Sandspring Resources Ltd.
TSX VENTURE : SSP

Sandspring Resources Ltd.

August 25, 2011 09:53 ET

Sandspring Resources Ltd. Extends Resource Envelope by 500 Metres Along Strike and Reports Drilling Results That Include 117 m of 1.49 g/t Gold and 0.10% Copper in TPD 216

TORONTO, ONTARIO--(Marketwire - Aug. 25, 2011) - SANDSPRING RESOURCES LTD. (TSX VENTURE:SSP) ("Sandspring" or the "Company") is pleased to announce that an expansion and extended infill-drilling program at the Toroparu Gold-Copper Deposit in the Republic of Guyana, South America continues to provide economic gold and copper assay results (summarized in Table 1).

Results from Holes TPD 184-223 represent an additional 14,628 m of core drilling within the Toroparu Gold-Copper Deposit area (Fig. 1). A total of 36,790 m of results have now been reported from the current round of infill, step-out and off-trend exploration target drilling. The results continue to provide evidence to extend and enhance the Toroparu Gold-Copper Deposit resource in depth, laterally and along strike. A total of 106,506 m of diamond core drill results have now been reported from the Toroparu Gold-Copper Deposit area.

The Company maintains a flexible, results-driven infill and step-out drill program within the Toroparu Gold-Copper Deposit area. The objective of this program is to optimize the existing measured and indicated resource grade and explore the open extent of the resource in preparation for Pre-Feasibility and Definitive Feasibility engineering of the Toroparu Gold-Copper project.

Highlights

  • Results from 4,757 m of infill drilling of TPD 185, 188, 194, 195, 196, 198, 201, 214, 215, 216, 218, 220, and 223, all drilled in the main mineralized zones (Fig. 1) demonstrate the continuity of mineralization and expansion potential of the gold resource, both laterally and at depth across the main mineralized lenses (Fig. 2,3,4).

  • Results from step-out drilling at the northwestern edge of the Toroparu Gold-Copper Deposit area including TPD 190, 192, 209, 212, 213, 214 and 217 extend the strike length of known mineralization of the Toroparu resource by more than 500 meters to the northwest (Fig. 1). An infill drill program is planned in this area to define the potential to add economic Measured & Indicated Resource in to the ongoing mine development plan.

  • Results from step-out drilling at the southeastern edge of the main mineralization zone, including TPD 193, 203 and 205, also indicate the potential for extension of mineralization both laterally and along strike in this portion of the Toroparu Gold-Copper Deposit Area (Fig. 5).

In addition to step-out and infill drilling of the defined mineralized domains, the company continues exploration drilling in the Toroparu Deposit Area in search of mineralization that will further extend the resource or define satellite deposits to the known resource.

Sandspring has completed approximately 50% of the regional ICP geochemical surveys previously announced across the larger Upper Puruni Area concessions on which the Toroparu Gold-Copper Deposit has been discovered. Results from these surveys covering the 175 km2 Puruni River Shear and 100 km2 Putareng Granitoid geologic structures, will be analyzed for follow up drilling utilizing a reverse circulation ("RC") rig that is expected to arrive in September 2011. RC drilling is likely to speed up both the ongoing exploration drilling of the Toroparu Gold-Copper Deposit area and anomalous areas defined on the geologic structures currently being surveyed within the Company's 1,000 km2 Upper Puruni Concession.

Abraham Drost, P. Geo., President of Sandspring states... ‟Additional infill drilling appears to confirm that higher grade gold mineralization is preferentially concentrated along broad corridors within the Toroparu Gold-Copper Deposit. This has positive implications for ongoing pre-feasibility resource optimization and mine planning and more rapid payback of pre-production capital at the Toroparu Gold-Copper project. In addition, indications of a significant deposit extension to the northwest continue to add to the future development pipeline within the Toroparu Gold-Copper mineralized system."

