Sunward Reports Further Progress from Drilling at Titiribi

  • New NW Breccia Zone Intersected at Depth at Cerro Vetas

  • Potentially Higher-Grade Zone Developing

  • Highlights Include CV078: 338.05 Metres Averaging 1.098 g/t Gold Equivalent in Cerro Vetas Stock and 136.5 Metres Averaging 0.89 g/t Gold in NW Breccia Zone

VANCOUVER, July 23, 2012 /CNW/ - Sunward Resources Ltd. ("Sunward" or the "Company") (TSX: SWD; OTCQX:  SNWRF) is pleased to announce successful results from its infill and step-out drilling at the Cerro Vetas zone at the 100%-owned Titiribi Project ("Titiribi" or the "Property"), located approximately 70 kilometers southwest of Medellin, Colombia. Eleven drill rigs operated on the Property on a round-the-clock basis between November 2011 and April 2012. Currently, there are four (4) rigs operating on the Property. Results to date suggest considerable further expansion and enhancement of the known mineralized bodies, which currently host an NI 43-101 compliant Measured & Indicated Mineral Resource of 4.58 million ounces gold (within 275.4 million tonnes grading 0.52 grams per tonne gold and 0.17% copper, using a 0.3 grams per tonne gold cut-off), along with an additional Inferred Mineral Resource of 6.44 million ounces gold (within 359.6 million tonnes grading 0.56 grams per tonne gold using a 0.3 grams per tonne gold cut-off; see Report dated June 2012 available at www.sunwardresources.com and on SEDAR).

The holes reported in this news release were drilled subsequent to the most recent NI 43-101 published resource statement.   This drilling represents a portion of the planned 2012 - 40,000 metre drill program. Assays from further holes will be released as they become available.

Sunward Resources CEO Colin Andrew commented: "We are very pleased that this continued drilling has, in all likelihood, significantly enhanced the extent of mineralization, both in terms of the overall tonnage of material and, more importantly, in terms of the amount of contained gold and copper. Furthermore, there is significant evidence that we may have identified a new higher-grade NW Breccia Zone at depth at Cerro Vetas."  He went on to state that: "These results provide us with more evidence of the scale and potential of the Titiribi District where we plan to conduct further exploration on additional targets later this summer."

Details

In the Cerro Vetas zone, recent drilling has been successful at infilling gaps within the existing drill pattern and also continuing to explore the southwestern and northeastern fringe of the porphyry body. Drilling continues to intersect a series of dioritic intrusive rocks and intrusive breccias collectively forming the Cerro Vetas stock. Details of the latest series of drillholes are given in the table below.  Results are provided for 24 of 25 drill holes (assays awaited for Hole CV094); all intercepts given below employ a 0.3 grams per tonne gold cut-off.

The recent drilling has been primarily geared towards infill drilling in and around the Cerro Vetas diorite stock and include mineralized volcanic and volcaniclastic rocks of the overlying edifice.  Sunward's ability to assess the system continues to evolve, with drillholes oriented in such a manner as to continually test and refine the Company's understanding of the structural and lithological setting of the mineralization. With approximately half the holes drilled to the northwest and the rest to the southeast, Sunward has been able to outline a higher-grade zone on the south-eastern flank of the Cerro Vetas stock. This zone could be further defined by additional shallow drilling on the south-east of the main mineralized zone.  While there is currently insufficient information to identify this zone separately, the potential impact of the size and the grade of this zone could be significant to overall resources.

In addition, some of the northwest-oriented holes are now allowing deeper testing of the newly discovered gold-rich NW Breccia zone. This zone is now known, from limited drill-testing, to host a Measured and Indicated Mineral Resource of 44.3 million tonnes grading 0.58 grams per tonne gold for a contained 0.83 million ounces of gold, along with an Inferred Mineral Resource of 51.7 million tonnes grading 0.78 grams per tonne gold containing 1.31 million ounces of gold.  For example:

        Hole CV078 has several important intercepts in the Cerro Vetas stock, including a 338.05 metre interval from 112.0 metres grading 1.098 grams per tonne gold equivalent.  Additionally, this hole intersected the NW Breccia in a 136.5 metre zone from 853.5 metres downhole, grading 0.890 grams per tonne gold, with trace copper.
         
