Sulliden Gold Corporation
TSX : SUE
OTCQX : SDDDF
BVLAC : SUE

Sulliden Gold Corporation

September 19, 2011 08:00 ET

Sulliden Announces Further Positive Drill Results at Shahuindo, Including 0.97 g/t Au Over 111.0 m in West Zone, 1.44 g/t Au Over 33.0 m in Central Zone And 0.84 g/t Au Over 64.5 m in East Zone

TORONTO, ONTARIO--(Marketwire - Sept. 19, 2011) - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX:SUE)(OTCQX:SDDDF)(BVLAC:SUE) is pleased to announce further positive drilling results from the ongoing 2011 exploration program underway on its Shahuindo Gold and Silver Project in Peru. Results from the planned 70,000 metre drill program continue to demonstrate mineral growth in the Central Corridor, which hosts the current National Instrument 43-101 mineral resource estimate.

Highlights include:

  • Hole SH11-220 in the West Zone
    • 0.97 g/t Gold and 12.6 g/t Silver over 111.0 meters, including 1.87 g/t Gold and 15.8 g/t Silver over 22.5 metres

  • Hole SH11-249 in the Central Zone
    • 1.44 g/t Gold and 13.6 g/t Silver over 33.0 meters, including 2.10 g/t Gold and 23.7 g/t Silver over 17.1 metres

  • Hole SH11-248 in the East Zone
    • 0.84 g/t Gold and 17.7 g/t Silver over 64.5 metres including 1.49 g/t Gold and 58.2 g/t Silver over 16.5 metres

Drill results from the West, Central and East Zones continue to expand the mineral system in the Central Corridor, which remains open along strike, at width and at depth.

Results from 29 holes, representing 6,062 metres of drilling, are reported in Table 1 and the collar locations are shown in Figure 1. Approximately 44,700 metres, representing 225 holes, have been drilled in 2011 to date and the Company is on track to complete its planned 70,000 metre drill program by the end of the year. Drilling continues to provide encouraging results in the Central Corridor and two other resource growth drill programs are underway, including exploration drilling targeting deep mineralization and exploration drilling in the North Corridor. Management believes success from these exploration programs could represent a meaningful scale of mineral resource growth at Shahuindo.

North Corridor Drill Program

The North Corridor, a parallel mineralized structure located approximately two kilometres north of the Central Corridor, has encouraging geophysical and geochemical anomalies that have yet to be drilled. On August 25, 2011, the Company announced the initiation of drilling in this corridor with the intention to complete approximately 5,000 metres of drilling in 25 holes by the end of 2011 (see planned drill hole locations in Figure 1). Exploration drilling in the North Corridor progresses and initial drill results are expected for release in the near future.

Deep Mineralization Drill Program

Since drilling was reinitiated in 2009, exploration holes in the Central Corridor have been drilled deeper than the historical 110 metre average and results to date have successfully delineated a continuity of sulphide mineralization directly below the oxide cap. In the current group of exploration results reported in this news release, this phenomena is evident in hole SH11-220 in the West Zone, where sulphides have been confirmed nearly 200 metres below the oxides.

The dedicated deep hole drill program will consist of approximately 15 deep holes, which will test the presence of sulphide mineralization at depths of 300-400 metres along the four zones of the Central Corridor. As results are obtained, pre-feasibility metallurgical test work is being conducted by G&T Metallurgical in Kamloops and SGS Lakefield in Vancouver to test the recoveries.

Stéphane Amireault, Vice President of Exploration for Sulliden, commented, "We are pleased with the ongoing success of our drilling program on the Shahuindo property. Our exploration activities continue to define new mineral resources in the Central Corridor and the deeper drill holes that we are conducting are helping us validate the geological model of Shahuindo with confirmed extensions of mineralization in the sulphides at depth. We look forward to ongoing exploration success as we continue to drill our priority exploration targets in the Central Corridor, including deep sulphides, as well as the North Corridor."

To view Figure 1 – Plan View of Mineral Deposit Locating New Drill Hole Locations, please visit the following link: http://media3.marketwire.com/docs/728978_figure.jpg

