TORONTO, Sept. 6, 2012 /PRNewswire/ - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX: SUE) (OTCQX: SDDDF) (BVL: SUE) is pleased to announce that it has awarded an Engineering, Procurement and Construction ("EPC") contract to Abengoa Peru S.A. ("Abengoa") for the construction and installation of a switchyard and electrical facilities for its Shahuindo property in Peru, which is forecast to cost approximately US$15 million. The project is scheduled to commence immediately as part of the Shahuindo mine development and is targeted for completion in 2013.
"We are very pleased to have awarded the EPC contract for the development of the multi-bay electrical switchyard. This is an important milestone in the anticipated development of the Shahuindo project." commented Javier Fernandez-Concha Stucker, Sulliden's General Manager in Peru. "The switchyard and electrical infrastructure of the Shahuindo project will offer an opportunity for local communities and the state to connect to the power grid by providing the local power company, Hidrandina, with the possibility of a new connection point to improve the quality of power to the towns of Cajabamba and Huamachuco, among others. This project will also provide regional electrification for potential agricultural, industrial and future mining operations."
Abengoa is a world leader in energy power construction and transmission employing approximately 26,000 people in over 600 subsidiaries. Abengoa is a major energy transmission company in Peru. In 2011, Abengoa constructed and commissioned an 800 megawatt main North-South running national high-tension electric transmission line passing through the east side of Sulliden's Shahuindo property (See Figure 1). In April 2011, Sulliden, with the assistance of consulting engineering firm PEPSA TECSULT (an AECOM company), began the pre-operation and engineering studies required by the National Power Committee (COES-SINAC) to connect to the main electric transmission line. In February 2012, Sulliden received the acceptance letter from the Minister of Energy and Mines for the connection and switchyard facility. A Memorandum of Understanding (MOU) was signed with Abengoa in June 2012 to negotiate an EPC contract, a connection agreement and an operation and maintenance contract for the power project. The EPC contract was signed with Abengoa on September 3, 2012.
The multi-bay electrical switchyard will be located 2.8 kilometres from the main high tension power line (See Figure 1) and will provide the required power for the Shahuindo mine as well as the opportunity for third party users from cities including Cajabamba and Huamachuco to connect to the power grid.
Sulliden Gold Corporation Ltd. is a Canadian precious metals company focused on the exploration and development of its wholly owned Shahuindo Gold and Silver Project, located in a prolific gold producing district in northern Peru. Sulliden is listed on the Toronto (TSX) and Lima (BVL) stock exchanges under the symbol SUE, as well as the premier tier of the U.S. Over-the-Counter (OTC) market (OTCQX) under the symbol SDDDF. For more information about Sulliden, please visit www.sulliden.com.
On behalf of Sulliden Gold Corporation Ltd.:
President and CEO
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 completion timeline and proposed benefits of the switchyard and electrical facilities project; 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.
SOURCE Sulliden Gold Corporation Ltd.
Image with caption: "Figure 1 - Switchyard and Electrical Facilities Location Map (CNW Group/Sulliden Gold Corporation Ltd.)". Image available at: http://photos.newswire.ca/images/download/20120906_C4444_PHOTO_EN_17543.jpg