Sulliden Gold Corporation

Sulliden Gold Corporation

December 07, 2011 07:30 ET

Sulliden Purchases 1.5% NSR Royalty on Its Shahuindo Project in Peru

TORONTO, ONTARIO--(Marketwire - Dec. 7, 2011) - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX:SUE)(OTCQX:SDDDF)(BVLAC:SUE) is pleased to announce that it has exercised its option to acquire the 1.5% Net Smelter Return Royalty ("NSR Royalty") on production from the Shahuindo Gold and Silver property.

The 1.5% NSR Royalty was granted in February, 2009 as part of the Shahuindo Project settlement agreement (see March 2, 2009 press release). The purchase of the NSR Royalty was completed pursuant to the terms of the same settlement agreement, which provided Sulliden with the right to buy back the 1.5% NSR at any time prior to February 2012. The Company expended approximately US$11 million to complete the transaction.

Peter Tagliamonte, President and CEO of Sulliden, commented "Sulliden continues to make good progress with the development of the Shahuindo Gold and Silver Project and management believes that the purchase of the 1.5% NSR Royalty will further improve the economics of the project."

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. 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.

Quality Control and Assurance

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

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

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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 timing, terms and impact of the royalty buy-out on the Company, 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 Ltd.
    Caroline Arsenault
    Investor Relations Manager
    (416) 861-5805

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