Table 1 – Central Corridor Drill Results (Intercepts have been calculated using a 0.2 g/t cut-off)
WEST ZONE
Drill hole # From (metres) To
(metres)
Interval (metres) True Width
(metres)
(1)
Gold
(g/t)
Silver
(g/t)
Type
SH11-218 (2) 138.6 170.1 31.5 12.6 1.63 48.0 Sulphide
including (2) 138.6 147.6 9.0 3.6 4.10 115.6 Sulphide
SH11-220 (2) 153.6 264.6 111.0 44.5 0.97 12.6 Sulphide
including 162.6 185.1 22.5 9.1 1.87 15.8 Sulphide
including (2) 254.1 259.5 5.4 2.1 3.83 18.7 Sulphide
SH11-224 45.3 57.3 12.0 7.8 1.12 22.5 Oxide
SH11-224 (2) 71.2 76.8 5.6 3.6 3.27 14.8 Oxide
SH11-225 39.5 53.3 13.8 8.9 1.17 9.9 Oxide
SH11-225 62.0 77.0 15.0 9.6 1.82 68.5 Oxide
SH11-225 81.5 120.5 39.0 25.1 0.47 23.0 Mixed
SH11-225 140.0 167.0 27.0 17.4 0.59 19.3 Mixed
SH11-225 (3) 179.0 198.5 19.5 12.5 0.42 10.5 Mixed
SH11-226 (2,4) 8.0 21.5 13.5 8.7 1.83 11.9 Oxide
SHG11-227 (4,5) 0.0 24.0 24.0 8.2 0.59 7.5 Oxide
SH11-228 (6) 84.3 96.3 12.0 7.7 0.24 13.4 Oxide-Sulphide
SHG11-229 (2,5) 30.0 49.5 19.5 12.1 1.03 7.0 Oxide
including (2) 31.5 34.5 3.0 1.9 5.13 38.6 Oxide
SHG11-229 85.5 88.5 3.0 1.9 2.64 36.5 Oxide
SH11-230 (6) no significant mineralized intersection
SH11-231 (7) 116.1 135.6 19.5 8.2 0.90 98.5 Mixed
SH11-231 (3) 195.6 207.6 12.0 5.1 0.59 5.2 Sulphide
SHG11-234 (2,5,7) 54.0 165.0 111.0 68.8 1.28 32.0 Oxide-Sulphide
including 85.5 95.8 10.3 6.4 2.04 26.0 Oxide
including (2) 117.0 130.5 13.5 8.3 3.21 69.5 Sulphide
including (2,7) 139.5 157.5 18.0 11.0 2.15 39.7 Sulphide
SH11-236 (6) 56.5 62.0 5.5 3.5 0.39 1.1 Oxide
SH11-237 64.0 78.0 14.0 4.8 0.38 2.3 Sulphide
SH11-238 193.5 208.5 15.0 8.6 0.92 14.4 Sulphide
including 204.0 208.5 4.5 2.6 2.50 34.6 Sulphide
SH11-239 19.0 22.0 3.0 1.9 2.39 0.9 Oxide
SH11-241 (4) 0.0 3.8 3.8 2.9 1.34 6.1 Oxide
SH11-241 39.8 49.3 9.5 5.9 0.50 0.9 Oxide
SH11-243 115.5 130.5 15.0 8.8 0.53 0.5 Oxide
SH11-246 95.4 127.5 32.1 19.3 0.96 43.5 Oxide
including 112.1 124.6 12.5 7.5 1.58 58.5 Oxide
SH11-273 78.0 95.8 17.8 12.5 0.44 20.7 Mixed
CENTRAL ZONE
Drill hole # From (metres) To
(metres)
Interval (metres) True Width
(metres)
(1)
Gold
(g/t)
Silver
(g/t)
Type
SH11-233 20.6 37.1 16.5 11.6 0.75 7.9 Oxide
SH11-233 46.1 56.6 10.5 7.4 0.75 7.4 Sulphide
SH11-233 62.6 68.6 6.0 4.2 1.53 9.0 Sulphide
SH11-249 (2) 49.8 82.8 33.0 20.8 1.44 13.6 Oxide
including (2) 57.3 74.4 17.1 10.8 2.10 23.7 Oxide
SH11-249 114.3 148.8 34.5 21.4 0.42 13.4 Oxide
SH11-249 168.3 241.8 73.5 44.6 0.36 4.9 Oxide
SHG11-251 (3,5,6) 82.3 134.8 52.5 30.4 0.91 20.2 Oxide
including 91.3 116.8 25.5 14.8 1.39 20.3 Oxide
SHV11-252 (4) 4.4 27.0 22.6 13.9 0.62 1.0 Oxide
SHV11-252 (2) 45.8 134.1 88.3 51.7 0.83 2.9 Oxide
including (2) 57.0 64.5 7.5 4.5 2.80 2.0 Oxide
including 114.0 126.0 12.0 6.9 1.20 5.7 Oxide
SH11-253 12.7 32.2 19.5 13.6 0.40 4.2 Oxide
SHV11-255 (2) 51.1 72.1 21.0 13.8 1.29 41.0 Oxide
including (2) 54.1 59.0 4.9 3.2 3.06 93.9 Oxide
EAST ZONE
Drill hole # From (metres) To
(metres)
Interval (metres) True Width
(metres)
(1)
Gold
(g/t)
Silver
(g/t)
Type
SHG11-235 (5,7) 84.0 166.9 82.9 47.0 0.75 39.9 Oxide
including (7) 120.0 133.5 13.5 7.6 1.71 115.0 Oxide
SH11-245 13.0 59.6 46.6 32.3 0.49 4.4 Oxide
SH11-248 (7) 135.0 199.5 64.5 43.4 0.84 17.7 Oxide
including 159.0 165.0 6.0 4.0 2.23 2.0 Oxide
including (7) 171.0 187.5 16.5 11.1 1.49 58.2 Oxide-Mixed
SH11-248 (3) 307.5 316.5 9.0 5.8 0.59 9.3 Sulphide
SUB-CORRIDOR 'A'
Drill hole # From (metres) To
(metres)
Interval (metres) True Width
(metres)
(1)
Gold
(g/t)
Silver
(g/t)
Type
SH11-254 52.8 87.3 34.5 22.0 0.35 3.7 Sulphide
including 80.5 84.3 3.8 2.4 0.98 2.6 Sulphide
(1) Assuming perpendicular or near perpendicular to the plane defined by the drill hole. Geological understanding of the mineralized zones is continuing to develop as the project advances.
(2) One or more Gold assays capped at 7 g/t Gold
(3) Mineralization found within 10 meters of end of hole
(4) Mineralization found within 10 meters of beginning of hole
(5) PQ twin hole
(6) Hole stopped for technical reasons
(7) One or more Silver assays capped at 300 g/t Silver

