Interim 43-101 Mineral Resource Estimate at Shahuindo
TORONTO, ON - Sulliden Gold Corporation Ltd. reported the completion of a new gold and silver mineral resource estimate for its 100%-owned Shahuindo Project in Peru. The updated estimate delivered a 121% increase of Indicated gold ounces in the oxides and a 397% increase in Inferred gold ounces from the sulphides relative to the 2009 year-end estimate. Sulliden continues to actively drill the Shahuindo property and new results will continue to be released throughout 2011.
Peter Tagliamonte, President and CEO said, "The updated mineral resource estimate establishes a new and increasingly significant foundation for our Shahuindo Project, which we believe will continue to expand with the 2011 drilling program and future phases of exploration. Our geological knowledge of the deposit continues to improve and has led to both new discoveries within the known mineralized zones and has enabled us to identify potential expansion targets in close proximity to the known mineralized zones. In conjunction with the continued growth in mineral resources, the mining project is developing well with projected low stripping ratios and excellent recoveries."
The new mineral resource estimate was prepared by Mine Developments Associates ("MDA") in Reno, Nevada in accordance with National Instrument 43-101 ("NI 43-101") and provides an update to the previous estimate released on December 8th, 2009. The new mineral resource estimate is based on new drill data from 49,150 metres in 248 holes, drilled from August 2010 to March 2011, for a total of 93,583 metres from 568 holes. Gold recoveries of 89% and silver recoveries of 15% were obtained from column tests. The material demonstrated rapid leach characteristics, with 85% of gold recovered in first 20 days. The positive metallurgical results will be used to complete the Feasibility Study. Exploration activities on the Shahuindo property continue to yield positive results, and the mineral growth strategy going forward remains very strong. In the last two years, Sulliden has nearly doubled the number of metres drilled in the Central Corridor; steadily increasing the estimated size and contained ounces of the mineral deposit, while significantly improving the geological understanding of the mineral structures in this area. Sulliden plans to continue on this path of growth in 2011 and beyond, as it prepares to drill prospective new target areas on the property. The increase in mineral resources at Shahuindo to date has been achieved through exploration drilling conducted along the 3.8 kilometre strike length of the Central Corridor. With a growing geological understanding of the property, the geology team has continued to define several new mineral resource growth areas within this corridor, including the newly identified sub corridors 'A' and 'B' where surface sampling is currently being conducted in preparation for further drill testing. Other near-term exploration targets neighbouring the Central Corridor are the 1,600 metre North-West anomaly extension and the 800 metre South-East anomaly extension identified in 2010. Drilling is expected to begin in these areas later this year, and exploration success could increase the strike length of the Central Corridor by 60%. Exploration activity will continue in this corridor for at least the next two years with the expectation of continued increases in estimated mineralization. The anomalies observed in the geophysics and geochemistry completed in these corridors to date share many of the characteristics found in the Central Corridor from the same tests. The anomaly in the North Corridor currently extends for at least two kilometres, and the geology team has recently concluded the necessary mapping and prospecting in preparation for drilling in early July. The Company believed this could be an important source of mineral resource growth for the Shahuindo project. The sulphide potential of Shahuindo is beginning to develop. Since 2009, Sulliden has been drilling beyond the historical 110 metre depth average and has observed a significant increase in sulphide Inferred ounces compared to the previous mineral resource estimate. A dedicated deep-hole drill rig was mobilized in March and the depth of sulphides are currently being tested along the length of the Central Corridor. Two holes of a planned 15-20 hole program have been completed to date. Based on the new mineral resource foundation, our improved understanding of the geological model, and pending positive results from the deeper mineralization, it is believed that the sulphides could become an important and sizeable aspect of the Shahuindo Project. The company's address is 250 Ren Levesque Blvd., West Montral, QCH3B 5E9.