Sunward More Than Doubles Measured and Indicated Resources at Titiribi Project, Colombia in Newly-Updated 43-101 Report

  • Measured & Indicated Mineral Resources Increase to Approximately 4.6 Million Ounces of Gold (6.3 Million Ounces of Gold Equivalent) 1

  • Inferred Mineral Resources Increase to Approximately 6.4 Million Ounces of Gold (7.5 Million Ounces of Gold Equivalent) 1

  • Average Gold Grade of Measured and Indicated Mineral Resource Increases by Approximately 8.3%; Gold Grade of Inferred Resource Grows by 9.8%

  • Resource Expansion Drilling is Continuing

VANCOUVER, June 4, 2012 /CNW/ - Sunward Resources Ltd. ("Sunward" or the "Company") (TSX: SWD; OTCQX:  SNWRF) is pleased to announce that it has completed an updated mineral resource estimate for its 100%-owned Titiribi Project ("Titiribi" or the "Project") located in Antioquia Department, approximately 70 kilometers southwest of the city of Medellin, Colombia. Since publication of the previous National Instrument 43-101 ("NI 43-101") compliant resource statement in September 2011, Sunward has had up to eleven drill rigs active at Titiribi, primarily drilling at the Cerro Vetas and Chisperos mineralized zones. This drilling is continuing.

A Technical Report respecting the updated resource estimate was prepared by Behre Dolbear & Company (USA), Inc. ("Behre Dolbear") in accordance with NI 43-101. The full technical report will be filed on SEDAR and be made available on the Company's website.

Behre Dolbear has reported that, based on a cut-off of 0.3 grams per tonne gold (as used in the September 2011 report), the Titiribi project currently hosts 275.4 million tonnes ("Mt") of Measured and Indicated Mineral Resources averaging 0.52 grams per tonne gold, and thus containing 4.58 million ounces ("Mozs") of gold. In addition, the Project contains substantial amounts of copper in the Measured and Indicated Resource categories resulting in a corresponding gold-equivalent resource of 6.28 Mozs. (Please refer to Tables 1.1 and 1.2 below for complete details).

These figures represent a substantial increase in the overall amount of gold and gold-equivalent contained in Titiribi's Measured and Indicated Resources, which, in September 2011, stood at 142.9Mt grading 0.48 grams per tonne gold and 0.15% copper for 2.20 Mozs gold and 3.50 Mozs gold-equivalent.  Importantly, the stated gold grade for resources in these categories increased by 8.3% to 0.52 grams per tonne.

Inferred Resources (359.6Mt averaging 0.56 grams per tonne) at Titiribi also increased, rising to 6.44 Mozs gold from 6.08 Mozs. Factoring in copper content in the Cerro Vetas mineralized zone, Inferred Resources, expressed in gold-equivalent, now total 7.51 Mozs. The average gold grade of the Inferred Resources reached 0.56 grams per tonne, a 9.8% increase.

The current resource model also identified a higher-grade zone of breccia-hosted, gold-dominant mineralization in the northwest sector of the Cerro Vetas porphyry (the "Northwest Breccia"). This zone hosts a Measured and Indicated Mineral Resource of 44.3Mt grading 0.58 grams per tonne gold for a contained 0.83 Mozs of gold, along with an Inferred Mineral Resource of 51.7Mt grading 0.78 grams per tonne gold containing 1.31 Mozs of gold.

"The Behre Dolbear Report clearly demonstrates that Titiribi is emerging as one of the most significant gold projects in the world," said Colin Andrew, Sunward's Chief Executive Officer. "Through recent drilling, we have both significantly increased the gold resource, and also improved the confidence level for the endowment. Considering that Cerro Vetas and Chisperos are only two (2) of seven (7) mineralized zones currently identified on the property, Sunward is well positioned to turn Titiribi into a major mining district with multiple gold and gold-copper operations."

Summarizing all of these recent geological developments at the Titiribi project, the authors of the Report note, "Sunward has done an outstanding job of following industry best standards," and add that, "the results of the drilling completed to date at Cerro Vetas, Chisperos, Porvenir, Junta and Candela give us confidence that, with additional drilling, there is an excellent likelihood that resources at the Titiribi Project could grow substantially."

Continued Mr. Andrew, "This report affirms not only the continuing growth potential of the gold and copper resource at Titiribi, but also the consistency and continuity of the mineralized bodies. Combined with a well-understood conceptual metallurgical process circuit, these are the types of characteristics that have made porphyry deposits one of the preferred targets for large mining developments globally."

