Sunward Resources Ltd.

Sunward Resources Ltd.

March 24, 2010 09:00 ET

Sunward Resources Ltd. Announces the Commencement of Drilling at the Titiribi Multi-Target Gold-Copper Project in Antioquia, Colombia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 24, 2010) - Sunward Resources Ltd. (TSX VENTURE:SWD) has commenced drilling on the Titiribi gold-copper project in the western Antioquia department, Colombia. This represents the inauguration of Sunward's exploration program at the property.

Sunward's geological team recently completed the first ever compilation of the large body of data gathered on the Titiribi project over 15 years of exploration by several different groups, including Gold Fields Ltd., in conjunction with Sunward's partner in Colombia, the Goldplata group. This data, which had never been comprehensively reviewed in entirety, includes aero-magnetic, ground magnetic, induced-polarization, deep-penetrating controlled-source audio magnetotellurics, resistivity, airborne spectral radiometrics, soil geochemistry and over 13,000 metres of historical core drilling. All of this data has been used by Sunward's geological team to refine the geologic model and to guide current exploration, including the drill program.

Philip O'Neill, chief executive officer of Sunward Resources, stated: "Our geological compilation has demonstrated that Titiribi is part of a strong gold mineralizing system. Sunward's 3,950 hectares of property contain ample evidence of the presence of several styles of mineralization, including porphyry-style mineralization at the Cerro Vetas and Virgen prospects, shear-zone-hosted mineralization at the Chisperos prospect and the prolific conglomerate-hosted mineralization that made the Titiribi area one of the largest gold-producing regions in South America at the beginning of the 1900s. The current drill program will focus on delineating the character and extent of mineralization within these different zones in an attempt to increase the extent of known mineralization, and expand the future development and exploration program for the project."

The inclusion of all available geological information has led to a greater understanding of the strong gold mineralizing system at Titiribi. As previously disclosed in Stockwatch in Sunward's news release dated March 9, 2010, previous work on the project focused on the Cerro Vetas porphyry-gold-copper prospect, where an NI 43-101-compliant inferred resource of 3.7 million ounces of gold with an average grade of 0.5 gram per tonne (using a cutoff of 0.3 gram per tonne) has been outlined (see "Amended independent resource report, Cerro Vetas prospect", dated Feb. 28, 2010, prepared by Grosure Exploration and Mining Solutions Pty. Ltd., as filed on SEDAR).

The Cerro Vetas porphyry remains open along strike and at depth, with the deepest drill holes having reached only 500 metres of vertical depth below surface. Several of the deepest holes bottomed in mineralization. One typical drill hole - CV006 - ended in mineralization, and assayed 0.78 g/t gold and 0.28 per cent copper over 167 metres at the bottom of the hole. These grades are approximately 55-per-cent higher than the average gold grade of 0.5 g/t for the Cerro Vetas resource as a whole.

Significantly, at least three other potential porphyry targets have been identified on Sunward's mineral licences at Titiribi, supporting the geological theory developed by Sunward and previous operators that the Titiribi project has potential to host a major porphyry district.

Newly identified targets include the Virgen anomaly, approximately 300 metres east of the Cerro Vetas porphyry, defined by geology, geophysics and previous drilling; the Candela anomaly - approximately 1,000 metres south of Cerro Vetas, defined by a gold-in-soil geochemical anomaly, surface geology and an air magnetic anomaly approximately five times the aerial extent of the magnetic anomaly associated with the porphyry at Cerro Vetas; and the Porvenir anomaly - approximately 2,000 metres to the southeast of Cerro Vetas, defined by an air magnetic anomaly 10 times the aerial extent of the anomaly associated with the Cerro Vetas porphyry and the current inferred resource.

Supporting the contention that Titiribi is the site of a strong and extensive gold mineralizing system,Sunward's geological work has identified a number of additional styles of gold mineralization associated with the already-identified porphyry-gold-copper deposit at Cerro Vetas.

The Chisperos target is series of moderate-to steeply-dipping shear zones, located 1,000 metres east of the Cerro Vetas porphyry. The zone of shearing and alteration at Chisperos reaches 80 metres in thickness and has a strike length of about 500 metres identified to date.

A number of historical workings (including adits) have been located around this zone, and assays fromother operators have been reported from these workings, including channel samples returning values of upto 7.8 g/t gold. The Chisperos shear zone was drilled by others (including Gold Fields), with several holes returning significant gold values, including high-grade gold values in hole TR4 of 49.67 g/t over 1.5 metres. Sunward intends to follow up on these reported intersections. None of the historical mineralized intervals intersected at Chisperos have been incorporated into Sunward's existing 43-101-compliant resource estimate.

In addition to shear-hosted mineralization at Chisperos, Sunward plans to investigate paleo-placer mineralization located in a conglomerate unit that overlies the metamorphic basement in the Titiribi area.

Gold mineralization within this conglomerate was the source of historic gold production at the Zancudo mine, the Independencia mine, the Cateador mine and many other operations in the Titiribi area, where historical production is estimated at between three million and five million ounces of gold (International Mining, October, 2008). The conglomerate unit at the Cateador mine was worked to within 25 metres of Sunward's property boundary. Previous drilling on Sunward's mineral licences intersected the conglomerate, with assays returning six g/t gold over 1.5 metres in drill hole TR1 (111 m to 112.5 m) and 5.36 g/t gold over one metre in drill hole TR10 (148.2 m to 149.2 m). Further, several mineralized intercepts have been recorded just above and below the conglomerate, including 4.3 g/t gold over 1.5 metres in drill hole TR2 and 4.7 g/t over 1.5 metres in drill hole TR12. None of these mineralized drill intercepts have been incorporated into Sunward's existing 43-101-compliant resource.

In addition to porphyry-style mineralization, shear-hosted mineralization and conglomerate-hosted paleo-placer mineralization, a number of other styles of mineralization have been identified by Sunward's geological personnel across the Titiribi property.

Field mapping by Sunward personnel recently identified a historical adit within several hundred metres of Sunward's mineral licences that worked mineralization associated with the contact between a porphyry andthe regional sedimentary rocks. Potential lode-type mineralization has also been identified within the metamorphic basement, where previous operators reported drill intersections of 4.94 g/t gold over 1.5 metres in drill hole TR1 (135 m to 136.5 m); six g/t gold over 1.5 metres in drill hole TR2 (163.5 m to 165 m); 7.05 g/t gold over 1.5 metres in drill hole TR5 (237 m to 238.5 m); 5.06 g/t gold over 0.7 metre in drill hole TR6 (146.75 m to 147.45 m); 4.43 g/t gold over 1.4 metres in drill hole TR9 (198.6 m to 200 m); and 3.4 g/t gold over 1.4 metres in drill hole TR12 (317 m to 318.4 m).

Sunward's current drill program is aimed at cost-effectively testing the most well understood of the gold mineralization models at Titiribi, including the Chisperos shear structure; the Virgen porphyry target, as well as the conglomerate unit that produced multimillion ounces of gold at the nearby Cateador mine. All of these targets lie within a small area of the Titiribi property, approximately one kilometre by one kilometre in aerial extent.

An initial program of 1,500 metres of drilling is planned. The drilling is being carried out by Terramundo Drilling of Medellin, Colombia.

The company has also launched its website, which contains further information about the Titiribi gold-copper project, as well as Sunward's other projects in Colombia.

Jonathan Challis, FIMMM, is a qualified person under National Instrument 43-101, and has reviewed and is responsible for the contents of this news release.

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