Click here to close now.



Welcome!

News Feed Item

Xtierra Reports Second Quarter Results

Clarifies Disclosure Regarding Bilbao Project

TORONTO, ONTARIO -- (Marketwired) -- 07/31/14 -- Xtierra Inc. (TSX VENTURE:XAG) ("Xtierra" or the "Company") announces that it has now published and filed its unaudited interim financial report for the three and six month periods ended June 30, 2014 together with its Management's Discussion and Analysis for the same period. These documents are available on the Company's website at www.xtierra.ca and on SEDAR under the Company's profile at www.sedar.com.

For the six month period ended June 30, 2014, the Company recorded a loss of $108,000 ($0.001 per share), a gain of $132,000 arising on a reduction in the fair value of the convertible notes liability.

At June 30, 2014, the Company held $220,000 in cash and cash equivalents. In April 2014 the Company secured further advances of $250,000 from its major shareholders to fund its working capital for the remainder of 2014.

At June 30, 2014, the Company had not achieved profitable operations, had an accumulated deficit since inception and expects to incur further losses in the development of its business. The continuing operations of the Company are dependent upon its ability to raise adequate financing for working capital, pre-feasibility and feasibility studies, and in the longer term to build the proposed mine at Bilbao.

On July 28, 2014, the Company announced that it had initiated a strategic review to consider alternatives in relation to its Bilbao Silver-Zinc-Lead Project (the "Bilbao Project") in Zacatecas, Mexico and has retained Jennings Capital Inc. to assist in the strategic review process.

Strategic alternatives include, but are not limited to, financing structures for the development of the Bilbao Project, the sale of all or a portion of the Company's interest in the Bilbao Project or a corporate transaction.

There are no assurances that the process will result in a transaction or, if a transaction is undertaken, as to the commercial terms or timing of such a transaction.

The following clarifies and corrects summary disclosure concerning the Bilbao Project which appeared in the Company's July 28th and April 28, 2014 news releases and prior disclosure.

The Bilbao Project

The Bilbao Project is a polymetallic sulphide and oxide replacement silver-zinc-lead-copper deposit located approximately 500km northwest of Mexico City in the southeastern part of the State of Zacatecas.

On April 28, 2014 the Company announced that it had received an updated National Instrument 43-101 ("NI 43-101") compliant resource estimate and a Preliminary Economic Assessment (PEA) on the Bilbao Project, both prepared by RungePincockMinarco (Canada) Limited (RPM). The PEA is preliminary in nature in that it includes in part inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the results projected by the PEA will be realized with further work and actual results may vary substantially. Because inferred resources are speculative, the modifying factors that are applied to assess the potential economic viability of the project are also speculative.

As previously reported, a new Zn/Pb/Ag/Cu resource estimation of the Bilbao deposit was prepared by RPM to incorporate new drilling information acquired during 2011-2013. This resource estimation, included in the PEA, by mineral type at 3% Zn equivalent cut-off, excluding approximately 1 million tonnes of previously mined out ore, is shown in the following tables:

Indicated Resource


----------------------------------------------------------------------------
                           Zn equiv.                               Ag       
Mineralization Type              (%)      Tonnes   Zn %   Pb %  (ppm)   Cu %
----------------------------------------------------------------------------
Oxide                           6.69     791,082   1.73   2.53     39   0.18
----------------------------------------------------------------------------
Mixed                           7.93     778,336   2.52   2.48     51   0.21
----------------------------------------------------------------------------
Sulphide                        7.56   4,555,809   2.38   1.57     72   0.18
----------------------------------------------------------------------------
Total                           7.50   6,125,227   2.31   1.81     65   0.19
----------------------------------------------------------------------------

Inferred Resource


----------------------------------------------------------------------------
                           Zn equiv.                               Ag       
Mineralization Type              (%)      Tonnes   Zn %   Pb %  (ppm)   Cu %
----------------------------------------------------------------------------
Oxide                           6.38   3,069,852   1.69   2.23     42   0.16
----------------------------------------------------------------------------
Mixed                           4.43     238,923   0.59   1.13     55   0.11
----------------------------------------------------------------------------
Sulphide                        4.31   1,201,032   0.67   0.77     60   0.11
----------------------------------------------------------------------------
Total                           5.73   4,509,537   1.36   1.78     47   0.15
----------------------------------------------------------------------------

