Sulliden Gold Corporation
TSX : SUE
OTCQX : SDDDF

Sulliden Gold Corporation

February 16, 2010 07:30 ET

Sulliden Announces Improved Economics for Shahuindo; IRR Increases by 36% and NPV Increases by 22%

TORONTO, ONTARIO--(Marketwire - Feb. 16, 2010) - Sulliden Gold Corporation ("Sulliden") (TSX:SUE)(OTCQX:SDDDF) reports that a calculation error has been discovered in the AMEC financial model that has a positive effect on the economic numbers released in the December 8, 2009 news release in conjunction with the NI 43-101 compliant Preliminary Assessment on the Shahuindo Gold Project. The correction positively affects the economics of the project, increasing the IRR at the base case $775 gold to 30.8% from 25.3% and increasing the NVP to $136,753,000 from $108,064,000. Sulliden expects the NI 43-101 Technical Report, issued January 21, 2010 on SEDAR to be updated with the correct financial results on February 17, 2010.

Sulliden advises that the only error is in the financial model, and all other elements of the Technical Report are correct. Revised economic numbers are listed below.

Table 1 Revised: Shahuindo Gold Project NPV & IRR for Various gold prices

Price          Gold Price        IRR    Undiscounted      Discounted Cash
Scenario  (US$ per ounce)        (%) Cash Flow              Flow at 8%
     (US$) (ii) (US$) (ii)  
Base Case 775   30.8 136,753,000  73,269,000 
  875   43.3 203,091,000  119,102,000 
  975   55.0 269,429,000  164,935,000 
Spot(i)  1140   73.6 378,886,000  240,561,000 
 Estimated cash operating cost $403 net of silver credit
 (i)  Source www.kitco.com on December 8, 2009
 (ii)  Results are on a pre-tax basis

Table 1 (as reported on December 8, 2009): Shahuindo Gold Project NPV & IRR for Various gold prices

Price          Gold Price IRR Undiscounted Discounted Cash
Scenario  (US$ per ounce) (%) Cash Flow Flow at 8%
    (US$) (ii) (US$) (ii)  
Base Case  775   25.3 108,064,000  53,787,000 
  875  38.2  174,402,000  99,621,000 
  975  50.3  240,739,000  145,454,000 
Spot(i)  1140  69.0  350,197,000  221,079,000 
 Estimated Cash cost $403 per ounce.
 (i)  Source www.kitco.com December 8, 2009
 (ii)  Results are on a pre-tax basis

The preliminary assessment includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.

QUALIFIED PERSON

The Preliminary Economic Assessment report was prepared by AMEC Americas Limited with the resource section under the supervision of Mr. Christopher Wright, P. Geo. (APGO, 901), an independent Qualified Person under standards set forth by National Instrument 43-101; the mining portion by Mr. Jay Melynk, P. Eng.; and the processing section by Dr. Lynton Gormely, P. Eng. Mr. Joe Milbourne, Vice President Technical Services for Sulliden is the Company's designated Qualified Person for the purposes of the study and has reviewed and approved the contents of this press release. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

ABOUT SULLIDEN

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.

To view the Shahuindo Gold Project location map please visit the following link: http://media3.marketwire.com/docs/sue0216_map.pdf

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 www.sulliden.com.

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 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
    or
    Sulliden Gold Corporation
    Caroline Arsenault
    Manager Marketing and Investor Relations
    (416) 861-5805
    www.sulliden.com