SULLIDEN DISCOVERS NEW MINERALIZED ZONE AT SHAHUINDO AND CONTINUES POSITIVE DRILL RESULTS INCLUDING 1.60 G/T GOLD OVER 33 METRES
May 24, 2011
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Toronto, Ontario, Canada, May 26, 2011 Sulliden Gold Corporation Ltd. (“Sulliden”, or the “Company”) (TSX: SUE) (OTCQX: SDDDF) announces continued positive drill results from the ongoing 70,000 metre exploration program at its 100%-owned Shahuindo Gold and Silver Project in northern Peru. Significant gold and silver intercepts from 20 new drill hole results are highlighted below. Complete results are reported in Table 1.
Significant drill intercepts include:
Hole RSH11-160 in the West Zone
1.60 g/t Gold and 45.1 g/t Silver over 33.0 meters, including 3.29 g/t Gold and 77.1 g/t Silver over 13.5 metres.
Hole RSH11-155 in the Central Zone
0.78 g/t Gold and 20.1 g/t Silver over 45 meters.
New Mineralized Zone Discovery
Following a positive surface exploration program, two exploration drill holes have identified the possibility of an important new parallel gold/silver bearing mineral structure, named Sub-Corridor ‘B’. The new structure is located approximately 400 metres north of the Central Corridor in the West Zone area (see Figure 1). Results from the new holes, RSH11-168 and RSH11-169, intersected mineralization with grades above the economic cut-off grade used by AMEC in Sulliden’s Preliminary Assessment study. The mineralization outcrops on surface and extends to a current depth of approximately 50 metres. See table below for results from these new holes. No holes have ever been drilled in this area, and the Company will be following-up with field work and further drilling to test the size and strike length of this new parallel zone.
Peter Tagliamonte, President and CEO of Sulliden, commented, “We are very encouraged by our drilling success along the Central Corridor and the continued discovery of new mineralized zones based on our growing geological knowledge of the property. We feel this is a strong indication of the robustness of the Shahuindo Project and believe that further exploration efforts will continue to confirm its potential scale.”
The 70,000 metre exploration program outlined for the Shahuindo Project in 2011 is well underway. In addition to the continued drilling along the Central Corridor and new sub-corridors, an exploration program targeting deeper mineralization is in progress and the Company also expects to initiate drilling on the North Corridor in the coming weeks.
Summary of Results
The collar locations of the 20 new holes are indicated in the following figure.
Figure 1 – Plan View of Mineral Deposit with New Drill Hole Locations
The vertical section in Figure 2 below highlights new drill holes in section 800W in the West Zone, where the Company has graphically demonstrated the interpretation of newly identified mineralization (in purple), and the existing grade shells as defined in the Preliminary Assessment from December 2009 (in red).
Figure 2 – West Zone, Section 800W
*The new grade shells highlighted in the section above are geological interpretations that are preliminary in nature and should not be relied on.
The results from 20 new holes representing approximately 3,400 meters of drilling are presented in Table 1 below. An economic cut-off grade of 0.17 g/t in gold oxides was established by AMEC in the NI 43-101 Preliminary Assessment (see December 8, 2009 news release).
(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) One or more Gold assays capped at 7 g/t Gold.
(4) One or more Silver assays capped at 300 g/t Silver.
(5) Mineralization found within 10 meters of end of hole.
QUALITY CONTROL AND ASSURANCE
Stéphane Amireault, P.Eng., Vice President Exploration for Sulliden is the Qualified Person responsible for the management of the exploration program and disclosure of the drill results as defined by 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. This project neighbours million-ounce per year producing mines, including Barrick Gold’s Lagunas Norte Mine 30 kilometres to the south and the Yanacocha Mine operated by Newmont Mining Company 80 kilometres to the north. A positive Preliminary Assessment for the Shahuindo Project was completed in February 2010 and a Feasibility Study is expected for completion in Q3, 2011. While the Company progresses towards its goal of becoming a gold producer, a significant focus is being placed on exploration drilling to increase the mineral resource, which remains open in all directions and at depth. Based on the drilling success in 2009/2010, Sulliden is undertaking approximately 70,000 meters of drilling in 2011 to continue 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 Stan Bharti
President and CEO Chairman
For further information on Sulliden please visit the company website at www.sulliden.com or contact:
Caroline Arsenault Scott Moore
Investor Relations Manager Vice President Corporate Development
(416) 861-5805 (416) 861-5903
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.
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