Salazar Resources Limited
TSX VENTURE : SRL
FRANKFURT : CCG

Salazar Resources Limited

August 27, 2012 08:30 ET

Salazar Intersects 7.40 Meters of 2.50 g/t Gold, 74.61 g/t Silver, 3.45% Copper and 5.07% Zinc Northeast of the El Domo Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2012) - Salazar Resources Ltd. (TSX VENTURE:SRL)(FRANKFURT:CCG) is pleased to report results for the final 14 holes (2,788.1 meters) from the Phase IV diamond drill program on the Company's 100-per-cent-owned (30,327 ha) Curipamba volcanogenic massive sulphide (VMS) project in Ecuador. The release of these holes completes the reporting of results from the Phase IV drill program. The Phase IV program comprised 51 holes (10,245.92 meters) of new exploratory drilling and none of the holes were included in the updated resource estimate released by Salazar on January 12, 2012.

Highlights:

  • CURI-198 intersected 7.40 meters grading 2.50 g/t gold, 74.61 g/t silver, 3.45% copper and 5.07% zinc.
  • CURI-200 intersected 3.95 meters grading 6.45 g/t gold, 159.49 g/t silver, 1.58% copper and 11.29% zinc.

Fredy Salazar, President and CEO, commented: "The drill results indicate potential for extensions to the mineralization beyond the areas tested. Further drilling is required to evaluate this potential. The Company is currently planning on how to best advance the future development of the El Domo deposit to maximize shareholder value. Surface exploration continues to demonstrate the presence of mineralization outside the established resource blocks and the Phase IV drill program has successfully identified new areas with potential to increase the El Domo resource."

The locations of the drill holes are shown on Figure 1. Significant intersections are listed on Table 1. Drill hole specifications are listed on Table 2. CURI-193 and CURI-195 were drilled north of Inferred resource blocks north of the El Domo deposit. Both holes intersected wide intervals of low grade mineralization (Figure 1; Table 1).

CURI-194, CURI-196 and CURI-198 were drilled to test for mineralization under the andesite sill to the northeast of the El Domo deposit (Figure 1). CURI-198 drilled approximately 60 meters south CURI-187 (N.R. of June 7, 2012: 6.35 meters grading 4.53 g/t gold, 58.05 g/t silver, 0.75% copper and 5.54% zinc) intersected 7.40 meters of significantly better grade mineralization (Table 1). CURI-194, drilled near the interpreted northeast limit of the andesite sill, intersected 3.36 meters grading 2.38 g/t gold and 11.42 g/t silver. These results indicate potential for further extensions to the mineralization in the northeast sector.

CURI-197, CURI-199, CURI-201 and CURI-204 were drilled to test for mineralization under the andesite sill to the west of the El Domo deposit (Figure 1). CURI-197 intersected a wide zone of weak mineralization (Table 1). CURI-201, drilled approximately 50 meters north of CURI-164 (N.R. of March 14, 2012: 16.52 meters grading of 0.51 g/t gold, 4.49% copper and 0.81% zinc), intersected 1.50 meters grading 0.97 g/t gold, 80.82 g/t silver, 1.52% copper and 2.50 zinc.

CURI-200, CURI-202 and CURI-203 are the most southwesterly holes drilled near the El Domo deposit (Figure1). All three holes intersected precious metal mineralization. CURI-200, drilled approximately 60 meters south of CURI-169 (N.R. of April 10, 2012: 5.28 meters grading 6.40 g/t gold, 215.25 g/t silver, 3.98% copper, 1.71% lead and 12.54% zinc), intersected 3.95 meters grading 6.45 g/t gold, 159.49 g/t silver, 1.58% copper and 11.29% zinc. CURI-202 intersected four mineralized intervals including 4.15 meters grading 2.51 g/t gold, 99.65 g/t silver and 2.42% zinc (Table 1). These results indicate potential for further extensions to the mineralization in this sector.

CURI-205 and CURI-206 were drilled near the interpreted limit of andesite southeast of the Indicated resource block (Figure 1). CURI-206 intersected two zones of weak precious metal mineralization.

