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Xmet Starts a New NI 43-101 Resource Estimate Study on the Duquesne-Ottoman Project

^{Published on 2010-08-06 05:56:06 - Market Wire}
 

TORONTO, Aug. 6 /CNW Telbec/ - Xmet Inc. (TSXV:XME) ("Xmet") is pleased to announce the commencement of a new NI43-101 resource estimate study on the Duquesne-Ottoman property in northwest Quebec. The Duquesne-Ottoman project is strategically located on a 7 kilometre stretch of the Porcupine-Destor Fault Zone along strike from and bounded on either side by Osisko Mining Corporation's and Clifton Star Resources Inc.'s Duparquet Project. Former gold producers located along strike to the west of the property include the Beattie Mine which produced 9.6M tonnes @ 4.1 g/t Au with 85% recovery from 1933-1956, and the Donchester Mine which produced 1.35M tonnes @ 4.8 g/t Au from 1949-1955. The former producing Duquesne gold mine is located immediately east of the property and produced 193,000 tonnes @ 10.8 g/t Au from 1949-1952 and 1990-1991. The most recent NI 43-101 compliant Technical Report for the Xmet property was completed on April 28, 2010 by Reddick Consulting Inc. ("RCI") and is available on SEDAR ([ www.sedar.com ]).

RCI of Kingston, Ontario is currently preparing a new NI 43-101 compliant resource estimate for the Duquesne-Ottoman property since the most recent historical resource estimate for the project was an internal report prepared by RCI for Kinross in 2003 ("the :Kinross Report"). This estimate met the then current CIM and NI 43-101 reporting standards for Mineral Resource estimates. Using a minimum grade of 4.0 g/t Au over a 2.0 meter horizontal width for an Optimistic Case scenario in 2003, the inferred resource estimate was reported to be 1,070,000 tonnes @ 8.9 g/t Au (7.2 g/t Au when high grade assays are cut to 30 g/t Au), containing 306,000 ounces of gold. Included in the 2003 historical Kinross resource estimate are the Shaft, South Shaft, Fox and Liz Zones (see Figure 1). After the Kinross report was prepared in 2003, the Duquesne-Ottoman property was tested by an additional 19,000 meters of drilling by Queenston Mining Inc. and Diadem Resources Ltd. during the period from 2003 to 2007 (figure 2)(the "Queenston/Diadem Programs"). As a result, the Kinross resource estimate is considered to be historical in nature and is no longer reliable.

In early 2010, RCI conducted a review of the sampling method and approach for the Queenston/Diadem programs, and methods and procedures were found to be in keeping with current industry standards. RCI also conducted a site visit in early 2010 and conducted an independent verification of drill core assays from selected mineralized intervals from these programs. Details of these due diligence reviews are provided in the April 28, 2010 RCI Duquesne Ottoman Technical Report available on SEDAR. The QC review program conducted by RCI for the Queenston/Diadem programs revealed that the data were of very good quality and that the significant diamond drill intercepts previously reported by Queenston/Diadem can be incorporated into the current NI 43-101 resource estimate. Many of the Queenston/Diadem drill holes targeted resource expansion of the Shaft, South Shaft, Fox and Liz Zones beyond the limits of the historical, in-house 2003 Kinross resource. Highlights of the 2003-2004 Queenston drilling programs are presented in Table 1:

 Table 1. Highlights of Queenston Diamond Drilling (2003-2004) ------------------------------------------------------------------------- HOLE From (m) To (m) Length (m) Au g/t Zone ------------------------------------------------------------------------- DQ03-15 346.00 350.50 4.50 6.21 Liz ------------------------------------------------------------------------- DQ03-16 459.40 468.50 9.10 6.06 Liz ------------------------------------------------------------------------- DQ03-19 520.00 523.35 3.35 2.99 Liz ------------------------------------------------------------------------- DQ03-19 544.90 547.75 2.85 3.91 South Shaft ------------------------------------------------------------------------- DQ03-20 488.00 491.60 3.60 3.92 Liz ------------------------------------------------------------------------- DQ04-21 577.30 581.00 3.70 9.15 Shaft ------------------------------------------------------------------------- DQ04-22 827.35 832.00 4.65 3.19 Liz ------------------------------------------------------------------------- DQ04-22 1036.00 1039.60 3.60 4.38 Fox ------------------------------------------------------------------------- 

