Salazar Resources Limited
TSX VENTURE : SRL
FRANKFURT : CCG

Salazar Resources Limited

March 23, 2017 08:30 ET

Salazar intersects 14.43 metres (13.07m true) averaging 2.65 g/t gold, 10.58 g/t silver, 1.32% copper, 6.63% zinc at its Curipamba Project

Hole extends mineralization of El Domo deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 23, 2017) - Salazar Resources Limited (TSX VENTURE:SRL) (FRANKFURT:CCG) ("Salazar" or the "Company") is pleased to report results from the first twelve holes (3,363 meters) of the Phase V diamond drill program in progress on the Company's 100-per-cent-owned (21,500 ha) Curipamba volcanogenic massive sulphide (VMS) project in Ecuador. These holes represent new exploratory drilling and were not included in the latest El Domo resource estimate which was released on January 16th, 2015. The twelve holes were drilled as part of the planned 40-hole (10,000 meters) drill program that is designed to further expand the El Domo volcanogenic massive sulphide ("VMS") deposit and explore its margins, as well as to test geophysical anomalies and surface showings (Figure 1). It is anticipated that the drill program will be complete by the third quarter of this year.

HIGHLIGHTS:

Hole CURI-218:

  • 14.43 metres (13.07m true) averaging 2.65 g/t gold, 10.58 g/t silver, 1.32% copper, 6.63% zinc, including
    • 3.58 metres averaging 9.68 g/t gold, 11.52 g/t silver, 0.46% copper, 2.64% zinc, and
    • 4.47 metres averaging 0.29 g/t gold, 15.05 g/t silver, 3.16% copper, 19.25% zinc

Hole CURI-213:

  • 4.14 metres (true width) averaging 1.009 g/t gold, 16.78 g/t silver, 0.67% copper, 0.95% lead and 4.77% zinc
  • 29.37 metres (true width) averaging 0.58 g/t gold, 77.93 g/t silver, 0.17% copper, 0.17% lead, 0.89% zinc, including
    • 10.55 meters averaging 0.385 g/t gold, 8.02 g/t silver, 0.44% copper, 0.25% lead and 1.84% zinc, and
    • 13.75 meters averaging 0.75 g/t gold, 149.7 g/t silver, 0.02% copper, 0.15% lead and 0.32% zinc

Hole CURI-218, collared approximately 240 metres east of the El Domo deposit, was drilled westerly on section with hole CURI-176 (5.7 metres averaging 0.671 g/t gold, 3.3 g/t silver, 0.61% copper, 0.01% zinc and 0.96% lead). CURI-218 intersected 14.43 metres (13.07 metres true width) of massive and semi-massive pyrite-chalcopyrite-sphalerite grading 2.65 g/t gold, 10.58 g/t silver, 1.32% copper, 6.63% zinc beneath an andesite sill that occurs in this area (Table 1). The intersection in CURI-218 is located approximately 100 metres east of the intersection in CURI-176. It clearly demonstrates the extension of the El Domo mineralization to the east along with a significant increase in the thickness and grade of the mineralization. CURI-176 had previously marked the eastern limit of drilled mineralization in the El Domo deposit. Vertical hole CURI-155, drilled approximately 182 metres southeast of the collar of CURI-218, cut three mineralized zones with strong gold and silver values and anomalous zinc and copper values (see News Release of January 26, 2012) demonstrating the persistence of mineralization to the east. Further drilling is required to test this area.

Fredy Salazar, President and CEO, commented: "We are excited with the results from hole CURI-218 located to the east of the El Domo resource. The mineralization encountered is thicker and of better grade to the last hole drilled in the El Domo deposit on this section. The intersection indicates significant potential for additional discoveries in this prospective area approximately 800 metres in length, in a north-south direction, and between 350 to 500 metres eastward of the deposit. Historic hole CURI-155 also indicates discovery potential in this area. We are currently drill testing this area with two drills. Also, this new finding paves the way and gets us closer to bringing this great project to a higher level."

Holes CURI-211, 213, 216 and 217 were drilled west of the El Domo deposit to test an area with massive sulphide float and exposures of hydrothermal breccia. CURI-213 and 216 were collared approximately 350 metres west of the deposit and approximately 100 metres west of historic holes CURI-30 and 32. CURI-213, drilled easterly on section with CURI-30, intersected two zones of mineralization (Table 1) in a section of hydrothermal breccias and gypsum stockworks in a dacitic unit similar to the one found below the El Domo VMS deposit:

  • 4.14 meters (true width) averaging 1.01 g/t gold, 16.78 g/t silver, 0.67% copper, 0.95% lead and 4.77% zinc
  • 29.37 metres (true width) averaging 0.5 g/t gold, 77.93 g/t silver, 0.17% copper, 0.17% copper, 0.89% zinc

The mineralization in CURI-213 may represent the down dip extension of the mineralization intersected in CURI-30 (From 19.75 meters to 29.50 meters: a total of 9.75 meters averaging 0.5 g/t gold, 32.3 g/t silver, 0.1% copper, 0.1% lead, 0.7% zinc). CURI-211, 216 and 217 did not intersect any mineralization.

