VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 11, 2013) - El Tigre Silver Corp. (the " Company " or " El Tigre ") (TSX VENTURE:ELS)(OTCQX:EGRTF)(FRANKFURT:5RT) announces that, as a result of a review by the British Columbia Securities Commission, the Company is issuing the following news release to clarify its disclosure. In those instances where the Company has clarified or revised previous disclosure, the Company advises readers not to rely on such statements as they may continue to be found in the public domain.
The Company's website and certain news releases contained disclosure regarding the Company's tailings project and the potential decision to put the tailings project into production without first establishing mineral reserves and completing a feasibility study. Such disclosure may be misleading as it did not provide adequate disclosure regarding the increased uncertainty and the specific economic and technical risks of failure associated with its production decision. This disclosure is not compliant with National Instrument 43-101 Standards of Disclosure for Mineral Projects (" NI 43-101 ") as it does not contain the mandatory cautionary language required by NI 43-101 in the event an issuer makes a production decision without first establishing mineral reserves supported by a technical report and competing a feasibility study. A production decision involves large capital expenditures and a high degree of risk and uncertainty and when based on an exploration target instead of mineral reserves supported by a feasibility study, historically have a higher risk of economic or technical failure. The Company clarifies any disclosure regarding the potential for a production decision on its tailings project to include the following language:
- The Company is considering advancing the tailings project into production. A production decision without the benefit of a technical report independently establishing mineral resources or reserves and any feasibility study demonstrating economic and technical viability creates increased uncertainty and heightens economic and technical risks of failure associated with the tailings project.
In addition, in the Company's May 8, 2012 news release, the Company stated that "the Project will provide short term revenue for the Company to use for exploration…". The Company retracts this statement as it may be misinterpreted to disclose results of an economic analysis. The Company also has removed from its website a BTV interview posted on the Media page in which the Company states that the "numbers make good financial sense" and that the tailings project will be low-cost, producing and providing payback in 11 months. The Company retracts each of these statements as it may be misinterpreted to disclose results of an economic analysis. NI 43-101 restricts disclosure regarding the results of an economic analysis that is based on an estimate of potential quantity and grade of an exploration target, in this case, the tailings project. NI 43-101 restricts disclosure of economic analysis based on exploration targets because such targets are conceptual in nature and have even less confidence than inferred resources, which are insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure.
Further, the above disclosure could imply that the Company has made a decision to advance the tailings project to production prior to the completion of a feasibility study without including the cautionary language required by NI 43-101. Accordingly, the Company clarifies that is has not made a production decision and the Company's strategic plan to design and construct an engineered processing facility for the tailings project and if and when any production decision is made, the Company will disclose the basis of its decision in accordance with the requirements of NI 43-101.
The Company's website contained non-compliant and potentially misleading disclosure about mineral reserves and resources at the Company's El Tigre property (the " El Tigre Property ") relating to the tailings project. The Company clarifies any disclosure regarding these statements, including the following:
- On slide 13 of the corporate presentation, an exploration target (the tailings project) was disclosed and was not compliant with NI 43-101 because it did not contain with equal prominence a cautionary statement that the potential grade and quantity is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the discovery of a mineral resource. The Company clarifies that this disclosure has not been validated.
- On slide 19 of the corporate presentation, a historical estimate for the Tigre vein was disclosed and not complaint with NI 43-101 because it did not contain with equal prominence a cautionary statement that a qualified person has not done sufficient work to classify any historical estimate at the El Tigre Property as current mineral resources and that the Company is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon. The Company clarifies that this disclosure has not been validated.
To address the concerns of the British Columbia Securities Commission, the Company has removed the corporate presentation from its website and is updating it accordingly and will ensure that the necessary cautionary statements are stated with equal prominence where these statements are disclosed.
In the Company's Management Discussion and Analysis (" MD&A ") filed on www.SEDAR.com and certain information on its website, the Company failed to properly identify and disclose the relationship to the Company of the qualified person who approved, prepared or supervised the preparation of the technical information. The failure to identify and disclose the relationship to the Company of the qualified person is not compliant with NI 43-101. With respect to the Company's MD&A, the Company clarifies as follows:
- From August 8, 2011 to present, the technical content of the MD&A and the website was approved by Steven D. Craig, CPG and Vice President of Exploration for El Tigre, a qualified person as defined in NI 43-101.
- From June 28, 2011 to August 7, 2011, the technical content of the MD&A and the website was approved by T. Gregory Hawkins, M.Sc., P.Geo., a qualified person as defined in NI 43-101. T. Gregory Hawkins is independent of the Company within the meaning of NI 43-101.
- From June 17, 2010 to June 27, 2011, the technical content of the MD&A and the website was approved by Eugene K. Schmidt, RPG and at the time, Vice President of Exploration for El Tigre, a qualified person as defined in NI 43-101.
In the event that the Company receives an initial material resource estimate, as defined by NI 43-101, it will promptly announce the results and file a supporting technical report.
The technical content of this news release has been approved by Steven D. Craig, CPG and Vice President of Exploration for El Tigre, a Qualified Person as defined in NI 43-101.
About El Tigre Silver Corp.:
The Company, through its subsidiaries, holds the rights to 100% of nine mineral concessions, eight comprising of 431 square kilometers located in north-eastern Sonora, Mexico (the " El Tigre Property "). El Tigre also holds one additional 32 hectare claim separate from the El Tigre Property. A technical report has been prepared for the El Tigre Property and can be found on the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.eltigresilvercorp.com .
Cautionary Statements:
This news release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include future announcements and filing of technical reports. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those risks set out in the Company's public documents filed on SEDAR at www.sedar.com . Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release. 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 accuracy of this press release.
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