        Hole CV082 has several long intervals of mineralization within the Cerro Vetas stock.  In addition, the hole just clipped the edge of the NW Breccia intersecting a 3.48 metre zone at 928.02 metres, grading 12.346 grams per tonne gold with trace copper.

Continuity of the Cerro Vetas mineralization continues to be established and expanded.  Examples of just two (2) of the holes are given below:

        Hole CV087, drilled northwest through the southwest fringe of the Cerro Vetas stock, is essentially mineralized throughout the upper 700 metres of the hole, including a 176.85 metre interval from 472.14 metres grading 0.592 grams per tonne gold and 0.268% copper, or 1.105 grams per tonne gold equivalent.
         
        Hole CV075, drilled northwest through the northeastern margin of the Cerro Vetas stock, had numerous intercepts, including a 217 metre interval from 227.0 metres grading 0.522 grams per tonne gold and 0.128% copper.

A complete table of intercepts for recent drilling at Cerro Vetas is included below. A map of these drill hole locations and geological sections through the Cerro Vetas project can be found at www.sunwardresources.com.

                                         
Drill hole   Azimuth   Inclination   From
(metres)
  To
(metres)
  Interval
(metres)
  Gold
(grams
per
tonne)
  Copper
(%)
  Gold
Equivalent
(grams per
tonne)
  Zone   Grade thickness
(grams per tonne
Gold Equivalent
per metre)
                                         
CV071   142   -54   121.00   150.00   29.00   0.305   0.137   0.564   Cerro Vetas stock   16.4
            212.60   220.00   7.40   0.345   0.083   0.502   Cerro Vetas stock   3.7
            259.50   321.00   61.50   0.416   0.191   0.777   Cerro Vetas stock   47.8
            635.50   669.00   33.50   0.383   0.172   0.708   Cerro Vetas stock   23.7
                                         
CV072   225   -86   255.90   266.40   10.50   0.423   0.255   0.905   Cerro Vetas stock   9.5
                                         
CV073   322   -50   234.00   275.70   41.70   0.315   0.278   0.839   Cerro Vetas stock   35.0
            290.00   460.00   170.00   0.529   0.149   0.810   Cerro Vetas stock   137.7
            505.00   524.50   19.50   0.533   0.071   0.666   Cerro Vetas stock   13.0
            529.50   551.00   21.50   0.822   0.133   1.073   Cerro Vetas stock   23.1
            565.00   646.20   81.20   0.560   0.154   0.850   Cerro Vetas stock   69.0
            678.00   772.00   94.00   0.542   0.176   0.875   Cerro Vetas stock   82.3
                                         
CV074   142   -57   26.50   47.40   20.90   0.362   0.048   0.452   Cerro Vetas stock   9.4
            58.00   78.00   20.00   0.407   0.050   0.500   Cerro Vetas stock   10.0
                                         
CV075   322   -50   101.40   105.10   3.70   2.194   0.187   2.546   Cerro Vetas stock   9.4
            202.45   214.55   12.10   0.501   0.348   1.157   Cerro Vetas stock   14.0
            342.00   375.10   33.10   0.397   0.198   0.771   Cerro Vetas stock   25.5
            411.50   419.50   8.00   1.353   0.370   2.052   Cerro Vetas stock   16.4
            442.00   572.80   130.80   0.632   0.144   0.905   Cerro Vetas stock   118.4
            592.10   643.80   51.70   0.389   0.141   0.654   Cerro Vetas stock   33.8
            768.30   789.30   21.00   0.534   0.031   0.593   NW Breccia   12.5
            803.50   833.30   29.80   0.734   0.020   0.772   NW Breccia   23.0
                                         
CV076   142   -51   0.00   77.65   77.65   0.846   0.299   1.409   Cerro Vetas stock   109.4
            160.80   168.40   7.60   0.333   0.262   0.828   Cerro Vetas stock   6.3
            180.10   199.70   19.60   0.272   0.189   0.628   Cerro Vetas stock   12.3
            222.85   237.20   14.35   0.946   0.210   1.343   Cerro Vetas stock   19.3
            475.50   520.00   44.50   0.502   0.034   0.567   Cerro Vetas stock   25.2
                                         
