Sunward Significantly Increases Measured Resources of Both Gold and Copper at Titiribi Project in Newly-Updated 43-101 Report
- Measured and Indicated Mineral Resources Increase to Approximately 4.63 Million Ounces of Gold and 654 Million Pounds of Copper- Measured Mineral Resources Increase to Approximately 816 Thousand Ounces of Gold and 195 Million Pounds of Copper
- Newly updated 43-101 Report provides increased confidence for future advancement of Titiribi
VANCOUVER, Sept. 12, 2013 /CNW/ - Sunward Resources Ltd. ("Sunward" or the "Company") (TSX: SWD; OTCQX: SNWRF) is pleased to announce that it has completed an updated mineral resource estimate for its 100%-owned Titiribi Project ("Titiribi" or the "Project") located in Antioquia Department, approximately 70 kilometers southwest of the city of Medellin, Colombia. Sunward has completed 144,778 metres of drilling in total on the Project, primarily focused at the Cerro Vetas mineralized zone. This drill program is now complete.
A Technical Report has been prepared by Behre Dolbear & Company (USA), Inc. ("BDB Update") in accordance with NI 43-101. The full technical report will be filed on SEDAR and will be available on the Company's website.
Behre Dolbear has reported that, based on a cut-off of 0.3 grams per tonne ("g/t") gold (as used in the June 2012 report), the Titiribi project currently hosts 285.8 million tonnes ("Mt") of Measured and Indicated Mineral Resources averaging 0.50 g/t gold, thus containing 4.63 million ounces ("Mozs") of gold. In addition, the Project contains 654.4 million pounds ("Mlbs") of copper in the Measured and Indicated Resource categories, resulting in a corresponding gold-equivalent resource of 6.22Mozs2. (Please refer to Table 1 below for complete details).
These figures incorporate a substantial increase in the overall amount of Measured gold and copper resource (51.6 Mt @ 0.49 g/t Au and 0.17% Cu) contained in Titiribi, which, in June 2012, stood at 7.5 Mt grading 0.46 g/t gold and 0.16% copper. Importantly, the stated gold for Measured resource increased almost 7.5 times to approximately 816 thousand ounces and the stated copper increased almost 7.2 times to approximately 195 million pounds.
Overall, the combined Measured and Indicated tonnes have remained fairly consistent, increasing somewhat from 275.4 Mt containing 4.58 Mozs of gold and 615.4 Mlbs of copper to 285.8 Mt containing 4.63 Mozs of gold and 654.4 Mlbs of copper.
Inferred gold Resources (349.4 Mt averaging 0.53 g/t gold) at Titiribi have decreased slightly, moving from 6.44 Mozs gold to 6.01 Mozs gold and Inferred copper Resources decreased from 388.5 Mlbs to 216.3 Mlbs. Factoring in copper content in the Cerro Vetas mineralized zone, Inferred Resources, expressed in gold-equivalent, now total 6.53 Mozs2. (Please refer to Table 2 below for details.) It is important to observe that the reported amounts of gold and copper are in line with the corresponding figures presented in the last Technical Report dated June 2012. This outcome is primarily due to the incorporation of results of the Cerro Vetas infill drill program, which was not expected to materially impact the overall Resource estimate.
The total assessed resources encompass only three out of nine mineralized zones at Titiribi. The exploration potential of this highly prolific district is considered to be excellent.
The current resource model also confirmed a higher-grade zone of breccia-hosted, gold-dominant mineralization in the northwest sector of the Cerro Vetas porphyry (the "NW Breccia"). This zone hosts a Measured and Indicated Mineral Resource of 39.7 Mt grading 0.62 g/t gold for a contained 0.79 Mozs of gold, along with an Inferred Mineral Resource of 96.2 Mt grading 0.54 g/t gold containing 1.68 Mozs of gold.
