Esperanza Resources Corp. (fka ESPZF)

[b4atf]

Esperanza Expands Cerro Jumil Mineralization

Nov 27, 2011 11:01:17 (ET)


VANCOUVER, BRITISH COLUMBIA, Nov 27, 2011 (MARKETWIRE via COMTEX) -- Esperanza Resources Corp. (ESPZF, Trade ) is pleased to provide this update on its Cerro Jumil, Mexico project. Highlights of recent drill results include:


-- Drill Hole RCHE-11-212 intersected 52.5 meters containing 0.9 grams of
gold per tonne.
-- Drill Hole RCHE-11-214 intersected 61.5 meters containing 1.6 grams gold
per tonne.
-- Drill Hole RCHE-11-215 intersected 27.0 meters containing 1.30 grams
gold per tonne.



Complete results are in the accompanying table and drill hole locations are shown on the accompanying map. A detailed drill hole plan map ( http://www.epzresources.com/cerrojumil_drillholelocationsdetail.php ) can be found on the Company's website.

All drill holes were drilled to find extensions of the Las Calabazas gold zone. This is one of the three principal and contiguous gold zones that currently comprise the gold resource. Mineralization has now been extended an additional 100 meters down dip. Results from the current drilling will be used in the future to estimate an updated resource in conjunction with a bankable feasibility study.

Present work is now focused on exploration of the Southwest Extension area - a potential new gold resource area described in a News Release dated October 17, 2011 ( http://www.epzresources.com/release.php?R_ID=280 ), as well as the Colotepec target.

Preparing for Feasibility

As a result of the successful conclusions reached in a recent Preliminary Economic Assessment of the Cerro Jumil project (News Release dated September 13, 2011 ( http://www.epzresources.com/release.php?R_ID=280 )) the Company has decided to complete a bankable feasibility study. To that end the Company, along with its metallurgical consultants, is designing an extensive program to decisively examine various processing alternative. The main focus of the testing will be on analyzing crushed versus uncrushed (run-of-mine) heap-leach scenarios for gold recovery. The Company also expects to begin a geotechnical drill program to provide data for engineering of pit slopes and various facility foundations. Esperanza intends to complete the feasibility study by late 2012.

A total of 8236 meters of drilling has now been completed since the start of the current campaign for a project total of 49,818 meters. The updated Preliminary Economic Assessment completed by Golder Associates, demonstrated a proposed mine would produce 103,000 gold ounces annually at a cash cost of US$499 per ounce. Initial capital, including pre-stripping, is estimated to be US$114 million. The on-going drill program is designed to evaluate areas adjacent to the known resources and to fill-in those areas now classified as inferred resource. Much of the fill-in drilling is now complete.

Additionally the Company has identified a further 6 drill targets within a 10 km radius of Cerro Jumil. Work has begun on securing necessary government and community approvals to begin their exploration.