Sulliden Gold Corporation
TSX : SUE
OTCQX : SDDDF

Sulliden Gold Corporation

March 08, 2010 07:30 ET

Sulliden Intersects 1.30 g/t Gold Over 76.25 Meters and 1.00 g/t Gold Over 107 Meters in the Gap Zone

TORONTO, ONTARIO--(Marketwire - March 8, 2010) - Sulliden Gold Corporation ("Sulliden", the "Company") (TSX:SUE)(OTCQX:SDDDF) is pleased to report assay results for an additional four holes, totalling 850 meters, which completes its current exploration program that targeted the eastern portion of the deposit on the Shahuindo Gold Project in Peru. The exploration program generated positive results from the South, San Jose, Gap, East and Moyan Alto zones, which demonstrate the continued growth potential of the Shahuindo deposit. Results include hole RSH10-112 that assayed 1.30 g/t Au and 2.8 g/t Ag over 76.25 meters and hole RSH10-113 that assayed 1.00 g/t Au and 23.4 g/t Ag over 107.1 meters.

The Gap Zone is located between the San Jose and East zones. This large area measures approximately 500 meters by 500 meters (see Figure 2) and represents one of the most immediate resource growth targets within the Shahuindo deposit. This zone has been underexplored due to the presence of boulder fields and other transported overburden that made sampling and exploration difficult. The results from holes RSH10-112, RSH10-113 (this press release) and hole RSH10-29 (February 27, 2010 press release) recently drilled in the Gap Zone have returned some of the highest gold grades and the largest intersections of mineralization at Shahuindo to date and indicate the possibility of joining the San Jose Zone to the East Zone in a single pit.

"We are pleased with the encouraging results that continue to come from the exploration drilling. The results from this campaign have shown that the size of the mineralization at Shahuindo is undefined and will continue to grow as we proceed with our drilling program" commented Peter Tagliamonte, President and CEO. "The results from holes drilled along principal sections in the Gap and East zones have the potential to add to the mineral resources inside and outside the pit shell defined by AMEC in 2009, which we believe presents us with opportunities to achieve our objective of continuing to improve the economics and to increase annual gold production targets for the project."

The latest results conclude the current 27 drill hole, 4,650 meter exploration campaign under the Category 1 permit. Sulliden is in the process of obtaining a Category 2 permit in preparation for a complete, concession-wide drill program at Shahuindo. The Category 2 permit is expected in May 2010 and the Company intends to immediately start an extensive drill program designed to continue expanding the current mineral resource.

Sections 350E, 450E, 550E and 650E, illustrated in Figures 3, 4, 5 and 6 below, show the potential grade shell expansion based on the exploration drilling results from the 2009 and 2010 drilling campaign. The Company intends to use the new data to update the resource model as part of the Feasibility Study later this year.

To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/Shahuindofig1.pdf

To view Figure 2, please visit the following link:
http://media3.marketwire.com/docs/Shahuindofig2.pdf

To view Figure 3, please visit the following link:
http://media3.marketwire.com/docs/gapzonefig3.pdf

To view Figure 4, please visit the following link:
http://media3.marketwire.com/docs/gapzonefig4.pdf

To view Figure 5, please visit the following link:
http://media3.marketwire.com/docs/gapzonefig5.pdf

To view Figure 6, please visit the following link:
http://media3.marketwire.com/docs/gapzonefig6.pdf

SUMMARY OF RESULTS

The current exploration campaign targeted priority areas in and around the eastern portion of the deposit.

Based on geophysical data, section interpretation and current geological knowledge of the Gap and San Jose zones, mineralization is interpreted to be mostly vertical in nature, with oxide mineralization overlying sulphide mineralization at depth with a short transition zone at the oxidation contact.

Drilling conducted in the Gap Zone has intersected mineralization that the Company believes has the potential to significantly add to the previously estimated mineral resource. These holes successfully demonstrated the continuity of mineralized structures, as highlighted in sections 350E (Figure 3), 450E (Figure 4), 550E (Figure 5) and 650E (Figure 6). Drill holes SH10-112, SH10-113, RSH09-27, RSH10-29, RSH10-32, and SH09-109 in these sections have expanded the gold grade shell developed by AMEC during the latest resource model. The results from the holes corresponding to these sections are displayed in Table 1 and Table 2 below.

