Sulliden Gold Corporation
TSX : SUE
OTCQX : SDDDF

Sulliden Gold Corporation

October 26, 2010 07:30 ET

Sulliden Continues Mineral Expansion at Shahuindo

TORONTO, ONTARIO--(Marketwire - Oct. 26, 2010) - Sulliden Gold Corporation Ltd. ("Sulliden", the "Company") (TSX:SUE)(OTCQX:SDDDF) is pleased to announce further positive results from the current exploration program at the Shahuindo Gold Project located in northern Peru. Results continue to indicate mineral growth that extends beyond the current mineralized envelopes laterally and at depth. Sulliden expects the recent drill results to positively affect the new National Instrument 43-101 ("NI-43-101") mineral resource estimate, expected in early 2011.

Significant intercept derived from both the East and West zones in this group of exploration results are highlighted below. An economic cut-off grade of 0.17 g/t in gold oxides was established by AMEC in the NI 43-101 study (see news release of December 8, 2009).

  • 0.78 g/t Au over 106.5 meters including 1.62 g/t Au over 18 meters in hole RSH10-57 in the EAST ZONE (See Figure 1)
  • 0.47 g/t Au over 100.5 meters including 1.03 g/t Au over 25.5 meters, and 1.49 g/t Au over 72.0 meters in hole RSH10-66 in the WEST ZONE (See Figure 2)

Peter Tagliamonte, President and CEO of Sulliden commented, "Today's results continue to increase our confidence in the excellent upside potential of the Shahuindo Gold Project. These positive exploration results continue to expand the mineralization inside and outside of the defined pit and will likely expand the future pit design and increase the mineable ounces. As we progress with our exploration program we will continue to define the limits of the mineralization along the Central Corridor, and begin to include other new promising targets in our exploration efforts."

Sulliden initiated a 30,000 meter resource expansion drilling program in August 2010, following the award of a project-wide exploration permit (See news release of July 20, 2010). To date, 86 holes totalling 17,000 meters of this program have been drilled in the Central Corridor and exploration activities continue on track with five drills currently operating on the site.

Summary of Results

Results from the new 14 drill holes in the tables below represent 2,800 meters of the current 30,000 meter exploration program. The selected sections 600W (Figure 1) and 1200E (Figure 2) graphically demonstrate the expanding mineral resource in purple from the existing red grade shells in the East and West zones.

To view Figure 1 - Section 600W, please visit the following link: http://media3.marketwire.com/docs/sdddf_1026_fig1.jpg.

To view Figure 2 - Section 1200E, please visit the following link: http://media3.marketwire.com/docs/sdddf_1026_fig2.jpg.

To view Figure 3 - Plan View with New Collar Locations, please visit the following link: http://media3.marketwire.com/docs/sdddf_1026_fig3.jpg.

Table 1 – Drill Results

WEST ZONE
Drill hole # From
(meters)
To
(meters)
Interval
(meters)
True Width
(meters)
(1)
Gold
(g/t)
Silver
(g/t)
RSH10-61 No significant mineralized intersection
 
RSH10-63 6.0 10.5 4.5 2.9 0.79 8.7
 
RSH10-64 No significant mineralized intersection
 
RSH10-65 34.5 121.5 87.0 51.1 0.66 22.4
including 54.0 97.5 43.5 25.6 0.98 28.1
RSH10-65 148.5 154.5 6.0 3.5 0.22 6.2
RSH10-65 183.0 223.5 40.5 23.8 0.37 12.5
RSH10-65 244.5 292.5 48.0 28.2 0.32 17.3
 
RSH10-66 24.0 124.5 100.5 64.6 0.47 8.2
including 39.0 91.5 52.5 33.7 0.66 11.2
including 54.0 79.5 25.5 16.4 1.03 17.7
RSH10-66 147.0 159.0 12.0 7.7 0.23 9.8
RSH10-66(2, 3) 174.0 246.0 72.0 46.3 1.49 31.3
 
SHM10-133(4) 0.0 120.0 Samples sent for metallurgical testing - results pending.
SHM10-133 120.0 140.1 20.1 9.2 0.38 10.2
SHM10-133 145.8 155.0 9.2 4.2 0.26 2.2
SHM10-133 216.6 225.6 9.0 4.1 0.45 3.4
 
