August 05, 2009 08:22 ET

Sulliden Exploration Inc.: Analyst Coverage Initiated on Shahuindo Gold Project

TORONTO, ONTARIO--(Marketwire - Aug. 5, 2009) - Sulliden Exploration Inc. ("Sulliden" or the "Company") (TSX:SUE) is pleased to provide a corporate progress update on the following items:

- Analyst Coverage initiated by Fraser Mackenzie

- Progress on Preliminary Economic Assessment (PEA)

- Progress on the Exploration Program

- Overview of the Company's marketing initiatives

- AGM Announcement

Sulliden is pleased to announce that analyst Gary Baschuk of Fraser Mackenzie Limited, a Canadian-based independent investment dealer, has initiated coverage of Sulliden on July 16th.

Peter Tagliamonte, President and CEO(i) stated "We are very pleased to see the research community begin to take notice of this exciting project. Exploration work on the Shahuindo property continues to advance as expected and the initial data released to the Company by AMEC for the Preliminary Economic Assessment confirms the potential for this project to become a mining operation. With exploration drilling results and the PEA due in September we look forward to an exciting phase in Sulliden's re-emergence as one of the leading advanced gold projects in South America."

AMEC completed a successful site visit to the Shahuindo Project in June 2009. They continue to progress on the Preliminary Economic Assessment (PEA) and Mineral Resource update and are on schedule to issue their reports in September. During the site visit, locations for leach pads, waste dumps, mine facilities and other site infrastructure were identified. AMEC has prepared preliminary mining and processing operating costs and is developing the mine plan based on their new resource model which is scheduled to be issued in late August.

The base case for the PEA considers an open pit mine operation. Mined material is proposed to be crushed, agglomerated with cement and then transported to the leach pad via a conveyor. Leach pad lifts would then be built using mobile conveyors located at the leach pad site. Gold and silver recoveries from heap leaching are estimated to be 80% and 15% respectively based on AMEC review of large-scale column leach test data. Gold and silver recovery from heap leach solution is planned to be achieved using an activated carbon in column plant.

Preliminary operating costs for pit optimization are estimated to be $1.40 per tonne for mining, $2.48 per tonne for processing and $1.46 per tonne for general and administrative (G&A). AMEC is in the process of developing capital costs for the project that will include an owner operated mining fleet option, package gold recovery circuit and site infrastructure.

Mr. Tagliamonte further commented that,"The preliminary cost data calculated for the base case evaluation shows the potential of the Shahuindo Gold Project. In addition to the engineering studies our objective is to show, through exploration, the potential to expand the current resource in a meaningful way that would allow us to significantly increase the production rate for the project."

Advanced exploration activities on the Shahuindo property are underway. Both reverse-circulation and diamond drilling contracts have been executed and the preparatory work for the drill pads and access ways are near completion. Sulliden is on track to commence drilling within the first week of August, with initial results expected in early September. The 3,700 meter drill campaign is part of an ongoing exploration program that Sulliden will continue throughout 2009, focusing on increasing the mineral resource, providing samples for further metallurgical testing and improving the geological understanding of the deposit. Results of this program will be used to update the resource model as the company moves into the full feasibility study phase of the Shahuindo Project, and to prioritize additional exploration targets.

Since the resolution of the litigation in April 2009, Sulliden's management team has been actively marketing the Shahuindo Gold Project and is focused on optimizing communication with its shareholders, and investors. The following initiatives are planned over the next few months:

- Concurrent with the exploration program, an analyst visit to the Shahuindo property is planned in August 2009. The focus will be for analysts to see the Company's ongoing exploration and engineering activities, tour the Shahuindo property and camp facilities, meet the management and geological teams, and review geological data.

- Sulliden has accepted an invitation to the Denver Gold Forum as an "emerging producer" from September 13th to 16th. Details of this conference can be found on

- A marketing trip to Montreal and Quebec City is planned for the fall. Please visit the "upcoming events" page of Sulliden's website ( as details of this visit are confirmed.

Sulliden's Annual General Meeting will be held at 4:00pm on September 17th 2009 at our Toronto offices, 65 Queen Street W., Suite 800, Toronto Ontario, M5H 2M5


Stephane Amireault, P.Eng., Vice President, Exploration for Sulliden Exploration Inc., is the Qualified Person for the information contained in this press-release and is the Qualified Person within the within the meaning of National Instrument 43-101. Mr. Amireault has read and approved this news release.

About Sulliden

Sulliden is a Canadian based mining company focused on the development and exploration of the Shahuindo Gold Project located in northern Peru, one of the world's most prolific gold and silver producing districts. World-class gold mines in the region include Barrick Gold's Lagunas Norte Mine, 30 km to the south, (1.2 million ounces of gold produced in 2008), and the Yanacocha Mine operated by Newmont Mining Company, 70 km to the north (1.8 million ounces of gold produced in 2008).

The Shahuindo Gold Project has a NI 43-101 compliant Mineral Resource Estimation completed by Met-Chem Canada Inc. in 2005 that estimates 38 million tonnes grading 0.95 grams per tonne of gold and 23 grams per tonne of silver of indicated resource (1.2 million ounces gold and 28 million ounce silver) and 17.2 million tonnes grading 0.62 grams per tonne of gold and 12.83 grams per tonne silver in the inferred category (342,000 ounces gold and 7.1 million ounces silver) (See Sulliden Press Release of April 29, 2005 for details regarding the resource estimate)

In March 2009, the five-year legal dispute that disrupted the Shahuindo Gold Project was resolved. With the current resolution, Sulliden now holds 100 percent registered and undisputed ownership of the Shahuindo property and has secured exploration options on sixteen adjoining mining concessions.

In April 2009, the Board of Directors appointed a new Management team with the focus and ability to develop, finance and operate mining projects. With a strong strategic plan to advance the development of its Shahuindo Gold Project and potential for mineral resource expansion, Sulliden is positioned to generate superior value for its shareholders.

The Mineral Resource Estimation was completed by Met-Chem Canada Inc. in 2005 and is filed on

To view "Figure 1 Shahuindo Project location map", please visit the following link:

On behalf of Sulliden Exploration Inc.,

Peter Tagliamonte Stan Bharti
President and CEO(i) Chairman

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 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. 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; other risks of the mining industry; and those risks described by the Company in its annual information form available under to profile on SEDAR at 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.

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