Quality Control and Assurance

Stéphane Amireault, P.Eng., Vice-President Exploration for Sulliden is the "Qualified Person", as defined by National Instrument 43-101, who is responsible for the management of the exploration program and disclosure of the drill results. Mr. Amireault has read and approved the technical and scientific information in this news release.

The analyses for this drilling campaign were carried out by ALS Chemex in Lima, Peru, exercising a thorough Quality Control and Assurance program (QA/QC). All ALS Chemex labs are ISO 9000 registered laboratories. Gold assays reported in this press release were obtained by standard 50 gram fire assaying with AA finish. Gold values over 10g/t Au were obtained by fire assay and gravimetric finish. Silver assays reported in the press release were obtained by Aqua-Regia dissolution followed by ICP-AES measurement. For silver values over 100g/t Ag, Aqua-Regia was followed by Atomic Absorption spectrometer reading. For silver values over 1000g/t Ag, a 30g fire assay was completed with a gravimetric finish.

About Sulliden

Sulliden is a Canadian-based precious metals company focused on the exploration and development of the Shahuindo Gold and Silver Project, located in a prolific gold producing district in northern Peru. This project neighbours world class mines, including Barrick Gold's Lagunas Norte Mine 30 kilometres to the south and the Yanacocha Mine operated by Newmont Mining Company 80 kilometres to the north. A positive Preliminary Assessment for the Shahuindo Project was completed in February 2010 and a Feasibility Study is currently underway. On June 16, 2011, an updated mineral resource estimate more than doubled the Indicated gold ounces in the oxides and almost quadrupled the Inferred gold ounces relative to the 2009 year-end estimate. While the Company progresses towards its goal of becoming a gold producer, a significant focus is also being placed on exploration drilling. The current mineral deposit is open in all directions and at depth, and the Company has planned approximately 70,000 meters of drilling in 2011 to continue the mineral expansion on the property. Sulliden is led by a strong management team with the proven ability to develop, finance and operate mining projects and is poised to generate superior value for its shareholders.

On behalf of Sulliden Gold Corporation Ltd.:

Peter Tagliamonte, President and CEO

Stan Bharti, Chairman

For further information on Sulliden please visit the company website at www.sulliden.com.

If you would like to be added to Sulliden's news distribution list, please send your email address to contact@sulliden.com.

Caution regarding forward-looking information:

This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes without limitation, statements regarding the drilling results, the size and quality of the company's mineral resources, progress in development of mineral properties, future capital and operating expenses, future metal prices, the future financial or operating performance of the Company, the prospective mineralization of the properties, planned exploration programs and anticipated production schedule. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Contact Information

  • Sulliden Gold Corporation Ltd.
    Caroline Arsenault
    Investor Relations Manager
    (416) 861-5805

    Sulliden Gold Corporation Ltd.
    Scott Moore
    Vice President Corporate Development
    (416) 861-5903
    www.sulliden.com