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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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From: loantech	9/14/2006 12:54:27 PM
	of 78409

2006-09-14 12:43 ET - News Release Mr. Greg Liller reports GENCO INTERCEPTS 28.5 METERS GRADING 1.65 G/T GOLD AND 101 G/T SILVER AT LA GUITARRA Genco Resources Ltd. has intersected significant disseminated silver and gold mineralization at its La Guitarra mine in the Temescaltepec mining district, Mexico state, Mexico. Hole SA-1on the Santa Ana vein at Mina de Agua returned 13.6 metres grading 118 grams per tonne (g/t) silver and 0.08 g/t gold. Hole C-11 on the La Guitarra vein in the Creston area returned 28.5 metres grading 101 g/t silver and 1.64 g/t gold. The following tabulates the results of recent drilling on the Santa Ana vein and Creston area of the La Guitarra vein. SANTA ANA VEIN Drill hole From (m) To (m) Interval (m) Au (g/t) Ag (g/t) eAg (g/t) SA-1 41.8 55.4 13.6 0.08 118 122 includes 53.1 55.4 2.3 0.31 442 459 SA-2* 49.8 54.5 4.7 0.08 286 290 includes 53.0 54.0 1.0 0.12 701 708 and 67.9 75.0 7.1 0.39 322 346 includes 68.8 69.8 1.1 1.40 907 991 SA-3 104.5 106.8 2.3 0.32 499 517 SA-4 46.9 64.9 17.95 1.54 138 223 53.9 55.9 2.00 0.21 317 329 includes 62.9 64.9 1.95 13.30 47 779 SA-5 57.5 63.1 5.55 0.17 170 180 includes 57.5 59.0 1.50 0.41 364 386 and 73.45 77.1 3.6 0.08 102 107 LA GUITARRA VEIN -- CRESTON TARGET Drill hole From (m) To (m) Interval (m) Au (g/t) Ag (g/t) eAg (g/t) C-1 0.00 17.50 17.50 1.12 55 117 C-2 0.00 23.15 23.15 2.03 113 225 C-3 abandoned at 6.5 metres C-4 0.00 17.40 17.40 0.16 43 51 C-5 5.50 18.50 13.00 0.28 75 90 C-6 9.00 20.15 11.15 0.52 81 109 C-7 25.90 51.60 25.70 0.49 72 99 C-8 7.10 20.30 13.20 0.32 46 64 C-9 10.10 22.85 12.75 0.16 22 31 C-10 30.50 49.20 18.70 0.21 37 49 C-11 0.00 28.50 28.50 1.64 101 191 C-12 0.00 27.70 27.70 0.51 72 100 C-13 0.00 6.20 6.20 4.87 184 451 and 14.35 49.10 34.75 0.23 60 73 C-14 0.00 25.35 25.35 1.04 53 111 C-15* 18.25 26.00 7.75 0.46 35 60 C-16* 29.00 34.50 5.50 0.83 140 186 (*) C-15 abandoned at 26 metres, C-16 abandoned at 34.5 metres Note: All intervals except SA-2 assayed by ALS Chemex, Vancouver lab using standard fire assaying and ICP procedures. SA-2 assayed by La Guitarra's mine lab using standard fire assay procedures. ALS Chemex check assays for SA-2 are pending. Note: eAG is silver equivalent. A 55:1 silver-to-gold ratio representing $10 per ounce silver and $550 per ounce gold was used to calculate eAg. Mina de Agua area work plan Genco continues step-out drilling on the Santa Ana vein. Drilling is also planned for the San Bernabe vein and the Cascarus vein in the near future. Genco plans to post a map on its website showing the location of these veins and drill holes. Based on favourable topography and drill results to date, environmental and blasting permits have been secured to initiate underground exploration and mine development on the Santa Ana vein. Road and surface infrastructure construction have already begun. La Guitarra-Creston work plan The Creston area of the La Guitarra vein is approximately 300 metres from the La Guitarra mill. The La Guitarra-Creston bulk tonnage target is over 1,600 metres in strike length extending from the current open cut to the historic Los Angeles mine. Gold and silver recoveries on ore taken from the Creston surface cut are similar to recoveries obtained from other oxide ores mined at La Guitarra. In light of the promising Creston drill results old drill data are being re-evaluated. In the past only those portions of the drill core containing visually obvious high-grade mineralization were submitted for analysis. Old core will be relogged and new samples taken to determine the extent and grade tenor of the disseminated mineralization in the La Guitarra vein. Data from historic workings are also being reviewed to determine the extent of disseminated mineralization surrounding historic stopes which contain moderate-to-low-grade backfill. A drill program at El Creston, using both large contracted core rigs and recently purchased compressed air driven core rigs, is under way. A trenching program has begun in order to aid with the placement of drill holes. As with the Mina de Agua area, Genco plans to post maps and sections on its website showing the location and progress of its work at La Guitarra-Creston. A metallurgical test program is being undertaken to determine the most cost-effective way to treat both the disseminated bulk tonnage material and typical mine ores. Bottle roll tests from run of mill samples and a composite of the Creston core samples are being done to test the amenability of cyanide milling. Six column tests are being conducted to determine if heap leach extraction techniques are suitable. Genco's president, Greg Liller, states: "I am very pleased that our exploration program is already having a positive effect on the mining operations. The Creston area can be mined at a very low cost compared to the current underground mining costs. This mineralization, combined with mineralization from the Santa Ana vein, will help us fulfill our near-term objective of feeding the mill at its 340-ton-per-day capacity. "The disseminated mineralization intersected at both Santa Ana and La Guitarra adds another dimension to the already large economic potential of the Temescaltepec mining district."

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