Sinchao Metals Corp.
TSX VENTURE : SMZ

Sinchao Metals Corp.

October 18, 2007 08:30 ET

Sinchao Metals Announces Discovery of 194 Metres Grading 0.43% Copper and 0.69 g/t Gold on the Sinchao Property, Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2007) - Sinchao Metals Corp. (TSX VENTURE:SMZ) is pleased to announce the results from Drill Hole SDH-11, drilled on the Breccia Zone at the Sinchao Property. Assays have been received for the interval 0.0m to 277.1m. Drill Hole SDH-11 intersected limestone, skarn, dacitic volcanics and breccia with clasts of limestone and quartzite.

Significant intersections are as follows:



From To Interval Copper Gold Silver
m m m % g/t g/t

77.3 271.4 194.1 0.43 0.69 17.1

inc.

77.3 133.3 56.0 1.10 1.08 36.0

161.9 223.0 61.1 0.28 0.84 16.6

251.8 271.4 19.6 0.34 0.55 12.9


These are drill intersections and true widths have not yet been determined.

Drill Hole SDH-11 is an uppercut of Diamond Drill Hole SDH-10, drilled in 1998 and which intersected 376m grading 0.43% Copper, 0.56 g/t Gold, and 16.2 g/t Silver. SDH-11 was located approximately 10m from the collar of SDH-10, and drilled at an azimuth of 225 degrees and an inclination of -45 degrees. Drill Hole SDH-11 has been completed at a total depth of 400m, and logging and sampling of the interval 277.1 to 400m is in progress.

Drill Hole SDH-11 has confirmed the subvertical nature of the Breccia Zone, which was intersected in three holes during the 1998 drilling, over an area of approximately 400m by 600m and which remains open. Step out drilling 150m to both the north and south of this section is underway. The Breccia Zone remains open in all directions and additional drilling will be required to define the mineralization.

Andrew Gourlay, P. Geol., President is the Qualified Person for the technical disclosure in this news release. All samples were prepared and analyzed by the CIMM Peru S.A. laboratory in Lima, Peru, an ISO-accredited laboratory. Standard reference materials, blanks and field duplicate samples were inserted prior to the shipment from site to monitor the quality control of analytical data.

Sinchao Metals Corp. owns 100% interest in the Sinchao Property, which is located in Cajamarca Province, Northern Peru, and 30 kilometres from Yanacocha, the largest gold mine in South America.

On behalf of Sinchao Metals Corp.

Andrew W. Gourlay, P. Geol., President

About Sinchao Metals Corp.:

Sinchao Metals Corp. (TSX VENTURE:SMZ) is focused on the exploration and development of the Sinchao property, located in Cajamarca province in Northern Peru, 30 kilometres from Yanacocha, the largest gold mine in South America. The company is dedicated to creating value for its shareholders by pursuing growth, expansion and enhancement of the Sinchao property.

This news release may contain forward-looking information within the meaning of the Securities Act (Ontario) ("forward-looking statements"). Such forward-looking statements may include the Company's plans for its mineral projects, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of gold and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contact Information

  • Sinchao Metals Corp.
    Andrew W. Gourlay, P. Geol.
    President
    (604) 681-6186 or Toll Free: 1-888-356-4784
    (604) 681-3652 (FAX)
    Website: www.sinchaometals.com