Salazar Resources Limited
TSX VENTURE : SRL
FRANKFURT : CCG

Salazar Resources Limited

March 29, 2011 06:00 ET

Salazar Intercepts 22.7 m @ 6.73 g/t Gold and 4.69% Copper at the El Domo Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2011) - Salazar Resources Ltd. (TSX VENTURE:SRL)(FRANKFURT:CCG) -

Mr. Fredy Salazar, President and CEO, is pleased to announce the latest assay results from recent drilling at the El Domo deposit in the Las Naves Central area of the Curipamba Volcanogenic Massive Sulphide (VMS) property in Ecuador.

Mr. Salazar says, "The El Domo drill program continues to produce excellent results. Drill hole 99 has yielded excellent results and is one of the highest gold grade intercepts achieved to date. We are pleased with the continuing results from this ongoing drill program".

Previous drilling by the company at El Domo has defined a deposit with a strike length of 850 m North-South and an East-West width of between 200 to 300 m.

Results from the most recent five drill holes are shown in the tables below. Four of these were infill holes on the El Domo deposit and the fifth hole tested the gold-silver zone first discovered in hole Curi-88. The location of these holes can be seen on Figure 1.

Highlights:

  • Curi-95 intersected 2.82 meters grading 1.19 g/t gold, 17.60 g/ t silver and 3.18%.
  • Curi-96 intersected 2.91 meters at 2.77 g/t gold and 45.74 g/t silver and 1.42% copper
  • Curi-99 intersected 22.70 meters 6.73 g/t gold, 45.80 g/t silver and 4.69% copper including 9.89 meters at 10.77 g/t gold, 84.10 g/t silver, 9.86% copper and 3.13% zinc

The following table provides a summary of the significant intersections of each drill hole:

Hole From
 (m)
To
(m)
Width* (m) Gold
(g/t)
Silver
(g/t)
Copper
(%)
Lead
(%)
Zinc
(%)
CURI-95 90.00 92.28 2.28 0.78 10.17 1.07 0.04 0.22
and 109.85 121.27 11.42 0.76 7.77 1.13 0.01 0.07
including 114.80 117.62 2.82 1.19 17.60 3.18 0.01 0.15
CURI-96 105.27 116.50 11.23 1.24 19.60 0.74 0.08 0.48
including 105.27 108.18 2.91 2.77 45.74 1.42 0.25 1.61
and 115.50 117.12 1.62 0.62 10.31 1.71 0.01 0.06
CURI-97 No significant mineralization encountered in this hole    
CURI-98 205.50 206.80 1.30 1.14 37.73 1.21 0.18 2.75
CURI-99 52.50 75.20 22.70 6.73 45.80 4.69 0.15 1.61
including 55.91 65.80 9.89 10.77 84.10 9.86 0.21 3.13
*widths reported are not true width

Details of each drill hole and location relative to other significant intersections are described as follows:

Drill Hole Section Azimuth Dip Elevation (m) Hole Depth (m)   Location of nearest significant intersection
DDH 95 5250 N 90˚ strike -75˚ 933.71 197.80   50m west of DDH 36
DDH 96 5350 N 90˚ strike -75˚ 939.54 179.95   50 m west of DDH 61 - 1.41 g/t Au; 12.97 g/t Ag; 3.61% Cu and 0.28% Zn over 9.03 meters
DDH 97 4600 N 270˚ strike -75˚ 938.78 170.95   100 m southwest of DDH 88 – 4.77 g/t Au and 181.76 g/t Ag over 3.81 meters
DDH 98 5200 N 0˚ strike -90˚ 959.53 251.80   80m east of DDH 62 – 5.50 g/t Au, 101.98 g/t Ag, 1.22% Cu and 6.73% Zn over 6.04 meters
DDH 99 5150 N 90˚ strike -75˚ 881.94 125.95   50m west of DDH 87 – 2.12 g/t Au; 24.65 g/t Ag; 4.97% Cu and 1.11% Zn over 27.61 meters

Technical Highlights

Drill results continue to confirm the Company's geologic model for the El Domo VMS deposit. The newer core logging has shown three significant additional features:

1. Much of the sulphides are replacement in origin. They replace both the glassy felsic rocks and overlying conglomerates and lapilli tuffs.

2. Post mineral faulting of the VMS horizon.

3. VMS continues beneath the El Domo andesite to the east of the drilled VMS body.

Holes 95, 96 and 99

Holes 95, 96 and 99 are infill holes that test 250 m of the El Domo deposit along a NE direction. Results confirm the presence of a single VMS horizon in holes 99 (810 m elevation) and hole 96 (835 m elevation). The two horizons in hole 95 (810 m and 845 m) are separated by a time equivalent basalt flow.

Hole 98

Previous drill holes 22, 42, 51, 72, 79 and 92 fixed the base of the andesite at 820 to 850 m elevation. Hole 98 intersected a faulted contact at 750 m elevation, suggesting the base is dropped along WNW faults. VMS continues to be present at the base, however, and demonstrates the deposit remains prospective to the east under the andesite cover.

Hole 97

Hole 97 is situated 90 m SSW of hole 88 (3.81m @ 4.77 g/t Au and 181.76 g/t Ag as reported in the February 23, 2011 news release). Hole 97 intersected a 6.4 m interval of rhyolitic tuff with bands of pyrite and minor sphalerite which correlate with hole 88. The absence of Au values and footwall gypsum suggests that hole 97 is distal to the centre of mineralization. Subsequent drilling will follow up NW of hole 88. 

The technical information contained in this release has been prepared under the supervision of Tom Healy P.Eng. who is designated as a Qualified Person as defined by NI-43-101 with the ability and authority to verify the authenticity and validity of the data.

A QC program was used whereby 5% of all samples sent to the laboratory were standard samples with known silver and gold values. Sample preparation was performed by BSI Inspectorate Quito, Ecuador, using standard industry practices (sample prep minus 32). Analytical work was carried out at the BSI Inspectorate Laboratory in Lima, Peru, using fire assay methods for gold (Au-25 procedure). Standard samples, blanks and duplicate check samples were randomly inserted to the sample batch to ensure quality control.

ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED

Fredy Salazar, President & CEO

Salazar Resources Limited

Salazar Resources Ltd. is a publicly-listed (TSX VENTURE:SRL)(FRANKFURT:CCG) mineral resource company engaged in the exploration and development of new highly prospective areas in Ecuador. Led by a senior Ecuadorian management team and most notably by its namesake Fredy Salazar, this team has been instrumental in other major discoveries throughout Ecuador. Being an Ecuadorian based company gives the company a strategic advantage enabling the company to complete exploration at a rapid pace. With an excellent property portfolio (3 projects- 42,900 hectares), good geopolitical positioning and a number of strategic corporate and financial partnerships, Salazar has positioned itself to be a strategic player in Ecuador and throughout South America.

To view Figure 1, please click on the following link: http://media3.marketwire.com/docs/s328m.pdf

Statements contained in this news release that are not historical facts are forward-looking statements, which are subject to a number of known and unknown risks, uncertainness and other factors that may cause the actual results to differ materially from those anticipated in the forward looking statements. Although we believe that the expectations in the forward-looking statements are reasonable, actual results may vary, and future results, levels of activity, performance or achievements cannot be guaranteed.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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