Stephane Amireault, VP Exploration, commented "We are very encouraged by the higher grade results from the recent holes drilled in the central portion of the Gap Zone. Of particular interest are holes RSH10-112 and RSH10-113, which suggest the potential for this Zone to become the core of the ore body at Shahuindo. These are excellent results and we are very excited to further the exploration efforts on the property and reveal the upside potential of this asset."

Results from the four latest drill holes are presented in Table 1 below. Table 2 highlights additional significant results obtained from the completed exploration program.

Table 1 - Summary of the Latest Drilling Results from Shahuindo



----------------------------------------------------------------------------
True Width Gold Silver
Drill hole # From (m) To (m) Interval (m) (m)(1) (g/t) (g/t)
----------------------------------------------------------------------------
GAP ZONE
----------------------------------------------------------------------------
SH10-112 (2)(3) 0 13.5 13.5 8.7 0.39 1.3
----------------------------------------------------------------------------
SH10-112 (5) 13.5 89.75 76.25 49.0 1.30 2.8
----------------------------------------------------------------------------
SH10-112 (4) 199.5 246 46.5 29.9 0.28 3.3
----------------------------------------------------------------------------
SH10-113 (4)(5) 46.5 153.6 107.1 75.7 1.00 3.4
----------------------------------------------------------------------------
SH10-114 (2)(3) 0 33 33 23.3 0.41 2.7
----------------------------------------------------------------------------
SAN JOSE (SOUTH EAST SUB ZONE)
----------------------------------------------------------------------------
RSH10-35 63 105 42 27.0 0.35 6.2
----------------------------------------------------------------------------
RSH10-35 181.5 199.5 18 11.6 0.93 18.4
----------------------------------------------------------------------------

(1) Assuming vertical or near-vertical zone, perpendicular or
near-perpendicular to the plane defined by the drill hole
(2) Mineralized intersection located in overburden
(3) Mineralization found within 10 meters of Beginning-of-Hole
(4) Mineralization found within 10 meters of End-of-Hole
(5) Mineralization found at the contact with the overburden


Table 2 - Summary of Significant Intersections Obtained from the Completed Exploration Campaign and Holes Displayed in Figures 3, 4, 5 and 6.