A previous resource estimation was originally carried out by Richard Parker Consulting Geologist in 2011 and included 84 drill holes. The resources reported in 2011 (including both oxide and sulphide) were 10,617,891 tonnes @ 6.48% Zn equiv. in the Indicated category and 430,000 tonnes @ 5.19% Zn equiv. in the Inferred category. (Technical Report dated April, 2011 entitled "Geology and revised Minerals resources of the Bilbao Silver-Lead-Zinc Deposit - State of Zacatecas, Mexico" by RTG Parker, Consulting Geologist).

For the purposes of the PEA, RPM has estimated that approximately 5.2 million tonnes grading 2.10% Zn, 1.40% Pb and 63.96 grams Ag per tonne of the indicated and inferred underground sulphide resources are potentially mineable. The tonnes and grade include an average dilution of 10 percent, at zero grade, as well as mining losses of 5%. The RPM PEA relies on indicated mineral resources as well as inferred mineral resources. The economic analysis in the PEA completed by RPM for a 720,000 tonne per year processing plant capacity and is based on this potentially mineable tonnage. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the results projected by the PEA will be realized with further work and actual results may vary substantially. Because inferred resources are speculative, the modifying factors that are applied to assess the potential economic viability of the project are also speculative.

RPM's recommendations contained in the PEA identified various opportunities to increase the potentially mineable portion of the indicated and inferred sulphide resource and reduce operating costs through additional exploration and engineering to improve the overall economics of the Bilbao Project. Recommendations included:


--  Additional definition drilling targeted at the Bilbao transition and
    sulphide zones could lead to re-classification of inferred resources to
    indicated resources, potentially adding to the potentially mineable
    portion of the current indicated resource; 
--  The potential to increase level spacing and correspondingly reduce level
    development, through use of cable bolts, may lead to lower mine
    development costs; 
--  Further analysis of hydraulic and sand backfilling options, in terms of
    preparation and distribution, may further reduce overall operating
    costs; 
--  There may also be opportunity to reduce operating costs significantly
    (approx. US$5/t to US$6/t) by reducing the number of stopes filled with
    backfill; 
--  Potential also exists for deferral of ramp and associated development; 
--  Inclusion of transition zone material in the mine plan should be
    investigated (requiring additional metallurgical testwork) to extend the
    life of mine and/or potentially increase the mining rate per year; 
--  Further optimization of stope sequencing could lead to improved cash
    flow; and 
--  Exploration drilling at the Bilbao 2 area, approximately 1.5 km south of
    Bilbao, has potential to offer additional mineral resources to the
    project due to the fact that current trenching, sampling and resulting
    soil geochemistry information identifies similarities between the two
    areas. An additional source of feed to the designed plant could lengthen
    the overall life of the mine, increase the daily production rate, or
    result in a combination of the two, improving the NPV and IRR of the
    project. 

The PEA is set out in a technical report, prepared in accordance with NI 43-101, was filed on April 28, 2014 under the Company's profile on SEDAR at www.sedar.com.

Qualified Person

Scientific and technical information disclosed in this press release was prepared by or under the supervision of and approved by Gerald J. Gauthier, P.Eng., the President and Chief Operating Officer of the Company and a 'qualified person' within the meaning of NI 43-101.

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 115,370,336 shares issued and outstanding.

Xtierra is currently evaluating the development of its Bilbao Silver-Zinc-Lead Project, located in the Central Mexican Silver Belt in the State of Zacatecas.

Cautionary Notes:

This press release may contain "forward looking information" within the meaning of applicable Canadian securities legislation. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this release.

Contacts:
Xtierra Inc.
Gerald Gauthier
President & Chief Operating Officer
+1 (647) 728-4131

Xtierra Inc.
Tim Gallagher
Director
+1 (416) 925-0090

Jennings Capital Inc.
Brian Imrie
Senior Managing Director, Head of Investment Banking
+1 (416) 304-2174

Jennings Capital Inc.
Marc Mills
Vice President, Investment Banking
+1 (416) 304-2189

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...