newsEsperanza Begins Resource Estimate, Expanded Metallurgical Testing for Cerro Jumil Gold Property in Mexico
07:00 EDT Wednesday, May 28, 2008
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 28, 2008) - EsperanzaSilver Corporation (TSX VENTURE:EPZ)(PINK SHEETS:ESPZF) is pleased toprovide this update on its 100%-owned Cerro Jumil gold project inMexico where drilling continues to expand mineralization at thispotential open-pit, heap-leach operation. Highlights include:
- Resource estimate being prepared, anticipated third quarter 2008.
- Extended the recently discovered Las Calabazas Zone to over 450 meters in length.
-- Drill Hole DHE-08-57 yielded 31.5 meters containing 1.42 g/t gold.
-- Drill Hole DHE-08-61 yielded 24.4 meters containing 2.12 g/t gold.
- Discovered an area of broad silver mineralization which includes 15 meters of 177 g/t silver.
Las Calabazas Zone Expanded and Open
Drilling at the Las Calabazas Zone has confirmed the presence ofgold mineralization in multiple horizons over a strike length of morethan 450 meters. The gold mineralization is open at depth as well as tothe south. On the northern edge of Las Calabazas the mineralizationappears to narrow to seven meters in width. It is uncertain if themineralization continues further north merging with the West Zone or ifit is a separate area of mineralization.
Step-out drilling along the north end of the West Zone encounteredonly sporadic gold mineralization. It did however find appreciablewidths of high-grade silver mineralization, including 15 meters of 177grams per tonne silver in drill hole RCHE-08-88 and 12 meters of 134grams per tonne in drill hole RCHE-08-87. These drill holes, spaced 100meters apart, indicate potential to discover significant silvermineralization of economic importance along the northern extension ofthe intrusive contact.
Meanwhile, drilling in the Southeast Zone has largely delineated theeastern border where many of the drill holes did not encountermineralization. This may indicate that the mineralization is deeperthan drilled or has been interrupted by a fault. Nevertheless, ascurrently defined by extensive drilling, the Southeast Zone is theprincipal area of gold mineralization and may continue westward mergingwith the Los Calabazas Zone. A table summarizing the recent drillresults is attached to this news release.
An Emerging Producer
Bill Pincus, Esperanza's CEO commenting on the recent drill results,said, "In addition to the three identified zones of mineralization atCerro Jumil, there are many other targets on the property to beinvestigated. However, our priority is to establish a resource estimatefor the known areas of the deposit and begin moving the project towardsdevelopment.
He continued, "This is an exciting period in Esperanza's life as wemove from being an exploration company to potentially adding aproducing mine to our portfolio. Cerro Jumil together with San Luis inPeru could then generate sufficient internal cash flow to finance ourfuture mine-finding efforts."
Resource Estimate and Metallurgical Testing Underway
Esperanza has now completed 31,420 meters of diamond core andreverse circulation drilling on the identified gold zones. It hascontracted with Exploration Geotechnologies Inc. to prepare a resourceestimate to conform to the requirements of National Instrument 43-101.It is planned to be issued in the third quarter of 2008.
Concurrently, the Company has contracted Dr. Corby Anderson,Director of the Center for Advanced Mineral and MetallurgicalProcessing at Montana Tech University to design and supervise furthermetallurgical tests. These will follow up on the successful heap-leachtests completed in 2007, which indicated a gold recovery rate of 72%.
The resource estimate and metallurgical testing will form the basisfor a scoping study to determine the best development path. This isanticipated in the second half of 2008.
About Esperanza
Esperanza is an emerging precious-metals producer focused onadvancing the development of its two principal properties: the San Luisgold and silver joint venture in Peru and the 100%-owned Cerro Jumilgold project in Morelos State, Mexico. It is also activelyinvestigating 17 other exploration interests in Peru and Mexico.