----------------------------------------------------------------------------
Interval True Width Gold Silver
Drill hole # From (m) To (m) (m) (m) (g/t) (g/t)
----------------------------------------------------------------------------
SAN JOSE ZONE (SOUTH EAST SUB ZONE)
----------------------------------------------------------------------------
SH09-106 60.2 163.35 103.15 72.9 0.49 4.7
----------------------------------------------------------------------------
SH09-108 57.7 99 41.3 29.2 0.58 21.9
----------------------------------------------------------------------------
SH09-108 118.5 132 13.5 9.5 0.53 10.5
----------------------------------------------------------------------------
SH09-108 138 181.9 43.9 31.0 0.66 31.3
----------------------------------------------------------------------------
GAP ZONE
----------------------------------------------------------------------------
RSH09-13 9.0 60.0 51.0 29.3 0.59 2.8
----------------------------------------------------------------------------
RSH09-13 70.5 120.0 49.5 28.3 1.03 4.1
----------------------------------------------------------------------------
RSH09-14 25.5 39.0 13.5 7.7 0.37 4.1
----------------------------------------------------------------------------
RSH09-14 48.0 61.5 13.5 7.7 0.37 8.5
----------------------------------------------------------------------------
RSH09-14 118.5 166.5 48.0 27.5 0.59 12.5
----------------------------------------------------------------------------
RSH09-27 6 24 18 11.6 0.29 0.6
----------------------------------------------------------------------------
RSH09-27 87 121.5 34.5 22.2 0.30 5.4
----------------------------------------------------------------------------
RSH09-27 156 186 30 19.3 0.41 13.3
----------------------------------------------------------------------------
RSH10-29 0 202.5 202.5 130.2 0.94 97.5
----------------------------------------------------------------------------
Including 127.5 202.5 75.0 48.2 2.01 258.1
----------------------------------------------------------------------------
RSH10-30 148.5 198.0 49.5 35.0 0.74 24.0
----------------------------------------------------------------------------
Including 154.5 186.0 31.5 22.5 0.92 33.4
----------------------------------------------------------------------------
RSH10-32 0 7.5 7.5 4.8 0.39 1.1
----------------------------------------------------------------------------
RSH10-32 15.0 36.0 21.0 13.5 0.55 2.0
----------------------------------------------------------------------------
SH09-99 17.2 49.5 32.3 22.8 0.73 8.3
----------------------------------------------------------------------------
SH09-99 64.5 145.5 81 57.3 0.49 6.7
----------------------------------------------------------------------------
SH09-107 25.7 45 19.3 13.6 0.92 10.3
----------------------------------------------------------------------------
SH09-109 72.5 134.0 61.5 35.3 0.44 1.8
----------------------------------------------------------------------------
SH10-111 106.5 120.0 13.5 8.7 1.17 5.5
----------------------------------------------------------------------------
EAST ZONE (PAMPA DE ARENA SUBZONE)
----------------------------------------------------------------------------
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
----------------------------------------------------------------------------
RSH09-23 135.0 157.5 22.5 14.5 0.61 44.5
----------------------------------------------------------------------------
RSH09-24 7.5 18.0 10.5 6.7 0.70 12.5
----------------------------------------------------------------------------
RSH09-24 45.0 87.0 42.0 27.0 1.10 8.2
----------------------------------------------------------------------------
RSH09-26 27.0 42.0 15.0 9.6 0.84 18.6
----------------------------------------------------------------------------
RSH09-26 91.5 163.5 72.0 46.3 0.44 5.0
----------------------------------------------------------------------------
RSH09-26 178.5 190.5 12.0 7.7 0.53 7.6
----------------------------------------------------------------------------
RSH09-33 0 60.0 60.0 38.6 0.70 5.7
----------------------------------------------------------------------------
Including 0 42.0 42.0 27.0 0.83 6.4
----------------------------------------------------------------------------
RSH09-33 199.5 270.0 70.5 45.3 0.51 9.6
----------------------------------------------------------------------------
Including 228.0 240.0 12.0 7.7 0.90 2.9
----------------------------------------------------------------------------
EAST ZONE
----------------------------------------------------------------------------
RSH09-34 66.0 87 21 13.5 1.14 6.0
----------------------------------------------------------------------------
MOYAN ALTO ZONE
----------------------------------------------------------------------------
RSH09-21 52.5 126 73.5 47.2 0.59 4.5
----------------------------------------------------------------------------
RSH09-21 150 160.5 10.5 6.7 1.46 14.8
----------------------------------------------------------------------------
SOUTH ZONE
----------------------------------------------------------------------------
RSH09-28 42 58.5 16.5 10.6 0.93 2.6
----------------------------------------------------------------------------


GEOTECHNICAL DRILLING UPDATE

Sulliden is progressing with the five geotechnical drill holes, located in the proposed open pit walls (see Figure 2 for drill hole locations). Five holes are currently being drilled. These holes are intended to provide information on rock quality and strength to be used to further refine the design of the pits in the feasibility study and assist with the mineral resource calculation.

QUALITY CONTROL AND ASSURANCE

Stephane Amireault, P.Eng., Vice President Exploration for Sulliden Gold Corporation 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 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. All gold assays reported in the press release were obtained by standard 50g fire assaying with AA finish. All silver assays reported in the press release were obtained by Aqua-Regia dissolution followed by ICP-AES measurement.

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 expand the resource and reveal the upside potential of the Shahuindo deposit.

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

To view Figure 4: Shahuindo Gold Project location map, please visit the following link: http://media3.marketwire.com/docs/Shahuindofig4.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.

The reader is cautioned that the discussion in this news release with respect to the targeted definition of an up-dated resource is only conceptual in nature. There has been insufficient exploration to date define any up-dated estimates of resource quantities. There is no guarantee that an improved resource estimate will be delineated through additional exploration. This is a target forming part of the objectives set by the Company and there is no assurance that these objectives will materialize.

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