Shahuindo Gold Project

Quick Facts

• Located in a prolific gold producing belt in northern Peru.
• Indicated Mineral Resources totalling 1,050,000 ounces gold grading 0.63 g/t and 29,800,000 silver grading 17.9g/t and Inferred Mineral Resources totalling 290,000 ounces gold grading 0.51 g/t and 3,500,000 ounces silver grading 6.1 g/t silver.
• +30,000 meters of drilling planned in 2010 to expand mineral resource, which remains open in all directions and at depth.
• Robust Preliminary Assessment completed in 2009, Feasibility Study currently underway.
• Excellent opportunities to improve project economics.
• Average annual gold production of 105,000 ounces at cash operating costs of $403/oz.
• At $875/oz gold, pre-tax NPV of $119,102,000 at an 8% discount rate generating an IRR of 43.3%
• Gold production at the Shahuindo Gold Project is anticipated in 2012.

Project Location

The Shahuindo Gold Project is located in one of the world’s most prospective gold belts, neighbouring several low cash, low capital, heap leach gold mines including Barrick Gold’s Lagunas Norte Mine, 30 km to the south, and the Yanacocha Mine operated by Newmont Mining Company 80 km to the north; both million ounce per year producing mines.

The 100%-owned Shahuindo Gold Project covers approximately 8000 hectares in the Cajabamba Province in northern Peru. It is located in a historically known mining region 80 kilometers south of Cajamarca, the region’s capital city, and 15 kilometers west of Cajabamba city. This region has excellent infrastructure, good access to water and electricity, and is accessible year-round at a good working altitude of 2,700 to 2,900 meters.

“Peru is the 5th largest gold producing country in the world”

Preliminary Assessment

Sulliden announced the results from its Preliminary Assessment on December 8th 2009. Below are the assumptions and parameters that were used in this report.

Click HERE for the full Preliminary Assessment report.

*All monetary values are in U.S. dollars
** Silver mineralization occurs as refractory Argentojarosite, making cyanide recoveries of silver difficult, further metallurgical test work will be conducted.
***The preliminary assessment includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.

Simple Heap Leach Processing

(see December 8, 2009 press release for more information)