Sulliden Gold Corporation

Sulliden Gold Corporation

August 25, 2011 07:30 ET

Sulliden Initiates Diamond Drilling in the North Corridor Following Positive Exploration Results

TORONTO, ONTARIO--(Marketwire - Aug. 25, 2011) - Sulliden Gold Corporation Ltd. ("Sulliden", the "Company") (TSX:SUE)(OTCQX:SDDDF)(BVLAC:SUE) is pleased to report that it has begun diamond drilling in the North Corridor of its Shahuindo property in Peru (See Figure 1), where initial ground exploration has returned significant intercepts including an average of 4.4 g/t gold over 26 metres and 2.0 g/t gold over 21.5 metres from channel samples. The Company is also pleased to provide an update on the engineering studies for the Shahuindo Project.

The North Corridor is a parallel mineralized structure located approximately two kilometres north of the Central Corridor, and had previously been identified by preliminary soil geochemistry. As part of the larger exploration strategy at Shahuindo, Sulliden's geology team has been conducting mapping and comprehensive soil sample geochemistry on the property throughout the last two years. To date, these activities have been completed on approximately 20 square kilometres of the property. Results from the North Corridor showed a strong geochemical footprint that currently extends for at least two kilometres in a NW to SE direction (See geochemical anomaly results in Figure 1). Initial trenching and rock sampling in the North Corridor have returned positive results, including:

  • Six continuous horizontal channel samples averaging 2.0 g/t gold and 6.6 g/t silver over 21.5 metres
  • Five successive channel samples averaging 4.4 g/t gold over 26 metres located in an adit
  • Four chip samples covering an area of 830 square meters whose average returned 0.94 g/t gold

Exploration experience from the Central Corridor has shown a good correlation between surface geochemical anomalies from soil sampling and mineralization found in drill holes. The Company believes there is a strong potential to see a similar occurrence in the North Corridor.

The above exploration activities have also enabled the interpretation of additional mineral structures in the Central Corridor area, such as the previously announced sub-corridors "A" and "B" (see press releases from April 19, May 3 and May 26, 2011), and more recently a possible North-South trend which could connect the North Corridor, Central Corridor and South Corridor (See dotted blue lines in Figure below). Further surface sampling is planned along these trends to continue improving the geological understanding of the property and to define new drill targets as the project continues to expand.

Stephane Amireault, Vice-President of Exploration for Sulliden, commented, "The North Corridor is a favourable exploration target with many geophysical and geochemical anomalies that have yet to be drilled. We are pleased to have begun drilling this large and exciting target, and believe it could become a sizeable source of mineral growth for the Shahuindo Project."

The Company continues to progress its 70,000 metre drilling program planned for the Shahuindo Project in 2011, with 211 holes representing approximately 41,860 metres drilled to date.

To view Figure 1 – Geochemical Soil Sampling Program at Shahuindo, please visit the following link:

Engineering Update

Sulliden continues to make positive progress on the engineering studies at its Shahuindo Project. To date, the Company has completed 21,000 metres of additional drilling since the March 2011 data cut-off date of the latest mineral resource estimate. Results from drilling have continued to support expected mineral resource growth, a deepening of the known oxide mineralization and greater continuity of mineralization within the Central Corridor than had previously been modeled. Notable intercepts have included:

  • 1.17 g/t Gold over 104.6 metres, including 3.15 g/t Gold over 14.9 metres
  • 1.42 g/t Gold over 86.0 metres, including 3.38 g/t Gold over 15.4 metres
  • 1.75 g/t Gold over 58.5 metres, including 2.72 g/t Gold over 21.0 metres
  • 1.98 g/t Gold over 36.1 metres, including 4.17 g/t Gold over 3.0 metres
  • 1.20 g/t Gold over 52.5 metres, including 2.09 g/t Gold over 23.7 metres

The continued expansion of the mineral resource has allowed the Company to consider various optimization scenarios associated with maximizing gold production within the Feasibility Study. Results to date have indicated a potentially more robust project than initially anticipated. Mining rates and equipment sizes are being reviewed with a likely shift to larger tonnage capabilities.

The result is a project that appears to be growing beyond the original design parameters. As such, Sulliden now plans to complete the Feasibility Study in early 2012. The Company will complete the components of the Feasibility Study required for the permitting process in parallel with the engineering expansion of the project to attain a fast track construction decision for building a mine.

Quality Control and Assurance

Stéphane Amireault, P.Eng., Vice-President Exploration for Sulliden is a "Qualified Person", as defined by National Instrument 43-101, who is responsible for the management of the exploration program and its results. Mr. Amireault has read and approved the technical and scientific information in this news release.

All sample sites were cleaned before sampling. Horizontal channel samples were taken continuously and length weighted average is reported. Chip samples consisted of taking between 15 to 30 chips per sample, each sample covering a discontinuous zone of outcrop extending over 30 to 250 square meters. A simple average of chip samples was then calculated. Adit sampling consists of a succession of approximately 1 meter vertical channels taken every 5 meters along one wall of the adit. A simple average of these five channels is reported, one individual value (9.94 g/t gold) was cut to 7g/t gold. The analyses for this drilling campaign were carried out by ALS Chemex and SGS laboratories in Lima, Peru, exercising a thorough Quality Control and Assurance program (QA/QC). All ALS Chemex and SGS 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 (ALS) or 5g/t (SGS) were obtained by fire assay and 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, President and CEO

Stan Bharti, Chairman

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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