Sunward Receives Initial Metallurgical Testwork Results from Titiribi Project

>  Initial metallurgical testwork demonstrates high recoveries of up to 97.8% gold and 93.3% copper

TSX-V: SWD

VANCOUVER, Sept. 29, 2011 /CNW/ - Sunward Resources Ltd., ("Sunward" or the "Company" (TSX-V: SWD)) is pleased to announce successful results from its initial metallurgical process testwork for its 100%-owned Titiribi Project ("Titiribi") located in Antioquia Department, approximately 70 kilometres southwest of the city of Medellin, Colombia. This testwork was directed by the Golden, Colorado office of Tetra Tech Inc., a NASDAQ-listed firm and global leader in mining project evaluation with offices in 330 cities around the world. The studies were conducted by Resource Development Inc. of Golden, Colorado, a leading metallurgical testing firm that has completed comprehensive evaluation programs for major and junior mining companies at projects on six continents and covering a variety of mineral resources and commodities.

Initial metallurgical testwork for Titiribi focused on two exploratory process routes - a combination of gravity concentration and flotation, and whole ore leaching - and showed recoveries for gold of up to 97.8%, and recoveries for copper of up to 93.3%. Additional testwork is now underway to further define the process routes likely for commercial development and to further define the character and grade of the gravity and flotation concentrates.

For the initial testwork program, four bulk samples were submitted by Sunward representing the four principal types of mineralization observed to date at Titiribi:

1)   Typical porphyry-type, gold-copper mineralization hosted in the diorite of the Cerro Vetas zone;
2) Typical porphyry-type, gold-copper mineralization hosted in intrusive breccia on the western margin of the Cerro Vetas zone;
3) Gold-dominant mineralization hosted in intrusive breccia on the north-western margin of the Cerro Vetas zone; and,
4) Low sulphidation epithermal-type gold-dominant mineralization hosted in volcanoclastic-sediments of the Chisperos-Virgen zone (located less than one kilometre east of the Cerro Vetas zone).

Each sample consisted of 75 kilograms of drill core, representing composites from four to six individual drillholes covering the specific type of mineralization.

These samples were selected based on the types of mineralization outlined in Sunward's recently-released resource calculation for Titiribi from Behre Dolbear & Company (USA) (see Company press release dated September 8, 2011 and the technical report dated September 8, 2011, which are available on SEDAR at www.sedar.com), which showed, at the Cerro Vetas Zone, an Indicated Mineral Resource of 2.204 million ounces of gold along with 465.9 million pounds of copper (142.9 million tonnes grading 0.480 g/t gold and 0.148% copper, using a 0.3 g/t gold cut-off) along with an Inferred Mineral Resource of 4.078 million ounces of gold and 613.2 million pounds of copper (271.8 million tonnes grading 0.467 g/t gold and 0.102% copper, using a 0.3 g/t gold cut-off). At the Chisperos-Virgen Zone, Behre Dolbear identified an Inferred Mineral Resource of 2.001 million ounces of gold (100.9 million tonnes grading 0.617 g/t gold, using a 0.3 g/t gold cut-off).

GOLD-COPPER MINERALIZATION

For samples 1 and 2 (representing typical porphyry-type, gold-copper mineralization), sample material was crushed and ground and then subjected to gravity concentration via a centrifugal (Knelson) concentrator, with gravity tailings subjected to single-stage flotation using a typical and simple reagent suite.

The combination of gravity and flotation was successful in recovering 93.6% of contained gold and 93.3% of contained copper, at a grind size of 80% passing 200 mesh. A coarser grind size of 80% passing 100 mesh also showed excellent recoveries, with 90.6% of contained gold and 91.6% of contained copper recovered.

Simple gravity concentration alone was successful in recovering 35.8% of contained gold at a grind size of 80% passing 100 mesh.

Bond work indices (BWi) of the sample material ranged between 12.5 and 15.0, within the typical range of similar porphyry ores.

GOLD-DOMINANT MINERALIZATION

For samples 3 and 4 (representing epithermal, gold-dominant styles of mineralization), sample material was crushed and ground and then subjected to gravity concentration via a centrifugal (Knelson) concentrator, with gravity tailings subjected to single-stage flotation using a typical and simple reagent suite.

