Sunward Resources Ltd. - Drilling Update at Cerro Vetas

Shallow higher-grade zones discovered within wide intersections

30.0 metres @ 2.394 grams per tonne gold, 0.382% copper
within 442.0 metres @ 0.856 grams per tonne gold, 0.189% copper

22.5 metres @ 2.110 grams per tonne gold, 0.340% copper
within 315.2 metres @ 0.561 grams per tonne gold, 0.118%copper

TSX-V: SWD

VANCOUVER, Nov. 10, 2011 /CNW/ - Sunward Resources (TSX-V: SWD) ("Sunward" or the "Company") is pleased to announce an update of drill results of the on-going program at the Cerro Vetas zone of the Titiribi project ("Titiribi") located in Antioquia Department, approximately 70 kilometres southwest of Medellin, Colombia.  The recent drilling has expanded the extent of mineralization and led to the identification of substantial higher-grade mineralized areas on the southern portion of the Cerro Vetas zone.

Drill holes CV041 to CV053 were completed at Cerro Vetas in order to define the edges of the mineralizing system and to investigate areas poorly defined by previous drilling. Holes CV044, CV046, CV048 and CV053 were completed on the southern portion of the Cerro Vetas zone, an area that had been sparsely drilled. Hole CV046 not only intersected a wide mineralized interval consistent with general grades observed for the Cerro Vetas porphyry (315.2 metres with weighted average assay results of 0.561 grams per tonne gold and 0.118% copper from collar to 315.2 metres downhole depth), but was also successful in defining a significant higher-grade zone consisting of 22.5 metres grading 2.110 grams per tonne gold and 0.340% copper, from 85.7 to 108.2 metres downhole depth. This interval lies within a wider zone of 70.3 metres grading 1.211 grams per tonne gold and 0.271% copper, from 52.7 to 123.0 metres downhole depth.

Based on the results from CV046, the Company completed drill hole CV053 approximately 50 metres southwest of the CV046 collar. Drill hole CV053 confirmed the lateral extent of the higher-grade zone, intersecting 30.0 metres grading 2.394 grams per tonne gold and 0.382% copper, from 113.5 to 143.5 metres downhole depth.  A second higher grade zone was also cut from 250.0 metres to 295.0 metres downhole with an average grade of 1.505 grams per tonne gold, 0.299% copper.

This zone lies within a broader interval of 442.0 metres grading 0.856 grams per tonne gold and 0.189% copper, from surface to 442.0 metres downhole depth. Drill hole CV048 also encountered potentially economic intercepts of mineralization.

Drill holes CV052 and CV049, and CV042 were drilled along profiles 100 metres and 150 metres, respectively, to the southwest of drill hole CV053.  All three drill holes intersected copper-dominant mineralization.

Drill holes CV043, CV047 and CV050 were drilled as a fence across the previously defined, south-westerly limit of mineralization. All three holes intersected strong gold-copper mineralization over narrow intervals, which the Company believes will extend the resource in this direction.

Drill hole CV045 was completed 200 metres southwest of, and parallel to, the fence of holes defined by CV043, CV047 and CV050, and intersected trace levels of mineralization. Hole CV051 was drilled a further 200 metres to the southwest and confirmed that porphyry mineralization diminishes in this direction.

"The recent drilling at Cerro Vetas is providing confirmation that within the Cerro Vetas porphyry system there are significant tonnages of higher-grade mineralization that should enhance the overall resource grade," said Colin Andrew, Sunward's Chief Executive Officer. "We are very encouraged by these results and their potential positive impact on the project economics."

Current drilling is now focusing on infilling gaps in the resource model and defining additional tonnages below, and laterally to, known mineralization at depth. In light of the higher-grade intervals observed in drill holes CV046 and CV053, continued drilling will also be aimed at better-defining these areas in order to incorporate them into an updated resource model for the Cerro Vetas zone.

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

               
Drill
hole
Azimuth Inclination From To Interval Gold Copper
(metres) (metres) (metres) (grams
per
tonne)
(%)
               
CV041 142 -70 39.3 48 8.7 0.339 0.058
CV042 322 -60 110 137.14 27.14 0.188 0.177
               
CV043 142 -50 130.5 160.5 30 0.465 0.012
               
CV044 322 -50 No significant mineralization
       
CV045 142 -60 No significant mineralization
               
CV046 322 -50 0 315.2 315.2 0.561 0.118
    Including 52.7 123 70.3 1.211 0.271
    Including 85.7 108.2 22.5 2.110 0.340
  and 394 529.5 135.5 0.359 0.236
    Including 394 449.8 55.8 0.542 0.321
               
CV047 142 -50 112 125.6 13.6 0.486 0.039
  and 386.5 413.5 27 0.723 0.009
               
CV048 142 -50 8 74.6 66.6 0.325 0.151
  and 86 119 33 0.161 0.282
      188 195.45 7.45 0.313 0.193
               
CV049 322 -50 171.5 245 73.5 0.287 0.198
               
CV050 322 -50 195.5 203 7.5 1.878 0.006
       

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.

About the Titiribi Project:

The Cerro Vetas mineralized body at Sunward Resources' Titiribi project hosts an NI 43-101 compliant Indicated Mineral Resource of 2.2 million ounces gold within 142.94 million tonnes grading 0.480 grams per tonne gold and 0.148% copper, using a 0.3 grams per tonne gold cut-off. The Titiribi project also hosts an Inferred Mineral Resource of 6.08 million ounces gold within 372.7 million tonnes grading 0.507 grams per tonne gold and 0.078% copper, using 0.3 grams per tonne gold cut-off. (See Report dated September 2011 available at www.sunwardresources.com and on SEDAR.)

The project is located within the historical Titiribi mining district (estimated total production of 1.5 to 2 million ounces gold equivalent) and can be accessed by paved highway from Medellin.

Mineralization at Titiribi is hosted within a number of porphyry stocks and porphyritic dikes and sills. The dominant mineral associated with mineralization is chalcopyrite, which occurs as disseminations and in veinlets. Plagioclase and secondary biotite are also significant within the mineralized assemblage. Mineralization appears to be related to extensive potassic alteration, with propylitic and argillic alteration also widespread, along with lesser phyllic alteration.

Over 68,000 metres of drilling has been completed at Titiribi to date, including approximately 14,600 metres completed historically by previous operators, including Gold Fields and Windy Knob Resources, along with over 50,000 metres completed by Sunward Resources Limited.  Nine drill rigs are currently on site and two additional rigs are expected to arrive in November.

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 drilling its Titiribi Project southwest of Medellin with a goal of increasing the NI 43-101 Indicated and Inferred resources.

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 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 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.

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 Resources Ltd. and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "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 Resources Ltd. 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 Resources Ltd. 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.
Corporate Contact:
Brenda Dayton
604.568.7617
Brenda@sunwardresources.com

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Sunward Resources Ltd.

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