The updated resource estimate covers the Cerro Vetas, Chisperos-Virgen, and the Northwest Breccia zones. The Northwest Breccia zone is located on the northwestern periphery of the Cerro Vetas zone while the Chisperos-Virgen zone is immediately to the northeast of Cerro Vetas.  This new resource statement is based on incorporation of an additional 42 drill holes for an additional 27,791 metres of diamond core drilling. The resource estimates are now based upon 120 drill holes in the Cerro Vetas and Chisperos zones for a total of 73,362 metres of drilling. Subsequent to the cut-off date for the current resource, an additional 32 holes have been completed in Cerro Vetas and Chisperos totaling 19,703 metres. The results from these drill holes will be included in a subsequent resource update. No resources are currently estimated for recently-discovered mineralization at the Junta, Candela and Porvenir Zones.

______________________________
1 Full resource statement to NI 43-101 standards included in text.

Significant Increase in Grade of Global Resource

The increased grades of both the Measured and Indicated and the Inferred Resources, noted by Behre Dolbear, were partly the result of the incorporation into the current resource model of recent drill holes intercepting higher-grade mineralized zones, including drill holes CV058 (38.1 metres grading 3.02 grams per tonne gold and 0.50% copper) and CV053 (30.0 metres grading 2.39 grams per tonne gold and 0.38% copper).  Behre Dolbear interprets this drilling as having intersected a "well-mineralized phyllically altered zone" which has "allowed for the discovery of much higher-grade mineralization adjacent to the core of the intrusive".  The Report further concludes that this new development "allows for a potentially large increase in well-mineralized tonnage."

Geology of the Titiribi Project

The Report confirms that the Titiribi Project contains several separate mineralized zones, and although all appear related to a large Miocene-age post-caldera intrusive system, each is spatially separate. These zones include porphyry gold-copper style mineralized intrusions at the Cerro Vetas, Candela, Porvenir, Margarita, Rosa and Junta prospects; gold-dominant, breccia-hosted mineralization peripheral to the Cerro Vetas porphyry and earlier (possibly pre-caldera) low-sulphidation, epithermal gold-antimony-zinc mineralization at Chisperos-Virgen.

Cerro Vetas is a bulk tonnage gold and copper mineralized body directly related to the Cerro Vetas diorite intrusion but also hosted in adjacent hydrothermal and intrusive breccias in the immediate contact aureole of the intrusion. The principal metallic minerals are native gold, chalcopyrite, pyrite, and magnetite. Gold values at Cerro Vetas normally correlate well with copper content and magnetite as well as with phyllic alteration. Several structural zones within the porphyry are sympathetic to regional structure and host a second style of structurally controlled vetiform mineralization, typically with higher grades of gold and copper. A third style of gold-only mineralization is developed in breccias to the northwest of the intrusion. The Cerro Vetas porphyry hosts typical porphyry copper alteration with a barren to weakly mineralized prograde potassic core, surrounded by a well-mineralized phyllic zone and a thinly mineralized retrograde argillic zone. The outermost propyllitic alteration zone is widespread.

The Chisperos mineralized zone is generally gold-dominant, and consists of parallel to sub-parallel mineralized zones that are both stratigraphically and structurally controlled and hosted in a volcano-sedimentary sequence of tuffs and tuffaceous sediments. At Chisperos, zones of bedding-controlled mineralization in volcanoclastic sediments pass apparently uninterrupted through diatreme breccia that cuts through the sediments. At Virgen, mineralized diorite dikes cut through diatreme breccia. Thus, an important age relationship can be established. Early diatreme breccia predates both low-angle thrust and high-angle, northwest-striking hydrothermal feeder faults, as mineralization related to those faults also mineralizes the breccia, and mineralization along the low-angle faults passes uninterrupted through the diatreme breccia. Northwest-striking hydrothermal feeder faults are post-diatreme breccia and pre-date the diorite that hosts mineralization at Virgen.

West-northwest-striking, steeply-dipping faults are presently believed to be the conduits for low temperature hydrothermal fluids, which deposited a low-sulphidation epithermal assemblage of chalcedonic silica, carbonate, adularia, free gold and base-metal sulphides within fracture zones, often to bonanza grade over narrow intervals (such as in recent drill hole CP027, which intersected 113.5 grams per tonne gold over 1.05 metres) and also created disseminated mineralized zones within stratabound shallow dipping, favourable stratigraphic lithologies.

