Santa Barbara Resources Limited
TSX VENTURE : SBL

September 07, 2010 08:30 ET

Santa Barbara Update on Sancos Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 7, 2010) - Santa Barbara Resources Limited (TSX VENTURE:SBL) (the "Company") is pleased to announce that all necessary permitting is in hand for its October 2010 drill program at the Company's Sancos Project, Peru. The Company has engaged a contractor that is preparing access roads and drill sites over the summer months. A deposit has been paid to secure a drill contractor to conduct a 4,000 metre reverse circulation drill program to commence in October. 

The Sancos Project is located in the Ayacucho Region of Peru. Principal access roads exist to the defined exploration targets. The property hosts a large high-sulphidation epithermal gold-silver mineralized system. To date three gold mineralized areas, Sancos West, Sancos Central and Sancos East, have been identified by Santa Barbara's systematic trench and outcrop sampling.

Since optioning the Sancos Project from the Peruvian subsidiary of Barrick Gold Corporation in August 2009 the Company has conducted rock sampling in trench and outcrop exposures. All target zones show significant gold content associated with the presence of pathfinder elements to high-sulphidation epithermal mineralization.

Sancos West:

Sancos West covers a surface footprint of approximately 650 m x 160 m. Individual sample values range from 0.05 g/t gold to 2.02 g/t gold with an average grade for 258 samples of 0.40 g/t gold. Best trench results within broader zones of mineralization include:

Interval Trench   Samples Minimum
(g/t gold)
Maximum
(g/t gold)
28.2 m @ 0.88 g/t gold T4W-Vertical   10 0.49 1.80
59.8 m @ 0.65 g/t gold T1W-Vertical   27 0.25 1.13
34.7 m @ 0.59 g/t gold T3W-Vertical   13 0.22 2.02
60.0 m @ 0.69 g/t gold T5W-Horizontal   12 0.38 1.03
47.4 m @ 0.67 g/t gold T7W-Horizontal   5 0.53 0.83
34.0 m @ 0.65 g/t gold T6W-Horizontal   4 0.54 0.80
46.5 m @ 0.60 g/t gold T9W-Horizontal   4 0.52 0.73
49.0 m @ 0.56 g/t gold T11W-Horizontal   5 0.50 0.61

Sancos Central:

The mineralized envelope at Sancos Central covers an area of 750 m x 200 m. Individual sample values range from below detection limit to 6.82 g/t gold with an average grade for 261 samples of 0.26 g/t gold. Some intervals may contain minor portions of colluvium included in the average at zero grade. Best trench results within broader zones of mineralization include:

Interval Trench   Samples Minimum
(g/t gold)
Maximum
(g/t gold)
133.6 m @ 1.00 g/t gold T2C-Horizontal   13 0.15 6.82
Including:          
17.0 m @ 4.87 g/t gold T2C-Horizontal   2 2.08 6.82
23.2 m @ 0.89 g/t gold T1C-Vertical   10 0.22 6.82

Sancos East:

Sancos East represents a series of outcrops over an area of 100 m x 60 m. Individual sample values range from 0.05 g/t gold to 4.22 g/t gold and 0.9 g/t silver to 150.0 g/t silver with an average grade for 15 samples of 1.23 g/t gold and 63.7 g/t silver. A trench within the zones of mineralization returned:

Interval Trench   Samples Minimum
(g/t gold)
Maximum
(g/t gold)
Minimum
(g/t silver)
Maximum
(g/t silver)
19.2 m @ 1.68 g/t gold and 110.4 g/t silver T1E-Vertical   5 0.93 4.22 83.3 150.0

High grade areas, such as the trench intervals of 17.0 m @ 4.87 g/t gold in Sancos Central and 19.2 m @ 1.68 g/t gold and 110.4 g/t silver in Sancos East indicate the presence of significant high grade zones within the deposit and may play an important role in the overall economics of a potentially bulk mineable gold deposit.

Results from preliminary metallurgical tests indicate that the gold should be easily leached from oxidized rock, even at low grades. All six samples, ranging from 0.18 g/t gold to 8.65 g/t gold, showed gold recoveries in excess of 84% in standard bottle roll tests on material crushed to <2 mm.

Additional information can be found in the Technical Report filed on SEDAR and on the Company's website www.sbr-ltd.com

The results of the Sancos Project sampling program and the technical content of this news release have been reviewed by Stewart Wallis P.Geo., consultant to the Company, who is the Qualified Person for the Company. 

ON BEHALF OF THE BOARD

Christoph Lassl, President and Chief Executive Officer

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.

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