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
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of ...
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
Everyone talks about continuous integration and continuous delivery but those are just two ends of the pipeline. In the middle of DevOps is continuous testing (CT), and many organizations are struggling to implement continuous testing effectively. After all, without continuous testing there is no delivery. And Lab-As-A-Service (LaaS) enhances the CT with dynamic on-demand self-serve test topologies. CT together with LAAS make a powerful combination that perfectly serves complex software developm...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.