Sulliden Reports North Corridor Drill Intercept of 53.8 M Grading 0.85 g/t Gold and 71.4 g/t Silver and Continued Growth in Central Corridor With 61.5 M of 0.94 g/t Gold and 20.4 g/t Silver
TORONTO, ONTARIO -- (Marketwire) -- 01/04/12 -- Sulliden Gold Corporation Ltd. ('Sulliden', or the 'Company') (TSX: SUE)(OTCQX: SDDDF)(BVL: SUE) is pleased to announce assay results from the new North Corridor and ongoing Central Corridor drilling programs. The latest results are part of the ongoing exploration drilling being conducted on its Shahuindo property in northern Peru (See location map, Figure 1).
North Corridor
Results for ten drill holes, representing approximately 2,250 metres, have been received from the newly initiated North Corridor exploration program. The Company is encouraged by the assay results obtained since drilling commenced in August 2011, particularly from hole SHN11-328, which intersected 53.8 meters of 0.85 g/t gold and 71.4 g/t silver in oxides. Within this interval a significant intersection of 33.3 metres grading 1.27 g/t gold and 108.0 g/t silver was encountered (See Table 1).
The North Corridor is a mineralized structure located approximately two kilometres north of the main Central Corridor, which hosts the current mineral resource estimate (See Figure 1). The Company began drilling this exploration target in late August 2011, following the identification of a geochemical anomaly spanning at least two kilometres in a North-West to South-East direction.
Stéphane Amireault, Vice President of Exploration for Sulliden, commented, 'The drilling program in the North Corridor is progressing well and our geological knowledge of this new target area continues to improve as we obtain drill results. This drill data, in conjunction with the geochemical anomalies, will allow us to better understand the mineralization and establish future drill targets. In this group of North Corridor results, we are particularly encouraged about the positive intercepts returned in hole SHN11-328, which support our belief in the potential for this exploration target to materialize into an eventual source of mineral resource growth.'
Approximately 5,225 metres of drilling have been completed in the North Corridor since late August 2011, and exploration efforts are planned to continue in 2012.
Central Corridor
The Central Corridor currently hosts the main mineralized structure on the Shahuindo property. This continuous 3.8 kilometre mineral structure outcrops on surface and includes two adjacent parallel mineral structures named sub-corridors 'A' and 'B' (see Figure 2). The current mineral resource envelope in the Central Corridor (represented in red on Figure 1) remains open along strike, at depth and at width. Along with continued drilling in the Central Corridor, the Company intends to include several adjacent targets in its 2012 exploration program, including the 1,600 metre North-West Extension, identified by geochemistry, and the 800 metre South-East extension, identified by geophysics.
The Company continues to obtain positive results in the Central Corridor that are both confirming and expanding mineralization. A total of 26 drill holes representing approximately 7,590 metres are reported in Tables 2 and 3, below. Significant new drill intercepts obtained in the Central Corridor include:
-- 0.94 g/t gold and 5.6 g/t silver over 55.5 metres including 2.19 g/t
gold and 19.4 g/t silver over 9.0 metres from hole RSH11-202
-- 0.94 g/t gold and 20.4 g/t silver over 61.5 metres and 1.57 g/t gold and
12.5 g/t silver over 31.5 metres from hole RSH11-204
-- 1.45 g/t gold and 10.3 g/t silver over 18.0 metres from hole RSH11-205
The new 'Sub Corridor 'B'' located within the Central Corridor has continued to returned positive results with several new holes encountering mineralization beyond the June 2011 mineral resource model. For example, drill hole RSH11-208 intersected 0.81 g/t gold over 15.0 metres, 0.76 g/t gold over 27.0 metres and 1.09 g/t gold over 9.0 metres (See collar location in Figure 1 and drill results in Table 2). The results from this sub-corridor are confirming new mineral continuity and the Company intends to further drill this target in 2012 to better understand the size and growth potential of this area.
Holes SH11-OC7 to SH11-OC11 were drilled in the Central Corridor as part of a geotechnical drill program focused on assessing the rock quality in order to determine the optimal pit slope angles for the future mining scenario. All five holes intersected gold values above the economic cut-off established in the latest engineering study and provide further indication of the Shahuindo property's mineral growth potential.
