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Extorre Gold Mines (XG.TSX, XG: AMEX) announced this morning that the company has received formal approval of the Environmental Impact Assessment (EIA) for its Cerro Moro gold-silver project in Argentina from the Santa Cruz provincial government. The EIA was submitted to authorities in September 2010. This approval, coupled with the receipt of the Project Pre-Feasibility Study – expected in June 2011 – will permit Extorre to proceed with advanced engineering and mine development at its high-grade gold-silver discovery.

The company also announced that it purchased surface rights covering 14,000 hectacres over the principal vein zones at the project. Shares of XG have gained 35.1% thus far in 2011.
Full Extorre Gold Mines Press Release.

“Cerro Moro's ideal geographic location and very high grade gold-silver veins should allow Extorre to obtain near term, low cash cost gold-silver production from a relatively modest capital investment.”

• Mr. Roth also noted that "With our ongoing exploration success, including the recently announced high grade gold-silver discovery at Zoe, the Company will now have an opportunity to evaluate the potential for expanding the scope and the life of the proposed mine."
• Separately, the company announced the completion of the purchase of the 14,000 hectare Estancia (ranch) that covers the principal vein zones at the Cerro Moro Project.
• The purchase of the property provides Extorre with full ownership of the surface rights that cover the Escondida, Zoe, Loma Escondida, “Esperanza, and Gabriela vein zones.

“We previously commented that the results released from Zoe to date (13 holes) are among the best we have seen from the Cerro Moro project in terms of grade and thickness and the shoot now appears to us to be taking on dimensions that are similar to the Escondida Far West zone that hosts the bulk of the high/bonanza grade resources on the property.”