July 08, 2009 10:07 ET

Sulliden Re-Initiates Exploration Drilling at Shahuindo

TORONTO, ONTARIO--(Marketwire - July 8, 2009) - Sulliden Exploration Inc. ("Sulliden") (TSX:SUE) is pleased to announce it has re-initiated exploration drilling at its Shahuindo Gold Project in Peru. This is the first significant exploration program since 2004 and follows the successful resolution of all ownership litigation on the project.

Sulliden will begin drilling on the Shahuindo property in August with an initial 3,700 meter program, consisting of approximately 2,850 meters of reverse-circulation drilling and 850 meters of diamond drilling. A program of ground geophysics (magnetometry) is currently being conducted on areas that were previously inaccessible during litigation and a trenching program is currently also underway around the San Jose and East Zone, North-East extension. The objective of the drilling exploration campaign will be to grow the mineral resources of the Shahuindo Gold Project, and to provide samples for metallurgical testing.

To view Figure 1, Shahuindo Project map showing mineralized zones and exploration targets, please visit the following link:

Peter Tagliamonte, President and CEO commented. "We are very pleased to be re-starting exploration on our Shahuindo Project. This represents a major milestone for Sulliden as the exploration activities on the property have been at a standstill for the last 5 years. Our focus will be to confirm the potential of significantly expanding the current Shahuindo mineral resource, as well as completing the Preliminary Economic Assessment in September. We have a busy program ahead of us and are excited to be underway."

The target zone includes a highly prospective area covered by transported overburden (grey unit on the map) which historically received little drill exploration due the presence of boulder fields and other transported overburden making soil sampling exploration difficult. In a 2004 drill campaign, all holes drilled in this area returned mineralization (see drilling details below), however Sulliden could not have full ground access due to litigation.

SH04-81: returned 93.9m at 0.58 g/t Au and 2.6 g/t Ag

SH04-82: returned 41m at 0.52 g/t Au and 3.0 g/t Ag

SH04-83: returned 120m at 0.57 g/t Au and 8.4 g/t Ag

The Shahuindo Gold project contains a large-scale gold/silver system extending to date over an area of 8 kilometers by 4 kilometers and vertically to a depth of at least 400 meters. The mineralization appears to be continuous over 6 kilometers of strike length on the Main Mineralized Corridor (MMC) however the resource is being calculated on only approximately 4 kilometers of strike.

Sulliden is currently preparing its application for an expanded exploration permit to follow the initial 3,700 meter August program. Sulliden anticipates an expanded fall exploration campaign to further test the extension of the mineralized zone on strike and to support a full Shahuindo feasibility study and to continue to expand the mineral resources.


Stephane Amireault, P.Eng., Vice President, Exploration for Sulliden Exploration Inc., 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.

About Sulliden

Sulliden is a Canadian based mining company focused on the development and exploration of the Shahuindo Gold Project located in northern Peru, one of the world's most prolific gold and silver producing districts. World-class gold mines in the region include Barrick Gold's Lagunas Norte Mine, 30 km to the south, (1.2 million ounces of gold produced in 2008), and the Yanacocha Mine operated by Newmont Mining Company, 70 km to the north (1.8 million ounces of gold produced in 2008).

The Shahuindo Gold Project has a NI 43-101 compliant Mineral Resource Estimation completed by Met-Chem Canada Inc. in 2005 that estimates 38 million tonnes grading 0.95 grams per tonne of gold and 23 grams per tonne of silver of indicated resource (1.2 million ounces gold and 28 million ounce silver) and 17.2 million tonnes grading 0.62 grams per tonne of gold and 12.83 grams per tonne silver in the inferred category (342,000 ounces gold and 7.1 million ounces silver) (See Sulliden Press Release of April 29, 2005 for details regarding the resource estimate).

In March 2009, the five-year legal dispute that disrupted the Shahuindo Gold Project was resolved. With the current resolution, Sulliden now holds 100 percent registered and undisputed ownership of the Shahuindo property and has secured exploration options on sixteen adjoining mining concessions.

In April 2009, the Board of Directors appointed a new Management team with the focus and ability to develop, finance and operate mining projects. With a strong strategic plan to advance the development of its Shahuindo Gold Project and potential for mineral resource expansion, Sulliden is positioned to generate superior value for its shareholders.

The Mineral Resource Estimation was completed by Met-Chem Canada Inc. in 2005 and is filed on

To view Figure 2, Shahuindo Project location map, please visit the following link:

On behalf of Sulliden Exploration Inc.

Peter Tagliamonte, President and CEO

Stan Bharti, Chairman

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 proposed use of the proceeds of the financing, the receipt of all necessary approvals, the outcome of legal proceedings, the issue of permits, the size and quality of the company's mineral resources, progress in development of mineral properties, future production and sales volumes, capital and mine production costs, demand and market outlook for metals, 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, 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.

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