Sulliden increasing resource at Shahuindo

Sulliden Exploration (SUE-T) has cut significant gold and silver at its Shahuindo property, 15 km west of Cajabamba, in northern Peru.

The latest drilling is highlighted by one hole in the Breccia zone that ended in mineralization after cutting 95.5 metres grading 0.49 gram gold and 19.5 grams silver per tonne. This intercept included a 65-metre interval that graded 0.6 gram gold and 24.2 grams silver per tonne.

Hole no. 77, cut 12 metres grading 0.09 gram gold and 74 grams silver per tonne at a downhole depth of 105 metres and then, at 423 metres downhole, it cut 16.5 metres grading 0.4 gram gold and 51 grams silver per tonne.

The highest silver grade, 181 grams silver per tonne, was cut in the Breccia zone at a downhole depth of 129 metres and over a width of 6 metres.

The East zone drilling was highlighted by one hole that graded 3 grams gold over 21 metres. A few holes graded from 1-1.2 grams gold equivalent (gold plus silver) over 19-51 metres.

A total of 54 holes, 8,500 metres of drilling, tested five zones. At least 16 holes tested the East zone, seven tested the Breccia zone, and four holes were drilled between these two zones. Seven holes cut the ground between the East zone and the Moyan Alto zone. Six holes tested the area around the past-producing Shahuindo mine.

The property is underlain by sediments, locally intruded by intermediate-to-felsic intrusive rock. The rocks are folded; mineralization commonly trends parallel to the anticline axis.

Four zones have seen most of the drilling. The Principal (or San Jose) zone is found along the brecciated contact of sediments with a quartz feldspar porphyry. The East zone is hosted by sandstone. The South zone geology is similar to that of the Principal zone.

As at early March of last year, the Shahuindo project hosted an estimated indicated resource of 25.8 million tonnes of 1.07 grams gold (using a 0.3 gram gold per tonne cut-off) and 23.97 grams silver per tonne. In addition there is an inferred 8.6 million tonnes of 0.92 gram gold and 22.54 grams silver per tonne.

This drilling has extended the strike of the East zone by one-km. In addition, 150 metres of strike-length was added to the Breccia zone. A distance of 500 metres separates the two zones.

A new resource estimate, incorporating the new data, should be completed by the end of March.

A geochemical anomaly west of the San Jose zone with a strike-length of at least one-km has been trenched in one location, over 400 metres west of the western-most drill hole. Continuous five-metre-length samples resulted in 190 metres grading 1.6 grams gold and 18.6 grams silver per tonne. This zone will be tested during the next drill program.

The past-producing Algamarca mine (which produced about 1.5 million tonnes grading 2% copper and 680 grams silver per tonne) is in the southwest part of the property.