QUALIFIED PERSON: William Bond, M.Sc., Geol. and Vice President ofExploration, Esperanza Silver Corp. is the Qualified Person (QP) underNI 43-101 responsible for the Cerro Jumil exploration program. He hasverified the drill results and other data disclosed in this newsrelease, including sampling, analytical and test data. Field work hasbeen conducted under his supervision. All samples were submitted to ALSChemex laboratories in Vancouver, Canada for analysis. Gold sampleswere analyzed by fire assay and atomic absorbtion spectroscopy with a30 g nominal sample weight. A description of quality control andquality assurance protocols can be found at https://www.esperanzasilver.com/s/QA-QC-Protocols.asp.
SAFE HARBOR: Some statements in this release are forward-looking innature. The United States Private Securities Litigation Reform Act of1995 provides a "safe harbor" for certain forward-looking statements.Such statements include statements as to the potential of the CerroJumil or San Luis properties, the ability to finance furtherexploration, to permit drilling and other exploration and developmentwork, the availability of drill rigs, the ability to develop andfinance any proposed mine, and the availability equipment, supplies andpersonnel at economic rates to make the property viable at thenprevailing metals prices.
The forward-looking statements involve risks and uncertainties andother factors that could cause actual results to differ materially,including those relating to exploration and bringing properties intoproduction. Please refer to a discussion of some of these and otherrisk factors in Esperanza's Form 20-F filed with the U.S. Securitiesand Exchange Commission. The forward-looking statements contained inthis document constitute managements' current estimates as of the dateof this release with respect to the matters covered herein. Esperanzaexpects that these forward-looking statements will change as newinformation is received and that actual results will vary, possibly inmaterial ways.
Forward-looking statements are based on the beliefs, expectationsand opinions of management on the date the statements are made, and thecompany does not assume any obligation to update forward-lookingstatements if circumstances or management's beliefs, expectations oropinions should change. For these reasons, investors should not placeundue reliance on forward-looking statements.
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Cerro Jumil Drill Results
May-08
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From To Interval Gold Grade
Hole (meters) (meters) Length (grams/tonne)
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Las Calabazas Zone
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DHE-07-55 178.0 193.0 15.0 1.52
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DHE-08-57 95.5 127.0 31.5 1.42
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DHE-08-59 69.0 88.5 19.5 1.46
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DHE-08-61 168.1 192.5 24.4 2.12
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includes 176.0 185.0 9.0 3.11
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DHE-08-62 59.5 76.0 16.5 0.68
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134.5 140.5 6.0 1.22
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182.5 205.0 22.5 2.17
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DHE-08-63 134.0 195.5 61.5 0.67
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includes 170.0 186.5 16.5 1.40
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West Zone
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RCHE-08-86 No Significant Intervals
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RCHE-08-87 39.0 51.0 12.0 Silver 133.7
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RCHE-08-88 63.0 67.5 4.5 Gold 1.97
and Silver 51.0 66.0 15.0 Silver 177.0
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RCHE-08-88 63.0 67.5 4.5 1.97
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Southeast Zone
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DHE-07-53 No significant intervals
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DHE-08-56 No significant intervals
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DHE-08-58 No significant intervals
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DHE-08-60 No significant intervals
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RCHE-07-78 162.0 180.0 18.0 0.78
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RCHE-08-81 76.5 117.0 40.5 1.15
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RCHE-08-84 No Significant Intervals
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RCHE-08-85A No Significant Intervals
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RCHE-08-89 No Significant Intervals
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RCHE-08-90 No Significant Intervals
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RCHE-08-91A No Significant Intervals
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RCHE-08-92 No Significant Intervals
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RCHE-08-93 262.5 300.0 34.5 1.40
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includes 283.5 297.0 13.5 2.06
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RCHE-08-94 249.0 300.0 51.0 1.13
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RCHE-08-95 No Significant Intervals
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RCHE-08-96 163.5 225.0 61.5 0.69
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RCHE-08-98 240.0 255.0 15.0 1.21
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RCHE-08-99 No Significant Intervals
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RCHE-08-100 No Significant Intervals
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RCHE-08-101 No Significant Intervals
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FOR FURTHER INFORMATION PLEASE CONTACT:
Esperanza Silver Corp.
Bill Pincus
President and CEO
Toll Free: 1-866-890-5509
Email: info@esperanzasilver.com
Website: www.esperanzasilver.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
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