The combination of gravity and flotation was successful in recovering 97.8% of contained gold, at a grind size of 80% passing 200 mesh. Significantly, at a coarser grind size of 80% passing 100 mesh, recoveries were nearly unchanged, with 97.3% of contained gold recovered.

Bond work indices (BWi) of the sample material ranged between 17.9 and 20.4, slightly higher than the typical range of similar ores and possibly reflecting enhanced levels of silicification in the epithermal mineralization.

Additionally, these gold-dominant mineralized samples were subjected to grinding and direct-leaching testwork, which returned high recoveries of between 89.2% and 87.7% of contained gold.

IMPLICATIONS FOR POTENTIAL MINING OPERATIONS AT THE TITIRIBI PROJECT

This initial metallurgical testwork demonstrates that a high amount of gold can potentially be recovered by simple gravity methods alone from the gold-dominant mineralization at both the Cerro Vetas and Chisperos-Virgen zones. At a grind size of 80% passing 200 mesh, simple gravity was successful in recovering 83.4% of contained gold. At a coarser grind size of 80% passing 100 mesh, gravity recoveries were still excellent, with 78.5% of contained gold recovered. Findings from this initial metallurgical testwork program strongly suggest that conventional process metallurgy would result in the production of merchantable gold and copper-gold concentrates at globally-competitive recovery rates as part of an eventual mining operation at Titiribi.

"These metallurgical results provide some of the first confirmations that the sizeable gold and copper resource at Titiribi is amenable to low-cost conventional processing techniques," said Colin Andrew, Sunward's Chief Executive Officer. "At comparable projects around the globe, such processing options have been shown to produce gold and copper at competitive capital and operating costs. The identification of a sizeable gravity-recoverable gold resource at Titiribi is particularly significant, as gravity production is well-demonstrated to result in some of the lowest capital and operating costs observed across the gold mining industry."

Following receipt of these initial results, Sunward is now embarking on an advanced metallurgical testwork program and the Company has begun incorporating these metallurgical results into further analyses aimed at determining the potential economic viability of a mining operation at Titiribi. Sunward continues drilling at Titiribi with the goal of expanding the existing resource. Eight drill rigs are on site at present. Over 4,000 metres of drilling have been completed at the Cerro Vetas zone alone since the cut-off date for the last resource estimate. Sunward is also currently drilling three other target zones at Titiribi: Candela, Junta and Porvenir. Further results will be released by the Company as they are received.

Colin J. Andrew, CEng MIMMM FGS, the Company's Chief Executive Officer, is a qualified person under National Instrument 43-101, and has reviewed and approved the contents of this news release.

About The Company:

Sunward Resources is a well-capitalized Canadian-based company focused on the exploration of gold/copper porphyry projects in Colombia. The Company has strong operational expertise in Colombia and is currently carrying out extensive drilling at its 100%-owned Titiribi project, located approximately 70 kilometres southwest of Medellin. A recently-completed National Instrument 43-101 study prepared by Behre Dolbear & Company (USA), identified at the project an Indicated Mineral Resource of 2.204 million ounces of gold along with 465.9 million pounds of copper (142.9 million tonnes grading 0.480 g/t gold and 0.148% copper, using a 0.3 g/t gold cut-off) as well as an additional Inferred Mineral Resource of 6.079 million ounces of gold and 645.7 million pounds of copper (372.7 million tonnes grading 0.507 g/t gold and 0.078% copper, using a 0.3 g/t gold cut-off).

Sunward also owns a 100% interest in the Mande Norte (Murindo) property, located in northwestern Colombia.

 

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of Sunward and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "goal", "budget", "scheduled", "estimates", "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", "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 Sunward to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Sunward disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. 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, the reader is cautioned not to place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


 

 

 

 

SOURCE Sunward Resources Ltd.

For further information:

SUNWARD RESOURCES LTD.

Investor Relations:
Scott Koyich
(403) 619-2200
scott@sunwardresources.com      
                    Corporate Contact:
Colin Andrew
+353 87 241 2290
colin.andrew@sunwardresources.com

 

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Sunward Resources Ltd.

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