Sulliden Identifies New Parallel Mineralized Structure in Central Corridor

TORONTO, March 26, 2012 /PRNewswire/ - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX: SUE) (OTCQX: SDDDF) (BVL: SUE) is pleased to report additional assay results for 23 holes totaling 4,398 metres of exploration drilling conducted on its Shahuindo property in northern Peru (See property location map, Figure 2).

Sulliden has successfully identified a new parallel mineralized zone approximately 300 metres in strike length adjacent to the main mineralized structure in the Central Corridor (See Figure 1).  Geological interpretations of surface samples and drill results suggest a geological link between the new gold bearing area and the mineralization in the Sub-Corridor 'B', located approximately 800 metres to the north-west. The area between the two mineral occurrences remains undrilled and will remain a target for future exploration.  The following intercept highlights were obtained from drill holes that have all identified mineralization in this new gold-bearing extension.

  • Hole RSH11-227: Intersected 73.5 metres of 0.64 g/t gold and 11.9 g/t silver, including 7.5 metres of 3.30 g/t gold and 66.3 g/t silver

  • Hole RSH11-238:  Intersected 93.0 metres of 0.47 g/t gold and 4.3 g/t silver, including 6.0 metres of 1.71 g/t gold and 7.1 g/t silver

  • Hole RSH11-236: Intersected 9.0 metres of 2.83 g/t gold and 10.5 g/t silver, as well as 24.0 metres of 1.05 g/t gold and 8.1 g/t silver, including 6.0 metres of 2.26 g/t gold and 11.3 g/t silver

Please see Figure 1 - Plan View of Mineral Deposit with New Drill Hole Locations in Central Corridor

Stéphane Amireault, Vice-President of Exploration for Sulliden, commented, "We are encouraged by the new mineral discovery adjacent to the Central Corridor.  Based on our geological interpretations to date, we believe this area is an extension of the Sub Corridor 'B', and together these two areas could form a continuous mineral trend, of which approximately 800 metres remains undrilled.  We are encouraged by the ongoing positive results obtained from our drilling program and we believe this success is evidence of the continued exploration potential on the Shahuindo property."

The Sub-Corridor 'B' is a parallel mineral structure that was initially identified in the north western part of the Central Corridor.  Since its discovery in May, 2011, drilling and exploration work has led to the definition of mineralization along 300 metres of strike length. If additional drilling on strike is successful, the newly discovered gold bearing area could potentially extend the Sub-Corridor 'B' up to 1,400 metres (See Figure 1).

The Sub-Corridor 'B' is a parallel mineral structure that was initially identified in the north western part of the Central Corridor.  Since its discovery in May 2011, drilling and exploration work has led to the definition of mineralization on 300 metres of strike length, however the newly discovered gold bearing area is now believed to potentially extend the strike length of this mineral occurrence up to 1,400 metres (See Figure 1).

Deepening of Sulphide Mineralization

Results have been obtained from hole SHD11-326, which was part of the dedicated deep drilling program testing the sulphide mineralization below the known oxide cap.  This hole was drilled in the East Zone of the Central Corridor (see Figure 2) and has extended sulphide mineralization at depth by approximately 100 metres.  Highlights from the sulphide portion of hole SHD11-326 include 1.45 g/t gold over 18.0 metres (See Table 1 for complete results).

Please see Figure 2 - The Shahuindo property is located in a world-class mining district in northern Peru

Table 1 - Central Corridor Drill Results (Assays presented in this table have been capped at 7 g/t gold and 300 g/t silver where noted.  Intercepts have been calculated using a 0.2 g/t Au cut-off.)

