Sulliden Gold Corporation
TSX : SUE
OTCQX : SDDDF

Sulliden Gold Corporation

September 20, 2010 08:00 ET

Sulliden Expands Mineralization at Shahuindo and Identifies Significant Potential to Extend the Main Mineralized Corridor

TORONTO, ONTARIO--(Marketwire - Sept. 20, 2010) - Sulliden Gold Corporation Ltd. ("Sulliden", the "Company") (TSX:SUE)(OTCQX:SDDDF) is pleased to announce positive results for the first fourteen drill holes totalling approximately 2,650 meters of the current 30,000 meter exploration program on the Shahuindo property in Peru. Additionally, a recent geophysical survey has identified a significant anomaly to the South-East of the Main Mineralized Corridor (See Figure 4), which represents a potential 800 meter extension along strike of the currently defined 3.8 kilometre Main Mineralized Corridor. The Company intends to conduct drilling in this new target area during its current exploration program.

Highlighted below are selected drill results from the Central Zone, East Zone and Moyan Alto Zone which have all intersected mineralization outside of the currently known pit shell defined in the Preliminary Assessment in December 2009. These results demonstrate the continued growth potential along strike with mineralization remaining open in all directions and at depth.

  • 1.08 g/t Au and 1.4 g/t Ag over 20.8 meters and 0.66 g/t Au and 1.9 g/t Ag over 33.7 meters in hole SH10-119, and 1.41 g/t Au and 25.6 g/t Ag over 15.0 meters and 0.67 g/t Au and 3.9 g/t Ag over 16.0 meters in hole SH10-122 in the Central Zone (See Figure 1)
  • 1.15 g/t Au and 35.9 g/t Ag over 54.3 meters, including 1.41 g/t Au and 48.2 g/t Ag over 38.5 meters in hole SHM10-118 in the East Zone (See Figure 2)
  • 0.82 g/t Au and 10.0 g/t Ag over 33.5 meters, including 1.07 g/t Au and 15.9 g/t Ag over 15.0 meters in hole RSH10-38 in the Moyan Alto Zone (See Figure 3)

Stéphane Amireault, VP Exploration commented, "The initial assay results from this exploration campaign are very encouraging and confirm the definition of additional mineralized areas in each targeted zone. The broad widths and grades of these drill holes are particularly important as most of them are located outside of the current mineral resource grade shells. This represents a good potential for us to continue to expand the mineral resource in both oxides and sulphides. The exploration program at the Shahuindo property continues to confirm a mineral deposit that is open in all directions."

Summary of Results

 
CENTRAL ZONE
Drill hole # From (meters) To (meters) Interval (meters) True Width (meters)(1) Gold (g/t) Silver (g/t)
SH10-117 15.3 61.2 45.9 31.4 0.33 3.7
SH10-117 69.3 83.1 13.8 9.2 0.46 1.4
SH10-117 94.9 165.3 70.4 47.0 0.73 4.2
Including 139.9 163.7 23.8 15.9 1.29 4.9
SH10-117 174.6 190.9 16.3 10.9 0.27 1.6
 
SH10-119 10.4 43.4 33.0 20.8 1.08 1.4
SH10-119 63.9 91.9 28.0 17.3 0.53 6.5
SH10-119 108.3 162.1 53.8 33.7 0.66 1.9
 
SH10-120(2) 0.4 42.6 42.2 29.6 0.53 1.2
SH10-120 102.1 111.1 9.0 6.2 0.61 1.0
SH10-120 126.1 220.0 93.9 63.9 0.79 5.5
Including 126.1 156.1 30.0 20.4 0.96 2.1
Including 179.1 196.4 17.3 11.8 1.48 12.9
 
SH10-122(6) 30.3 55.8 25.5 16.0 0.67 3.9
SH10-122 75.3 105.3 30.0 18.6 0.42 2.6
SH10-122 132.3 156.3 24.0 15.0 1.41 25.6
SH10-122 175.7 185.7 10.0 6.3 0.35 18.0
 
SH10-1232(2) 1.4 12.0 10.6 7.5 0.43 1.1
SH10-123 24.0 34.6 10.6 7.4 0.52 8.4
SH10-123 47.9 64.6 16.7 11.5 0.45 1.1
SH10-123 109.5 144.0 34.5 23.5 0.46 10.6
SH10-123 151.5 161.0 9.5 6.5 0.34 10.1
SH10-123 164.6 180.0 15.4 10.5 0.34 2.2
 
SHM10-124(4) 0.0 150.2 150.2 -- -- --
SHM10-124 205.9 234.6 28.7 15.9 0.43 4.5
 
EAST ZONE
Drill hole # From (meters) To (meters) Interval (meters) True Width (meters)(1) Gold (g/t) Silver (g/t)
SHM10-118(4) 0.0 200.0 200.0 -- -- --
SHM10-118(3,5) 200.0 294.7 94.7 54.3 1.15 35.9
including 227.6 294.7 67.1 38.5 1.41 48.2
 
