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

Sulliden Gold Corporation

February 16, 2012 18:00 ET

Sulliden Reports New Positive Drill Results and Provides Project Update

TORONTO, ONTARIO--(Marketwire - Feb. 16, 2012) - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX:SUE)(OTCQX:SDDDF)(LMA:SUE) is pleased to report new assay results for 22 holes totaling 4,241 metres of exploration drilling conducted on its Shahuindo property in northern Peru (See property location map, Figure 1).

The Company's exploration program continues in 2012 with further drilling designed to delineate new mineralization along the defined 3.8 kilometre Central Corridor at width and depth. Additionally, in the second quarter of 2012, the Company plans to initiate drilling on other prospective areas of the property, including the north-west and south-east extensions of the Central Corridor where significant mineral anomalies have been identified with geochemistry and geophysics. Further drilling in the North Corridor, which started in the later part of 2011, is also planned to continue this year.

All the drill results reported in this news release were obtained from holes in the Central Corridor (See Figure 2) which continue to encounter additional mineralization. Of particular interest are results in the Sub-Corridor 'B', a mineral structure found parallel to, and approximately 200 metres away from the West Zone. Nine new drill holes in this area have identified new extensions of mineralization along strike. The total strike length of mineralization defining the Sub Corridor 'B' has now expanded to over 300 metres and remains open. The Company intends to continue exploration efforts to define the total extension of this sub-corridor. Highlights from the Sub Corridor 'B' include (location of holes are highlighted in Figure 2):

  • Hole RSH11-211: Intersection of 0.51 g/t gold over 43.5 metres
  • Hole RSH11-209: Intersection of 0.75 g/t gold and 39.6 g/t silver over 25.5 metres (including 2.01 g/t gold and 149.4 g/t silver over 6.0 metres)
  • Hole RSH11-239: Intersection of 1.26 g/t gold and 14.7 g/t silver over 12.0 metres

Another significant intercept highlight from the Central Corridor was drill hole RSH11-219, which intersected 1.07 g/t gold and 17.4 g/t silver over 48.0 metres. This hole, located in the northern part of the East Zone, strengthens the possibility of a north-south trending mineralized occurrence initially identified with hole SH11-292, which intersected 1.61 g/t gold and 11.8 g/t silver over 64.5 meters, including 6.30 g/t gold and 46.6 g/t silver over 13.5 metres (see press release from November 30, 2011). This potential new extension with be further drill tested as part of the 2012 exploration program.

Project Update

Exploration

Sulliden made significant exploration progress on the Shahuindo property in 2011. Drilling in the Central Corridor, which is the location of the current mineral resource area on the property, was successful in expanding the mineralization in several areas, including two new sub corridors 'A' and 'B' (See Figure 2). In addition, in late 2011 and early 2012, the Company announced positive results from the initial drilling on the North Corridor. One of the highlights from the North Corridor, hole SHN11-328, intersected 53.8 metres of 0.85 g/t gold and 71.4 g/t silver in oxides, which is similar in grade and width as the mineralization found in the Central Corridor. These positive results have warranted further exploration drilling in 2012 as the Company works towards its objective of defining a mineral resource in the North Corridor. In 2012, drilling will continue in the North and Central corridors and will also begin drill testing the Central Corridor extensions, which, if successful, could potentially add strike length to the existing 3.8 kilometre ore body.

Mine Developments Associates ("MDA") is currently working on the completion of a new National Instrument 43-101 mineral resource estimate, which will be included in the upcoming Feasibility Study. The new mineral resource estimate will be based on all the accumulated drill data completed in the Central Corridor of the Shahuindo property up to the end of 2011.

Engineering

The Feasibility Study is progressing well with completion expected in the second quarter of 2012. Kappes, Cassiday and Associates ("KCA") is in the process of completing all the remaining engineering work required for the completion of the Feasibility Study, including the optimization of the mine fleet based on the mine plan prepared by MDA using the new mineral resource. Sulliden plans to own and operate its own mining fleet and these capital costs are currently being developed by KCA for inclusion in the Feasibility Study. The water management plan for the Shahuindo Mine is in its final stages and Sulliden expects the water consumption to be in line with the previous preliminary study showing the mining project to be water neutral. The Company continues to invest in the growth of its technical and professional staff in anticipation of the project's pending construction phase.

Permitting

The Company is advancing the Environmental Impact Assessment ("EIA") study, which will be required to obtain the mine construction permit. The technical aspects of this study are progressing well and the Company is also in the process of completing the required community consultation and transparency meetings. Sulliden expects to be able to submit its permit application within the second half of 2012 and is working diligently to obtain its construction permit as soon as possible.

To view Figure 1 - The Shahuindo property is located in a world-class mining district in northern Peru, please visit the following link: http://media3.marketwire.com/docs/mapSUE.jpg.

To view Figure 2 - Plan View of Mineral Deposit with New Drill Hole Locations in Central Corridor, please visit the following link: http://media3.marketwire.com/docs/sue0215fig2.jpg.

Table 1 - Central Corridor Drill Results (Assays presented in this table have been capped at 7 g/t gold and 300 g/t silver where noted. Intercepts have been calculated using a 0.2 g/t Au cut-off.)

