Salazar Resources Limited
TSX VENTURE : SRL
FRANKFURT : CCG

Salazar Resources Limited

February 25, 2014 08:30 ET

Salazar Reports Positive Metallurgical Testwork at El Domo

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 25, 2014) - Salazar Resources Ltd. (the "Company") (TSX VENTURE:SRL)(FRANKFURT:CCG) is pleased to report positive results from the ongoing metallurgical testwork program for the 100% owned El Domo volcanogenic massive sulphides deposit ("VMS"). The metallurgical testwork is part of the upcoming Preliminary Economic Assessment ("PEA") report.

Highlights include:

  • Preliminary metallurgical testworks confirmed that El Domo feed is amenable for conventional flotation technology.
  • Testwork also confirmed the production of commercial quality flotation concentrates from "El Domo" deposit.

Mr. Fredy Salazar stated, "We are pleased to be able to report these positive results from El Domo. These metallurgical results are confirming previous test work as well as confirming the production of commercial-grade flotation concentrates from El Domo deposit to support our upcoming PEA. This is one more step towards the company achieving its goal for development and Curipamba."

The metallurgical testwork was completed in December 2013 under the direction of Transmin Metallurgical Consultants ("Transmin") in Lima, Peru. The strategy devised to produce commercial concentrates was to split the deposit into geometallurgical domains based on the relative abundance of copper and zinc in the feed; based on this criteria, three composite samples were collected from existing drill holes to represent each of the three major geometallurgical domains at El Domo that were identified as follow:

  • Composite CPO-003: Copper Feed-type, where Cu/(Zn+Pb) is greater than or equal to 3. One concentrate would be produced. This Cu-concentrate would have 90% Cu recovery with a grade of 24% Cu and low As, Sb and Bi grades. No Zn-concentrate would be produced from this type of feed due to low Zn head grade.
  • Composite CPO-002: Mixed Feed-type, where Cu/(Zn+Pb) is between 0.33 and 3. Two concentrates would be produced The Cu-concentrate would have 75% Cu recovery with 21% Cu grade while there would be a moderate 50% recovery of Zn to a Zn-concentrate of 42% Zn grade.
  • Composite CPO-001: Zinc Feed-type, where Cu/(Zn+Pb) is less than or equal to 0.33. Three concentrates would be produced. The Cu-concentrate would have a Cu recovery of 58.2% with approximately 20% Cu concentrate grade with high Zn content. It is possible that further testwork will allow the projections for Zn content in the copper concentrate to be reduced further. The Zn-concentrate would have a Zn recovery of 85% with 45% Zn grade and 14 g/t Au grade. Some Pb-concentrate would also be produced from CPO-001 feed-type.

The metallurgical performance of an efficient flotation plant has been projected in the following table.

Concentrate grade (%) or g/t Recoveries (%)
Composite ID Products Mass Pull
(%)
Cu,
%
Zn,
%
Pb,
%
Au,
g/t
Ag,
g/t
Cu,
%
Zn,
%
Pb,
%
Au,
%
Ag,
%
CPO-001 (Composite Zinc) Concentrate Cu 2.46 19.7 17 1.31 8.18 748 58.2 8.24 7.67 6.16 22.6
Concentrate Pb 0.61 17.7 17 47.3 21.8 1,995 6.47 0.92 69 4.11 15.1
Concentrate Zn 9.49 1.73 45.5 0.31 14 286 19.7 85.4 6.9 40.8 33.4
Final Tail 87.4 0.15 0.31 0.08 1.83 26.9 15.5 5.39 16.4 49 28.9
Head Calculated 100 0.89 5.11 0.42 3.26 81.2 100 100 100 100 100
CPO-002 (Composite Mixed) Concentrate Cu 7.62 21 8.51 0.94 8.77 230 75 29.8 49.6 29.3 40.8
Concentrate Zn 2.59 6.28 42 0.86 19.4 371 7.62 50 15.4 22 22.4
Final Tail 89.8 0.41 0.49 0.06 1.24 17.6 17.4 20.2 35 48.7 36.8
Head Calculated 100 2.13 2.17 0.14 2.28 42.9 100 100 100 100 100
CPO-003 (Composite Cooper) Concentrate Cu 13.9 24.2 2.34 0.09 3.69 53.1 89.7 80.9 43.4 24.4 39.7
Final Tail 86.1 0.45 0.09 0.02 1.84 13 10.3 19.1 56.6 75.6 60.3
Head Calculated 100 3.75 0.4 0.03 2.1 18.6 100 100 100 100 100
  • Mass Pull (%), weight percentage in the concentrate, relative to the weight of the feed to the concentrator (tons of concentrate produced per 100 tons of feed feed processed).
  • Concentrate grade (%), assays of concentrates.
  • Recoveries (%), percentage of metal reporting to each concentrate relative to the metal content of the feed to the concentrator.

To view the recently updated NI-43-101 Resource click here: www.marketwired.com/press-release/salazar-increases-indicated-and-inferred-resources-at-el-domo-deposit-tsx-venture-srl-1875896.htm.

To view the summary of metallurgical testwork click here: www.salazarresources.com/docs/eldomo/Summary_of_Metallurgical_Testwork.pdf.

The technical information contained in this release were prepared by or under the supervision of Mr. Adam Johnston, FAusIMM (CP Metallurgy), an independent "qualified person" for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").

ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED

Fredy Salazar, President & CEO, Salazar Resources Limited

About 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 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.

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 successful completion of the PEA and the timing of completion of the PEA. Such forward-looking information is based on a number of material factors and assumptions, including that contracted parties provide services on the agreed timeframes and that laboratory and other related services are available and perform as contracted. 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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