MOYAN ALTO ZONE
Drill hole # From (meters) To (meters) Interval (meters) True Width (meters)(1) Gold (g/t) Silver (g/t)
RSH10-362 3.0 15.0 12.0 6.9 0.57 1.1
RSH10-36 93.0 102.0 9.0 5.2 0.43 11.5
RSH10-36 112.5 117.0 4.5 2.6 0.41 6.9
 
RSH-10-37 81.0 126.0 45.0 27.7 0.43 4.6
RSH-10-37 157.5 175.5 18.0 11.1 0.29 2.5
 
RSH10-38 43.5 48.0 4.5 2.6 1.00 1.3
RSH-10-38 79.5 229.5 150.0 88.2 0.55 6.3
including 79.5 136.5 57.0 33.5 0.82 10.0
including 111.0 136.5 25.5 15.0 1.07 15.9
 
RSH-10-393 148.5 225.0 76.5 48.1 0.73 10.6
including 148.5 180.0 31.5 19.8 1.01 15.7
 
RSH-10-403 69.0 207.0 138.0 88.7 0.54 15.7
including 118.5 169.5 51.0 32.8 0.82 28.4
 
RSH10-41 60.0 133.5 73.5 47.2 0.46 10.4
RSH10-41 151.5 196.5 45.0 28.9 0.50 8.9
 
RSH10-42 82.5 174.0 91.5 60.0 0.52 5.5
including 103.5 130.5 27.0 17.7 0.92 3.9
  1. Assuming vertical or near-vertical zone, perpendicular or near-perpendicular to the plane defined by the drill hole
  2. Hole collared in mineralization
  3. Hole bottomed in mineralization
  4. Composite samples were sent for metallurgical testing, results are pending.
  5. Technical constraints precluded the advancement of the drill hole
  6. Mineralization in overburden

To view Figure 1 – Central Zone, Section 600E, please visit the following link:

http://media3.marketwire.com/docs/637403FIG1.jpg

To view Figure 2 – East Zone, Section 1100E, please visit the following link:

http://media3.marketwire.com/docs/637403FIG2.jpg

To view Figure 3 – Moyan Alto Zone, Section 2050E, please visit the following link:

http://media3.marketwire.com/docs/637403FIG3.jpg

*The new grade shells highlighted in the above sections are geological interpretations that are preliminary in nature.

To view Figure 4 – Plan View of Mineral Deposit with Collar Locations, please visit the following link:

http://media3.marketwire.com/docs/637403FIG4.jpg

Main Mineralized Corridor Extensions (See Figure 4)

Recent geophysical surveys conducted over the South-East portion of the Main Mineralized Corridor have mapped a 1,700 meter anomaly. This anomaly includes 900 meters of defined mineralization in the Moyan Alto Zone and extends a further 800 meters to the South-East in an area that has never been drill tested. In addition, to the North-West of the Main Mineralized Corridor, previous geological mapping and geochemical sampling conducted in 2007 identified a 1,600 meter gold-in-soil anomaly extending North-West from the West Zone. The combined length of these potential gold-bearing extensions could increase the current mineralized strike length by approximately 60% to 6.2 kilometres, from the current 3.8 kilometres. The Company will look to test these new target areas during its current exploration program.

Metallurgical program

Sulliden has completed a metallurgical field sampling program, which consisted of eight large diameter PQ (85 mm diameter) diamond drill holes taken along the strike length of the deposit and to full depth on the oxide mineralization to characterize the metallurgical response of the mineralized material throughout the depth of the deposit. The large size core will be used to determine the gold and silver recovery versus crush size for the various rock types. The metallurgical test work is being conducted at Kappes, Cassiday & Associates in Reno, Nevada and will consist of rolling bottle cyanidation and column leach tests to characterize gold and silver recovery along with reagent consumption and other physical characterization work to assist in the design of the heap leach. Results from these tests will be used in the Feasibility Study currently underway. 

New Zone Names

Sulliden has updated and simplified the names of the principle geological zones of the Main Mineralized Corridor to better reflect new geological understanding of the mineral deposit. The "San Jose Zone", and "Porphyry Zone" have been combined to form the new "West Zone", and the previously named "Gap Zone" and "South Zone" will now be referred to as the "Central Zone". The East Zone and Moyan Alto Zone remain unchanged (See Figure 5).

To view Figure 5 – New Naming of Mineralized Zones, please visit the following link:

http://media3.marketwire.com/docs/637403FIG5.jpg

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 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, operate and explore mining projects and is positioned 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 Ltd.
    Caroline Arsenault
    Investor Relations Manager
    (416) 861-5805
    or
    Sulliden Gold Corporation Ltd.
    Scott Moore
    Vice President Corporate Development
    (416) 861-5903
    www.sulliden.com