New Breccia type mineralization traced over 600 meters
Two new zones identified
Montreal, Canada. October 5, 2004. Sulliden Exploration Inc. (TSX: SUE) is pleased to announce the first set of results from the second phase drilling program on its wholly-owned Shahuindo gold/silver property in the Cajamarca district of northern Peru. This program was originally designed to test possible satellite extensions of earlier defined zones in near-surface areas never before drilled, commencing with the eastern sector known as the Moyan Alto area.
A total of 24 holes were completed for 3,800m in this area. Drilling commenced approximately 500m east of the last drilled section of the East zone over a 150m-to-300m-wide structural corridor at 100m intervals over a strike length of 600m. Results showed the outlining of a new breccia zone that returned continuous mineralization ranging from 0.4 g/t to 4.83 g/t gold over widths from 12m to 121.5m. The best intersection occurred in hole SH04-44 returning 21.5m @ 2.96 g/t gold including 12 meters grading 4.83 g/t gold (see attached table). The widest intersection was found in hole SH04-34 with 121.5m @ 0.44g/t gold.
Follow-up drilling on surface values also opened up two new zones. First, drilling under Trench V, which returned 48m @ 0.76g/t gold and 5.1 g/t silver on surface, revealed that the mineralization is shallow dipping to the south and appears stratabound, adding to the complexity of the orebody [SH04-47: 10.5m @ 0.58g/t gold]. Subsequent mapping showed that this other breccia in fact extends over 600m, runs parallel to the East zone and is located 500m to the south. Second, hole SH04-41 targeted a soil anomaly parallel to the East zone, 1.3 km to the south in a geological context similar to the main zone. Accordingly, a sediment package flanking the northern portion of a quartz-feldspar-biotite porphyry returned 16.7m @ 0.39 g/t gold. This result combined with the magnetic anomaly indicating the presence of this porphyry which extends for 3.8 km opens a totally new target area to be drilled at a later date.
This first target area in Sulliden’s second phase drilling program indicates the tremendous potential that lies within the Shahuindo property confirming the widespread presence of mineralization that remains open. The extension of the East zone by 1 km of strike length shows the magnitude that each phase of exploration work can yield over this 10,000 hectare project. The mineralization at Shahuindo can now be followed almost continuously over more than 6 km. Moreover, the outline of two new mineralized zones never before tested by drilling represents new target areas that have good potential to increase the property’s gold resources.
Drilling is now targeting the northern extension of the previously identified high grade gold and silver Breccia zone which geochemistry has shown may extend for approximately 300 m. Results from this portion are expected to be the focus of the next set of results in the weeks ahead.
Mineralized intervals for the drill program are as follows:
A. The following intersections have a minimum drill width of 10m and a minimum general grade of 0.3g/t
B.The included intersections have a minimum drill width of 4.5m and a minimum general grade of 0.7g/t
Location Hole From To Intersect Au ppm Oxidation State
EAST ZONE SH04-31 72.0 76.5 4.5 0.79 Transition
EAST ZONE SH04-33 ** 37.5 70.5 33.0 0.46 Oxide
Includes 64.5 69.0 4.5 1.02 Oxide
EAST ZONE SH04-34 15.0 21.0 6.0 0.72 Oxide
Includes 43.5 165.0 121.5 0.44 Transition+sulfide
Includes 141.0 154.5 13.5 1.14 Sulfide
EAST ZONE SH04-35 147.0 201.0 54.0 0.40 Sulfide
Includes 178.5 192.0 13.5 0.73 Sulfide
EAST ZONE SH04-36 44.6 57.0 12.4 0.89 Oxide
Includes 22.5 27.0 4.5 1.08 Oxide
Includes 49.5 57.0 7.5 1.28 Oxide
Includes 132.0 136.5 4.5 0.68 Sulfide
EAST ZONE SH04-44 10.5 32.0 21.5 2.96 Oxide
EAST ZONE SH04-45 21.5 58.5 37.0 0.37 Oxide
EAST ZONE SH04-46 66.0 81.0 15.0 0.54 Oxide
Includes 66.0 73.5 7.5 0.74 Oxide
Includes 93.0 130.9 37.9 0.48 Oxide
Includes 94.5 100.5 6.0 0.75 Oxide
TRENCH V SH04-47 13.5 24.0 10.5 0.58 Oxide
Includes 13.5 19.5 6.0 0.71 Oxide
CERRO
REDONDO SH04-41 26.8 43.5 16.7 0.39 Transition
Note:
** SH04-34 and SH04-33 are at the same position; SH04-33 was lost at 72m due to poor ground conditions
The final agreement for the scoping study has been signed with Aruntani S.A.C., Peru’s largest privately held gold producer. The study is expected to be completed by the end of the year. Sulliden intends to advance the Shahuindo gold/silver property towards production.
Sulliden Exploration Inc. is a mineral exploration company focused on the development of its 100% interest in the Shahuindo gold-silver project located 25 km north of Barrick Gold's Alto Chicama gold deposit and 70 km south of Newmont's Yanacocha deposits in northern Peru. On March 8, 2004 , the Company announced a new resource estimate conducted by Met-Chem Canada Inc. in accordance with NI 43-101 of 34.4 million tonnes at 1.03 g/t of gold and 23.61 g/t of silver for a total resource of 1,114,076 ounces of gold and 26,108,808 ounces of silver. A technical report has been filed with the regulatory authorities and is available on SEDAR (www.sedar.com). Sulliden also holds an option to earn a 66% interest on a further 1,900 hectares adjoining the Shahuindo property known as the Vikingo concessions, bringing its exposure in this exciting gold district to almost 10,000 hectares.
Stephane Amireault is a Geological Engineer and a member of the Professional Engineers of Quebec who serves as the Qualified Person for this release as defined by NI 43-101. Mr. Amireault is a project geologist for Sulliden Exploration Inc. and has supervised the preparation of the technical data contained within this release and certifies the data to be accurate based on current geologic knowledge of the deposit.
The analyses were carried out at ALS Chemex laboratories in Lima , Peru . Check assays were carried out at SGS laboratories in Lima . Fire assays for gold were performed on 50 grams of pulps with AA finish and gravimetric finish for samples above 10 g/t.
For Further information please contact:
Dr. Jacques Trottier, President
Tel: (514) 861-1953
e-mail: sulliden@colba.net
Donna Yoshimatsu , Vice-President
Investor Relations
Tel: (416) 362-8809
E-mail: dyoshi@sulliden.com
Certain of the information contained in this news release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include without limitation, statements regarding estimates of reserves and resources, future plans and objectives, results of exploration, uncertainty with respect to changes in general economic or political conditions, title to properties, litigation, legislative, environmental and other judicial, regulatory and competitive developments in areas in which the Company operates. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Sulliden’s expectations are disclosed under the heading “Risk Factors” in its 2004 Annual Report as well as in its Annual Information Form (AIF) both of which are filed with Canadian regulators on SEDAR.