CENTRAL CORRIDOR
Drill hole # From
(metres)
To
(metres)
Interval
(metres)
True
Width
(metres)
(1)
Gold
(g/t)
Silver
(g/t)
Type
SUB CORRIDOR 'A'
RSH11-217 73.5 84.0 10.5 10.2 0.49 1.9 Oxide
RSH11-217 102.0 126.0 24.0 23.3 0.63 6.0 Mixed
RSH11-217 211.5 240.0 28.5 27.7 0.45 7.2 Sulphide
Including 216.0 222.0 6.0 5.8 1.06 12.7 Sulphide
RSH11-218 28.5 42.0 13.5 13.5 0.55 1.7 Oxide
RSH11-218 (2) 223.5 228.0 4.5 4.5 0.72 8.6 Sulphide
SUB CORRIDOR 'B'
RSH11-209 (3) 87.0 112.5 25.5 15.4 0.75 39.6 Oxide
Including (3) 102.0 108.0 6.0 3.6 2.01 149.4 Oxide
RSH11-209 130.5 163.5 33.0 20.0 0.47 24.5 Sulphide
Including 148.5 153.0 4.5 2.7 1.48 46.6 Sulphide
RSH11-209 (2) 177.0 201.0 24.0 14.5 0.25 7.3 Sulphide
RSH11-210 25.5 37.5 12.0 7.9 0.42 2.1 Oxide
RSH11-211 19.5 30.0 10.5 6.8 0.35 2.1 Oxide
RSH11-211 43.5 87.0 43.5 28.1 0.51 1.9 Oxide
RSH11-212 24.0 43.5 19.5 12.3 0.53 8.7 Oxide
RSH11-214 (4) 4.5 10.5 6.0 4.1 0.26 1.9 Oxide
RSH11-215 45.0 52.5 7.5 4.8 0.33 1.5 Sulphide
RSH11-239 37.5 69.0 31.5 20.3 0.34 9.0 Oxide
RSH11-239 (5) 105.0 117.0 12.0 7.7 1.26 14.7 Oxide
SH11-298 25.5 38.0 12.5 7.9 0.49 7.8 Oxide
SH11-298 51.0 66.0 15.0 9.4 0.37 3.7 Oxide
SH11-298 73.5 91.0 17.5 10.9 0.68 11.3 Oxide
Including 78.0 84.0 6.0 3.7 1.38 14.4 Oxide
SH11-302 (6) 0.0 9.0 9.0 6.9 1.22 2.5 Oxide
SH11-302 9.0 13.5 4.5 2.9 2.34 0.6 Oxide
WEST ZONE
RSH11-213 111.0 127.5 16.5 11.4 0.53 26.6 Sulphide
Including 114.0 118.5 4.5 3.1 1.09 28.2 Sulphide
RSH11-213 199.5 252.0 52.5 36.1 0.59 29.7 Sulphide
Including 210.0 220.5 10.5 7.2 0.88 43.3 Sulphide
RSH11-213 (2) 267.0 282.0 15.0 10.3 0.91 37.0 Sulphide
Including 273.0 279.0 6.0 4.1 1.80 49.7 Sulphide
RSH11-231 No significant mineralized intersection
RSH11-232 No significant mineralized intersection
SH11-300 183.4 211.9 28.5 13.1 0.58 7.8 Sulphide
Including 184.9 190.9 6.0 2.8 1.11 9.9 Sulphide
SH11-300 364.9 369.4 4.5 2.1 0.53 47.0 Sulphide
SH11-309 No significant mineralized intersection
CENTRAL ZONE
RSH11-230 33.0 37.5 4.5 3.0 0.36 2.7 Oxide
RSH11-230 76.5 81.0 4.5 3.0 0.33 1.1 Oxide
RSH11-233 (6) 6.0 10.5 4.5 4.5 0.21 1.5 Oxide
RSH11-235 (6) 18.0 28.5 10.5 10.5 0.32 1.4 Oxide
EAST ZONE
RSH11-219 37.5 46.5 9.0 6.0 0.48 2.8 Oxide
RSH11-219 (5) 57.0 105.0 48.0 31.9 1.07 17.4 Oxide
RSH11-220 21.0 36.0 15.0 6.8 0.49 3.3 Oxide
RSH11-220 97.5 108.0 10.5 4.8 0.49 9.2 Oxide
SH11-306 38.7 66.2 27.5 12.2 0.45 5.5 Oxide
SH11-306 81.2 94.1 12.9 5.6 0.35 0.9 Oxide
SH11-306 103.2 124.3 21.1 9.1 1.18 3.7 Oxide
Including 112.7 122.1 9.4 4.1 2.11 4.7 Oxide
SH11-306 133.7 158.3 24.6 10.6 0.48 3.9 Oxide
SH11-306 174.2 195.2 21.0 9.1 0.71 8.0 Mixed
SH11-306 (3,5) 214.7 255.7 41.0 17.6 1.03 19.5 Mixed
including (3,5) 214.7 223.7 9.0 3.9 3.29 81.0 Sulphide
SH11-306 303.2 314.3 11.1 4.7 0.41 4.8 Mixed
(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) Mineralization found within 10 meters of end of hole
(3) One or more Silver assays capped at 300 g/t Silver
(4) Mineralization found within 10 meters of beginning of hole
(5) One or more Gold assays capped at 7 g/t Gold
(6) Mineralized overburden

Quality Control and Assurance

Sulliden's exploration program is being managed by its Vice-President of Exploration, Stéphane Amireault, P.Eng., a Qualified Person within the meaning of National Instrument 43-101. 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. 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 previous estimate. While the Company progresses towards its goal of becoming a gold producer, a significant focus is being placed on exploration drilling. The current mineral deposit is open in all directions and at depth, and the Company plans to further drill the property in 2012 to continue the mineral expansion. 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

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 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 Ltd.
    Caroline Arsenault
    Investor Relations Manager
    (416) 861-5805

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