TAHOE RESOURCES ANNOUNCES NEW DRILLING, EXTENDS MINERALIZATION
Vancouver, British Columbia (September 20, 2010) – Tahoe Resources Inc. (TSX: THO) is pleased to announce new exploration drilling results on the 100%-owned Escobal project in Guatemala. In June 2010 Tahoe acquired the Escobal project and completed the Company’s Initial Public Offering, ending the second quarter with US$117 million cash and zero debt. These funds will be deployed towards exploration, permitting and engineering studies to evaluate potential development scenarios for the Escobal project. The current concept is to develop a high-grade underground mining operation at approximately 3,500 tonnes per day.
The assay results of 52 drill holes totaling 17,748 meters have been received since the completion of the NI 43-101 resource estimate by AMEC Americas Ltd. in April 2010. The majority of these holes were in-fill drilling designed to provide higher confidence to the prior resource estimate.
In-fill holes, totaling 11,175 meters, were drilled to test continuity of both the Central and East zones and to upgrade the inferred resource. Nineteen in-fill holes (5,592 meters) were completed in the Central zone and 20 in-fill holes (5,583 meters) were completed in the East zone. In-fill drilling results in both areas have corroborated the resource model.
Step-out drilling was initiated in June 2010 to test the extensions of the Central zone and to explore the area between the East and Central zones. Drilling in these areas intersected mineralization laterally and to depth beyond the limits of the current resource model. In the Central zone, widely-spaced step-out holes extended the mineralized structure 120 meters down dip from the previously defined limit. The Central zone now remains open at depth over a strike length of 600 meters. Although the western limit of the Central zone appears to have been defined, additional drilling will be directed to explore for new high-grade shoots further to the west. In the East zone, five holes extended mineralization 50 meters west and 100 meters to depth from the prior defined resource limit.
For the remainder of 2010, ongoing drill programs will continue to explore laterally and to depth in both mineralized zones. In addition, understanding of geologic controls will be tested through focused drilling at known and interpreted structural intersections. To augment this program, SRK Consulting has been contracted to conduct a targeted structural study to characterize controls of the mineralized system and guide future exploration work.
Highlights of the new drill hole intercepts are summarized in the following table. A comprehensive drill hole database and a grade-thickness long section are available on the Company’s Website at www.tahoeresourcesinc.com. Additionally, all drill holes can be viewed in cross sectional and 3D views at Corebox, a link also available on the Tahoe Website.
Escobal Project – 2010 Drill hole Highlights
In conjunction with the current surface exploration and drilling programs the Company continues work on the proposed underground exploration program and the economic assessment of the Escobal project. This work includes preparation of permit applications; environmental baseline, hydrologic, engineering and metallurgical studies; and updates to the resource model incorporating drilling results since April 2010. M3 Engineering and Technology Corp. has been contracted to provide engineering services and to prepare the Preliminary Economic Assessment (PA) targeted for the 4th quarter of 2010.
Tahoe’s President & CEO Kevin McArthur said, “We are very pleased with progress on many fronts since the IPO in June. We have significantly enhanced our Guatemalan management and mine-building teams, we continue to expand known mineralization through drilling, and our on-going metallurgical testing is showing strong economic indications. In addition, we are receiving positive feedback from local and federal authorities in our planning and permitting efforts. We are confident that Escobal will develop into a world-class mine in the near future.”
Mr. McArthur added, “We have accelerated our exploration with the addition of two drill rigs in August, and we are making plans to go underground next year. Furthermore, the regional exploration team has commenced work to develop drill targets on the thirteen other veins discovered to date at Escobal. We expect a regional drilling program to commence in 2011.”
About the Escobal Project
The Escobal Project is a recent discovery of high-grade silver, gold, lead and zinc mineralization in southeast Guatemala. The project contains an Indicated Mineral Resource of approximately 100M oz silver, based on 4,570,000 tonnes at a silver grade of 684 g/t and an Inferred Mineral Resource of approximately 176M oz silver, based on 12,800,000 tonnes at a silver grade of 427 g/t. The Mineral Resources are calculated based on 46,333 m of drilling in 175 holes (Source: Mineral Resource NI 43-101 Technical Report – AMEC Americas Ltd. dated April 30, 2010, prepared under the guidance of Mr. Greg Kulla, P. Geo, a Qualified Person.) Tahoe continues ongoing exploration drilling program at the Escobal Project and is conducting metallurgical and engineering studies to evaluate potential development scenarios for the Escobal Project.
About Tahoe Resources Inc.
Tahoe’s strategy is to develop the Escobal Project into a profitable mining operation and to position itself as a leading silver producer with high quality, low cost assets in the Americas. The Guatemalan project team numbers approximately seventy-five employees working towards an anticipated project construction decision by May, 2012. Tahoe’s website is www.tahoeresourcesinc.com
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Qualified Person Statement
This news release has been reviewed by Charles Muerhoff, Licensed Geologist and Technical Services Director for Tahoe Resources Inc., a Qualified Person as defined by National Instrument 43-101. Drill samples are prepared by Inspectorate Laboratories in Guatemala City and analyzed by Inspectorate Laboratories in Reno, Nevada. A Quality Control program of reference standards, blanks, and duplicates is used to monitor the integrity of the analytical results, with duplicate assaying performed by ALS Chemex in Vancouver, BC and Reno, Nevada.
Forward Looking Statements
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation, which is also referred to as “forward-looking statements.” Wherever possible, words such as “plans,” “expects,” or “does not expect,” “budget,” “scheduled,” “estimates,” “forecasts,” “anticipate” or “does not anticipate,” “believe,” “intend,” and similar expressions or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved, have been used to identify forward-looking information. In particular, this news release describes future events and conditions related to Tahoe’s plans for exploration and studies at the Escobal project. Forwardlooking information is based on management’s reasonable assumptions, estimates, expectations, analyses and opinions on the date of this news release. These are based on management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, Tahoe’s ability to carry on exploration and development activities, the timely receipt of required approvals, the price of silver and other metals, Tahoe’s ability to operate in a safe, efficient and effective manner and Tahoe’s ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Tahoe’s actual results, programs and financial position could differ materially from those anticipated in such forwardlooking statements as a result of numerous factors, many of which are beyond the Company’s control.These factors include, but are not necessarily limited to, results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles, receipt of licenses to conduct mining activities, country risks, project cost overruns or unanticipated costs and expenses, the availability of funds, fluctuations in metal prices, currency fluctuations, and general market and industry conditions. There is no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on this information. Tahoe does not undertake to update any forward-looking information, except as, and to the extent required by, applicable securities laws. For more information about the risks and challenges of Tahoe’s business, investors should review Tahoe’s prospectus available at www.sedar.com.
For further information, please contact:
Tahoe Resources Inc.
Ira M. Gostin, Business Director