Salazar Resources Ltd.: Disclosure Review
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/02/10 -- Salazar Resources Ltd. (TSX VENTURE: SRL)(FRANKFURT: CCG) -
As a result of a review by the British Columbia Securities Commission, we are issuing the following news release.
On June 5, 2010 as part of its investor awareness program and in conjunction with the Company's June 4, 2010 news release announcing recommencement of exploration activities at the Company's Curipamba Property, an infostock ad was run. The ad made references to 'Huge Gold Resource - 43-101 comp' and 'over 1 million oz gold equivalent' on the Company's Curipamba Property. The gold equivalent could be considered misleading when reviewed without context of all technical issues such as metallurgical tests and recoveries. The gold equivalent quantity is not compliant with NI 43-101 because most of the metal value the ad used to estimate gold equivalent is copper, lead, and zinc, and the recovery of gold and silver in the massive sulphide deposit is likely to depend on development of a successful flow-sheet for the recovery of copper, lead, and zinc materials. While the ad was not drafted by management of the Company, such disclosure should not have been used and the Company is retracting the disclosure of gold equivalent ounces made in the ad.
The Company's technical report contains an inferred resource of approximately 4 million tonnes grading 3.5 g/t gold, 76 g/t silver, 2.5% copper, 4.55% zinc, and 0.5% lead for the El Domo deposit. Because of the disclosure review, the Company will be filing an amended Curipamba technical report. The Company will make a further announcement in the event that the amended report makes any material changes to previously disclosed resource estimates.
In the Company's news release of May 14, 2009 reporting on the visit of Dr. James Franklin, an independent consultant to the Company, a quote attributed to Dr. James Franklin stated that 'First, many thanks for organizing the excellent visit to Curipamba. This was a great experience to learn first-hand about this exciting new discovery. From my knowledge of the VMS districts in the western Andean origin, Curipamba seems to have the richest combined metal grades of all, and with a minimum of 4mt already defined at El Domo, clearly it will only be a matter of more drilling before you have an economically recoverable resource.' The Company wishes to clarify the work required to upgrade its inferred resources to mineral reserves. Although an inferred resource by definition has 'reasonable prospects of economic extraction', demonstrated economic viability is contingent on a drill program that supports an upgrade of resource classes, and a positive pre-feasibility study as defined in NI 43-101.
In the same news release of May 14, 2009, it was stated that 'drilling at the El Domo target has indicated and inferred resource of approximately 4 million tonnes'. The Company retracts this disclosure. The addition of the word 'indicated' was a typographical error. The Company's technical report classifies the entire estimate as an inferred resource, and all other references by the Company to resources disclosed that the Company had an inferred resource.
John Buckle, P.Geo., P.Geoph., the qualified person for the company, has reviewed this news release for its accuracy.
For more information please visit our website at: www.salazarresources.com.
ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED
Fredy Salazar, President & CEO
Salazar Resources Limited
Salazar Resources Ltd. is a publicly-listed (TSX VENTURE: SRL) mineral resource company engaged in the exploration and development of new highly prospective areas in Ecuador. Led by a senior Ecuadorian management team and most notably by its namesake Fredy Salazar, this team has been instrumental in other major discoveries throughout Ecuador. Being an Ecuadorian based company gives the Company a strategic advantage enabling the Company to complete exploration at a rapid pace. With an excellent property portfolio (3 projects - 42,900 hectares), good geopolitical positioning and a number of strategic corporate and financial partnerships, Salazar has positioned itself to be a strategic player in Ecuador and throughout South America.
Neither 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 release.
Contacts:
Salazar Resources Limited
Fredy Salazar
President & CEO
593.22278975
fsalazar@salazarresources.com
www.salazarresources.com
Empire Communications Inc.
Jeff Tindale
Investor Relations
604.484.0066
info@salazarresources.com