Sulliden Gold Corporation

Sulliden Gold Corporation

January 27, 2010 07:30 ET

Sulliden Announces Drill Results-Resource Growth Expected at Shahuindo

TORONTO, ONTARIO--(Marketwire - Jan. 27, 2010) - Sulliden Gold Corporation ("Sulliden", the "Company") (TSX:SUE) is pleased to report initial assay results from the ongoing drill program being conducted on its Shahuindo property in Peru. This exploration campaign consists of 26 drill holes totalling approximately 4,500 meters located primarily in and adjacent to the "Gap Zone", a highly prospective 500 meter wide corridor connecting the "San Jose Zone" and "East Zone" (See figure 1 below). In addition, several holes have also tested the "Moyan Alto Zone" that extends further East. Due to the presence of overburden, little exploration had been conducted in this area prior to 2009. Sulliden management believes that the following drill results, in conjunction with those from the August/September 2009 program (25 of 26 drill holes returned mineralization; See October 27th 2009 press-release) demonstrate excellent potential for delineation of additional mineral resources.

Significant new intersections from the drill campaign are highlighted below. These results indicate significant potential to further expand the mineral resources considering the economic cut-off of grade of 0.17 g/t gold in oxides established by AMEC in the Preliminary Assessment.

  • SH09-106 returned 0.49g/t Au and 4.7g/t Ag over 103.15 meters in the San José Zone
  • SH09-107 returned 0.92g/t Au and 10.3 g/t Ag over 19.3 meters in the Gap Zone
  • RSH09-24 returned 1.10g/t Au and 8.2g/t Ag over 42 meters in the East Zone (Pampa de Arena)
  • RSH09-21 returned 0.59g/t Au and 4.5g/t Ag over 73.5 meters in the Moyan Alto Zone

The "Gap Zone" is an area located on strike with the "San Jose Zone", where the largest mineralized widths of the deposit have been exhibited. It also connects to the "East Zone" in an area where North-South trending breccias paralleling the "Pampa de Arena Subzone" have been mapped. The mineralization in the "Gap Zone" currently averages 200 to 300 meters in width and remains open in all directions.

Stephane Amireault, Vice President Exploration commented: "We are very pleased with the results from the current drilling campaign and we believe they demonstrate that continued exploration in and around the Gap Zone will present an excellent opportunity to expand the existing mineral resources."

This drilling campaign was conducted as part of a Category 1 permit, and represents the initial part of a comprehensive exploration program planned for 2010. Peruvian-based Viceversa Consulting S.A has been contracted by the Company to assist in acquiring a Category 2 permit, which will allow for an extensive, concession-wide drill program on the Shahuindo site. The Category 2 permit is expected to be obtained in May 2010.

Assays are still pending for 15 drill holes and will be released as they are received and compiled.

Figure 1 – Shahuindo Concession and Mineralized Zones is available at the following web link:

Figure 2 – December 2009/January 2010 Drill Collar Locations is available at the following web link:

Results from the first 11 holes are reported in the table below. Please refer to figure 2 for collar locations.

Drill hole # From (m) To
Interval (m) True Width
SH09-106 60.2 163.35 103.15 72.9 0.49 4.7
SH09-106 187.87 201.05 13.18 9.3 0.74 108.1
SH09-108(7) 0.0 15.4 15.4 10.9 1.09 18.0
SH09-108(6) 15.4 46.5 31.1 22.0 0.40 4.3
SH09-108 57.7 99.0 41.3 29.2 0.58 21.9
SH09-108 118.5 132.0 13.5 9.5 0.53 10.5
SH09-108 138.0 181.9 43.9 31.0 0.66 31.3
RSH09-27 6.0 24.0 18.0 11.6 0.29 0.6
RSH09-27 87.0 121.5 34.5 22.2 0.30 5.4
RSH09-27(3) 156.0 186.0 30.0 19.3 0.41 13.3
SH09-107(6) 25.7 45.0 19.3 13.6 0.92 10.3
SH09-107 52.5 88.5 36.0 25.5 0.34 3.0
SH09-107 97.5 121.5 24.0 17.0 0.31 1.1
SH09-107 147.0 159.0 12.0 8.5 0.50 1.8
RSH09-23 43.5 54.0 10.5 6.7 0.49 2.2
RSH09-23 76.5 87.0 10.5 6.7 1.01 7.7
RSH09-23 114.0 120.0 6.0 3.9 0.85 6.9
RSH09-23(3) 135.0 157.5 22.5 14.5 0.61 44.5
RSH09-24 7.5 18.0 10.5 6.7 0.70 12.5
RSH09-24(3) (4) 45.0 87.0 42.0 27.0 1.10 8.2
RSH09-25(3) (4) (5) 43.5 84.0 40.5 26.0 1.07 3.5
RSH09-19 49.5 63.0 13.5 8.7 0.54 2.1
RSH09-19 82.5 109.5 27.0 17.4 0.38 2.7
RSH09-20 1.5 24.0 22.5 14.5 0.41 0.8
RSH09-20 75.0 126.0 51.0 32.8 0.37 3.4
RSH09-21 4.5 15.0 10.5 6.7 0.40 1.0
RSH09-21 52.5 126.0 73.5 47.2 0.59 4.5
RSH09-21 150.0 160.5 10.5 6.7 1.46 14.8
RSH09-22 No mineralized zone
(1) Assuming vertical or near vertical zone, perpendicular or near perpendicular to the plane defined by the drill hole
(2) Hole collared in mineralization
(3) Hole bottomed in mineralization. 
(4) Technical constraints precluded the advancement of the drill hole
(5) Twin hole of RSH09-24
(6) Mineralization starts at the rock interface with the overburden
(7) Overburden

