Sulliden Gold Corporation

Sulliden Gold Corporation

March 01, 2010 07:45 ET

Sulliden Shows Potential to Increase Shahuindo Mineral Resource; Intersects 2.01g/t Gold Over 75 Meters

TORONTO, ONTARIO--(Marketwire - March 1, 2010) - Sulliden Gold Corporation ("Sulliden", the "Company") (TSX:SUE)(OTCQX:SDDDF) is pleased to report new assay results from the current exploration program on its Shahuindo Gold Project in Peru. Results from the Gap Zone include hole RSH10-29 that assayed 0.94g/t Au and 97.5g/t Ag over 202.5m, including 2.01g/t Au and 258.1g/t Ag over 75m, and terminated in mineralization. This is the first hole drilled on section 550E of the Gap Zone, where mineralization currently remains open at depth and along the width of the section (see Figure 3).

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 under drilled sections of 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. Based on recent results, the Gap Zone is one of the principal focuses of exploration for the Company. The results from hole RSH10-29 recently drilled in this area have returned one of the highest grades and the largest intersections of mineralization at Shahuindo to date.

"We are extremely pleased with the success of the drilling programs conducted at Shahuindo since we reinitiated exploration last year. Encouraging results obtained from the Gap Zone suggest a continuity of good mineralization between the San Jose and East zones. Drilling results in the East Zone also indicate excellent potential for the addition of mineral resources, and we believe these zones can positively impact the economics of the current mine plan," commented Peter Tagliamonte, President and CEO. "In addition, many areas of the deposit remain open in all directions and we intend to continue exploration efforts to expand the mineral resource."

The current exploration campaign is part of a Category 1 permit and the Company has begun 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 upon issuance Sulliden intends to immediately start an extensive drill program designed to continue expanding the current mineral resource.

The remaining assay results from the current exploration program are expected in the coming weeks.

To view Figure 1 - Shahuindo Concession and Mineralized Zones, please visit the following link:

To view Figure 2 - Shahuindo Drill Collar Locations; Historical and Current Drill Program, please visit the following link:

To view Figure 3 - Gap Zone Section 550E, please visit the following link:


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

Although drill data on section 550E in the Gap Zone is limited, section interpretation has been made according to current geological knowledge and geophysical data of the Gap and San Jose zones. Mineralization is interpreted to be mostly vertical in nature, with sulphide mineralization at depth transitioning to oxide mineralization through a sharp oxidation contact.

Drilling conducted in the East Zone has intersected mineralization that the Company believes indicate excellent potential to add to the mineral resource. Of particular interest are the results from drill holes RSH09-23, RSH09-24, RSH09-25, RSH09-26, and RSH09-33 in Table 1 below. Following some mapping and surface sampling conducted in 2008, and subsequent interpretation of key geological features, these holes targeted the western edge of the East Zone. A string of North-South mineralized structures located in the Pampa de Arena Sub Zone were mapped and followed-up with drilling. These holes successfully demonstrated the continuity of mineralized structures at depth and have expanded the gold grade shell developed by AMEC during the latest resource model as seen in Figure 2. The East Zone results have identified new high priority drill-exploration targets along strike that Sulliden intends to drill later this year.

Stephane Amireault, VP Exploration commented, "We are very encouraged by the results from the western edge of the East Zone which we believe are a positive step towards adding to the mineral resource. In particular, holes RSH09-23, RSH0909-24, RSH09-25, RSH10-26 and RSH10-33, which based on geological interpretation, successfully confirmed grade continuity in this area."

Results from 23 drill holes totaling 3,800 meters have been compiled to date from the current 27 hole exploration program. New results for 11 drill holes totaling 2,200 meters are reported in the table below (Also included in the table are results from holes RSH09-23, RSH09-24 and RSH09-25 from the January 27, 2010 press-release, referred to in this section).

Table 1 - Summary of Drilling Results from Shahuindo

Interval Width Gold Silver
Drill hole # From (m) To (m) (m) (m)(1) (g/t) (g/t)
RSH10-29(3)(4)(6) 0 202.5 202.5 130.2 0.94 97.5
Including(3)(6) 127.5 202.5 75.0 48.2 2.01 258.1
RSH10-30 94.5 109.5 15.0 10.6 0.40 6.1
RSH10-30(3) 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
RSH10-31 72.0 76.5 4.5 3.2 0.38 0.6
RSH10-32(4) 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
SH09-109(5) 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
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
RSH09-23 135.0 157.5 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
RSH09-25 43.5 84.0 40.5 26.0 1.07 3.5
RSH09-26(2) 27.0 42.0 15.0 9.6 0.84 18.6
RSH09-26(2) 91.5 163.5 72.0 46.3 0.44 5.0
RSH09-26(2)(3) 178.5 190.5 12.0 7.7 0.53 7.6
RSH09-33(4) 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(3) 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
RSH09-34(4) 6.0 19.5 13.5 5.7 0.43 7.1
RSH09-34 43.5 61.5 18 7.6 0.39 2.8
RSH09-34 66.0 87 21 13.5 1.14 6.0
RSH10-28 0 19.5 19.5 12.5 0.36 2.2
RSH10-28 42.0 60.0 18.0 11.6 0.93 2.6
SH10-110 0.9 15.0 14.1 10.0 0.58 2.0

1) Assuming vertical or near-vertical zone, perpendicular or near-
perpendicular to the plane defined by the drill hole.
2) Hole re-drilled in RSH09-24 / RSH09-25 area to fully cross target.
3) Mineralization found within 10 meters of End-of-Hole.
4) Mineralization found within 10 meters of Beginning-of-Hole.
5) Beginning of hole in mineralization below the overburden.
6) Two values above 10g/t: 21.3g/t over 1.5 meters and 24.3g/t over 1.5


Sulliden has initiated geotechnical drilling in formations that will be the proposed open pit walls. 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.


Sulliden has received Feasibility Study proposals from major engineering firms for the Shahuindo Gold Project. The Company intends to make the final selection and initiate the Feasibility Study in March, and expects to have a completed study delivered by the end of 2010. In conjunction with the Feasibility study, Sulliden is advancing its Environmental Impact Assessment program and anticipates having all documentation ready for submission to the Ministry of Mines for mine permitting by the end of 2010.


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.


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:

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

If you would like to be added to Sulliden's news distribution list, please send your email address to

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
    Sulliden Gold Corporation
    Caroline Arsenault
    Manager Marketing and Investor Relations
    (416) 861-5805