Sulliden Gold Corporation
TSX : SUE
OTCQX : SDDDF

Sulliden Gold Corporation

April 19, 2011 07:30 ET

Sulliden Confirms Parallel Gold/Silver-Bearing Structure at Shahuindo

TORONTO, ONTARIO--(Marketwire - April 19, 2011) - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX:SUE)(OTCQX:SDDDF) is pleased to provide an update on its ongoing exploration program, including new assay results for the latest 22 drill holes at its 100%-owned Shahuindo Gold and Silver Project in northern Peru.

  • Recent drilling and improved geological understanding has led to the discovery of an extension to a parallel gold/silver-bearing mineral structure located South-West of the Central Zone (see Figure 1). The mineralized zone is shallow, west dipping, open-ended, and currently identified over approximately 400 metres in strike length. Significant intercepts are shown in Figure 2.
  • An exploration drill rig capable of drilling deep holes has arrived at site and the Company has initiated its planned exploration program that will test the depth of mineralization across the four main zones of the Central Corridor.
  • Geochemistry and prospecting along the five kilometres of the North Corridor have been positive and are ongoing in preparation for exploration drilling. The Company expects to be able to begin drilling these targets early in the third quarter of 2011.
  • The Company's 70,000 metre exploration program for 2011 is well underway with approximately 22,000 metres of drilling completed since January 2011.

Peter Tagliamonte, President and CEO of Sulliden, commented, "The continued success of the exploration drilling program is very encouraging. The geology team's improving understanding of the structural controls for mineralization continues to identify new mineralized areas. The success of recent step-out drilling has revealed promising gold and silver-bearing parallel structures adjacent to the main mineralized corridor, which we will continue to test along with the other main exploration targets outlined for 2011. We are excited to begin drilling deep holes and expect to be able to release results in the next few months. We are also looking forward to drilling the North Corridor, where soil geochemistry is indicating a prospective zone."

Sulliden remains on track to issue a new NI 43-101 Mineral Resource by the end of May 2011. This new resource estimate will be used to complete the Feasibility Study, slated for release in the third quarter of 2011.

Summary of Results

A significant increase of mineralization has been identified in a parallel gold and silver-bearing structure, named "Sub-Corridor 'A'", at the South-West of the Central Zone where no previous grade shells had been defined due to lack of drilling (as seen on section 050E in Figure 2). The mineral structure in this parallel zone dips southward at a low angle, which differs from the vertical mineral structures in the Central Corridor. Geological interpretations have found that the mineralization in the Central Corridor and that of the Sub Corridor 'A' are physically separate. The improved geological interpretation of the mineralization in this area has enabled the definition of this new mineralized volume. Additional drilling is planned in this area to test the continuity and plunge of the mineralization.

The new results from 22 holes representing approximately 4,000 meters of drilling are presented in Table 1 below. The collar locations of the new holes are indicated in Figure 1 below. The vertical section in Figure 2 highlights the newly defined Sub-Corridor 'A' in section 050 East, where the Company has graphically demonstrated the interpretation of newly identified mineralization (in purple), and the existing grade shells as defined in the Preliminary Assessment from December 2009 (in red).

To view Figure 1 – Plan View of Mineral Deposit with New Drill Hole Locations, please visit the following link: http://media3.marketwire.com/docs/sue0419fig1.jpg.

To view Figure 2 – Sub-Corridor 'A', Section 050E, please visit the following link: http://media3.marketwire.com/docs/sue0419fig2.jpg.

Table 1 – Drill Results

WEST ZONE
Drill hole #From (metres)To
(metres)
Interval (metres)True Width
(metres)
(1)
Gold
(g/t)
Silver
(g/t)
SH11-184222.2268.746.528.60.5132.0
including232.7238.76.03.71.0343.7
RSH11-14234.542.07.55.10.373.4
RSH11-143No significant mineralized intersection
CENTRAL ZONE
Drill hole #From (metres)To
(metres)
Interval (metres)True Width
(metres)
(1)
Gold
(g/t)
Silver
(g/t)
SH10-18199.2145.746.532.30.323.8
SH10-183 (2)33.772.238.526.11.3617.9
including (2)47.254.77.55.13.9659.2
SH10-183101.2129.728.519.00.5428.9
SH10-183189.7217.728.019.10.6022.6
SH10-183 (3)242.2251.29.06.20.6614.5
SH11-185 (3)349.5373.524.016.31.5142.7
including364.5372.07.55.12.7269.1
SH11-188 (4)102.0127.025.017.20.2912.4
SH11-18993.0118.925.916.70.705.1
including114.0118.94.93.21.918.8
SH11-189170.3214.544.228.20.469.6
SH11-189234.4316.582.152.90.613.5
including286.5304.518.011.61.443.0
RSH11-12827.037.510.56.81.123.0
including30.036.06.03.91.764.4
RSH11-12925.563.037.524.10.831.5
including31.551.019.512.61.312.0
RSH11-130 (4)19.524.04.52.80.281.9
RSH11-134153.0168.015.09.90.8227.4
EAST ZONE
Drill hole #From (metres)To
(metres)
Interval (metres)True Width
(metres)
(1)
Gold
(g/t)
Silver
(g/t)
SHG10-182 (5)40.784.243.517.70.714.8
including48.257.29.03.71.646.7
SUB-CORRIDOR 'A'
Drill hole #From (metres)To
(metres)
Interval (metres)True Width
(metres)
(1)
Gold
(g/t)
Silver
(g/t)
SH11-18630.253.323.121.70.423.6
RSH11-1314.519.515.014.10.432.6
RSH11-132 (3)102.0120.018.016.90.649.4
RSH11-1334.555.551.047.90.402.2
RSH11-13625.542.016.515.51.075.6
including27.031.54.54.22.838.0
RSH11-13730.051.021.019.70.942.0
including30.039.09.08.51.711.4
RSH11-138 (4)40.549.59.08.51.5918.3
RSH11-13964.596.031.529.60.625.9
including64.575.010.59.91.239.6
RSH11-139105.0142.537.535.20.5814.2
including133.5136.53.02.82.45112.4
RSH11-1411.512.010.59.90.431.7
RSH11-14130.036.06.05.60.446.9
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 cut to 7 g/t Gold
3)Ends in mineralization
4)Stopped due to technical difficulties
5)PQ twin hole (a "twin" hole is defined by being collared within 3 meters and at the same dip and inclination as its adjacent hole)

QUALITY CONTROL AND ASSURANCE

Stéphane Amireault, P.Eng., Vice President Exploration for Sulliden is the Qualified Person responsible for the management of the exploration program and disclosure of the drill results as defined by National Instrument 43-101. 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. All gold assays reported in the press release were obtained by standard 50g fire assaying with AA finish. All silver assays reported in the press release were obtained by Aqua-Regia dissolution followed by ICP-AES measurement.

ABOUT SULLIDEN

Sulliden is a Canadian-based precious metals company focused on the exploration and development of the Shahuindo Project, its 100%-owned flagship property located in a prolific gold producing district in northern Peru. This project neighbors world-class gold mines including Barrick Gold's Lagunas Norte Mine, 30 km to the south, and the Yanacocha Mine operated by Newmont Mining Company, 80 km to the north; both million-ounce per year producing mines. A positive Preliminary Assessment for the project was completed in February 2010 and a Feasibility Study is currently underway. While the Company progresses towards its goal of becoming a gold producer, a significant focus is being placed on exploration drilling to increase the mineral resource, which remains open in all directions and at depth. Based on the drilling success in 2009/2010, Sulliden is undertaking 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 TagliamonteStan Bharti
President and CEOChairman

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