Ongoing Work Program at Titiribi

Sunward currently has seven (7) drill rigs operating at Titiribi, continuing to investigate zones that contain the currently-identified resource. In addition, the Company has begun mobilizing rigs to exploration target zones on the south of the property, where Phase I drilling yielded extremely promising results, such as drill hole JT009 at the Junta target, which returned 43.7 metres grading 0.78 grams per tonne gold and 0.41% copper, from surface. Sunward expects to commence Phase II drilling at the Junta, Porvenir and Candela targets within the coming month. In addition, the Company will be carrying out Phase I drilling at two (2) new targets - Margarita and Rosa -where recent field mapping has identified surface-outcropping, mineralized diorite porphyry bodies. Results of this drilling will be released as they are received.

In addition to these currently-identified porphyry targets, the Report concludes that good potential exists for discovery of additional mineralized zones, with the authors noting that "higher-grade mineralization may lie buried beneath thin post-mineral cover." Sunward is currently conducting additional field mapping programs, aimed at investigating areas of such potential.

Additional Information

Behre Dolbear assigned Mr. Joseph A. Kantor and Dr. Robert E. Cameron to undertake the project.  Both are recognized as Qualified Professionals by the Mining and Metallurgical Society of America (MMSA) and as Qualified Persons under NI 43-101.  The Company's Chief Executive Officer, Colin J. Andrew, CENG MIMMM, FGS, is a Qualified Person under NI 43-101 and has reviewed and is responsible for the contents of this news release.

Table 1.1    Titiribi Measured and Indicated Mineral Resource

(0.3 g/t Au Cutoff as of May 9, 2012)
Model Class
Tonnes

(M)

Au

(g/t)

Cu

(%)
Contained Metal Au
Equivalence1

(M oz)
Au

(kg)
Au

(M oz)
Cu

(tonnes)
Cu

(M lbs)
Cerro
Vetas
Measured 7.5 0.46 0.16 3,460 0.11 12,241 27.0 0.19
Indicated 159.7 0.50 0.17 79,987 2.57 266,890 588.4 4.19
 
Chisperos Indicated 63.9 0.52 - 33,287 1.07 - - 1.07
 
NW
Breccia
Indicated 44.3 0.58 - 25,824 0.83 - - 0.83
 
Measured + Indicated 275.4 0.52 - 142,557 4.58 279,131 615.4 6.28
Gold Equivalence calculated using US$1,114 per ounce gold, US$3.07 per pound copper, and 100% recovery of both metals


Table 1.2   Titiribi Inferred Mineral Resource

(0.3 g/t Au Cutoff as of May 9, 2012)
Model Class
Tonnes

(M)

Au

(g/t)

Cu

(%)
Contained Metal Au
Equivalence1

(M oz)
Au

(kg)
Au

(M oz)
Cu

(tonnes)
Cu

(M lbs)
Cerro
Vetas
Inferred 205.2 0.51 0.09 104,669 3.37 176,205 388.5 4.44
 
Chisperos Inferred 102.6 0.54 - 54,987 1.77 - - 1.77
 
NW
Breccia
Inferred 51.7 0.78 - 40,579 1.31 - - 1.30
 
Total Inferred 359.6 0.56 - 200,235 6.44 176,205 388.5 7.51
Gold Equivalence calculated using US$1,114 per ounce gold, US$3.07 per pound copper, and 100% recovery of both metals


Note to Tables:

The mineral resources are reported in accordance with Canadian Securities Administrators' NI 43-101 and have been estimated in conformity with generally accepted CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines.  No Reserves conforming to these standards have been estimated as the Company has not advanced exploration and evaluation work to the point of developing plans, production schedules and economic analysis.

The Authors would also note that the Inferred Resource estimates have a great amount of uncertainty as to their existence and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred mineral resource will ever be upgraded to a higher category. Under Canadian NI 43-101, estimates of Inferred mineral Resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for a preliminary economic assessment or scoping study. Investors are cautioned not to assume that any or all of the Inferred Resources exist or are economically or legally mineable.

Notes:

  1. These resource estimates have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining and Metallurgy Resource Classification System, unless otherwise noted.
  2. Gold Equivalent is calculated using gold and copper at the following prices (US$1,114 per Tonnes per ounce Au, US$3.07 per pound Cu) three (3) year previous average metal prices.
  3. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content
  4. Tonnage and grade measurements are in metric units. Contained gold and silver ounces are reported as kilograms and troy ounces, contained copper as kilograms and imperial pounds

Cautionary Note Concerning Reserve & Resource Estimates

This summary table uses the terms "Measured Resources", "Indicated Resources" and "Inferred Resources". United States investors are advised that, while such terms are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission (the "SEC") does not recognize them. Under United States standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Mineral resources that are not mineral reserves do not have demonstrated economic viability. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. Disclosure of "contained ounces" is permitted disclosure under Canadian regulations, however, the SEC normally only permits issuers to report "resources" as in place tonnage and grade without reference to unit measures. Accordingly, information concerning descriptions of mineralization and resources contained in this release may not be comparable to information made public by United States companies subject to the reporting and disclosure requirements of the SEC.

