Sunward announces substantial increase in resources at Titiribi

  • Indicated Resources contain 2.2 million ounces of gold; 3.5 million ounces of gold equivalent*
  • Inferred Resources contain 6.08 million ounces of gold; 7.9 million ounces of gold equivalent*

*(see tables 1.1 and 1.2 for details on contained gold and gold equivalent calculations)

TSX-V: SWD

VANCOUVER, Sept. 8, 2011 /CNW/ - Sunward Resources Limited, ("Sunward" or the "Company" (TSX-V: SWD)) is pleased to announce that it has completed a mineral resource estimate for its 100%-owned Titiribi Project ("Titiribi") located in Antioquia Department, approximately 70 kilometres southwest of the city of Medellin, Colombia. The Technical Report was prepared by Behre Dolbear & Company (USA), Inc. ("Behre Dolbear") in accordance with Canadian Securities Administrators National Instrument ("NI 43-101"). The full technical report will be filed on SEDAR and will be available on the Company's website.

The Titiribi Project contains several separate mineralized zones, and although all appear related to a large Miocene-age gold-copper porphyry system, each is spatially separate. These include the Cerro Vetas, Chisperos-Virgen, Candela, Porvenir, Margarita, Rosa and Junta prospects (please see Figure 1 attached).

The Behre Dolbear study covered only the Cerro Vetas and Chisperos-Virgen mineralized zones.  The new resource statement, which serves as an update of the earlier-developed Inferred Resource, is based on incorporation of 70 additional drill holes for a total of 41,981 metres of diamond core drilling.

Behre Dolbear has reported that, based on a cut-off of 0.3 grams of gold per tonne, the Cerro Vetas prospect holds approximately 142.94 million tonnes (Mt) of Indicated mineral resources averaging 0.480 grams of gold per tonne and 0.148% copper (Table 1.1). In addition, the project has a total of approximately 372.7 Mt of Inferred mineral resources averaging 0.507 grams of gold per tonne and 0.078% copper at Cerro Vetas and in the Chisperos-Virgen prospects (Table 1.2).

                     
Table 1.1
TITIRIBI GLOBAL IN-SITU INDICATED MINERAL RESOURCE - SEPTEMBER 6, 2011
          Contained  
           
  Au Tonnage Average Average Au Au Cu Cu Au Equivalence (1)
 Model Cutoff Mt Au (g/t) Cu (%) (kg) (million ozs) (tonnes) (million lbs) (million ozs) 
                   
Cerro Vetas 0.3 142.936 0.480 0.1479 68,552 2.204 211,331 465.9 3.50
(1)  Gold Equivalence calculated using $1,114 per ounce gold, $3.07 per pound copper, and 100% recovery of both metals.  
                   
                   
                   
Table 1.2
TITIRIBI GLOBAL IN-SITU INFERRED MINERAL RESOURCE - SEPTEMBER 6, 2011
          Contained  
           
  Au Tonnage Average Average Au Au Cu Cu Au Equivalence (1)
 Model Cutoff  Mt Au (g/t)   Cu (%) (kg) (million ozs) (tonnes) (million lbs) (million ozs) 
                   
Cerro Vetas 0.3 271.802 0.467 0.1023 126,829 4.078 278,131 613.2 5.80
Chisperos-Virgen 0.3 100.916 0.617 0.0146 62,242 2.001 14,723 32.5 2.10
(1)  Gold Equivalence calculated using $1,114 per ounce gold, $3.07 per pound copper, and 100% recovery of both metals.  

The mineral resources are reported in accordance with Canadian Securities Administrators' National Instrument 43-101 and have been estimated in conformity with generally accepted CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves.

These figures demonstrate that the recent drilling campaign carried out at Cerro Vetas and Chisperos-Virgen has resulted in a major increase in estimated gold resources at Titiribi, with 2.2 million ounces of contained gold in the Indicated Category and 6.08 million ounces of contained gold in the Inferred Category.

The copper content of this resource is also significant; when converted to equivalents on a price basis, the project hosts a total of 3.5 million gold equivalent ounces in the Indicated category, along with a total of 7.9 million gold equivalent ounces in the Inferred category (with gold equivalence calculated using $1,114 per ounce gold, $3.07 per pound copper, and assuming 100% recovery of both metals). The majority of the contained copper is hosted within the Cerro Vetas zone. The grade of the copper resource at Cerro Vetas has decreased from Sunward's previous resource estimate partially due to the inclusion of low-copper breccias surrounding the Cerro Vetas porphyry within this overall resource category. Several zones of higher-grade copper mineralization have been drilled by Sunward within Cerro Vetas, including grades in excess of 1% copper observed in drillholes such as CV019, CV020, CV027 and CV040.

Total metal contents in the reported resources represent metal in the ground and have not been adjusted for metallurgical recoveries and other factors, which will be considered in future feasibility studies.

By way of comparison, the Company's previously-stated NI 43-101 compliant resource for the Cerro Vetas mineralized zone amounted to 230 million tonnes grading 0.5 g/t gold and 0.2% copper for a total contained 3.7 million ounces of gold (solely in Inferred Category).

Sunward continues to drill at the Cerro Vetas zone, with the goal of expanding the resource further. The above resource numbers take into account drillholes up to and including hole CV044. Sunward has since completed an additional seven drillholes at Cerro Vetas (up to CV051), and continues to investigate the potential for resource expansion, particularly to the southwest and southeast of the zone, and at depth. The Behre Dolbear study supports further development drilling at Cerro Vetas, stating that "exploration potential to expand the known resources at Cerro Vetas is excellent."

"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 last year's drilling, we have managed not only to vastly increase the amount of gold resource but also significantly improve the confidence level for the endowment. Considering that Cerro Vetas and Chisperos-Virgen are only two of several mineralized zones present on the property, Sunward believes there is significant potential to further expand the mineral resources at Titiribi."

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

The Chisperos mineralized body is generally gold-only and consists of parallel to sub-parallel mineralized zones that are both stratigraphically and structurally controlled and hosted in a sedimentary - volcanic sequence. The Virgen prospect is similar to Chisperos, but unlike Chisperos, diorite dikes have been encountered in drilling at Virgen. At both zones, northwest-striking, steeply-dipping faults are theorized to be the channel ways for auriferous hydrothermal fluids, which mineralized shallow-dipping, favourable stratigraphic hosts and possibly shallow-dipping fault zones.

These Mineral Resources conform to the definitions in the 2010 CIM Definition Standards - for Mineral Resources and Mineral Reserves. No reserves conforming to CIM standards have been estimated for this report, as Sunward has not advanced their exploration and evaluation work to a point of developing plans, production schedules, and economic analysis.

Behre Dolbear & Company (USA), Inc. (Behre Dolbear) was retained by Sunward Resources Limited (Sunward) to prepare a Summary Technical Report on the Titiribi Project, Department of Antioquia, Colombia compliant to NI 43-101. Behre Dolbear assigned Mr. Joseph A. Kantor and Dr. Robert E. Cameron, both Qualified Professionals as recognized by the Mining and Metallurgical Society of America (MMSA), to undertake the project.

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

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 Toz Au and US$3.07 per lb Cu, based on three 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 "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.

National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") 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. 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.

An Inferred 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.

An Indicated 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.

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 further increasing the NI 43-101 Indicated and Inferred resources identified so far.

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.

 

Image with caption: "Simplified surface geological map showing the locations of the principal prospects at Titiribi. (CNW Group/Sunward Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20110908_C9740_PHOTO_EN_2992.jpg

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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