SUNWARD INTERCEPTS 183.6 METRES OF 0.56 G/T GOLD AT CHISPEROS ZONE, DISCOVERY OF NEW GOLD ZONE AT VIRGEN TARGET

183.6m @ 0.56 g/t Au intersection in Chisperos Zone
51.0m @ 1.15 g/t Au intersection in Virgen

TSX-V: SWD

VANCOUVER, June 23, 2011 /CNW/ - Sunward Resources (TSX-V: SWD) ("Sunward") (the "Company") is pleased to announce successful results from the Company's initial drill program at the Chisperos zone of the Titiribi gold-copper project. Drilling as part of this program also identified a previously-unknown body of gold mineralization at the Virgen zone, including higher-grade mineralization associated with local diorite dykes.

The Chisperos zone is located approximately one kilometre east-northeast of the Cerro Vetas zone that hosts a NI43-101 compliant Inferred Resource of 3.7 million ounces gold using a 0.3 g/t gold cut-off (see technical report dated May 19, 2010).

Previous operators completed 13 drillholes at Chisperos, encountering gold mineralization hosted in volcano-sediments, including 66 metres with a weighted average assay value of 0.78 g/t gold in drillhole TR01, 102 metres averaging 0.40 g/t gold in drillhole TR04, and 91.5 metres averaging 0.49 g/t gold in drillhole TR13.

Sunward's drill program at Chisperos was designed to test the lateral extent of the mineralization within this zone and a total of 12 angled drillholes have been completed at Chisperos, with 10 holes intercepting significant mineralized intervals. Highlights of this program to date include drillhole CP007, which returned 183.6 metres averaging 0.56 g/t gold (between 117.4 and 301.0 metres down-hole); CP003, which returned 177.4 metres averaging 0.37 g/t gold (between 98.1 and 275.5 metres down-hole); CP001 which returned 90.1m averaging 0.53 g/t gold from (between 75.9 and 165.0 metres downhole); and CP005, which returned 49.3 metres averaging 0.83 g/t gold (between 96.3 and 145.6 metres downhole).

Unlike the Cerro Vetas zone, where mineralization is associated with diorite porphyry bodies and associated intrusive breccias, mineralization at the Chisperos zone is hosted entirely within volcanoclastic sediments of the volcanic edifice that overlies the Cerro Vetas porphyry (see cross-section at www.sunwardresources.com). This mineralization occurs at generally shallow levels, from surface to a vertical depth of approximately 230 metres and is gold-rich copper-poor and contains much of the gold as free native metal. Overall, the mineralized envelope identified by drilling so far at the Chisperos and Virgen zones (discussed below) extends over approximately one kilometre, adjoining the Cerro Vetas zone.

Sunward also completed eight drillholes targeting the Virgen zone, an area of gold-in-soil and geophysical anomalies located between and immediately adjacent to both the Cerro Vetas and Chisperos zones. The Virgen drilling represents the first drill-testing of a number of targets at Titiribi identified by Sunward and never previously investigated. Six of the eight drillholes returned significant mineralized intercepts at Virgen, with many intervals similar in tenor to mineralization observed at the Chisperos zone, including 181.1 metres averaging 0.39 g/t gold in drillhole VR002 from 15.0 to 196.1 metres downhole, and drillhole VR003 which returned three intervals, averaging 40.7 metres of 0.78 g/t gold (from 53.3 to 94 metres down-hole), 69.0 metres averaging 0.46 g/t gold (from 122.5 to 191.5 metres down-hole) and 62.5 metres averaging 0.50 g/t gold (from 575.0 to 637.5 metres downhole). Numerous narrow intervals (<3m in drilled thickness) also returned significant gold values not reported here.

Perhaps the most significant discovery from the Virgen drilling program was the intersection of a mineralized diorite dyke in drillhole VR006, which returned higher-grade values over a wider interval than observed in other holes, averaging 1.15 g/t gold over 51.0 metres. This intercept occurred between 384.5 and 435.5 metres down-hole depth, but it is believed the dyke is oriented vertically, and thus may extend closer to surface.

The discovery of significant mineralization associated with a diorite porphyry at Virgen is similar to the Cerro Vetas zone, where the best mineralization occurs within, or immediately adjacent to, a surface-outcropping, steeply inclined intrusive body of diorite porphyry. Although the diorite intrusion at Virgen is a relatively small body (less than 30 metres in thickness), Sunward has recently mapped surface-outcropping diorite porphyries of similar size to Cerro Vetas at the Candela, Porvenir and Juntas targets on the southern portion of the Titiribi project area. Drilling is currently underway at both Candela and Porvenir, with Juntas scheduled for drilling in the fourth quarter of 2011.

"The discovery of additional gold mineralization in the volcanoclastic-sediments at Chisperos and Virgen is a major boost for potential project economics at Titiribi," said Colin Andrew, Sunward's Chief Executive Officer. "In a development scenario, these rocks would form the cover or waste rock in a possible open pit to access and exploit the Cerro Vetas mineralization. As these rocks are now seen to be mineralized and thus potentially of economic value, the project's strip ratio would likely be reduced, increasing the project's overall net present value."

