Salazar Resources Limited

Salazar Resources Limited

September 28, 2010 15:36 ET

Salazar Reports Updated Resource Estimate for El Domo, Curipamba, Ecuador

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 28, 2010) - Salazar Resources Ltd. (the "Company") (TSX VENTURE:SRL)(FRANKFURT:CCG) - Mr. Fredy Salazar, President and CEO is pleased to announce the results of an updated resource estimate for the El Domo deposit at its Curipamba volcanogenic massive sulfide ("VMS") Property, Ecuador. The Company holds a 100% interest in the mineral rights to the El Domo deposit. The estimate was prepared by Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA"), effective September 24, 2010.

Category Tonnes Copper Lead Zinc Gold Silver Copper Lead Zinc Gold Silver
  ('000) (%) (%) (%) (g/t) (g/t) (M lbs) (M lbs) (M lbs) (ozs) (ozs)
Indicated 623 3.70 0.41 4.16 3.0 98.0 50.8 5.6 57.1 60,000 1,963,000
Inferred 2,499 3.24 0.37 4.28 4.3 79.5 178.5 20.4 235.7 346,000 6,388,000
  1.   CIM definitions were followed for mineral resources.
  2.   Mineral resources are estimated at a net smelter return cut-off of US$50 per tonne.
  3.   Metal prices used are US$3.25/lb Cu, US$1.10/lb Zn, US$0.90/lb Pb, US$1,050/oz Au and US$18.00/oz Ag.
  4.   Metallurgical recovery factors assumed were 75% Cu, 85% Zn, 50% Pb, 60% Au and 55% Ag.
  5.   Common industry values for smelter terms were assumed.
  6.   A density of 3.6 t/m3 was used for the massive sulphides and a density of 2.7 t/m3 for two small hanging wall mineralized lenses, based on specific gravity determinations on core samples.

The El Domo deposit is located in the Central Las Naves concessions that form part of the approximately 500 sq km Curipamba VMS camp which is one of the three major hydrothermal centers in the Ecuadorian Andes. The Curipamba district has all of the features of a major VMS district and aggressive exploration programs are being implemented to discover additional resources. The presence of the numerous untested geophysical anomalies adjacent to El Domo is a reminder of the district potential.

Mr. Fredy Salazar, President & CEO, states, "Within two years of stepping foot on the Curipamba VMS Property, the Company has delivered a significant copper-gold-zinc rich resource and has defined a series of additional exploration targets within the district. This new resource estimate incorporates our latest drill hole results and geological interpretation and has been thoroughly prepared by a world class team of experts. We are particularly pleased by the strength and continuity of the copper and gold grades and that more than 20% of the El Domo resource is in the Indicated Mineral Resource classification. Recent results have added to our confidence in the El Domo deposit. Our objective is to continue to expand the Curipamba resources sufficiently to spur a scoping level economic evaluation later this year. A metallurgical test program has already been initiated and representative samples from throughout the resource areas have been shipped to Canada for testing."

Resource Estimate Methodology
The database for the resource estimate on the El Domo deposit comprises 18 core drill holes. A total of 186 assays for copper, lead, zinc, gold and silver are situated within the resource wireframe, which was built based on a net smelter return (NSR) cut-off value of US$50 per tonne. The resource wireframe was built from a set of north facing vertical sections spaced at 50 m apart and it is based on a recent geological and structural interpretation provided by Mr. Jim Mayor, Senior Geological Consultant for Salazar. Two metre length composites were produced that honoured the resource wireframes. Grades were estimated by an inverse distance squared method for all blocks. Indicated Mineral Resources were estimated in an area of the deposit characterized by drill holes spaced at approximately 50 metres. Inferred Mineral Resources were estimated for the remainder of the deposit.

As part of the preparation of this resource estimate, Scott Wilson RPA completed independent data verification.

The resource estimate reported in this press release were produced by Scott Wilson RPA under the supervision of Wayne Valliant, P.Geo., a Qualified Person as defined by National Instrument 43-101 ("NI-43-101"). Mr. Wayne Valliant has reviewed and verified the contents of this release. Scott Wilson RPA and Mr. Valliant are independent advisers to the Company. The preparation of a NI 43-101 compliant technical report is expected to be completed within approximately 10 days of this press release.

The major components of the statutory and regulatory framework governing the mining industry in Ecuador are new and continue to evolve - the Constitution was approved in September, 2008, the mining law came into effect on 29 January, 2009 and the regulations to the mining law were published on 16 November, 2009 - consequently there are few precedents and only limited experience with their administration and application. It is possible that these factors could materially impact the mineral resource estimate disclosed herein.

About the Curipamba VMS Property
The Curipamba property is situated within the Eocene submarine volcanic arc of Ecuador and is the southernmost of three significant VMS districts. The immediate geological setting of the deposit (referred to as El Domo), comprises gently dipping strata bounded by high-angle NNE and NW striking faults. The footwall rocks are a flow dome complex. The overlying VMS deposit ranges from 4m to plus 30m in thickness and was followed by finely laminated tuffaceous sediments. Andesite dykes, 20m to possibly 100m wide are often emplaced along the northeasterly trending faults.

The significant features of the deposit include the presence of a unique rock in the immediate hanging wall that is referred to as grainstone breccias. It is an excellent marker horizon that formed an excellent trap for hydrothermal fluids. The VMS horizon is often characterized by a 0.5 to 1.0m cap of precious metal-sphalerite mineralization. Chalcopyrite is dominant in the rest of the VMS with anomalous precious metals. The immediate footwall to the VMS is characterized by gypsum-anhydrite representing a zone of sodium depletion caused by the hydrothermal fluids. The El Domo deposit is one of numerous geochemical and geophysical anomalies in the greater Curipamba property.

"Fredy Salazar"

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. 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.

Statements contained in this news release that are not historical facts constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date of this release. Forward-looking statements include, without limitation, possible events, statements with respect to possible events, the future price of copper, lead, zinc, gold and silver, the estimation of mineral resources, the realization of mineral resource estimates and success of exploration activities. The words "is expected" or "estimates" or variations of such words and phrases or statements that certain actions, events or results "may" or "could" occur and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of the Company contained in this release which may prove to be incorrect, include, but are not limited to, (1) the discovery and expansion of mineral resources on the Curipamba Property being consistent with the Company's current expectations; (2) the implementation of Ecuador's new mining law and related regulations and policies being consistent with the Company's current expectations; (3) certain price assumptions for copper, lead, zinc, gold and silver; and (4) the accuracy of our current mineral resource estimates. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold or certain other commodities; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, Ecuador or other countries in which the Company does business or may carry on business in the future; business opportunities that may be presented to, or pursued by, the Company; operating or technical difficulties in connection with mining activities; the speculative nature of gold exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. All of the forward-looking statements made in this release are qualified by these cautionary statements and those made in our other filings with the securities regulators in Canada. These factors are not intended to represent a complete list of the factors that could affect the Company. Although the Company believes 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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