CV077   142   -51   108.50   117.50   9.00   0.346   0.144   0.617   Cerro Vetas stock   5.6
            129.00   138.00   9.00   0.424   0.208   0.818   Cerro Vetas stock   7.4
            145.50   162.00   16.50   0.359   0.176   0.691   Cerro Vetas stock   11.4
            227.00   444.00   217.00   0.522   0.128   0.763   Cerro Vetas stock   165.6
            407.60   428.10   20.50   0.476   0.174   0.805   Cerro Vetas stock   16.5
            445.50   458.30   12.80   0.356   0.136   0.613   Cerro Vetas stock   7.8
            493.25   502.50   9.25   0.319   0.149   0.600   Cerro Vetas stock   5.6
            747.93   752.10   4.17   0.647   0.136   0.903   Cerro Vetas stock   3.8
                                         
CV078   322   -51   9.00   46.50   37.50   0.294   0.138   0.555   Cerro Vetas stock   20.8
            112.00   450.05   338.05   0.657   0.234   1.098   Cerro Vetas stock   371.2
            467.00   538.00   71.00   0.387   0.202   0.768   Cerro Vetas stock   54.5
            574.00   748.00   174.00   0.457   0.145   0.730   Cerro Vetas stock   127.0
            853.50   990.00   136.50   0.890   0.026   0.940   NW Breccia   128.3
                                         
CV079A   142   -50   281.70   303.85   22.15   0.600   0.283   1.145   Cerro Vetas stock   25.4
            686.75   708.30   21.55   0.304   0.159   0.610   Cerro Vetas stock   13.1
                                         
CV080   322   -55   132.60   140.28   7.68   0.389   0.170   0.710   Cerro Vetas stock   5.5
            223.00   349.30   126.30   0.704   0.242   1.161   Cerro Vetas stock   146.6
            682.50   866.00   183.50   0.523   0.153   0.812   Cerro Vetas stock   149.0
            944.00   996.00   52.00   0.640   0.050   0.734   NW Breccia   38.2
                                         
CV081   322   -56   83.50   113.10   29.60   0.288   0.190   0.652   Cerro Vetas stock   19.3
            141.25   279.50   138.25   0.346   0.193   0.716   Cerro Vetas stock   99.0
            294.50   318.50   24.00   0.469   0.035   0.536   NW Breccia   12.9
                                         
CVC082   322   -58   230.75   239.00   8.25   0.424   0.240   0.884   Cerro Vetas stock   7.3
            522.00   696.00   174.00   0.273   0.172   0.603   Cerro Vetas stock   104.9
            862.50   907.50   45.00   0.388   0.066   0.515   NW Breccia   23.2
            928.02   931.50   3.48   12.346   0.034   12.412   NW Breccia   43.2
                                         
CV083   140   -50   261.00   320.80   59.80   0.405   0.191   0.770   Cerro Vetas stock   46.0
            336.00   368.00   32.00   0.344   0.055   0.451   Cerro Vetas stock   14.4
            578.50   644.00   65.50   0.605   0.164   0.920   Cerro Vetas stock   60.3
                                         
CV084   322   -51   581.50   590.50   9.00   0.682   0.064   0.805   Cerro Vetas stock   7.2
                                         
CV085   322   -49   103.80   130.60   26.80   0.263   0.126   0.506   Cerro Vetas stock   13.6
            186.00   338.00   152.00   0.316   0.186   0.672   Cerro Vetas stock   102.1
            645.00   730.00   85.00   1.209   0.295   1.775   Cerro Vetas stock   150.9
            936.85   962.00   25.15   0.370   0.057   0.480   Cerro Vetas stock   12.1
            985.50   1104.00   118.50   0.449   0.023   0.494   Cerro Vetas stock   58.5
                                         
CV086   142   -52   139.80   150.50   10.70   0.619   0.175   0.955   Cerro Vetas stock   10.2
            165.00   249.70   84.70   0.335   0.178   0.677   Cerro Vetas stock   57.3
                                         
