Southern Legacy Minerals Inc.
TSX VENTURE : LCY

Southern Legacy Minerals Inc.

July 03, 2012 12:43 ET

Southern Legacy Reports Inferred Resource of 5.9 Blbs @ 0.9% CuEq in Initial NI 43-101 Compliant Resource Estimate at AntaKori Project in Cajamarca, Northern Peru

TORONTO, ONTARIO--(Marketwire - July 3, 2012) - Southern Legacy Minerals Inc. ("Southern Legacy" or "the Company") (TSX VENTURE:LCY) is pleased to announce the initial National Instrument 43-101 ("NI 43-101") compliant resource estimate on the consolidated concession package of its 100%-owned polymetallic AntaKori Project ("AntaKori" or "the Project") in Cajamarca, northern Peru. The resource estimate was completed by independent consultants, Scott E. Wilson Consulting Inc. (SEWC) of Denver, and is based on 70 drill holes totaling 5,898 three-metre-length composites.

The Company also commences trading today on the TSX Venture Exchange under the symbol "LCY".

Highlights:

  • The AntaKori Project, containing copper (Cu), gold (Au), silver (Ag), molybdenum (Mo), lead (Pb) and zinc (Zn), is located between Gold Fields Limited's Cerro Corona mine and Buenaventura's Tantahuatay mine in Cajamarca, Peru

  • As at July 2, 2012, the initial NI 43-101 compliant resource estimate for AntaKori, at cut-off grades of 0.20% Cu in-pit and 0.5% Cu underground, is:

Inferred Category
Resource Type Tonnes Grade KOz Grade KOz Grade Cu Lbs Grade Mo Lbs Grade Pb Lbs Grade Zn Lbs
(x1,000) Au g/t Au Ag Ag Cu (x1,000) Mo (x1000) Pb (x1,000) Zn (x1,000)
g/t % ppm % %
In-Pit 125,388 0.25 1,008 6.60 26,606 0.28 774,012 6.93 1,916 0.05 138,216 0.22 608,152
Underground 169,376 0.44 2,396 12.79 69,647 0.63 2,352,481 13.48 5,034 0.08 298,728 0.26 970,865
Total 294,764 0.36 3,404 10.16 96,253 0.48 3,126,493 10.69 6,950 0.07 436,944 0.24 1,579,018
Notes: i) Estimates were calculated using Inverse Distance Squared method
ii) Estimates were calculated within a Whittle Pit and limited to Southern Legacy's property mineral tenure
iii) Underground resources assume Block Caving at 0.50% Cu cutoff grade
  • The Project hosts 5.9 billion pounds of copper equivalent resource at an average copper equivalent grade of 0.92% (see resource parameters below)

"AntaKori is a world-class deposit that remained undeveloped in the past due to fractured property tenures. Southern Legacy's success in consolidating a major portion of the properties that comprise the AntaKori Project has resulted in the significant resource announced today," commented Cesar Lopez, CEO of Southern Legacy.

Details on AntaKori:

Southern Legacy's 100%-owned AntaKori Project hosts a tertiary hydrothermal copper-gold porphyry deposit located in one of the most mineral-prolific areas in the world. In addition to being contiguous to the Cerro Corona and Tantahuatay mines, the Project is in close proximity to other significant copper- gold projects, including La Granja, Yanacocha, Conga, Galeno, and Michiquillay.

The deposit is oriented northwest-southeast and is structurally controlled with a large area yet to be explored along the extension. AntaKori's known mineralization is on the same trend as the Cerro Corona mine, three kilometres to the south. Within the Project's property tenure, the deposit is mineralized along a tested strike length of 3,000 metres by 900 metres, has a vertical extent of 900 metres and is open in all directions.

Parameters in Resource Estimate:

Resources were based on 70 exploration drill holes. There were a total of 5,989 three-meter-length composites used in the estimation of mineralization. Results were calculated using Vulcan software and stored in a Vulcan block model. SEWC used Inferred Distance Squared as the preferred estimation technique for AntaKori.

The resource is classified using a combination of distance to the nearest sample, the number of samples, and number of holes used to estimate each block, while also taking into account database quality, sample integrity and geologic understanding. Additional drilling may result in upgrading the inferred resource to measured and indicated resources.

SEWC used industry-accepted standards to classify this resource calculation. Geologic interpretations were incorporated into the resource for greater confidence in the resource estimate. Cut-off grades were calculated based on referencing up-to-date costing structures that are publically available.

The Copper Equivalent Formula uses $1,500 per ounce gold, $30 per ounce silver, $3.50 per pound copper, $0.85 per pound for lead and zinc, and $16 per pound molybdenum using the formula available at the following address: http://media3.marketwire.com/docs/Formula_SLM.pdf

The resources are within a pit that is limited to the Project mineral tenure and underground resources are limited to AntaKori's property mineral tenure. Metallurgical recoveries for all metals are assumed to be 100%.

Mining and milling costs were assembled from similar polymetallic deposits. A cost of US$1.75 per tonne was used for mining while the processing costs were US$10.00 per tonne. A pit slope of 50 degrees was achieved, and an overall strip ratio of 1.47 tonne of waste to 1 tonne of ore.

Details on the Company and its AntaKori Project are available at www.slminerals.com. The Company's documents are available on SEDAR at www.sedar.com.

On behalf of Southern Legacy Minerals Inc.,

Cesar Lopez, CEO

Qualified Person:

Scott E. Wilson, C.P.G., of Scott E. Wilson Consulting, Inc. in Englewood, Colorado prepared the AntaKori resource estimate.

Mr. Wilson is an independent qualified person as defined by National Instrument 43-101 and has prepared or reviewed the preparation of the information which forms the basis of this press release. He is a Certified Professional Geologist, a member of the American Institute of Professional Geologists (CPG #10965) and a Registered Member (#4025107) of the Society of Mining and Metallurgy and Exploration, Inc., a professional association and designation recognized by the Canadian regulatory authorities. Mr. Wilson verified the data, including the sampling, analytical and test data underlying the information, disclosed in this release. Verification included a review and validation of the applicable assay databases and reviews of assay certificates.

For additional technical information on the AntaKori Project, please refer to the Company's website at www.slminerals.com.

About Southern Legacy Minerals Inc.

Southern Legacy Minerals Inc. ("Southern Legacy") (TSX VENTURE:LCY) is an exploration company with a diversified portfolio of gold and copper projects in South America. Southern Legacy's current projects span along the Andes in Colombia, Peru and Chile. Led by a management team with over 20 years of mineral exploration and development experience in South America, the team boasts strong relationships with local government officials and stakeholders in the jurisdictions where their projects are situated. Southern Legacy is currently focused on expanding the resource at its flagship copper and gold project AntaKori (formerly known as Sinchao), located in northern Peru between Gold Fields' Cerro Corona and Buenaventura's Tantahuatay mines.

Forward Looking Statement:

Certain of the information contained in this news release constitutes 'forward-looking statements' within the meaning of securities laws. Such forward-looking statements, including but not limited to those with respect to the prices of metals and minerals, purchase payments, estimated future production and estimated costs of future production involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any forecast results, performance or achievements expressed or implied by such forward- looking statements. Such factors include, among others, the actual prices of metals and minerals, the actual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the documents of the Company filed from time to time with the British Columbia Securities Commission.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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