BILBAO PROJECT UPDATE
EXERCISE OF WARRANTS
Toronto, April 27, 2011 - Xtierra Inc. (TSXV | XAG) ("Xtierra"
or the "Company"), is pleased to
announce that 1,725,476 of outstanding warrants (representing 98.6%) with an
expiry date of April 15, 2011 have been exercised to raise further proceeds of
US$517,642, bringing the total proceeds of recently exercised warrants to
US$3.8 Million.
With the exercise of the warrants, the issued and
outstanding share capital of the Company is now 103,262,142 shares. There are
14,331,210 warrants and 4,755,000 share options currently outstanding and ?in the money.? The proceeds of the warrant conversion
brings Xtierra?s current
working capital to approximately US$9.5 Million.
Bilbao Update
Drilling - Current drilling at Bilbao is focussed on several
silver-rich zones in the southern and southwestern
margins of the deposit. The first drill-hole was sited to confirm whether there
was continuity of the silver-rich breccia zone
intersected by drill-holes CG4 and X85. Drill-hole X92, located mid-way between
the holes has been completed to a depth of 278.45m and encountered a similar brecciated limestone with disseminated sulphides over a
thickness of 5.25m, between 139.35 and 144.60m.
Extremely rich silver mineralization encountered
previously in drill-hole X26 at a depth of 382m is the target of drill-hole
X86A which is currently in progress at a depth of 190m. The main objective of
this angled hole is to determine the structural elements of the mineralised
veins and to locate a possible feeder conduit.
In addition to the planned 2,000m of drilling on the
high grade silver zones, further exploration drill-holes will test geophysical
anomalies (ground magnetic) south of the Bilbao deposit as well as at the Ardillas silver-lead prospect, situated 1.5km north-east of
Bilbao.
Feasibility Study - An updated and independent NI-43-101
compliant resource estimate, final hydrological and geotechnical (rock
mechanics) reports, mine plans and power supply reports will be completed
during May.
Metallurgical test work on the oxide ore is still in
progress. The milling and wet high intensity magnetic separation (WHIMS)
processes are currently being optimized in order to obtain maximum payable
metal in the pre-concentrate at optimum acid consumption. These tests are being
conducted at the SGS Mineral Service?s
Laboratory in Durango, Mexico. Upon completion, locked cycle test work will
also be conducted at the SGS facilities. Pilot plant testing, also to be
conducted at SGS, will allow finalised industrial design to be completed and
the tailings and geochemical characteristics generated by the pilot plant will
facilitate the completion of an environmental assessment report, risk analysis
and tailings management final design. The final feasibility study should be
completed within three months after completing the pilot plant test work.
Incentive Stock Options
Pursuant to the Company?s
stock option plan, the board of directors has granted 4,225,000 options to
purchase common shares in the capital stock of the Company to directors,
officers, consultants and employees of the Company at an exercise price of
$0.51 per share for a period of five years. Of the total grant, 2,000,000 options were granted to directors, 1,400,000 to officers and
senior employees and the balance to employees and consultants.
Qualified Person
Information of a scientific or technical nature
contained in this release has been prepared by or under the supervision of
Terence N. McKillen, P.Geo.,
Chief Executive Officer, Gerald J. Gauthier, P.Eng.,
Chief Operating Officer and Dr. Anthony C. Gallon, C.Eng.,
Chief Geologist, all ?qualified persons? within the
meaning of National Instrument 43-101 ? Standards of
Disclosure for Mineral Projects of the Canadian Securities Administrators.
About Xtierra Inc.
Xtierra Inc. is a Toronto based exploration and development
company listed on the TSX Venture Exchange under the symbol "XAG".
There are 103,262,142 shares
issued and outstanding. The Company is conducting a feasibility study on its
Bilbao silver-zinc-lead-copper project in Zacatecas, Mexico. Xtierra's objective is to become a mid-tier producer of
precious and base metals through the development of its Bilbao project as well
as through exploration, organic growth and M & A opportunities.
This news release
may include certain ?forward-looking statements?. All
statements other than statements of historical fact, included in this release,
including, without limitation, statements regarding potential mineralization,
resources and reserves, exploration results, and future plans and objectives of
Xtierra, are forward-looking statements that involve
various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from Xtierra?s expectations are exploration risks detailed
herein and from time to time in the filings made by Xtierra
with securities regulators.
Neither the 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 the accuracy of this release.
For further
information visit www.xtierra.ca or contact:
Terence
N. McKillen, President &
Chief
Executive
+1(416) 362-8243
Tim
Gallagher,
Director
+1(416) 925-0900
Alejandro
Alaniz, Director Finance & Administration
(Mexico)
+52 (492) 925-0804
Brett
Whitelaw
+1(604)984-8633