CENTRAL ZONE
Drill hole # From
(meters)
To
(meters)
Interval
(meters)
True Width
(meters)
(1)
Gold
(g/t)
Silver
(g/t)
SH10-129(5) 9.0 51.4 42.4 26.8 0.38 7.1
SH10-129 62.7 69.0 6.3 3.5 0.85 1.9
SH10-129 96.0 147.0 51.0 28.1 0.37 6.4
SH10-129 162.0 188.4 26.4 14.4 0.28 1.6
 
EAST ZONE
Drill hole # From
(meters)
To
(meters)
Interval
(meters)
True Width
(meters)
(1)
Gold
(g/t)
Silver
(g/t)
RSH10-52 9.0 37.5 28.5 17.2 0.33 3.7
RSH10-52 90.0 117.0 27.0 16.2 0.32 1.6
RSH10-52(2) 130.5 150.0 19.5 11.7 0.57 5.4
 
RSH10-55 6.0 43.5 37.5 25.6 1.07 6.0
Including 6.0 25.5 19.5 13.3 1.70 9.3
RSH10-55 57.0 87.0 30.0 20.5 0.55 5.4
RSH10-55 151.5 156.0 4.5 3.1 0.53 0.4
RSH10-55 162.0 169.5 7.5 5.1 0.54 4.7
 
RSH10-57 0.0 106.5 106.5 53.3 0.78 6.9
Including 0.0 36.0 36.0 18.0 1.62 4.0
RSH10-57(2) 118.5 148.5 30.0 15.0 0.41 6.7
 
RSH10-59 25.5 37.5 12.0 6.0 0.35 4.9
RSH10-59 102.0 108.0 6.0 3.0 0.32 4.4
RSH10-59 120.0 136.5 16.5 8.3 0.34 1.9
RSH10-59 148.5 159.0 10.5 5.3 0.22 6.0
 
RSH10-60 13.5 48.0 34.5 17.3 0.27 4.9
RSH10-60 84.0 91.5 7.5 3.8 1.76 8.3
 
RSH10-67 9.0 87.0 78.0 44.7 0.61 6.0
RSH10-67 94.5 121.5 27.0 15.5 0.45 1.2
RSH10-67 157.5 169.5 12.0 6.9 0.25 1.7
RSH10-67(2) 229.5 261.0 31.5 18.1 0.44 7.9
 
SHM10-118(6) 6.3 144.0 137.7 79.0 0.91 8.7
SHM10-118(6) 178.2 192.1 13.9 8.0 0.21 4.4
  1. Assuming vertical or near-vertical zone, perpendicular or near-perpendicular to the plane defined by the drill hole
  2. Mineralization found within 10 meters of EOH
  3. The same intersection also yielded 1.2% Zn
  4. Twin hole of RCD 96-23
  5. Mineralization in overburden
  6. Metallurgical results from composite samples

Engineering Update

Kappes, Cassiday & Associates out of Reno, Nevada, continues to progress with the bankable Feasibility Study report for the Shahuindo Gold Project. Geotechnical and hydrological characterization studies on the project site are underway, and the Company continues baseline data collection for the Environmental Impact Assessment and mine permit data collection. Sulliden has awarded a contract to Golder and Associates to develop a geotechnical model of the Shahuindo deposit, which will assist in the optimization of the pit slope designs.

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 this news release.

The analyses for this drilling campaign were carried out by ALS Chemex in Lima, Peru and ALS Chemex in Reno, Nevada (for hole SHM10-118) 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 mining company focused on the exploration and development of its wholly owned Shahuindo Gold Project, located in Peru. This project is located in one of the world's most prolific gold producing districts and is home to 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 Shahuindo Gold Project was completed in December 2009 and a Feasibility Study is currently underway. While the Company progresses towards its goal of reaching production in 2012, a significant focus is being placed on exploration drilling to expand the mineral resource, which remains open in all directions and at depth. 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   Stan Bharti
President and CEO   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 effect of the appointment on the future financial or operating performance of the Company, the size and quality of the company's mineral resources, progress in development of mineral properties, future capital and operating expenses, capital and mine production costs, future metal prices and treatment and refining charges, the financial results of the company the future financial or operating performance of the Company, the prospective mineralization of the properties and planned exploration programs., the issue of permits, future production and sales volumes, capital and mine production costs, demand and market outlook for metals, planned exploration programs, anticipated production schedule and terms and the availability and likelihood of future acquisitions. 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; acquisition risks; and other risks of the mining industry. 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
    Caroline Arsenault
    Investor Relations Manager
    (416) 861-5805
    or
    Sulliden Gold Corporation
    Scott Moore
    Vice President Corporate Development
    (416) 861-5903
    www.sulliden.com