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

Sulliden Gold Corporation

August 18, 2011 07:30 ET

Sulliden Continues to Report Positive Drill Results from the Shahuindo Gold/Silver Project

- Intersects 1.40 g/t Gold Over 42.3 Metres

- Continues to Deepen Oxides

TORONTO, ONTARIO--(Marketwire - Aug. 18, 2011) - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX:SUE) (OTCQX:SDDDF) (BVLAC:SUE) is pleased to announce additional drill results from the ongoing 70,000 metre drilling program being carried out this year at its 100% owned Shahuindo Gold and Silver Project in northern Peru. Results for ten new drill holes conducted in the Central Corridor are listed in Table 1 below. Highlights are as follows:

  • Hole SH11-211 in the West Zone
    • 0.88 g/t Gold over 90.5 meters, including 1.27 g/t Gold over 16.7 metres
  • Hole SH11-215 in the West Zone (See Figure 2)
    • 1.39 g/t Gold over 30.6 meters, including 3.19 g/t Gold over 7.5 metres
    • 0.88 g/t Gold over 61.5 meters, including 1.29 g/t Gold over 13.8 metres
    • 0.76 g/t Gold over 91.5 meters, including 1.53 g/t Gold over 11.7 metres
  • Hole SH11-216 in the West Zone
    • 1.40 g/t Gold over 42.3 metres including 5.72 g/t Gold over 6.0 metres

Peter Tagliamonte, President and CEO of Sulliden, commented, "We are pleased to see the ongoing positive results from the 2011 drilling program at Shahuindo, which have continued to extend mineralization beyond the previous deposit limits. In addition, our knowledge of the mineralization is continuing to improve and we are better defining the levels of oxide, transition and sulphide material, as well as higher grade shoots. In some areas, recent drilling has allowed us to deepen the previously interpreted oxidation front and we expect this to have a positive impact on the future mining."

The 70,000 metre drilling program the Company is undertaking in 2011 is progressing well with 201 holes representing approximately 39,660 metres drilled to date. Results from the ten new holes in this press release represent 2,147 metres of drilling. The collar locations of these holes are shown in Figure 1 below.

To view "Figure 1 – Plan View of Mineral Deposit with New Drill Hole Locations," please visit the following link: http://media3.marketwire.com/docs/sue818figure1.jpg.

The vertical section in Figure 2 below highlights new drill hole number SH11-215 in section 550W in the West Zone, where the Company has graphically interpreted newly identified mineralization (purple) in relation to the existing grade shells defined by Mine Development Associates in the updated mineral resource estimate announced on June 16, 2011 (in red). This new hole suggests the depth of oxide-sulphide boundary (solid dark blue line in Figure 2) to be approximately 50 vertical metres below that of the previous interpretation in the north-eastern part of this section (light blue dashed line in Figure 2). Since the oxides and sulphides are processed differently, this added volume of oxide material (see area highlighted in yellow in Figure 2) will positively contribute to the planned heap leach scenario.

To view "Figure 2 – West Zone, Section 550W," please visit the following link:
http://media3.marketwire.com/docs/sue818figure2.jpg.

*The interpretations of added mineralization highlighted in the section above are geological interpretations that are preliminary in nature and should not be relied on.

