Sypher Resources Ltd.
CNSX : SYP

January 10, 2011 08:00 ET

Sypher Identifies New Gold Targets at McBride

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2011) -

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Sypher Resources Ltd. ("Sypher" or the "Company") (CNSX:SYP) is pleased to announce the results of exploration carried out in the early fall of 2010 at its McBride property in Manitoba.

The 2010 program comprised a Mobile Metal Ion ("MMI") soil survey covering a 1.7 by 1.0 kilometre area. A total of 419 soil geochemical samples were collected at 12.5-to-25 metre spacings on grid lines spaced approximately 100-to-200 metres apart. Four rock grab samples were also taken. Analysis on the MMI samples was performed by SGS Canada Inc. of Toronto, Ontario, while the rock and B horizon soil samples were analyzed by Eco Tech Laboratory Limited of Kamloops, British Columbia.

A MMI survey orientation line was completed over L6W, where previous drilling intercepted 10.8 metres averaging 1.72 grams gold per tonne in the Hangingwall horizon and 14.98 metres averaging 0.56 gram gold per tonne in the Footwall horizon in hole 07-01; 9.14 metres averaging 2.43 grams gold per tonne in the Hangingwall horizon and 15.50 metres averaging 0.59 gram gold per tonne in the Footwall horizon in hole MB-59; 10.67 metres averaging 3.19 grams gold per tonne in the Footwall horizon in hole MB-47 and 9 metres averaging 1.22 grams gold per tonne in the Footwall horizon in hole MB-37.

The MMI survey orientation line returned only weak gold-arsenic values over the known mineralization (less than 0.1 parts per billion ("ppb") gold to 0.3 ppb gold and less than 10 ppb arsenic). However, approximately 400 metres south of hole MB-47 along L6W, a string of five consecutive samples covering 62.5 metres returned from 0.8 ppb gold to 2.3 ppb gold and 120 ppb to 430 ppb arsenic. The gold-arsenic anomaly extends intermittently from L6W to L14W for a distance of over 800 metres. L13W returned the highest individual gold value with five consecutive samples covering 100 metres ranging from 0.7 ppb gold to 4.5 ppb gold and less than 10 ppb arsenic to 370 ppb arsenic. This anomalous trend is also coincidental with a strong magnetic geophysical anomaly defined in 2006 as well as a modest VLF-EM conductor outlined in 1994. Three grab samples collected on the periphery of this anomaly on L5W, L6W and L8W returned from less than 0.03 grams gold per tonne to 0.15 grams gold per tonne with arsenic values ranging from 6.9 parts per million ("ppm") to 1,908 ppm.

B Horizon soil samples were also collected along the orientation line and the results concur with the MMI findings with values over the known mineralization returning mildly anomalous values of 5-to-7 ppb gold and 1.5-to-1.7 ppm arsenic. The next anomalous values concur with the MMI results some 400 metres south along L6W with five consecutive samples returning from 2-to-20 ppb gold and 15.8-to-135.4 ppm arsenic. Background values for the B Horizon samples are 1.5 ppb gold and 2 ppm arsenic.

A second MMI anomaly occurs in the southwestern portion of the surveyed area, from L10W to L14W with single sample sites returning from 1.1 ppb gold to 1.9 ppb gold and 60 ppb to 130 ppb arsenic. A rock grab sample of angular talus material collected on the periphery of the anomaly on L10W returned 6.88 grams gold per tonne and 6.6 ppm arsenic.

Given the fact that the background values over the entire MMI survey are less than 0.1 ppb for gold and less than 10 ppb for arsenic, these two gold-arsenic anomalies, supported by the historical geophysical work, mark significant new gold exploration targets for the McBride property.

The McBride property is favourably located 15 km southwest of the Town of Lynn Lake, along provincial highway 396. The relief is moderate and most parts of the property are readily accessible year-round. Sypher can earn a 100% interest in the McBride Property, subject to a 3% net smelter return royalty, by incurring $600,000 in exploration expenditures and issuing 500,000 Sypher common shares on or before May 30, 2014. Sypher has completed its work commitments under this agreement for the 2010-2011 period and is currently in good standing on the McBride property until May 30, 2012.

Quality Control

Sypher maintains a quality assurance/quality control program that conforms to the requirements of National Instrument 43-101. Richard Graham P.Geol., President of Sypher and a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, is responsible for the preparation and verification of the technical information in this release.

Forward-Looking Statement

Some statements in this report contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, expenditures, transactions and financings. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, risks related to actual results of exploration activities, the timing and amount of expenditures and the completion of transactions and financings.

On behalf of the Board, Richard Graham, President & CEO

The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sypher Resources Ltd.
    Richard Graham
    (604) 488-8717