NI 43-101 Standards of Disclosure for Mineral Projects is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in this circular have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System.

Definitions of Terms used in this News Release

A Mineral Resource is a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral resources are subdivided, in order of increasing geological confidence, into inferred, indicated and measured categories.

A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.

An Indicated Mineral Resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geologic and grade continuity to be reasonably assumed.

An Inferred Mineral Resource is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

Sample Preparation Assays QA/QC:

This Resource estimate relies upon drill core obtained by the Company as part of its exploration activities at Titiribi.  Drill core was logged, cut and sampled by Sunward personnel at the Company's facilities in Colombia. In the case of the drilling results referred to herein the samples were prepared at Inspectorate America's sample preparation facility in Medellin, Colombia and then analyzed at Inspectorate America's ISO 9001:2000 accredited laboratory in Reno, Nevada, USA, a facility that follows internationally accepted methods and procedures and has stringent quality control and assurance practices.

At the sample preparation facility in Medellin the samples were crushed to >80% passing -10 mesh using a terminator jaw crusher; split to 250 grams; pulverized using a LM2 ring pulverizer to over 90% passing -150 mesh; split into 125 grams aliquots which were then sent to Inspectorate America's laboratory in Reno for assay. Gold was analyzed by fire assay with Inductive Coupled Plasma (ICP) finish with a lower detection limit of 2 ppb. Samples above 5 grams per tonne were assayed by fire assay with gravimetric finish. In addition to gold a suite of 30 other elements including silver and copper were assayed by ICP-AES following an aqua regia digest.  Blanks, field and laboratory duplicates duplicate samples and a number of internationally approved and registered analytical standard samples were routinely randomly inserted into the preparation and analysis process as part of Sunward's normal quality assurance and quality control program.  Any analytical batch of assays wherein inserted standards assayed without the acceptable limits are rejected.

ABOUT SUNWARD:

Sunward Resources is a well-capitalized, Canadian-based company focused on the exploration and development of the 100%-owned Titiribi Project in Colombia.  The Titiribi Project is located approximately 70 kilometres southwest of the city of Medellin, Colombia, in Antioquia department, within the historical Titiribi mining district (estimated total production of 1.5 to 2 million ounces gold equivalent). Access is by paved highway from Medellin.

Cautionary Statement Regarding Forward Looking Information

This news release contains forward-looking information within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking information. Forward-looking information may include, but is not limited to, statements with respect to future activities of the Company; the Company's plans for its mineral properties; the Company's business strategy, plans and outlook; the merit of the Company's properties; exploration results; mineral resource estimates; work plans and timelines; completion of transactions; shareholder value; projections and targets; the future financial or operating performance of the Company, its subsidiaries and its projects; operating and exploration expenditures and costs of future exploration and other activities; and approvals, permits and licenses. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "possible", "budget", "scheduled", "strategy", "goal", "objective", "potential", "estimates", "assumes", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any results, performance or achievements expressed or implied by the forward-looking statements. Such uncertainties and factors include, among others, inherent risks involved in the exploration of mineral properties; risks associated with foreign operations; risk relating to title to the Company's properties; the uncertainties involved in resource estimates and in interpreting drilling results and other geological data; fluctuations in currency exchange rates and commodity prices; uncertainties regarding the issuance of approvals, licenses and permits; risks related to competition; risks related to the Company's ability to acquire additional mineral properties; the availability of and costs of required financing; economic, political and social uncertainties; accidents and labour disputes; and political instability, insurrection or war; as well as those factors discussed under "Risk Factors" in the Company's Annual Information Form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to that the Company's exploration of its properties and other activities will be in accordance with the Company's public statements and stated goals, that there will be no material adverse change affecting the Company or its properties, anticipated costs and timing for the Company's activities and such other assumptions as set out herein. Forward-looking statements are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

 

 

 

SOURCE Sunward Resources Ltd.

For further information:

Brenda Dayton
(604) 568-7617
brenda@sunwardresources.com

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