| September 26, 2008 |
| X-CAL Files New NI 43-101 Report for Sleeper |
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 26, 2008) - X-CAL (TSX:XCL) has filed a new NI 43-101 Technical Report on the Sleeper Gold Project, located in Humboldt County, Nevada. The report is by Gary Giroux MASc., P.Eng., who is an independent qualified person as defined by NI 43-101, and co-authored by Larry Kornze, P.Eng., and Larry G. Martin CPG. The report has been filed to SEDAR and posted to www.x-cal.com.
The new NI 43-101 Technical Report contains encouraging resource numbers.
The report recommends a preliminary economic assessment and an application to build a new heap leach test pad at Sleeper, provided that the study shows a positive internal rate of return.
In-ground resources for the project are located in the Facilities and the West Wood Areas at the Sleeper Mine Site.
The Facilities Area contains 1,891 drill holes totaling 242,016m. West Wood contains 437 drill holes totaling 85,194m.
-----------------------------------------------------------------------
Table 1: SUMMARY OF IN-GROUND RESOURCE - SLEEPER PROJECT
-----------------------------------------------------------------------
Au Cutoff Au Ag
Classification (g/t) Tonnes (g/t) (g/t) Ozs Au Ozs Ag
-----------------------------------------------------------------------
Indicated 0.40 26,960,000 0.87 5.80 750,000 5,030,000
-----------------------------------------------------------------------
Inferred 0.40 20,000,000 0.59 6.60 380,000 4,240,000
-----------------------------------------------------------------------
Above-ground material, containing gold and silver located in the heap leach pads and tailings at Sleeper has also been classified as resource (see Table 2).
--------------------------------------------------------------------------
Table 2: ABOVE-GROUND INFERRED RESOURCE LOCATED IN THE HEAPS AND TAILS -
SLEEPER PROJECT
--------------------------------------------------------------------------
Average Average
Tons Grade Au Grade Ag
AREA Placed tonnes Au Ounces Ag Ounces
--------------------------------------------------------------------------
Au Ag
Au Au Remain- Ag Ag Remain-
(oz/t) (g/t) ing (oz/t) (g/t) ing
--------------------------------------------------------------------------
HEAPS 48,856,275 44,322,122 0.012 0.409 583,254 0.026 0.877 1,249,983
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Mill
TAIL-
INGS 6,600,000 5,987,481 0.020 0.679 130,666 0.224 7.671 1,476,748
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Above
ground
TOTAL 55,456,275 50,309,603 0.013 0.441 713,920 0.049 1.686 2,726,731
--------------------------------------------------------------------------
Together, Table 1 and Table 2 summarize the current Sleeper Resource.
The report also documents a larger Mineral Inventory, which includes resource at lower cutoffs.
An important study of the above-ground resources is attached to the Technical Report as an appendix. The study by Dr. E. Zoutomou contains opinions and conclusions that are encouraging with regard to the potential for renewed heap leaching at Sleeper. Dr. Zoutomou is a metallurgist with 30 years of industry experience. His conclusions are not in NI 43-101 format and should be considered historical.
An independent preliminary economic assessment in NI 43-101 format (previously known as a scoping study) will look at the heap leach potential of combined "in-ground" and "above-ground" resource at Sleeper.
The above-ground resource in the Heaps at Sleeper and the in-ground resource in the Facilities Area adjoin each other, which is favorable for development logistics.
Material for testing is already in hand from X-Cal's 2007 definition drilling and sonic drilling of the Heaps, for use in the recommended economic assessment.
In addition to evaluating the potential for renewed heap leach operations at Sleeper, the possible benefits of a ramp to access higher-grade material at West Wood should also be considered.
The Technical Report also documents an extensive mineral system and priority drill targets within the 30 square mile Sleeper District. The 100% X-Cal property has excellent exploration potential.
The new report includes comprehensive information, as required by NI 43-101.
SUMMARY
Near term economic potential and the exploration upside are evident in the report.
The independent model has confirmed the mineralized layers, which were described in X-Cal's 2007 Annual Report. This important new understanding of the mineralization controls at Sleeper should increase the success rate of future drilling at Sleeper.
Cross-sections from the resource model and geologic illustrations, in the new NI 43-101 Technical Report, show gold mineralization conforming to the new geologic understanding.
Graphics depicting the locations of the above-ground resource and the in-ground resource at Sleeper are contained in the Technical Report.
The appendix by E. Zoutomou on the above ground resource at Sleeper is encouraging.
Illustrations to assist with quantifying the resource are attached to this release.
To view Sleeper Gold Resource illustration and Sleeper Silver Resource illustration please click on the following link: http://media3.marketwire.com/docs/xcl911.pdf
In addition to the Sleeper Gold Project, X-Cal also has well located properties in the Cortez Area and the Spring Valley Area in Nevada.
The Annual General Meeting of the shareholders of X-Cal Resources Ltd. will be held on Friday September 26, 2008 at 2PM, Toronto Board of Trade, 1 First Canadian Place, Toronto, Ontario.
The contents of this release have been reviewed by Larry Kornze, P.Eng., and Larry G. Martin CPG, who are "Qualified Persons" as defined by NI 43-101. Mr. Kornze is a director of X-Cal and Mr. Martin is X-Cal's Senior Geologist.
Quality control and data verification consistent with good industry practice, including use of accredited labs for assays, insertion of standards and check assays have been completed and are documented in detail in the pending NI 43-101 Technical Report. The portion of drill data attributable to Amax and Placer Dome, which preceded NI 43-101, does not have documentation for sample preparation, bagging, security, and transportation practices. However, summary data sheets and summary reports prepared by these companies and by the analytical labs are available.
Caution Concerning Forward-Looking Statements
This release and related documents may contain certain "forward-looking statements" including, but not limited to, statements relating to interpretation of drilling results and potential mineralization, future exploration work at the Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area Project and the expected results of this work. Forward looking statements are statements that are not historical facts and are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area Project; uncertainties involved in the interpretation of drilling results and other tests; the possibility that required permits may not be obtained in a timely manner or at all; risk of accidents, equipment breakdowns or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from the exploration operations at the Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area Project. Forward-looking statements contained in this release and related documents are based on the beliefs, estimates and opinions of management on the date the statements are made. There can be no assurance that such statements will prove accurate. Actual results may differ materially from those anticipated or projected. X-Cal Resources Ltd. and X-Cal USA, Inc. undertake no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.
(1) Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated and Inferred Resources: This press release uses the terms "measured", "indicated" and "inferred" "resources". We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable. | |