Table 1: Highlights of Gold/Copper intercepts, holes TPD184-223

Hole ID From(m) To(m) Length(m) Gold(g/t) Cu (%) Comment
TPD185 220.50 228.00 7.50 0.69 0.02 Infill
279.00 285.00 6.00 1.00 0.07
327.00 343.50 16.50 2.81 0.13
352.50 360.00 7.50 0.73 0.25
399.00 406.50 7.50 1.69 0.08
TPD190 109.50 115.50 6.00 3.86 0.01 Step-out
201.00 208.50 7.50 0.83 0.02
TPD192 51.00 61.50 10.50 1.93 0.02 Step-out
93.00 115.50 22.50 2.83 0.00
incl 111.00 115.50 4.50 51.43* 0.01
TPD193 237.00 243.00 6.00 1.33 0.16 Step-out
258.00 264.00 6.00 0.81 0.17
279.00 285.00 6.00 3.70 0.65
incl 280.50 282.00 1.50 24.80* 1.82
360.00 366.00 6.00 1.11 0.68
408.00 412.50 4.50 4.10 0.33
Incl 409.50 411.00 1.50 14.20* 0.71
420.00 421.50 1.50 0.69 0.11
TPD194 192.00 205.50 13.50 1.29 0.14 Infill
225.00 237.00 12.00 0.83 0.06
246.00 279.00 33.00 0.59 0.08
283.50 381.00 97.50 0.59 0.03
468.00 474.00 6.00 0.84 0.15
TPD195 484.50 501.00 16.50 1.15 0.08 Infill
508.50 519.00 10.50 1.28 0.17
525.00 534.00 9.00 1.13 0.16
543.00 559.50 16.50 1.50 0.02
601.50 616.50 15.00 0.99 0.03
624.00 642.00 18.00 0.70 0.01
TPD197 292.50 301.50 9.00 1.27 0.00 Step-out
309.00 315.00 6.00 3.94 0.02
333.00 345.00 12.00 5.05 0.04
incl. 340.50 343.50 3.00 19.15* 0.11
TPD198 252.00 267.00 15.00 0.76 0.22 Infill
366.00 391.50 25.50 0.86 0.15
402.00 412.70 10.70 0.96 0.06
TPD201 348.00 357.00 9.00 0.73 0.15 Infill
390.00 396.00 6.00 1.38 0.09
400.50 471.00 70.50 1.25 0.09
TPD203 171.50 180.50 9.00 1.08 0.10 Step-out
TPD205 306.50 324.50 18.00 2.08 0.23 Step-out
344.00 351.50 7.50 5.01 0.59
TPD209 162.00 172.50 10.50 1.39 0.00 Step-out
TPD211 360.50 371.00 10.50 0.73 0.11 Step-out
380.00 395.00 15.00 0.68 0.15
435.50 453.50 18.00 0.66 0.24
TPD212 17.50 23.50 6.00 0.83 0.00 Step-out
TPD213 19.00 32.50 13.50 0.82 0.00 Step-out
225.00 234.00 9.00 0.53 0.00
TPD214 23.50 40.50 17.00 1.12 0.00 Step-out
217.50 231.00 13.50 0.78 0.00
237.00 250.50 13.50 0.92 0.00
TPD215 10.00 42.00 32.00 0.83 0.12
Infill
48.00 58.50 9.00 0.87 0.14
TPD216 25.00 34.00 9.00 0.84 0.03 Infill
38.50 48.00 9.50 0.54 0.08
52.50 58.50 6.00 1.29 0.02
165.00 177.00 12.00 0.91 0.06
186.00 201.00 15.00 0.99 0.14
211.50 328.50 117.00 1.49 0.10
Incl. 286.50 292.50 6.00 11.41 0.23
and 286.50 288.00 1.50 17.70* 0.19
and 291.00 292.50 1.50 18.20* 0.25
352.50 366.00 13.50 0.63 0.09
477.00 534.00 57.00 1.40 0.04
TPD217A 337.50 345.00 7.50 2.37 0.03 Step-out
TPD218 10.00 20.50 10.50 0.75 0.10 Infill
35.50 41.50 6.00 2.33 0.06
54.00 72.00 19.50 1.04 0.21
TPD220 73.50 82.50 9.00 0.77 0.13 Infill
135.00 172.50 37.50 1.24 0.11
181.50 204.00 22.50 0.79 0.08
208.50 228.00 19.50 0.65 0.08
307.50 325.50 18.00 2.02 0.25
Incl. 322.50 324.00 1.50 52.00* 0.85
454.50 483.00 28.50 0.91 0.07
499.50 517.50 18.00 0.76 0.10
TPD223 87.00 97.50 10.50 0.89 0.08 Infill
103.50 123.00 19.50 2.12 0.04
Incl. 106.50 108.00 1.50 14.10* 0.04
202.50 214.50 12.00 3.74 0.08
360.00 379.50 19.50 1.89 0.03
Incl. 378.00 379.50 1.50 20.10* 0.01
393.00 400.50 7.50 0.75 0.02
445.50 451.50 6.00 1.42 0.01
457.50 463.50 6.00 0.55 0.05
471.00 477.00 6.00 0.57 0.02
*High gold assay intervals are top-cut to 12.0g/t consistent with NI-43-101 geostatistical resource models.
*All intervals are reported as down-hole lengths and additional information is required to determine true widths.

