1 listing on the TSX Venture Exchange under the symbol "XAG". Xtierra
has recently completed $8.8 million in private placement financings and has
49,862,003 shares issued and outstanding.
Xtierra's objective is to become a mid-tier producer of silver and base
metals through the development of its Bilbao and Laguna projects, both located
in the Central Mexican Silver Belt in the State of Zacatecas, as well as
through organic growth and M & A opportunities.
For further information:
For further information: www.xtierra.ca or contact: Terence McKillen:
President & Chief Executive, (416) 362-8243; Tim Gallagher: Investor
Relations, (416) 925-0090; Danesh Varma: Chief Financial Officer, +44 (0)20
7397 8154; Alejandro Alaniz: Director Finance & Administration (Mexico), +52