| September 12, 2008 |
| X-Cal Resources Ltd.: Message to Shareholders |
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 12, 2008) - The X-Cal (TSX:XCL) Press Release of September 8, 2008 contains encouraging and important resource numbers for the Sleeper Gold Project.
The new independent block model for Sleeper has confirmed the mineralized layers described in the 2007 X-Cal Resources Ltd. Annual Report (See 2007 X-Cal Annual Report).
The new model is being delivered to Nevada based mining companies who have requested data.
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Table 1: SUMMARY OF IN-GROUND RESOURCE - SLEEPER PROJECT
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Au
Cutoff Au Ag
Classification (g/t) Tonnes (g/t) (g/t) Ozs Au Ozs Ag
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Indicated 0.40 26,960,000 0.87 5.80 750,000 5,030,000
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Inferred 0.40 20,000,000 0.59 6.60 380,000 4,240,000
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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).
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Table 2: ABOVE-GROUND INFERRED RESOURCE LOCATED IN THE HEAPS AND TAILS -
SLEEPER PROJECT
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Average Average
Tons Grade Au Grade Ag
AREA Placed tonnes Au Ounces Ag Ounces
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Au Ag
Au Au Remain- Ag Ag Remain-
(oz/t) (g/t) ing (oz/t) (g/t) ing
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Pad 1 7,595,860 6,890,919 0.015 0.501 110,935
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Pad 2 5,981,701 5,426,564 0.012 0.411 71,646
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Pad 3 12,581,794 11,414,129 0.012 0.417 152,932
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Pad 4 9,084,620 8,241,513 0.012 0.419 111,046
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ROM
South 4,127,400 3,744,353 0.010 0.337 40,584
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ROM
North 9,484,900 8,604,645 0.010 0.347 96,110
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Total 48,856,275 44,322,122 0.012 0.409 583,254 0.026 0.877 1,249,983
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Mill
Tailings 6,600,000 5,987,481 0.020 0.679 130,666 0.224 7.671 1,476,748
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TOTAL 55,456,275 50,309,603 0.013 0.441 713,920 0.049 1.686 2,726,731
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Together, Table 1 and Table 2 summarize the current Sleeper Resource.
A comprehensive NI-43-101 technical report is pending.
A preliminary economic assessment (previous known as a scoping study) has been recommended for the project. The study will likely focus on the potential to combine higher grade "in-ground" resources and "above-ground" materials at Sleeper, as summarized in Table 1 and Table 2.
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.
The September 8, 2008 press release also contains a larger mineral inventory, which includes resource documented at lower cutoffs. A detailed breakdown of the in-ground resource is provided as "Schedule A" in the release dated Sept 8, 2008.
The pending technical report also documents the Sleeper mineral system, priority drill targets and includes comprehensive information as required by NI-43-101. The resource occurs within a portion of the 30 square mile district scale property, located in Humboldt County, Nevada. The project is 100% owned by X-Cal.
SUMMARY
The independent block model of the Sleeper Resource is an important new asset. The Nevada location and infrastructure associated with the resource are in contrast to our market capitalization.
Illustrations to assist with visualization of 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
Graphics depicting the locations of the above-ground resource and the in-ground resource at Sleeper are contained in the September 8, 2008 press release which can be found at www.x-cal.com.
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 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. 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. | |