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
SH11-211(2) 21.3 111.8 90.5 56.6 0.88 15.5 Oxide
including 60.3 67.7 7.4 4.6 1.75 47.5 Oxide
including 70.2 86.9 16.7 10.4 1.27 22.7 Oxide
SH11-214(2) 133.8 147.3 13.5 8.1 1.39 24.2 Sulphide
including 135.3 140.4 5.1 3.1 3.02 54.5 Sulphide
SH11-214 172.8 184.8 12.0 7.0 0.68 6.0 Sulphide
SH11-215(2),(3) 0.0 30.6 30.6 15.0 1.39 4.0 Oxide
including 3.6 11.1 7.5 3.7 3.19 6.1 Oxide
including 18.6 23.1 4.5 2.2 1.84 5.4 Oxide
SH11-215 36.3 59.1 22.8 10.6 1.14 26.3 Oxide
including 39.3 43.8 4.5 2.1 1.92 59.6 Oxide
including 48.6 57.6 9.0 4.1 1.45 17.0 Oxide
SH11-215 69.6 131.1 61.5 27.4 0.88 22.0 Oxide
including 82.8 96.6 13.8 6.2 1.29 36.1 Oxide
including 101.1 102.6 1.5 0.7 3.72 44.5 Oxide
including 111.6 114.6 3.0 1.3 1.64 27.6 Mixed
including 124.7 131.1 6.4 2.8 0.99 13.3 Mixed
SH11-215(4) 140.1 231.6 91.5 40.6 0.76 18.0 Mixed
including 162.6 173.1 10.5 4.7 1.24 24.1 Oxide
including 184.4 186.6 2.2 1.0 1.25 26.0 Oxide
including 191.1 202.8 11.7 5.2 1.53 36.8 Oxide
including 205.2 208.4 3.2 1.4 2.11 28.4 Oxide
SH11-216(2) 90.2 132.5 42.3 26.4 1.40 31.6 Mixed
including 90.2 97.7 7.5 4.7 2.01 76.6 Mixed
including 103.7 109.7 6.0 3.7 5.72 77.7 Mixed
SH11-216 135.2 144.2 9.0 5.6 1.20 24.1 Sulphide
SH11-222 61.7 97.7 36.0 21.2 0.75 14.5 Oxide
including 63.2 73.7 10.5 6.2 1.55 16.4 Oxide
SH11-222 110.0 174.2 64.2 36.8 0.63 13.4 Mixed
including 126.2 138.2 12.0 6.9 1.04 15.5 Mixed
SH11-223(3) 5.4 19.7 14.3 9.1 0.52 1.3 Oxide
SH11-223(2) 91.7 99.2 7.5 4.6 3.92 0.7 Oxide
including 93.2 97.7 4.5 2.8 6.36 0.8 Oxide
SH11-223(4) 120.2 132.2 12.0 7.4 0.45 4.4 Sulphide
SUB-CORRIDOR 'A'
Drill hole # From (metres) To
(metres)
Interval (metres) True Width
(metres)
(1)
Gold
(g/t)
Silver
(g/t)
Type
SH11-210 120.3 144.3 24.0 14.2 0.50 19.0 Sulphide
SH11-210 151.8 162.3 10.5 6.2 0.40 5.9 Sulphide
CENTRAL ZONE
Drill hole # From (metres) To
(metres)
Interval (metres) True Width
(metres)
(1)
Gold
(g/t)
Silver
(g/t)
Type
SH11-219 81.0 100.5 19.5 11.9 0.70 1.0 Oxide
including 87.0 94.5 7.5 4.6 1.20 0.7 Oxide
SH11-219(5) 138.0 188.3 50.3 29.9 0.40 22.4 Mixed-Sulphide
EAST ZONE
Drill hole # From (metres) To
(metres)
Interval (metres) True Width
(metres)
(1)
Gold
(g/t)
Silver
(g/t)
Type
SH11-212 130.9 163.9 33.0 19.3 0.62 4.1 Oxide
SH11-212 240.4 292.9 52.5 29.9 0.76 19.2 Sulphide -Oxide
including 243.4 249.4 6.0 3.4 2.49 63.2 Sulphide -Oxide
MOYAN ALTO ZONE
Drill hole # From (metres) To
(metres)
Interval (metres) True Width
(metres)
(1)
Gold
(g/t)
Silver
(g/t)
Type
SH11-217 118.5 149.6 31.1 18.6 0.41 3.4 Oxide
SH11-217 (4) 154.5 208.5 54.0 32.0 0.26 4.3 Mixed-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 beginning of hole.
(4) Mineralization found within 10 meters of end of hole.
(5) 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 Stan Bharti
President and CEO Chairman

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
    Caroline Arsenault
    Investor Relations Manager
    (416) 861-5805

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