Highlights of the 2006-2007 Diadem drilling programs are presented in Table 2:

 Table 2. Highlights of Diadem Diamond Drilling (2006-2007) ------------------------------------------------------------------------- HOLE From (m) To (m) Length (m) Au g/t Zone ------------------------------------------------------------------------- DQ06-01 508.00 511.00 3.00 5.33 Shaft ------------------------------------------------------------------------- DQ06-03 621.00 636.00 15.00 4.96 Liz ------------------------------------------------------------------------- DQ06-06 685.40 688.40 3.00 3.02 Shaft ------------------------------------------------------------------------- DQ06-08 466.50 469.50 3.00 3.66 Liz ------------------------------------------------------------------------- DQ06-10 801.80 805.00 3.20 4.30 Fox ------------------------------------------------------------------------- DQ06-11 569.90 575.00 5.10 6.60 Liz ------------------------------------------------------------------------- DQ06-12 266.80 271.00 4.20 6.06 Liz ------------------------------------------------------------------------- DQ06-13 530.50 541.00 10.50 3.58 Liz ------------------------------------------------------------------------- DQ06-14 312.00 316.00 4.00 8.75 South Shaft ------------------------------------------------------------------------- 

The true widths for all reported drill intersections are 80% of the lengths (m) reported in the above Tables. These intercepts will be incorporated into the new resource estimate utilizing a minimum grade of 3.0 g/t Au over a minimum 2.5 meter horizontal width. The previous in-house, historical, Kinross inferred resource estimate (1,070,000 tonnes @ 8.9 g/t Au for 306,000 ounces) utilized a cut-off grade of 4.0 g/t over a 2.0 meter horizontal width since during 2002, the gold price averaged US $310 per ounce. Longitudinal sections for the Shaft, South Shaft, Fox and Liz Zones can be observed in the corporate presentation presented on the Xmet website at [ www.xmet.ca ]. These sections demonstrate that the 19,000 meters of drilling completed by Queenston and Diadem after the Kinross resource indicate good continuity of mineralization for all of the zones, which remain open in all directions at this time.

About Xmet Inc.

Xmet Inc., through its wholly-owned subsidiary Duquesne-Ottoman Mines Inc. ("Duquesne-Ottoman Mines"), carries out gold and resource exploration and development. Pursuant to the terms of a mining option agreement between Duquesne-Ottoman Mines and Duparquet Assets Ltd., Duquesne-Ottoman Mines can earn an option to purchase 75% of the common shares in the capital of Duparquet Assets Ltd, which legally and beneficially owns 20 claims (commonly referred to as Duquesne West) and 40 claims (commonly referred to as Ottoman) covering an area of 928.6 hectares located approximately 30 kilometres north of the city of Rouyn-Noranda and 10 kilometres east of the village of Duparquet within the townships of Duparquet and Destor in the Province of Quebec.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Mr. Bill Yeomans, P.Geo., Xmet's Vice President Exploration, is the designated Qualified Person responsible for this release. Note that mineral deposits described on adjacent properties may not be discovered or developed on Xmet's property and that exploration results obtained on adjacent properties may not be duplicated on Xmet's property. The statements made in this Press Release may contain forward-looking statements that may involve a number of uncertainties and risks. Actual events or results could differ materially from Xmet's projections and expectations.

 Click here for Figure 1: [ http://files.newswire.ca/357/Figure_1_eng.doc ] Click here for Figure 2: [ http://files.newswire.ca/357/Figure_2_eng.doc ]