Table 1: Significant Intersections

HOLE ID FROM (m) TO (m) WIDTH (m) Au (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%)
CURI-193 42.63 70.60 27.97 0.194 8.22 0.49 0.21 0.70
including 42.63 52.22 9.59 0.156 7.64 0.07 0.32 1.16
including 67.53 70.60 3.07 0.43 25.47 0.12 0.30 1.08
CURI-194 62.00 65.36 3.36 2.384 11.42 0.01 0.06 0.19
CURI-195 51.18 60.60 9.42 0.59 44.32 0.03 0.08 0.16
66.26 69.00 2.74 0.51 17.85 0.10 0.60 0.94
CURI-196 107.18 110.00 2.82 0.24 13.28 0.05 0.03 0.70
130.50 151.00 20.50 0.55 18.66 0.02 0.06 0.18
including 134.95 143.95 9.00 0.76 30.27 0.01 0.02 0.05
including 134.95 137.00 2.05 1.61 18.51 0.00 0.01 0.03
CURI-197 249.50 293.50 44.00 0.19 8.07 0.07 0.08 0.57
including 253.00 269.50 16.50 0.40 15.78 0.03 0.10 0.27
including 262.00 264.50 2.50 1.18 8.48 0.05 0.13 0.34
CURI-198 138.60 146.00 7.40 2.498 74.61 3.45 0.18 5.07
138.60 140.90 2.30 6.24 162.67 8.83 0.37 10.63
CURI-199 No significant mineralization encountered in this hole
CURI-200 56.00 59.95 3.95 6.454 159.49 1.58 1.06 11.29
82.08 83.53 1.45 0.07 2.90 0.36 0.01 1.03
CURI-201 289.60 291.10 1.50 0.977 80.82 1.52 0.37 2.50
CURI-202 105.85 110.00 4.15 2.510 99.65 0.22 0.69 2.42
including 106.48 109.00 2.52 3.841 127.65 0.30 0.97 3.36
114.83 116.00 1.17 0.907 23.80 0.40 0.11 3.07
120.00 121.00 1.00 0.163 4.20 0.22 0.13 2.47
128.00 129.00 1.00 0.128 4.60 0.14 0.08 2.09
CURI-203 63.27 109.00 45.73 0.182 7.25 0.12 0.04 1.18
including 63.27 70.00 6.73 0.402 20.20 0.25 0.13 2.71
including 91.70 101.95 10.25 0.099 2.19 0.26 0.01 1.67
including 107.00 109.00 2.00 0.087 1.74 0.38 0.02 3.97
CURI-204 No significant mineralization encountered in this hole
CURI-205 No significant mineralization encountered in this hole
CURI-206 65.75 68.70 2.95 0.051 6.12 0.10 0.01 0.91
80.00 81.00 1.00 0.69 70.00 0.01 0.17 0.27

*Widths represent down hole core lengths.

Table 2: Drill Hole Specifications

Hole ID Easting Northing Elev Az Dip EOH (m)
CURI-193 695075 9855700 916 270 -80 81.65
CURI-194 695481 9855650 963 90 -60 128.8
CURI-195 695139 9855700 925 270 -80 95.95
CURI-196 695505 9855600 991 90 -80 224.95
CURI-197 695369 9855050 1061 90 -75 299.8
CURI-198 695365 9855600 994 90 -70 218.95
CURI-199 695427 9854950 1001 90 -70 255.0
CURI-200 695000 9854900 882 270 -85 143.95
CURI-201 695358 9855100 1087 90 -90 343.15
CURI-202 695000 9854900 882 270 -45 182.75
CURI-203 694934 9854950 869 270 -70 164.95
CURI-204 695440 9855150 1108 90 -70 398.8
CURI-205 694833 9855103 852 270 -80 135.6
CURI-206 694882 9855064 858 270 -45 113.8
TOTAL 2788.1

To view "Figure 1: Map of El Domo Pierce Points with Resource Outlines", please click on the following link: http://media3.marketwire.com/docs/srl827i.pdf

Drill core samples were analyzed by ALS Chemex Labs Ltd. and IBS Inspectorate, both ISO 9001:2000 certified laboratories, in Ecuador. Salazar maintains a QA/QC program whereby standard samples and blanks are inserted into each batch of samples to ensure quality control.

Kieran Downes, P.Geo., a qualified person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release.

ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED

Fredy Salazar, President & CEO

Salazar Resources Limited

About Salazar Resources: 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 based in Ecuador", thus have thorough knowledge of local human and environmental issues, gives the company a strategic advantage, enabling it 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.

This press release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. 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. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

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.

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