Drill hole # From
True Width
SH11-327 209.8 219.3 9.5 5.5 0.64 8.9 Sulphide
RSH11-216 91.5 102.0 10.5 3.9 0.37 3.7 Mixed
RSH11-216 (2,3) 111.0 156.0 45.0 16.5 0.45 24.2 Sulphide
RSH11-222 36.0 46.5 10.5 6.9 0.74 9.6 Oxide
SH11-315 369.0 387.0 18.0 12.1 1.14 4.6 Sulphide
including 379.7 385.5 5.8 3.9 2.85 10.6 Sulphide
SH11-315 402.0 424.5 22.5 15.1 0.89 10.3 Sulphide
including 409.2 414.0 4.8 3.2 2.15 12.7 Sulphide
RSH11-252 12.0 18.0 6.0 3.4 0.47 2.8 Oxide
SH11-314 (4) 0.0 24.1 24.1 18.5 0.65 4.6 Oxide
including (4) 0.0 3.1 3.1 2.4 1.34 8.7 Oxide
SH11-314 24.1 30.8 6.7 2.8 0.36 7.3 Oxide
SH11-314 177.1 184.6 7.5 3.1 0.42 6.6 Oxide
SH11-314 193.6 198.1 4.5 1.9 0.37 18.4 Oxide
SHD11-326 (4) 0.0 14.6 14.6 7.3 0.42 2.3 Oxide
SHD11-326 22.1 32.6 10.5 5.3 0.87 3.1 Oxide
SHD11-326 61.1 86.6 25.5 12.8 0.30 1.7 Oxide
SHD11-326 104.6 111.0 6.4 3.1 0.62 13.0 Oxide
SHD11-326 118.9 129.4 10.5 5.1 0.53 5.1 Oxide
SHD11-326 142.1 152.6 10.5 5.1 0.43 4.7 Oxide
SHD11-326 211.1 226.1 15.0 7.3 0.27 6.0 Oxide
SHD11-326 254.6 272.6 18.0 8.8 1.45 9.7 Sulphide
SHD11-326 (2,5) 356.6 392.0 35.4 17.2 0.67 11.4 Sulphide
SHD11-326 395.9 416.6 20.7 10.1 0.43 8.9 Sulphide
SHD11-326 419.6 425.1 5.5 2.7 1.10 8.1 Sulphide
SHD11-326 428.6 448.6 20.0 9.7 0.49 5.2 Sulphide
SH11-331 249.2 262.8 13.6 7.8 0.58 14.6 Sulphide
RSH11-247 10.5 37.5 27.0 26.9 0.31 3.1 Mixed
SH11-310 95.3 124.5 29.2 29.1 0.41 21.8 Mixed
including 96.5 100.8 4.4 4.3 0.98 26.1 Sulphide
RSH11-221 (5) 28.5 118.5 90.0 56.9 0.64 4.5 Oxide
including (5) 67.5 70.5 3.0 1.9 4.10 53.8 Oxide
including 102.0 106.5 4.5 2.9 1.44 4.8 Oxide
RSH11-223 42.0 48.0 6.0 3.9 0.63 2.3 Oxide
RSH11-224 13.5 19.5 6.0 6.0 0.26 1.3 Oxide
RSH11-225 12.0 21.0 9.0 9.0 0.36 4.4 Oxide
RSH11-226 No significant mineralized interval
RSH11-227 (4,5) 7.5 81.0 73.5 45.8 0.64 11.9 Oxide
including 55.5 63.0 7.5 4.7 3.30 66.3 Oxide
RSH11-228 (4) 4.5 13.5 9.0 9.0 0.38 2.2 Oxide
RSH11-229 16.5 40.5 24.0 15.4 0.44 2.2 Oxide
RSH11-236 103.5 112.5 9.0 6.3 2.83 10.5 Oxide
RSH11-236 (3) 123.0 147.0 24.0 16.7 1.05 8.1 Oxide
including 130.5 136.5 6.0 4.2 2.26 11.3 Oxide
RSH11-237 No significant mineralized interval
RSH11-238 10.5 25.5 15.0 10.1 0.33 4.3 Oxide
RSH11-238 73.5 166.5 93.0 62.6 0.47 4.3 Oxide
including 157.5 163.5 6.0 4.0 1.71 7.1 Oxide
RSH11-251 No significant mineralized interval
SH11-324 (3) 177.6 191.3 13.7 8.6 0.39 6.4 Sulphide
        (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 Silver assays capped at 300 g/t Silver
        (3) Mineralization found within 10 meters of end of hole
        (4) Mineralization found within 10 meters of beginning of hole
        (5) One or more Gold assays capped at 7 g/t Gold

Quality Control and Assurance

Sulliden's exploration program is being managed by its Vice-President of Exploration, Stéphane Amireault, P.Eng., a Qualified Person within the meaning of National Instrument 43-101.  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 plans to further drill the property in 2012 to continue the mineral expansion.  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        Stan Bharti 
President and CEO     Chairman

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.

SOURCE Sulliden Gold Corporation Ltd.

Image with caption: "Figure 1 - Plan View of Mineral Deposit with New Drill Hole Locations in Central Corridor (CNW Group/Sulliden Gold Corporation Ltd.)". Image available at: http://photos.newswire.ca/images/download/20120326_C7975_PHOTO_EN_11592.jpg

Image with caption: "Figure 2 - The Shahuindo property is located in a world-class mining district in northern Peru (CNW Group/Sulliden Gold Corporation Ltd.)". Image available at: http://photos.newswire.ca/images/download/20120326_C7975_PHOTO_EN_11591.jpg

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