Sulliden issues updated NI-43-101 mineral resource at Shahuindo

TORONTO, Sept. 5, 2012 /PRNewswire/ - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX: SUE) (OTCQX: SDDDF) (BVL: SUE) announces the completion of an updated gold and silver Mineral Resource estimate completed by Mine Development Associates ("MDA") for its 100% owned Shahuindo Project in Peru (See Table 1).

Highlights from the new Mineral Resource:

  • Measured and Indicated oxide gold mineral resources increase to 2,438,000 ounces
  • Inferred gold mineral resources increase to 1,628,000 ounces
  • Measured and Indicated silver mineral resources increase to 33,370,000 ounces
  • Inferred silver mineral resources increase to 46,560,000 ounces

"We are pleased to have added 24% more material in the Measured and Indicated category since the last mineral resource estimation." said Stéphane Amireault, VP of Exploration for Sulliden. "The drilling we conducted in the Central Corridor also increased our knowledge of the geological nature of the area hosting the Mineral Resource, which will assist us in our future exploration efforts. In the last year, drilling activities at Shahuindo have mostly focused in the Central Corridor in preparation for the mine plan; however, we have located several other exploration targets, including the recently drilled North Corridor, which represent excellent short and medium term mineral growth opportunities for the Project."

The new Mineral Resource estimate will form the basis of the Feasibility Study, which is currently in the final stages of detailed engineering.

The Mineral Resources was calculated based on a block model that includes assay data from drill holes through to the end of December 2011. Assay data from a total of 750 drill holes (for 132,000 metres drilled) were included in the updated Mineral Resource estimate. A summary of the results is provided in Table 1. The NI 43-101 Technical Report will be filed on SEDAR within 45 days.

Table 1 - Mineral Resource Summary

  Gold
contained
(ounces)
Gold
grade
(g/t)
Silver
contained
(ounces)
Silver
grade
(g/t)
Tonnes (t) Gold
grade
Eq.g/t
 
Total Measured & Indicated Mineral Resources 2,438,000 0.52 33,370,000 7.1 147,310,000 0.54
             
Measured Mineral Resources
Oxide (Reported at 0.2 g/t AuEq cut-off) 766,000 0.59 10,530,000 8.1 40,500,000 0.62
Mixed*(Reported at 0.35 g/t AuEq cut-off) 19,000 0.75 850,000 33.7 780,000 0.964
 
Indicated Mineral Resources  
Oxide (Reported at 0.2 g/t AuEq cut-off) 1,624,000 0.48 21,080,000 6.3 104,840,000 0.51
Mixed*(Reported at 0.35 g/t AuEq cut-off) 29,000 0.77 910,000 23.8 1,190,000 0.92
             
Total Inferred Mineral Resources 1,628,000 0.71 46,560,000 20.4 71,000,000 1.20
 
Inferred Mineral Resources            
Oxide (Reported at 0.2 g/t AuEq cut-off) 124,000 0.40 1,330,000 4.3 9,570,000 0.42
Mixed* (Reported at 0.35 g/t AuEq cut-off) - - 0.68 10,000 12.2 20,000 0.76
Sulphide (Reported at 0.5 g/t AuEq cut-off) 1,504,000 0.76 45,220,000 22.9 61,410,000 1.20

* The Mixed material is classified as a transition zone that contains both oxide and sulphide material.  The cut-off grade was increased for the Mixed material to reflect the lower metallurgical recoveries that have been observed in the metallurgical test results of the transitional material. Mixed ore will be processed as oxides.

It should be noted that mineral resources are not mineral reserves and do not have demonstrated economic viability. Please note that rounding of the numbers in the Mineral Resource table above may cause apparent inconsistencies.

Mineral Resource Calculation

The Mineral Resource estimate was prepared by MDA in accordance with National Instrument 43-101 using the following parameters.

  • The stated Mineral Resource is fully diluted to 8m by 8m by 4m blocks and tabulated on gold-equivalent ("AuEq") grade cutoffs that are reasonable for deposits of this nature and for the expected mining conditions and methods.
  • The oxidized and mixed material cutoffs (0.2g/t AuEq and 0.35 g/t AuEq) were chosen to capture mineralization that is potentially available to open-pit extraction and heap-leach processing. The higher cutoff applied to sulphide material (0.5g/t AuEq) reflects probable lower heap-leach recoveries and/or more costly sulphide processing.
  • The AuEq grade is calculated using the individual gold and silver grades of each block, along with a gold price of $1,300 per ounce and a silver price of $25 per ounce.
  • For the oxide and mixed resource estimates, a 5:1 difference in gold versus silver recovery for oxides (3:1 for mixed) was used in the proposed heap leach processing scenario.
  • The estimate is constrained by a 3-dimensional geologic model which includes the overburden-bedrock contact, structurally-controlled intrusive-sediment boundaries, redox zones (oxide, sulphide, and an oxide/sulphide transition zone), silicification/siliceous areas, and gold and silver low- medium- and high-grade mineral domains.
  • Length-weighted composites honouring all mineral domain contacts, and with a maximum length of 4 metres, were used in the estimate.
  • The block model is oriented so the long dimensions are vertical and at a 305 degree azimuth.
  • Grade estimation is by Inverse Distance Cubed (ID3) with Ordinary Kriging (OK) and Nearest Neighbour (NN) estimates run as checks.
  • Three search passes were used and the estimation within each mineral domain used only those composites coded to that respective domain. Classification is based on the confidence in the underlying data along with the number of, and average distance to, the nearest samples.
  • The Measured classification sample and distance criteria is a minimum of two samples lying a maximum average distance of 20 metres from the block to be estimated.
  • The Indicated classification sample and distance criteria is a minimum of two samples lying a maximum average distance of 50 metres from the block to be estimated.
  • All sulphide mineralization is considered Inferred due to the limited metallurgical characterization of this material type.

Qualified Persons

The Mineral Resource calculations were completed by Mine Development Associates of Reno, Nevada under the direction of Paul Tietz C.P.G., an independent Qualified Person ("Q.P.") pursuant to NI 43-101.  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. Messrs. Tietz and Amireault have reviewed and approved the scientific and technical aspects of this news release.

About Sulliden

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.:
   
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.



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