Sulphide Exploration Program - Central Corridor
Sulliden's principal focus is on the development of a low capital investment and low operating cost heap leach mining operation, which considers the predominant oxide portion of the current mineral resource. In 2011 however, the Company initiated an exploration program of deeper drill holes along the 3.8 kilometre strike length of the Central Corridor to test the presence of mineralization beneath the known oxides at an average depth of 400 metres below surface. To date, assay results have been obtained for seven drill holes from this program. Highlights include 1.47 g/t gold over 26.1 metres and 2.82 g/t gold over 12.3 metres in hole SHD11-240 (See Table 3).
Sulliden completed its 2011 drilling program in December with 358 holes totalling approximately 67,400 metres drilled since January, 2011. The Company expects to initiate the 2012 exploration activities in the coming weeks.
Table 1 - North Corridor Drill Results (Assays presented in this table have
been capped at 7 g/t gold and 300 g/t silver. Intercepts have been
calculated using a 0.2 g/t cut-off.)
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NORTH CORRIDOR
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From To Interval(2) Gold Silver
Drill hole # (metres) (metres) (metres) (g/t) (g/t) Type
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SHN11-313 82.5 90.0 7.5 0.48 7.0 Sulphide
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SHN11-313 115.5 135.0 19.5 0.29 9.8 Sulphide
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SHN11-316 No significant mineralized interval
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SHN11-317 197.0 205.5 8.5 0.24 3.1 Sulphide
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SHN11-318 62.7 76.7 14.0 0.40 38.3 Oxide
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SHN11-319 150.1 154.6 4.5 0.39 2.3 Sulphide
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SHN11-320 88.9 112.4 23.5 0.24 1.2 Oxide
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SHN11-320 132.4 139.9 7.5 0.27 6.0 Oxide
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SHN11-320 168.4 174.4 6.0 0.29 3.6 Oxide
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SHN11-320 222.4 244.4 22.0 0.63 19.5 Sulphide
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including 226.9 230.9 4.0 1.17 33.4 Sulphide
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SHN11-321 No significant mineralized intersection
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SHN11-322 No significant mineralized intersection
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SHN11-325 No significant mineralized intersection
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SHN11-
328(1,3) 2.2 56.0 53.8 0.85 71.4 Oxide
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including
(4,5) 22.7 56.0 33.3 1.27 108.0 Oxide
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including
(4,5) 27.2 30.2 3.0 4.87 225.5 Oxide
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including
(5) 38.2 48.2 10.0 1.70 152.6 Oxide
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(1) Total length intersection combining overburden intersection as well as
rock intersection with lower grade interval between the two zones.
(2) True thickness is not known at this stage.
(3) Stopped due to technical difficulties
(4) One or more Gold assays capped at 7 g/t Gold
(5) One or more Silver assays capped at 300 g/t Silver
Table 2 - Central Corridor Drill Results (Assays presented in this table
have been capped at 7 g/t gold and 300 g/t silver. Intercepts have been
calculated using a 0.2 g/t cut-off.)
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CENTRAL CORRIDOR
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Drill hole From To Interval True Width Gold Silver
# (metres) (metres) (metres) (metres)(1) (g/t) (g/t) Type
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SUB CORRIDOR 'B'
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RSH11-206 No significant mineralized interval
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RSH11-207 112.5 117.0 4.5 4.5 0.32 2.1 Oxide
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RSH11-208
(2) 1.5 16.5 15.0 14.8 0.81 2.5 Oxide
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RSH11-208 81.0 108.0 27.0 26.4 0.76 4.6 Oxide
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RSH11-208 130.5 139.5 9.0 8.8 1.09 7.2 Oxide
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SH11-303 69.5 73.0 3.5 3.4 0.43 3.2 Oxide
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SH11-304
(2,3) 1.5 10.0 8.5 8.4 0.30 1.0 Oxide
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WEST ZONE
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RSH11-203 45.0 49.5 4.5 2.9 0.24 3.7 Oxide
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SH11-293 172.5 180.5 8.0 4.2 0.75 20.9Sulphide
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SH11-293 187.5 195.5 8.0 4.2 0.79 14.6Sulphide
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SH11-293
