TORONTO, ONTARIO--(Marketwire -06/07/12)- Xmet Inc. ("Xmet" or the "Company") (XME.V)(XMTTF) is pleased to announce that it has started an important mechanical stripping and trenching program at the South Zone on its flagship Duquesne-Ottoman Property ("DO"). As a result of the compilation of historical results from the DO's western extension of the Nip zones, near the intersection with the Porcupine-Destor fault, new targets have been identified within close proximity to historical drill holes. Near surface drill holes with intersections up to 10.2 metres wide assaying 2.61 g/t Au, including an individual sample of 1.83 metres grading 10.11 g/t have been obtained in hole 82-10 from the area proposed for stripping and trenching (figure 1). These drill results are historical in nature, though they are useful in identifying high priority areas for stripping. Xmet advises that they cannot be used with confidence and that the company does rely on these values except to orient exploration.
"Only sporadic sampling was done in these historic holes and no core remains for follow-up assays" reported Charles Beaudry, President and COO of Xmet. He added, "We are excited because many of the intersections are not bounded by assays and with prevailing gold prices and the wide zone encountered in hole 82-10, there is clear potential for a bulk minable target in this area of the property. We were very successful in 2011 at highlighting near surface mineralization on the East Shaft Zone where stripping outlined mineralization in outcrop over 150 metres in strike and subsequent drilling extended the mineralization down to 130 metres vertical and remains open at depth and we are hopeful to have the same success on the South Zone".
The Duquesne-Ottoman Property hosts a NI 43-101 compliant resource of 4.17 M tonnes grading 6.36 g/t (uncut) for a total of 853,000 ounces Au. On 16 May, 2012 Xmet announced a purchase-agreement with Brionor Resources (BNR.V) for the adjacent Pitt Gold Property which adds compliant resources and brings the total property resource to 600,000 tonnes grading 7.83 g/t Au (cut) for 151,000 indicated Au ounces and 5,559,000 tonnes grading 5.56 g/t Au (cut) for 994,000 inferred ounces Au.
Sampling on the South Zone will be carried out using a diamond-bladed rock saw and samples will be sent to the laboratory as soon as mapping and sampling is completed. The work will be carried out in two phases, initially with trenches excavated perpendicular to the gold-bearing structures and once results are received from the laboratory a second phase of trenching will be undertaken parallel to the gold-bearing structures that will completely expose the mineralized system for mapping and additional sampling.
Xmet is currently working to update the resource estimate on its recently announced Pitt Zone Gold Property transaction and continues to seek synergistic acquisitions that will accrue value to its Duquesne-Ottoman Property asset.
About Xmet Inc.
Xmet is a gold exploration company focused on advanced projects in existing mining camps in Canada where exploration and mining costs are minimized and where previous and historic producing mines make for much easier permitting and minimizes community and First Nations social community risks. Xmet's flagship project, the Duquesne-Ottoman property, which covers an area of 928.6 hectares, is located approximately 30 kilometres north of the city of Rouyn-Noranda and 10 kilometres east of the village of Duparquet within the townships of Duparquet and Destor in the Province of Quebec.
Mr. Charles Beaudry, P.Geo., Xmet's President, COO and Director, is the designated Qualified Person responsible for this release.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Xmet assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Xmet. Additional information identifying risks and uncertainties is contained in filings by Xmet with Canadian securities regulators, which filings are available under Xmet's profile at www.sedar.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
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To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/xmetmap.pdf.
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