CV087   322   -55   98.60   360.85   262.25   0.298   0.203   0.688   Cerro Vetas stock   180.4
            472.15   649.00   176.85   0.592   0.268   1.105   Cerro Vetas stock   195.4
            961.00   962.50   1.50   25.600   0.019   25.636   NW Breccia   38.5
                                         
CV088   141   -60   17.20   82.10   64.90   0.516   0.221   0.940   Cerro Vetas stock   61.0
            179.60   192.00   12.40   0.458   0.337   1.104   Cerro Vetas stock   13.7
            247.70   254.50   6.80   0.438   0.328   1.066   Cerro Vetas stock   7.2
            298.50   326.37   27.87   0.483   0.340   1.134   Cerro Vetas stock   31.6
                                         
CV089   322   -50   No significant mineralization                            
                                         
CV090   142   -55   23.50   242.00   218.50   0.584   0.204   0.975   Cerro Vetas stock   213.0
            402.65   410.50   7.85   0.574   0.225   1.006   Cerro Vetas stock   7.9
            466.40   474.70   8.30   0.307   0.028   0.360   NW Breccia   3.0
                                         
CV091   319   -60   232.74   244.15   11.41   0.458   0.211   0.863   Cerro Vetas stock   9.8
            272.80   298.30   25.50   0.434   0.233   0.880   Cerro Vetas stock   22.4
            311.80   404.80   93.00   0.508   0.150   0.796   Cerro Vetas stock   74.0
            805.00   816.50   11.50   0.379   0.103   0.576   Cerro Vetas stock   6.6
            828.50   935.00   106.50   0.364   0.137   0.627   Cerro Vetas stock   66.8
            1026.50   1031.00   4.50   0.400   0.164   0.714   Cerro Vetas stock   3.2
                                         
CV092   141   -51   136.50   160.00   23.50   0.379   0.240   0.839   Cerro Vetas stock   19.7
            179.50   298.65   119.15   0.510   0.254   0.996   Cerro Vetas stock   118.7
            611.50   644.50   33.00   0.605   0.225   1.036   Cerro Vetas stock   34.2
            658.50   667.30   8.80   0.477   0.177   0.817   Cerro Vetas stock   7.2
                                         
CV093   140   -50   89.00   104.00   15.00   0.609   0.088   0.778   Cerro Vetas stock   11.7
            120.50   140.00   19.50   0.312   0.040   0.389   Cerro Vetas stock   7.6
            149.50   158.50   9.00   0.401   0.040   0.477   Cerro Vetas stock   4.3
            176.50   334.50   158.00   0.701   0.152   0.992   Cerro Vetas stock   156.7
            345.25   358.50   13.25   0.787   0.402   1.557   Cerro Vetas stock   20.6
                                         
CV094   322   -50   Assays awaited                            
                                         
CV095   142   -50   336.67   344.90   8.23   0.509   0.100   0.700   Cerro Vetas stock   5.8
            370.50   376.50   6.00   0.368   0.093   0.546   NW Breccia   3.3
                                         
Note:   Gold Equivalents calculated using a price of gold at US$1,114 per ounce and copper at US$3.07 per pound
Note:   Cut-offs stated at 0.3 grams per tonne gold

Colin J. Andrew, CEng MIMMM, FGS is a qualified person under National Instrument 43-101, and has reviewed and is responsible for the contents of this news release.

Sample Preparation Assays QA/QC:

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 laboratories 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 laboratories 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.

Titiribi hosts an NI 43 101-compliant Measured and Indicated Resource of 4.6 million ounces of gold contained within 275.4 million tonnes grading 0.52 grams per tonne and Inferred Resource of 6.4 million ounces of gold contained within 359.6 million tonnes grading 0.56 grams per tonne. All Titiribi resources were assessed using a 0.3 grams per tonne gold cut-off.  Titiribi also hosts 279,131 tonnes of copper in the Measured and Indicated Resource and 176,205 tonnes of copper in the Inferred Resource. For more information, please see the Company's press release dated June 4, 2012 as published on SEDAR and on the Company's website, as well as the technical report by Behre Dolbear & Company (USA), Inc. dated June 1, 2012.

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:

Corporate Contact:
Brenda Dayton
604.568.7617
brenda@sunwardresources.com

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Sunward Resources Ltd.

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