(4) 204.5 225.5 21.0 10.8 1.03 7.6Sulphide
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SH11-305 No significant mineralized interval
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CENTRAL ZONE
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Oxide-
SH11-295 58.1 136.1 78.0 50.3 0.42 6.8 Mixed
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SH11-296 51.3 66.3 15.0 9.8 0.77 12.8 Oxide
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RSH11-192
(5) 33.0 168.0 135.0 70.1 0.38 17.6 Oxide
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including 91.5 96.0 4.5 2.3 1.56 12.5 Oxide
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RSH11-202
(2) 0.0 55.5 55.5 19.0 0.94 5.6 Oxide
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including 33.0 42.0 9.0 3.1 2.19 19.4 Oxide
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RSH11-204 42.0 106.5 64.5 44.1 0.46 10.9 Oxide
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RSH11-204 Oxide -
(4) 138.0 199.5 61.5 42.0 0.94 20.4Sulphide
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including
(4) 145.5 154.5 9.0 6.2 3.72 20.6Sulphide
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RSH11-204
(6) 238.5 270.0 31.5 21.5 1.57 12.5Sulphide
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including
(4) 253.5 261.0 7.5 5.1 4.54 38.4Sulphide
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RSH11-205 16.5 34.5 18.0 11.6 1.45 10.3 Oxide
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SH11-OC7
(7) 25.4 34.0 8.6 2.3 1.13 22.2 Oxide
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SH11-OC8
(7) 54.8 65.3 10.5 3.4 0.61 6.9 Oxide
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SH11-OC8
(7) 92.3 98.3 6.0 2.0 0.86 21.1 Mixed
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EAST ZONE
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SH11-OC10
(7) 33.8 50.0 16.2 5.5 0.43 6.4 Oxide
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SH11-OC11
(7) 67.1 75.3 8.2 1.2 0.28 3.7 Oxide
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MOYAN ALTO ZONE
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SH11-OC9
(7) 9.8 17.8 8.0 2.7 0.22 1.1 Oxide
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(1) Assuming perpendicular or near perpendicular to the plane defined by
the drill hole. Geological understanding of the mineralized zones is
continuing to develop as the project advances
(2) Mineralization found within 10 meters of beginning of hole
(3) Mineralized overburden
(4) One or more Gold assays capped at 7 g/t Gold
(5) One or more Silver assays capped at 300 g/t Silver
(6) Mineralization found within 10 meters of end of hole
(7) Geotechnical drill hole
Table 3 - Central Corridor Deep Drill Results (Assays presented in this
table have been capped at 7 g/t gold and 300 g/t silver. Intercepts have
been calculated using a 0.2 g/t cut-off.)
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CENTRAL CORRIDOR
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Drill From To Interval True Width Gold Silver
hole # (metres) (metres) (metres) (metres)(1) (g/t) (g/t) Type
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WEST ZONE
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SHD11-221 264.3 267.3 3.0 1.5 0.70 20.3 Sulphide
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SHD11-232 252.4 273.4 21.0 11.7 0.75 28.6 Sulphide
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SHD11-240 94.8 105.3 10.5 5.5 0.71 9.6 Sulphide
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SHD11-240 211.2 237.3 26.1 12.9 1.47 17.4 Sulphide
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including 222.0 234.3 12.3 6.1 2.82 25.5 Sulphide
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CENTRAL ZONE
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SHD11-247 54.0 67.5 13.5 7.8 0.34 1.8 Oxide
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SHD11-247 310.5 316.5 6.0 3.6 0.88 11.9 Sulphide
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SHD11-247
(2) 457.5 486.0 28.5 16.9 0.98 23.0 Sulphide
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including
(2) 469.5 478.5 9.0 5.3 2.29 52.9 Sulphide
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SHD11-257 181.6 193.6 12.0 7.3 0.64 8.7 Sulphide
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including 181.6 186.1 4.5 2.7 1.08 12.3 Sulphide
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SHD11-257 374.1 379.6 5.5 3.3 0.81 5.3 Sulphide
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SHD11-257 423.1 427.6 4.5 2.7 0.69 24.8 Sulphide
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SHD11-269
(3) 9.2 30.4 21.2 16.4 0.58 2.3 Oxide
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Including 12.4 18.0 5.6 3.9 1.13 2.0 Oxide
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SHD11-269 73.9 91.9 18.0 13.2 0.35 0.6 Oxide
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SHD11-269 103.9 112.9 9.0 3.8 0.94 5.6 Oxide
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SHD11-269
(4) 141.4 161.9 20.5 8.6 0.82 33.3 Sulphide
