Salazar Resources Limited

Salazar Resources Limited

October 30, 2007 06:30 ET

Salazar to Resume Exploration Program at the Curipamba Project, Ecuador and Provides Exploration Update at the Sesmo Sur Anomaly

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 30, 2007) - Salazar Resources Ltd. (TSX VENTURE:SRL)(FRANKFURT:CCG) is pleased to announce that the Company's work program will resume on October 31st, 2007 with the return of work crews to the field to recommence the Company's exploration program. The drill rig was demobilized to Cuenca and will be re-mobilized with drilling to resume on or about November 15th, 2007.

This prompt resumption of work was a direct result of the meeting held this past weekend in the city of Guaranda with the Vice Minister of Government, the Governor of the Province of Bolivar and various politicians including the Regional Director for the Minister of Mines. Government officials held separate meetings with each group to inform them of the position of the President of the Republic and the Vice Minister regarding mining activities in Ecuador. At the meeting, the Vice Minister told each group that the policy of the President of the Republic and of the Minister of Governance is that all mining projects which comply with legal regulations and requirements will have total support of the Government. In the case of Salazar's Project, which has followed all applicable laws, the Government advised that they will give Salazar total support so that Salazar can execute on its ongoing exploration plans. All groups were instructed that they need to understand and abide by the position that the Government outlined. In future, the Government will not tolerate what transpired at Salazar's site and any such violations will be investigated and pursued with the authority and force of the law. There are no guarantees that other issues will not arise in the future, however the strong support of the various government authorities is clearly on the record. The Government stated that they will not allow this to happen again and assured Salazar that it will have full judicial authority on a move forward basis.

To quote President Correa's radio address to the country from this past weekend "Mining yes, but with proper controls, with appropriate consultation with the community, respecting the community, the environment and the State." President Correa indicated that if a company complies with these four points, mining will be welcome in Ecuador.

In response to these developments, Mr. Salazar, President, stated, "I am very happy with the outcome of the meeting and look forward to resuming our exploration activities; we are in the very early stages of our program and there remains a lot of work to be done. We have a significant exploration program planned to test the numerous exciting and high priority drill targets we have identified."


Salazar also wishes to announce the results from the recently initiated geophysical survey on the Sesmo Sur grid, at the Curipamba Project in Central West Ecuador. Work completed to date includes a ground magnetic total field survey at 25 meter stations covering an area approximately 3.5 kilometres west to east and 2 kilometres north to south and an induced polarization survey at 25 meter stations covering 7 line kilometres.

Initial results indicate:

- A significant magnetic low corresponding with an identified zone of hydrothermal breccias; the flanking magnetometer highs imply unaltered surrounding mafic rocks. (Figures 1,3).

- A significant induced polarization anomaly on lines 9300 to 9500 has amplitudes consistent with very high chargeability values that are characteristic of semi-massive to massive sulphide bodies. Line 9600 appears to indicate the limit of the anomalous unit to the north; however it is open to the south of line 9300. (Figures 1,4,5,6,7) The anomaly is clearly observed in the data over 300 meters in length, 150 meters in width and shallowly dipping to the west. It appears to broaden at a depth of 120 meters with observed continuation below 200 meters. The anomalous zone strikes approximately N 20 E.

To summarize, the magnetic low corresponds with the hydrothermal breccias identified at surface through channel sampling and from the first two drill hole results; the IP anomaly indicates a semi-massive to massive sulphide body (one of our VMS targets) that is open to the south, and is open and broadens at depth below 200 meters with a 300 meter x 150 meter aerial extent identified to date. The data suggests that there will be an increase in aerial extent. These results coincide with the theoretical geological model proposed from the outset of the recent drill program that the Company believes that Sesmo Sur is an area that has potential VMS targets within a regional epithermal vein system. The IP geophysical signatures suggest the model is still intact.

"These results are very encouraging not only for their strong geophysical response but also as supporting evidence for the geological model and the coincident geochemical anomalies," confirmed John Buckle, P.Geo., P.Geoph., who has been hired to assist in interpreting the geophysical survey.