Holes CURI-212, 214, 215, were drilled up to 500 metres south and southwest of the El Domo deposit. The holes targeted geophysical anomalies with low resistivity and moderate chargeability. CURI 212 and 214 were drilled in the area of historic holes CURI-15, 16, 17 and 18 which intersected significant gold and silver mineralization in a breccia zone/diatreme with clasts of polysulphides and barite in an argillic matrix (see News Release of March 12, 2008). CURI-215 was drilled on section with, and 400 metres west of CURI-212 which intersected 1.63 g/t gold over 2.05 metres (Table 1). The drill holes intersected weak to moderately anomalous mineralization in a dacitic unit that may represent the geophysical anomalies.

Holes CURI-207, 208, 209 and 210 were drilled up to 1.2 km southeast of the El Domo deposit to test targets identified by geological mapping which showed a lithological sequence similar to the one found in the El Domo deposit, as well as the presence of moderate geochemical mineralization and alteration. The drill holes intersected the expected geological sequence, however, no VMS mineralization was intersected.

Figure 1

To view the graphic associated with this release, please click on the following link: http://media3.marketwire.com/docs/Salazar%20Image.pdf

Table 1

SIGNIFICANT INTERSECTIONS

HOLE ID FROM(m) TO(m) WIDTH(m) Au (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%)
CURI-207 No significant mineralization encountered in this hole, located 1 km east from El Domo resource
CURI-208 No significant mineralization encountered in this hole, located 1.1 km east from El Domo resource
CURI-209 No samples taken, located 0.7 km east from El Domo resource
CURI-210 No significant mineralization encountered in this hole, located 0.5 km east from El Domo resource
CURI-211 No samples taken, located 0.4 km west from El Domo resource
CURI-212 283.95 286 2.05 1.63 - - - -
CURI-213 105.34 109.48 4.14 1.01 16.78 0.67 0.95 4.77
133.65 163.02 29.37 0.59 77.93 0.17 0.17 0.89
Including 133.65 144.2 10.55 0.39 8.02 0.44 0.25 1.84
147.6 161.35 13.75 0.75 149.7 0.02 0.15 0.32
CURI-214 No significant mineralization encountered in this hole, located 0.37 km south from El Domo resource
CURI-215 No significant mineralization encountered in this hole, located 0.43 km south west from El Domo
CURI-216 No samples taken, located 0.32 km west from El Domo resource
CURI-217 170.27 170.7 0.43 - 8.5 0.72 - 5.75
CURI-218 318.27 332.7 14.43 2.65 10.58 1.32 - 6.63
Including 318.27 321.85 3.58 9.68 11.52 0.46 - 2.64
328.23 332.7 4.47 0.29 15.05 3.16 - 19.25

Widths presented in Table 1 are downhole core lengths. Where possible, true width estimates are noted in the text.

A rigorous chain-of-custody and quality assurance/quality control program that included the insertion of certified standard control samples and blanks, and re-analysis of samples with high levels (overlimit) of gold, copper and zinc, was applied to the NQ-diameter, rock-sawn half-core samples. All samples were analyzed by Inspectorate Services Perú S.A.C. (Bureau Veritas), a certified ISO 17025 and ISO 9001:2000 laboratory.

Table 2

HOLE ID EAST NORTH ELEV (m) AZIMUTH DIP DEPTH (m)
CURI-207 696150.00 9854500.00 983.00 90° -70 206.75
CURI-208 696382.00 9854576.00 981.00 90° -70 292.29
CURI-209 696167.00 9855168.00 1030.00 270° -60 317.50
CURI-210 695750.00 9854810.00 955.00 270° -60 285.50
CURI-211 694500.00 9855000.00 896.00 90° -70 215.50
CURI-212 695000.00 9854600.00 928.00 90° -75 359.50
CURI-213 694570.00 9855100.00 860.00 90° -75 176.56
CURI-214 695080.00 9854500.00 919.00 90° -90 259.60
CURI-215 694600.00 9854600.00 1054.00 90° -75 299.40
CURI-216 694570.00 9855100.00 860.00 270° -50 276.30
CURI-217 694600.00 9855000.00 860.00 90° -70 287.40
CURI-218 695575.00 9855200.00 1100.00 270° -65 386.70
Total 3363.00

The scientific and technical information contained in this news release has been reviewed and approved by Kieran Downes, Ph.D., P.Geo. a Qualified Person as defined by National Instrument 43-101.

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) 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, including Aurelian's Fruta Del Norte discovery, IAMGold's Quimsacocha Deposit, Mozo Deposit, Ex Newmont's Cangrejos Project and International Minerals Rio Blanco and Gaby Deposit. 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 (4 projects - 36,269 hectares), good geopolitical positioning and a number of strategic corporate and financial partnerships, Salazar has positioned itself to be a strategic player in Ecuador.

Neither the 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 news release.

This press release contains "forward -looking information" within the meaning of applicable Canadian securities laws. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. Forward-looking information herein includes, but is not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as the execution of the Phase V drilling program. Such forward-looking information is based on a number of material factors and assumptions. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com. 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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