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including
(4) 154.9 157.9 3.0 1.3 3.14 167.7 Sulphide
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SHD11-269 343.9 348.9 5.0 2.0 0.80 8.0 Sulphide
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SHD11-290 34.1 45.6 11.5 4.8 0.40 2.7 Oxide
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SHD11-290 71.1 102.6 31.5 13.0 0.88 3.0 Oxide
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including 85.9 95.1 9.2 3.8 2.31 4.1 Oxide
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SHD11-290 186.6 208.6 22.0 9.1 0.58 16.6 Mixed
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including 186.6 191.1 4.5 1.9 1.84 70.7 Mixed
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(1) Assuming perpendicular or near perpendicular to the plane defined by
the drill hole. Geological understanding of the mineralized zones is
continuing to develop as the project advances
(2) One or more Gold assays capped at 7 g/t Gold
(3) Mineralization found within 10 meters of beginning of hole
(4) One or more Silver assays capped at 300 g/t Silver
To view Figure 1 - The Shahuindo property is located in a world-class mining district in northern Peru, please visit the following link: http://media3.marketwire.com/docs/ShahuindoPropertyLocationMap.JPG
To view Figure 2 - Plan View of Mineral Deposit with New Drill Hole Locations in North and Central Corridors, please visit the following link: http://media3.marketwire.com/docs/CentralandSulphideHolePlanView.JPG
Quality Control and Assurance
Stephane Amireault, P.Eng., the Vice-President of Exploration for Sulliden is the 'Qualified Person' as defined by National Instrument 43-101 who is responsible for the management of the exploration program and disclosure of the drill results. Mr. Amireault has read and approved the technical and scientific information in this news release.
The analyses for this drilling campaign were carried out by ALS Chemex in Lima, Peru, exercising a thorough Quality Control and Assurance program (QA/QC). All ALS Chemex labs are ISO 9000 registered laboratories. Gold assays reported in this press release were obtained by standard 50 gram fire assaying with AA finish. Gold values over 10g/t Au were obtained by fire assay and gravimetric finish. Silver assays reported in the press release were obtained by Aqua-Regia dissolution followed by ICP-AES measurement. For silver values over 100g/t Ag, Aqua-Regia was followed by Atomic Absorption spectrometer reading. For silver values over 1000g/t Ag, a 30g fire assay was completed with a gravimetric finish.
About Sulliden
Sulliden is a Canadian-based precious metals company focused on the exploration and development of the Shahuindo Gold and Silver Project, located in a prolific gold producing district in northern Peru. A positive Preliminary Assessment for the Shahuindo Project was completed in February 2010 and a Feasibility Study is currently underway. On June 16, 2011, an updated mineral resource estimate more than doubled the Indicated gold ounces in the oxides and almost quadrupled the Inferred gold ounces relative to the previous estimate. While the Company progresses towards its goal of becoming a gold producer, a significant focus is being placed on exploration drilling. The current mineral deposit is open in all directions and at depth, and the Company has an additional 70,000 meters of drilling planned in 2012 to continue defining the mineral expansion on the property. Sulliden is led by a strong management team with the proven ability to develop, finance and operate mining projects and is poised to generate superior value for its shareholders.
On behalf of Sulliden Gold Corporation Ltd.:
Peter Tagliamonte, President and CEO
Stan Bharti, Chairman
For further information on Sulliden please visit the company website at www.sulliden.com.
If you would like to be added to Sulliden's news distribution list, please send your email address to contact@sulliden.com.
Caution regarding forward-looking information:
This press release contains 'forward looking information' within the meaning of applicable Canadian securities legislation. Forward looking information includes without limitation, statements regarding the drilling results, the size and quality of the company's mineral resources, progress in development of mineral properties, future capital and operating expenses, future metal prices, the future financial or operating performance of the Company, the prospective mineralization of the properties, planned exploration programs and anticipated production schedule. Generally, forward looking information can be identified by the use of forward-looking terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information 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 information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Contacts:
Sulliden Gold Corporation Ltd.
Caroline Arsenault
Investor Relations Manager
(416) 861-5805
Sulliden Gold Corporation Ltd.
Scott Moore
Vice President Corporate Development
(416) 861-5903
www.sulliden.com