"The BDB Update confirmed that Titiribi contains one of the most significant endowments of gold in the world," said Philip O'Neill, Sunward's Chief Executive Officer. "On the basis of 0.3 gram-per-tonne cut-off (the same as in the previous studies), the Project was determined to host approximately 4.63 Mozs of gold in Measured and Indicated ("M&I") Categories (compared to 4.58 Mozs in the previous Report produced in June 2012) and approximately 6.0 Mozs of gold in the Inferred Category (compared to 6.44 Mozs in the previous Report). Importantly, the BDB Update demonstrated that the Measured portion now constitutes about 18% of the total M&I amount compared to the 2% assessed in the previous Report. The increased proportion of Measured Resource within the combined M&I Category reflects the increased resource confidence achieved as a result of the additional drilling carried out on the property over the last year. In addition to gold, Titiribi contains substantial amounts of copper determined to total 654 Mlbs in the M&I Category (compared to 615 Mlbs in the previous Report) and 216 Mlbs in the Inferred Category (compared to 388.5 Mlbs the previous Report). These figures should be put in the context of the recovery characteristics for both metals, which at the major Cerro Vetas Zone average approximately 83% and 90% for gold and copper, respectively. These and other factors, including the existing project infrastructure, will form the foundation for ongoing and future engineering studies for the Project."
The updated resource estimate covers the Cerro Vetas, Chisperos, and the NW Breccia zones. The NW Breccia zone is located on the northwestern periphery of the Cerro Vetas zone while the Chisperos zone is immediately to the northeast of Cerro Vetas.
Significant Increase in Measured Global Resource
The increased tonnage and ounces of gold and lbs of copper in the Measured category of Resources, reported by Behre Dolbear, were primarily the result of the incorporation into the current resource model of recent in-fill drill holes located for the most part in the Cerro Vetas zone, along with modified and reinterpreted geology at the Cerro Vetas, NW Breccia and Chisperos resource areas.
Geology of the Titiribi Project
The BDB Update confirms that the Titiribi Project contains several separate mineralized zones, and although all appear related to a large Miocene-age post-caldera intrusive system, each is spatially separate. The Cerro Vetas-NW Breccia-Chisperos complex is a bulk tonnage gold and copper porphyry deposit directly related to several interconnected Cerro Vetas diorite porphyry centers but also hosted in the immediate contact aureoles and adjacent breccias. Prior to this report, the Chisperos zone was thought to consist of two separate zones, Chisperos and Virgen. Continued drilling and modeling now demonstrates that Chisperos hosts intrusive and contact aureole mineralization and as of 2013, the term Virgen is no longer used. Mineralization hosted in the Cerro Vetas diorite porphyry is disseminated and fracture controlled. The principal metallic minerals are native gold, chalcopyrite, pyrite, and magnetite. Gold values within the Cerro Vetas diorite normally correlate well with copper content and magnetite. The largest diorite intrusive occurs within the Cerro Vetas zone with smaller plugs and dikes found within the NW Breccia and Chisperos zones. The diorite porphyry hosts typical porphyry copper alteration with a barren to weakly mineralized pro-grade potassic core, surrounded by a well-mineralized phyllic zone, and a thinly mineralized retrograde argillic zone. The outermost propylitic alteration zone is widespread. Interpretation of geophysical and drill hole data suggests that potential higher-grade gold-copper zones exist as a domed contact-related shell in the intrusive where brecciated diorite with xenolithic fragments of sedimentary rocks was intercepted in drilling. This higher-grade domed shell is, at least in part, coincident with the phyllically altered intrusive-sedimentary contact breccia.
A second style of mineralization is gold-only mineralization developed in diatreme breccia in the NW Breccia and Chisperos zones. At NW Breccia, a separate diorite plug hosts gold and copper mineralization while the diatreme breccia hosts both gold-only and gold-copper mineralization. The reason for separate gold-only and gold-copper zones in the diatreme breccia is unknown but may be related to proximity to diorite dikes.