The collective length of the mineralized intersections in this table represents half of the total metres drilled so far in this campaign.


Sulliden is pleased to announce that Wellington West Capital Markets Inc., an independent full service investment dealer registered in Canada and the U.S., initiated coverage on the Company on January 7th, 2010. For further information and access to the report, please contact Wellington West Capital Markets Inc.


Results from the Preliminary Assessment (PA) conducted by AMEC on the Shahuindo Gold Project were released in December 2009 (See press-release from December 8, 2009) and the associated NI-43-101 Technical Report was posted on SEDAR on January 22, 2010. The PA addressed a number of trade-off studies normally associated with a pre-feasibility study and as a result, Sulliden intends to proceed directly with a bankable Feasibility Study. Requests for Proposals to conduct a Feasibility Study have been sent to major international engineering firms and the Company expects to award the contract by the end of February. Sulliden plans to initiate the mine permitting, geotechnical and baseline studies concurrently with the engineering studies to accelerate the construction schedule.


Sulliden is pleased to report its participation in several prestigious gold industry gatherings during the first and second quarter of 2010. This includes the Wellington West New York Gold Growth Forum on February 17 and 18, as well as the BMO Global Metals & Mining Conference from February 28 to March 3 in Hollywood, Florida. The Company will also be present at the Prospector & Developers Association of Canada (PDAC) Convention in Toronto, Canada, from March 7 to 10 and the European Gold Forum in Zurich, Switzerland from April 13 to 16.


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 laboratories are ISO 9000certified. All gold assays reported in the press release were analyzed by standard 50g fire assaying with an AA finish. All silver assays reported in the press release were analyzed by Aqua-Regia dissolution followed by ICP-AES measurement.

Stéphane Amireault, P.Eng., Vice President, Exploration for Sulliden Gold Corporation is the Qualified Person as defined by National Instrument 43-101 responsible for the management of the exploration program and disclosure of the drill results. Mr. Amireault has read and approved this news release.


Sulliden is a Canadian-based mining company focused on the development of its principal asset, the Shahuindo Gold Project, located in Peru. This area is one of the world's most prolific gold producing districts and is home to world-class gold mines including Barrick Gold's Lagunas Norte Mine, 30 km to the south, and the Yanacocha Mine operated by Newmont Mining Company, 80 km to the north; both million-ounce per year producing mines.

A positive Preliminary Economic Assessment prepared by AMEC for the Shahuindo Gold Project was completed in December 2009 and Sulliden intends to proceed with a bankable Feasibility study in 2010. While the Company progresses towards its goal of reaching production by mid 2012, a significant focus is being placed on exploration drilling to upgrade and expand the mineralized resource as well as reveal the upside potential of the Shahuindo deposit.

Sulliden is led by a strong management team with the proven ability to explore, develop, finance and operate mining projects and is positioned to generate superior value for its shareholders.

Shahuindo Gold Project location map is available at the following web link:

On behalf of Sulliden Gold Corporation

Peter Tagliamonte Stan Bharti 
President and CEO Chairman


For further information on Sulliden please visit the company website at

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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 effect of the results on the future financial or operating performance of the Company, the size and quality of the company's mineral resources, progress in development of mineral properties, future capital and operating expenses, capital and mine production costs, future metal prices and treatment and refining charges, the financial results of the company the future financial or operating performance of the Company, the prospective mineralization of the properties and planned exploration programs., the issue of permits, future production and sales volumes, capital and mine production costs, demand and market outlook for metals, planned exploration programs, anticipated production schedule and terms and the availability and likelihood of future acquisitions. 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; acquisition risks; and other risks of the mining industry. 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.

Contact Information

  • Sulliden Gold Corporation
    Scott Moore
    Vice President Corporate Development
    (416) 861-5903
    Sulliden Gold Corporation
    Caroline Arsenault
    Manager Marketing and Investor Relations
    (416) 861-5805