Timmins Gold Corp – Impressive Assay results from the Tequila Project

by Sam Kiri

No lack of good news and no lack of progress. Canadian Venture listed Timmins Gold Corp (TSX.V: TMM) has remained focused on the development of its assets and acquisition of new projects despite less than impressive performance by financial markets. TMM just announced the assay results of an 18-hole, 3,829 meter diamond drill programme at its Tequila Project in the state of Jalisco, Mexico.

Highlights of the programme include Hole BD-1 that intersected 5.88 g/t gold across 24.3 metres and Hole BD-2, located 50 metres along strike and 50 meters up dip from BD-1 along the Veta Grande Vein system, that returned 2.36 g/t gold across 13 metres. Five of the holes confirmed the continuity of the Veta Grande Vein over 350 meters of strike length. Other significant intersections include 5.6 g/t gold across 1.5 meters in Hole BD-6, 1.82 g/t gold across 23.35 meters, including 11.64 g/t gold across 2 meters in Hole BD-7, 6.17 g/t gold across 3 metres in Hole BD-9 and 4.43 g/t gold across 4 metres in Hole BD -18.

Seventeen of the eighteen holes were focused on testing the down dip continuity of the Veta Grande epithermal vein system that developed within a dilation zone. The Veta Grande vein is the principal mineralized structure, consisting of an auriferous structural "loop" with several minor splits. The mineralization identified at the Tequila Project is consistent with that of a low sulphidation, "hotspring" type epithermal deposit model characterized by colloidal quartz, advanced argillic alteration and depleted sulphide mineralogy. The gold mineralization is hosted within a quartz stockwork system formed in a brecciated zone of micro veins and veinlets up to 1 meter wide.

Drilling to date has tested only 1/3 of the known strike length of the mineralized system. Of the 18 holes completed, 14 returned economic gold grades over appreciable widths. Five of the holes confirmed the continuity of the Veta Grande Vein over 350 meters of strike length. The Company is currently reviewing the data from the drill program to assess future exploration activity.

The main focus of TMM however is the development of its flag ship San Francisco property, which is a past producing open pit operation with a gold reserve of 611,000 ounces and growing. A gold plant with a capacity in excess of 100,000 ounces per year is on site and has been completely refurbished and tested. TMM has refurbished the primary crusher and has ordered new secondary and teritary crushers scheduled to be operational February, 2009. With the entire permitting process now complete, TMM is gearing up to recommence production at a minimum annual rate of 80,000 ounces of gold per year from San Francisco.

In addition to development work at San Francisco and Tequila, TMM has completed the first phase drilling at Cocoula as well. The Company has completed a comprehensive trenching and sampling programme which has returned 2.398 g/t Au across 136 meters, including a high grade core grading 5.506 g/t Au across 50 meters, 2.080 g/t Au across 19 meters and 2.087 g/t Au across 18 meters. Results are expected in 1Q2009.

The company is currently working towards expanding its resource estimate and improving the cash flow. Lofty hopes they may be, but TMM is well-positioned to realise them. Expect continuous news flow from the company. TMM is shifting gears.

About Timmins Gold Corp

Timmins Gold Corp is engaged in the exploration and development of gold projects in Mexico. The company aspires to become a senior gold production and development company and has an aggressive development and acquisition plan to take the Company into production in late 2008. With a pre-feasibility report complete on its "flagship" San Francisco property in Sonora Mexico, Timmins is moving towards a minimum annual 80,000 ounces of gold production.

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