Similar to the NW Breccia, Chisperos hosts gold-copper mineralization in diorite plugs and dikes, gold-only mineralization in diatreme breccia. It also hosts substantial epithermal, lower-temperature generally gold-only mineralization within parallel to sub-parallel mineralized zones that are both stratigraphically and structurally controlled and hosted in a sedimentary-volcanic sequence. The near- vertical diorite plugs and dikes consistently strike east-northeast and appear to emanate from the principal stock at the Cerro Vetas zone with all intruding structural weaknesses developed in the earlier diatreme breccia. Northwest-striking, steeply dipping faults are theorized to be the channel ways for auriferous hydrothermal fluids that mineralized shallow-dipping, favorable stratigraphic hosts; the Amaga Formation/basement contact; diatreme breccia; and possibly shallow-dipping bedding-plane fault zones.
Additional Information
Behre Dolbear assigned Mr. Joseph A. Kantor and Dr. Robert E. Cameron to undertake the project. Both are recognized as Qualified Professionals by the Mining and Metallurgical Society of America (MMSA) and as Qualified Persons under NI 43-101.
Ms. Heather White, P.Eng, is Special Advisor to the COO, and a consultant to the Company. Ms. Heather White is a qualified person under National Instrument 43-101 and has reviewed and approved all of the scientific and technical information on Company's news releases other than the NI 43-101 technical reports on the Company's Titiribi project.
| Table 1 Titiribi Measured and Indicated Mineral Resource (0.3 g/t Cutoff As of July 31, 2013) | |||||||||
| Area | Class | Million Tonnes | Au (g/t) | Cu (%) | Contained Metals | Au Equivalence1 (million oz) | |||
| Au (kg) | Au (million oz) | Cu (tonnes) | Cu (million lbs) | ||||||
| Cerro Vetas | Measured | 51.6 | 0.49 | 0.17 | 25,380 | 0.82 | 88,486 | 195.1 | 1.29 |
| Indicated | 132.4 | 0.48 | 0.16 | 63,949 | 2.06 | 208,317 | 459.3 | 3.17 | |
| Chisperos | Indicated | 62.1 | 0.48 | - | 30,077 | 0.97 | - | - | 0.97 |
| NW Breccia | Indicated | 39.7 | 0.62 | - | 24,541 | 0.79 | - | - | 0.79 |
| Total Measured + Indicated | 285.8 | 0.50 | - | 143,947 | 4.63 | 296,804 | 654.4 | 6.22 | |
| 1Gold Equivalence estimated using $1,300 per ounce gold at 83% recovery and $2.90 per pound copper at 90% recovery | |||||||||
| Table 2 Titiribi Inferred Mineral Resource (0.3 g/t Cutoff As of July 31, 2013) | ||||||||||
| Area | Class | Million Tonnes | Au (g/t) | Cu (%) | Contained Metals | Au Equivalence1 (million oz) | ||||
| Au (kg) | Au (million oz) | Cu (tonnes) | Cu (million lbs) | |||||||
| Cerro Vetas | Inferred | 153.0 | 0.57 | 0.064 | 87,712 | 2.82 | 98,104 | 216.3 | 3.34 | |
| Chisperos | Inferred | 100.2 | 0.47 | - | 46,811 | 1.51 | - | - | 1.51 | |
| NW Breccia | Inferred | 96.2 | 0.543 | - | 52,285 | 1.68 | - | - | 1.68 | |
| Total Inferred | 349.4 | 0.53 | - | 186,807 | 6.01 | 98,104 | 216.3 | 6.53 | ||
| 1Gold Equivalence estimated using $1,300 per ounce gold at 83% recovery and $2.90 per pound copper at 90% recovery | ||||||||||
Please refer to the full Technical Report titled "Technical Report on the Titiribi Project, Department of Antioquia, Colombia", dated September 9, 2013, in accordance with NI 43-101. The technical report will be filed on SEDAR and will be available on the Company's website.
Note to Tables:
The mineral resources are reported in accordance with Canadian Securities Administrators' NI 43-101 and have been estimated in conformity with generally accepted CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines. No Reserves conforming to these standards have been estimated as the Company has not advanced exploration and evaluation work to the point of developing plans, production schedules and economic analysis.
