Sinchao Metals Corp.
TSX VENTURE : SMZ

Sinchao Metals Corp.

June 18, 2008 08:30 ET

Sinchao Metals Intersects 266 Metres Grading 0.37% Copper in Step Out Drilling

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 18, 2008) - Sinchao Metals Corp. (TSX VENTURE:SMZ) is pleased to announce the results from Drill Hole SDH-35, drilled on the Breccia Zone at the Sinchao Property in Peru. Assays have been received for the interval 0.0m to 500.4m, the bottom of the hole. Drill Hole SDH-35 intersected silicified dacite and breccia from 0.0 to approximately 367.0m, and silicified skarn from 367.0m to 500.4m.

Significant intersections are as follows:



From To Interval Copper Gold Silver
m m m % g/t g/t

234.2 500.4 266.2 0.37 0.30 8.9

Including:

367.1 500.4 133.3 0.42 0.31 10.9


These are drill intersections and true widths have yet to be determined.

Drill Hole SDH-35 is located approximately 300 metres southwest of SDH-11, which returned 194.1m grading 0.43% copper, 0.69 g/t gold and 17.1 g/t silver from 77.3m to 271.4m depth (See News Release dated October 18, 2007). Drill Hole SDH-35 is located in the middle of southwest - northeast Section 11, approximately 150 metres northwest of Section 12.

"We are pleased with the continuity of mineralization as we systematically step out drill at the Sinchao property," said President Andrew Gourlay. "The mineralized skarn is very encouraging since the potential for significant intervals of mineralization in the skarn in addition to the breccia has now been demonstrated. This opens up the possibility of large volumes of mineralization in both the skarn and breccia zones. We are continuing step out drilling in order to define the limits of the mineralization."

There are currently three drill rigs working at the Sinchao Property, part of a 10,000 metre drill program. Mineralization has now been identified over approximately 750 metres and to depths of up to 450 metres, with the mineralization remaining open to both the northeast and southeast. The objective of the 2008 drill program is to define the mineralization at the Breccia and Skarn Zones and should allow an inferred resource estimate to be completed by the end of 2008.

For an updated summary map of significant drill results, please go to: http://media3.marketwire.com/docs/Sinchao%20Map.pdf

Andrew Gourlay, P. Geol., President is the Qualified Person for the technical disclosure in this news release. All samples were prepared and analyzed by the CIMM Peru S.A. laboratory in Lima, Peru, an ISO-accredited laboratory. Standard reference materials, blanks and field duplicate samples were inserted prior to the shipment from site to monitor the quality control of analytical data.

Sinchao Metals Corp. owns 100% interest in the Sinchao Property, which is located in Cajamarca Province, Northern Peru, and 30 kilometres from Yanacocha, the largest gold mine in South America.

On behalf of Sinchao Metals Corp.

Andrew W. Gourlay, P. Geol., President

About Sinchao Metals Corp.:

Sinchao Metals Corp. (TSX VENTURE:SMZ) is focused on the exploration and development of the Sinchao property, located in Cajamarca province in Northern Peru, 30 kilometres from Yanacocha, the largest gold mine in South America. The company is dedicated to creating value for its shareholders by pursuing growth, expansion and enhancement of the Sinchao property.

This news release may contain forward-looking information within the meaning of the Securities Act (Ontario) ("forward-looking statements"). Such forward-looking statements may include the Company's plans for its mineral projects, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of gold and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contact Information

  • Sinchao Metals Corp.
    Andrew W. Gourlay, P. Geol.
    President
    (604) 681-6186 or Toll Free: 1-888-356-4784
    (604) 681-3652 (FAX)
    Website: www.sinchaometals.com