Mr. Fredy Salazar, President, stated, "The IP results describe only one of nine main geochemical anomalies discovered during the rock chip channel sampling program at the Curipamba Project. The IP results covered only 7 linear kilometers of 100 linear kilometers programmed and planned. This encourages us to continue exploring the enormous potential of our Project."

The recent drill holes completed have not tested these strong IP geophysical anomalies. Instead, the initial small amount of data that the Company has gathered from the first two drill holes successfully intersected the hydrothermal breccias corresponding with the magnetic low and coincident geochemical anomalies. The first two drill holes were located to the south of the strongest geochemical anomalies encountered to date at Sesmo Sur's El Lobo geochemical anomaly (Figure 1, 2). The drill plan was to start in the south and work north towards the strongest geochemical channel samples (Figure 2); however, due to the recent disruption, no results can be provided for the remaining drill holes. These drill holes will be re-drilled in addition to drilling the significant IP anomalies recently identified.

Hole CURI-07-001, assay results include: 12 meters at an average grade of 2.25 g/t gold, 31 g/t silver and 0.60 % zinc; 3.9 meters at an average of 1.79 g/t gold, 8.4 g/t silver and 2.76 % zinc.

HOLE ID (m) (m) (m) (g/t) (g/t) (%) (%) (%)
001 6,09 18,00 11,91 2,25 31 0,2 0,27 0,6
included: 12,00 16,00 4,00 2,21 23 0,09 0,23 1,61
56,10 60,00 3,90 1,79 8,4 0,08 0,06 2,76
104,00 110,00 6,00 0,41 5,2 0,25 - -

Hole CURI-07-002, assay results include: 3.9 meters at an average of 2.03 g/t gold, 23.1 g/t silver and 0.66 % zinc; 7.5 meters at an average of 1.31 g/t gold; 20 g/t silver and 1.7 % zinc.

HOLE ID (m) (m) (m) (g/t) (g/t) (%) (%) (%)
002 1,80 5,68 3,88 2,03 23,1 0,09 0,21 0,66
15,24 22,86 7,48 1,31 20 0,11 0,11 1,7

Both drill holes encountered mineralization from near surface and confirmed the magnetic low. Drill hole number two was collared at the same location as drill hole one and drilled in the opposite direction to understand the potential eastern boundaries of the hydrothermal breccias encountered in drill hole one explaining the shorter mineralized interval.

In sum, the drill program is just underway, providing the Company with important information to understand and confirm our theoretical geological models. The phase 1 drill program has completed 2 of 58 drill holes and the geophysical survey will be expanded significantly from the results received to date.

Mr. Salazar, President, stated "These first assays clarify what we had first observed at surface and encourages us to continue with the drill program along this and other anomalies. Having positive results in the first holes, and considering that our anomalous area is extensive, we have many promising opportunities to explore."

Dr. Howard Lahti, P. Geo, the Qualified Person for the company as defined in Canadian National Instrument 43-101, has reviewed this news release for accuracy.

Samples preparation was performed by ALS Chemex Quito, Ecuador, using standard industry practices (Sample prep -32). Analytical work was carried out at the ALS Chemex Laboratory in Lima, Peru, using fire assay methods for gold (Au-25 procedure). Standard samples, blanks and duplicate check samples were randomly inserted to the sample batch to ensure quality control.

To view maps and photos related to the Curipamba Project please visit


Fredy Salazar, President & CEO

Salazar Resources Limited

Salazar Resources Ltd. is a publicly-listed (TSX VENTURE:SRL) mineral resource company engaged in the exploration and development of new highly prospective areas of Ecuador. Led by a senior Ecuadorian management team and most notably by its namesake Fredy Salazar, this team has been instrumental in other major discoveries throughout Ecuador, including Aurelian's Fruta del Norte discovery, IAMGOLD's Quimsacocha Deposit, Mozo Deposit, Ex Newmont's Cangrejos Project and International Minerals Rio Blanco and Gaby Deposit. Being an Ecuadorian based company gives us a strategic advantage enabling us to complete exploration at a rapid pace, with over sixty personnel on the ground, including twelve geologists. With an excellent property portfolio (4 projects - 131,300 hectares), good geopolitical positioning and a number of strategic corporate and financial partnerships, Salazar has positioned itself to be a strategic player in Ecuador.

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