Some assays reported in this press release may differ from values previously announced by Sunward for Chisperos and Virgen drillholes (see Sunward press releases dated July 14, 2010 and December 6, 2010). Since the last reports, Sunward geological staff recognized the presence of significant "free gold" in both Chisperos and Virgen drill cores, with individual assays of up to 46 g/t gold being attained. Subsequent laboratory analyses demonstrated that the atomic absorption analytical technique previously employed on these samples may have under-reported actual gold grades. To ensure accurate analyses, the Company took the measure of re-assaying all mineralized samples from Chisperos and Virgen using screen fire analysis, a more comprehensive technique. Sunward is continuing to investigate methods for quantifying the contribution of free gold at Titiribi to the overall resource, including potential underground bulk sampling to remedy sampling bias whereby free gold values may not be completely recognized by assaying of drill and grab samples.

A complete table of intercepts for recent drilling at Chisperos-Virgen is included below. Maps of drillhole locations can be found at www.sunwardresources.com

Hole No. From
(m)
  To
(m)
  Length
(m)
  Au g/t   Cu %
                   
CP001 41.00   48.00   7.00   0.523   0.008
  75.00   165.10   90.10   0.529   0.008
  192.30   206.50   14.20   0.626   0.015
                   
CP002 0.00   23.90   23.90   0.507   0.018
  104.40   110.70   6.30   1.376   0.010
  182.25   197.50   15.25   0.526   0.008
                   
CP003 98.10   275.45   177.35   0.369   0.015
including 137.10   156.80   19.70   1.114   0.017
  166.10   173.10   7.00   0.477   0.018
  192.00   203.00   11.00   0.314   0.007
  241.30   275.45   34.15   0.562   0.022
  290.45   296.45   6.00   0.341   0.045
                   
CP004 130.50   178.90   48.40   0.520   0.008
  201.30   203.00   1.70   3.119   0.044
  251.30   261.50   10.20   0.490   0.010
  346.50   348.50   2.00   5.697   0.030
                   
CP005 96.25   145.50   49.25   0.828   0.010
                   
CP006 97.50   117.90   20.40   0.628   0.006
  150.10   187.90   37.80   0.351   0.009
  294.90   314.40   19.50   0.341   0.008
                   
CP007 117.40   301.00   183.60   0.561   0.141
including 117.40   174.00   56.60   0.607   0.011
  201.10   301.00   99.90   0.742   0.019
                   
CP008 236.50   238.50   2.00   3.118   0.007
                   
CP009B 235.00   271.00   36.00   0.325   0.058
  639.00   651.00   12.00   1.373   0.016
                   
CP010A 35.10   43.00   7.90   1.310   0.013
  90.50   109.50   19.00   0.575   0.006
  177.00   189.50   12.50   0.762   0.016
                   
CP011 0.00   6.90   6.90   0.473   0.038
  55.00   68.50   13.50   0.425   0.010
  123.60   149.00   25.40   0.300   0.005
                   
CP012 161.50   179.00   17.50   1.235   0.025
                   
CP013 No Significant Intercepts
                   
VR001 294.50   303.50   9.00   0.325   0.170
  426.50   500.00   73.50   0.455   0.019
                   
VR002 14.95   196.00   181.05   0.390   0.013
including 14.95   26.50   11.55   0.946   0.014
  41.50   96.00   54.50   0.548   0.020
  150.00   163.90   13.90   0.756   0.012
  230.50   238.30   7.80   1.262   0.008
                   
VR003 53.30   94.00   40.70   0.777   0.015
  122.50   191.50   69.00   0.459   0.017
  575.00   637.50   62.50   0.500   0.088
                   
VR004 157.00   201.00   44.00   0.389   0.081
                   
VR005 *535.00   548.50   13.50   0.377   0.076
  *577.00   666.50   89.50   0.410   0.102
  957.50   981.50   24.00   0.296   0.218
                   
VR006 134.50   146.50   12.00   0.351   0.006
  322.50   363.50   41.00   0.387   0.014
  384.50   435.50   51.00   1.153   0.035
                   
VR007 No Significant Intercepts
                   
VR008 313.00   316.00   3.00   4.160   0.040

* Previously reported in Press Release dated Dec 6th 2010

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 inferred resource of 230 million tonnes at an average grade of 0.5 grams per tonne gold and 0.2 percent copper using a 0.3-gram-per-tonne-gold cut-off (NI 43-101 technical report dated May 19, 2010). The project is located approximately 70 kilometres southwest of the city of Medellin, Colombia, in Antioquia department, within the historical Titiribi mining district (estimated total gold production of three to five million ounces). Access is by paved highway from Medellin.

Mineralization at Titiribi is hosted within a number of sub-volcanic porphyry stocks and porphyritic dykes and sills and within the overlying and enveloping volcano-sedimentary sequences. The dominant gold-bearing mineral associations are chalcopyrite-magnetite (in the porphyry and near porphyry areas), and quartz-pyrite-sphalerite (in the volcano-sedimentary sequences). Plagioclase and secondary biotite are also significant within the mineralized assemblages.

Over 50,000 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 more than 36,000 metres completed by Sunward Resources. The mineralized body at Cerro Vetas remains open in a number of directions and at depth. Sunward Resources currently has four drill rigs operating to expand the known mineralization at the Titiribi project.

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 inferred resource.

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.

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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