The Authors would also note that the Inferred Resource estimates have a great amount of uncertainty as to their existence and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred mineral resource will ever be upgraded to a higher category. Under Canadian NI 43-101, estimates of Inferred mineral Resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for a preliminary economic assessment or scoping study. Investors are cautioned not to assume that any or all of the Inferred Resources exist or are economically or legally mineable.
Notes:
Cautionary Note Concerning Reserve & Resource Estimates
This summary table uses the terms "Measured Resources", "Indicated Resources" and "Inferred Resources". United States investors are advised that, while such terms are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission (the "SEC") does not recognize them. Under United States standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Mineral resources that are not mineral reserves do not have demonstrated economic viability. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. Disclosure of "contained ounces" is permitted disclosure under Canadian regulations, however, the SEC normally only permits issuers to report "resources" as in place tonnage and grade without reference to unit measures. Accordingly, information concerning descriptions of mineralization and resources contained in this release may not be comparable to information made public by United States companies subject to the reporting and disclosure requirements of the SEC.
NI 43-101 Standards of Disclosure for Mineral Projects is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in this circular have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System.
Definitions of Terms used in this News Release
A Mineral Resource is a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral resources are subdivided, in order of increasing geological confidence, into inferred, indicated and measured categories.
A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.
An Indicated Mineral Resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geologic and grade continuity to be reasonably assumed.
An Inferred Mineral Resource is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
QA/QC:
The Behre Dolbear authors opine that Sunward has done an outstanding job of following industry best standards and maintaining chain of custody in their exploration efforts. All diamond drill core is diligently logged and documented. Because all of the coring is oriented and holes are subject to downhole photography, Sunward geologists have gathered a large amount of structural data and used it to decipher the structural controls of the vein systems and locally higher-grade zones of mineralization. All of the data is quite reliable. Quality Assurance/Quality Control (QA/QC) data is extensive and all industry recognized procedures have been followed. The authors' review of standard and blank assay data shows little bias.
ABOUT SUNWARD:
Sunward Resources is a well-capitalized, Canadian-based company focused on the exploration and development of the 100%-owned Titiribi Project in Colombia. The Titiribi Project is located approximately 70 kilometres southwest of the city of Medellin, Colombia, in Antioquia department, within the historical Titiribi mining district (estimated total production of 1.5 to 2 million ounces gold equivalent). Access is by paved highway from Medellin.
Cautionary Statement Regarding Forward Looking Information
This news release contains forward-looking information within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking information. Forward-looking information may include, but is not limited to, statements with respect to future activities of the Company; the Company's plans for its mineral properties; the Company's business strategy, plans and outlook; the merit of the Company's properties; exploration results; mineral resource estimates; work plans and timelines; completion of transactions; shareholder value; projections and targets; the future financial or operating performance of the Company, its subsidiaries and its projects; operating and exploration expenditures and costs of future exploration and other activities; and approvals, permits and licenses. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "possible", "budget", "scheduled", "strategy", "goal", "objective", "potential", "estimates", "assumes", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any results, performance or achievements expressed or implied by the forward-looking statements. Such uncertainties and factors include, among others, inherent risks involved in the exploration of mineral properties; risks associated with foreign operations; risk relating to title to the Company's properties; the uncertainties involved in resource estimates and in interpreting drilling results and other geological data; fluctuations in currency exchange rates and commodity prices; uncertainties regarding the issuance of approvals, licenses and permits; risks related to competition; risks related to the Company's ability to acquire additional mineral properties; the availability of and costs of required financing; economic, political and social uncertainties; accidents and labour disputes; and political instability, insurrection or war; as well as those factors discussed under "Risk Factors" in the Company's Annual Information Form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to that the Company's exploration of its properties and other activities will be in accordance with the Company's public statements and stated goals, that there will be no material adverse change affecting the Company or its properties, anticipated costs and timing for the Company's activities and such other assumptions as set out herein. Forward-looking statements are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Contact
Sunward Resources Ltd.
Kanapa Pitakpong
(604) 568-7617
Kanapa@sunwardresources.com