NEWS ALERT!Timmins Gold Corp. Announces Updated Reserve and Resource Estimates for the San Francisco Gold Project
Timmins Gold Corp. ("Timmins Gold" or the"Company") (TSX:TMM) is pleased to announce an updated reserve andresource estimate for the San Francisco Gold Project in the state ofSonora, Mexico that was previously updated on November 30, 2010. TheNational Instrument 43-101 ("NI 43-101") Technical Reports describingthe details of the updated reserve and resource estimates will be filedon SEDAR (www.sedar.com) within 45 days from the date of this pressrelease.
The Mineral Reserve and Resource estimate was prepared by MICONInternational Ltd. of Toronto. Ontario, using the Canadian Institute ofMining ("CIM") definitions for Mineral Reserves as required by NI43-101. The updated mineral reserve and resource for the San FranciscoProject which includes the nearby La Chicharra open pit is derived frominformation obtained from a drill program of 700 holes of core andreverse circulation drilling totaling 94,193 meters completed betweenJuly, 2010 and June, 2011. The past producing La Chicharra open pit islocated 2 kilometres west of the San Francisco open pit. The updatedproven and probable reserves for the San Francisco open pit have beenestimated at 1,214,000 ounces of gold, represented by 64,245,000 tonnesat 0.588 g/t gold. The updated proven and probable reserves for the LaChicharra open pit have been estimated at 116,000 ounces of goldrepresented by 8,146,000 tonnes at 0.445 g/t gold. This is a 104%increase over theproven and probable reserves of 780,000 ounces (34,932,000 tonnes at0.695 grams per tonne), net of production depletion of 129,000 goldounces.
Table 1
Proven and Probable Mineral Reserves within the San Francisco and La
Chicharra pits with Topography at June 30, 2011, Gold price US $1,100
per ounce
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PIT Ore Metric tonnes Gold Contained
Type (1000) g/t Gold Ounces
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San Francisco Pit Proven 42,850 0.604 831,000
Probable 21,395 0.556 383,000
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Total 64,245 0.588 1,214,000
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La Chicharra Pit Proven 6,180 0.447 89,000
Probable 1,966 0.439 27,000
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Total 8,146 0.445 116,000
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Total Proven 49,030 0.584 920,000
Probable 23,361 0.546 410,000
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Total 72,391 0.572 1,330,000
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1. Mineral reserves are based on a gold price of $1,100 per ounce
2. Reserve includes a dilution factor of 8.3%
3. An internal cutoff grade of 0.14 g/t gold was used for proven and
probable reserves
Table 2
Mineral Resource Estimate with Drill Data as of the end of June, 2011
(Inclusive of Mineral Reserve)
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PIT Ore Metric tonnes Gold Contained
Type (1000) g/t Gold Ounces
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San Francisco Pit Measured 42,546 0.640 876,000
Indicated 22,698 0.595 434,000
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Total Measured
& Indicated 65,244 0.625 1,310,000
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Inferred 66,483 0.420 898,000
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La Chicharra Pit Measured 6,158 0.488 96,000
Indicated 2,222 0.488 35,000
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Total Measured
& Indicated 8,380 0.488 131,000
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Inferred 7,197 0.465 107,000
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Total Measured 48,704 0.621 972,000
Indicated 24,920 0.586 469,000
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Total Measured
& Indicated 73,624 0.609 1,441,000
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Total Inferred 73,680 0.424 1,005,000
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1. Mineral resources are based on a gold price of $1,200 per ounce
2. An internal cutoff grade of 0.128 g/t gold was used for measured &
indicated and inferred ounces
3. The inferred resources include material outside of the pit shell. It has
the potential to become additional reserves of the San Francisco mine at
a future stage.
The Mineral Reserves are based on a gold price of US$1,100 perounce. The reserve includes a dilution factor of 8.3% that takes intoaccount the dilution of partially mineralized blocks in the model. Aninternal cutoff grade of 0.14 g/t gold was used for the proven andprobable reserve estimate. Weighted average LOM gold recovery isestimated at 68.6% based on the new geological model and the respectivemetallurgical recoveries for each rock type generated for the deposit.
"This is a significant milestone for the Company, and the updatedreserves now outline a 10 year mine life with a projected productionrate of 100,000 gold ounces per annum. Based on the success of thisdrill program, the Company continues to drill aggressively at SanFrancisco and La Chicharra, and anticipates completing an additional120,000 metres of drilling from July, 2011 to December, 2011," statedMr. Bruce Bragagnolo, CEO of Timmins Gold Corp.
This press release was reviewed and prepared by Lawrence A. Dick,Ph.D., P.Geo, a director of the Company, who is recognized as aQualified Person under the guidelines of National Instrument 43-101 andby Miguel Soto, P. Geo., a director and the COO of the Company. Pursuantto NI 43-101, Mr. William Lewis, B.Sc., P.Geo. and Mr. Mani Verma,M.Eng., P.Eng., both of Micon International Ltd, (Micon), of Toronto,Ontario are the independent Qualified Persons responsible for theMineral Reserve and Mineral Resource Estimate. Each of Mr. Lewis, Mr.Verma, Mr. Dick and Mr. Soto have read and approved the contents of thisnews release. The mineral resource has been rounded to reflect that thenumbers are estimates.
About Timmins Gold
Focused solely in Mexico, Timmins Gold Corp. is in commercialgold production at its wholly owned San Francisco gold mine in Sonora,Mexico. The mine is a past-producing open pit heap leach operation.Timmins Gold has forecast production at a rate in excess of 100,000ounces of gold per year at a life of mine cash cost. (MiconInternational NI 43-101F1 Technical Report dated November, 2010). Theupdated MICON International NI 43-101 Technical Report will be filedwithin 45 days.
This News Release contains forward-looking statements.Forward-looking statements are statements which relate to future events.In some cases, you can identify forward-looking statements byterminology such as "may", "should", "expects", "plans, "anticipates",believes", "estimates", "predicts", "potential", or "continue" or thenegative of these terms or other comparable terminology. Thesestatements are only predictions and involve known and unknown risks,uncertainties and other factors that may cause our or our industry'sactual results, level of activity, performance or achievements to bematerially different from any future results, levels of activity,performance, or achievements expressed or implied by theseforward-looking statements.
While these forward-looking statements, and any assumptions uponwhich they are based, are made in good faith and reflect our currentjudgment regarding the direction of our business, actual results willalmost always vary, sometimes materially, from any estimates,predictions, projections, assumptions or other future performancesuggestions herein. Except as required by applicable law, Timmins Golddoes not intend to update any forward-looking statements to conformthese statements to actual results.
SOURCE: Timmins Gold Corp.
Timmins Gold Corp.
Mr. Bruce Bragagnolo, LLB
Chief Executive Officer
604-638-8980
bruce@timminsgold.com
www.timminsgold.com