To view a detailed composite table please visit the following link: http://media3.marketwire.com/docs/CompositeTable.pdf.

To view, "Figure 1: Drill Hole locations - TPD 184-223 and Potentially Mineable Portion of the Resource Contours" please visit the following link: http://media3.marketwire.com/docs/sspfigure1.jpg.

To view, "Figure 2: Vertical Section L250W" please visit the following link: http://media3.marketwire.com/docs/sspfigure2.jpg.

To view, "Figure 3: Vertical Section L100E" please visit the following link: http://media3.marketwire.com/docs/sspfigure3.jpg.

To view, "Figure 4 Vertical Section L1800W" please visit the following link: http://media3.marketwire.com/docs/sspfigure4.jpg.

To view, "Figure 5: Vertical Section L400E" please visit the following link: http://media3.marketwire.com/docs/sspfigure5.jpg.

Analytical testing and reporting of quantitative assays for the results reported in this press release was performed independently by Acme Analytical Laboratories Ltd. ("AcmeLabs").

AcmeLabs is an ISO9001: 2008 accredited laboratory for the tests reported herein. A system of blanks, standards and duplicates were added to the Toroparu sample stream by the Company to verify accuracy and precision of assay results, supplementing a variety of internal QA/QC tests performed by AcmeLabs.

Mr. Brian Ray, P.Geo., Senior Resource Geologist with Sandspring and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this press release.

Sandspring Resources Ltd. is a well-funded Canadian junior mining company currently in advanced exploration and prefeasibility assessment of the multi-million ounce Toroparu Gold-Copper Deposit in the Republic of Guyana. Visit Sandspring's website at www.sandspringresources.com to view previous disclosure on the latest resource estimate (http://www.sandspringresources.com/Investors/Press-releases/Press-Release-Details/2011/Sandsprings-NI-43-101-Compliant-Mineral-Resource-Update-for-the-Toroparu-Project-shows-32-increase-in-Measured--Indicated-/default.aspx) and Preliminary Economic Assessment for the Toroparu Gold-Copper project (http://www.sandspringresources.com/Investors/Press-releases/Press-Release-Details/2011/Sandspring-Announces-Positive-Preliminary-Economic-Assessment-for-Toroparu-Gold-Copper-Project-Annual-Production-for-First-F/default.aspx).

Additional information on Sandspring can be viewed on SEDAR under the Company's profile at www.sedar.com or on Sandspring's website at www.sandspringresources.com.

This press release includes certain forward-looking statements concerning future performance and operations of the Company as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management at the time such statements are made. All forward-looking statements and information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the Company's successful advancement of the Toroparu Gold- Copper Deposit toward feasibility and obtaining positive results from ongoing evaluation and testing of multiple gold targets located elsewhere in the Company's landholdings, among other risks as described in our public filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. Sandspring Resources Ltd. has an ongoing obligation to disclose material information, as it becomes available.

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 release.

Contact Information

  • Sandspring Resources Ltd.
    Investor Relations
    (720) 854-0104