- Staged Development Commencing with Cerro Vetas Should Minimize Initial Capital Outlay, Maximize the Value of 100%-owned Titiribi
VANCOUVER, Sept. 4, 2012 /CNW/ - Sunward Resources Ltd. ("Sunward" or the "Company") (TSX: SWD; OTCQX: SNWRF) is pleased to announce successful results from the Company's latest phase of infill drilling at the Cerro Vetas Zone of the 100%-owned Titiribi Project ("Titiribi" or the "Property"), located approximately 70 kilometres southwest of Medellin, Colombia. These results include some of the most extensive deep drilling ever conducted at Titiribi. Currently, there are four rigs operating on the Property.
Drillhole CV098 was a steeply-inclined hole designed to test presently undrilled levels within the Cerro Vetas mineralized porphyry zone. This hole returned mineralization virtually over its entire length of 988.6 metres. Most significantly, the lower portion of this drillhole returned a substantial mineralized intercept of 167.5 metres grading 0.55 g/t gold and 0.17% copper, from 480.0 to 647.5-metre downhole depth. Given the steep inclination of the drillhole, this interval represents substantial mineralization located below the general level tested by the majority of previous drilling at Cerro Vetas. The grade of the copper mineralization is particularly significant, being substantially higher than the general copper grade currently modeled for the lower reaches of the Cerro Vetas Zone. Based on these results, it appears that copper (along with gold) mineralization at Cerro Vetas may be stronger and deeper-seated than previously assumed. In addition to these results from CV098, drillhole CV097 intersected 264.6 metres of mineralization grading 0.48 g/t gold, 0.27% copper from collar and a higher-grade zone of 152.0 metres averaging 0.59 g/t gold, 0.31% copper from 351.9 metres. These drill results are not included in the stated resource assessment at Titiribi and suggest that there is considerable scope for further expansion and enhancement of the known mineralized bodies on the Property, particularly at Cerro Vetas.
On June 4, 2012, Sunward reported the updated resource estimate which was prepared by Behre Dolbear & Company (USA), Inc. ("Behre Dolbear") in accordance with National Instrument ("NI") 43-101 (the "Behre Dolbear Report" or the "Report"). The full technical report has been filed on SEDAR and is available on the Company's website at www.sunwardresources.com.
The Report demonstrated that Titiribi hosts an NI 43-101-compliant Measured & Indicated Mineral Resource of 4.6 million ounces of gold and 615 million pounds of copper contained within 275.4 million tonnes of material, using a 0.3 grams-per-tonne gold cut-off. There is additional Inferred Mineral Resource of 6.4 million ounces gold and 388.5 million pounds of copper contained within 360 million tonnes of material using the same a 0.3 grams-per-tonne gold cut-off. Importantly, approximately 76% and 100% of the overall respective gold and copper Measured and Indicated Resource is contained in the Cerro Vetas Zone. Correspondingly, approximately 72% and 100% of the overall gold and copper Inferred Resource is also contained in the Cerro Vetas Zone. The balance of the gold endowment is contained in the separate Chisperos Zone which would be developed using separate mineral processing methodology.
"It is abundantly clear that, at the moment, the main value driver at Titiribi is the Cerro Vetas Zone which contains by far the most gold and all of the copper defined to date on the Property," said Colin Andrew, Sunward's Chief Executive Officer. "Furthermore, recent drilling points to the fact that this zone has substantial additional exploration potential which should further enhance the value of Cerro Vetas. The development of Cerro Vetas can be logically followed by the development of the Chisperos Zone which contains substantial amounts of gold and, after that, by development of other zones at Titiribi, which have produced measurable exploration success to-date. The Titiribi District can thus undergo substantial staged development and wealth generation for many years and perhaps decades to come."
"Cerro Vetas has grown to sufficient size and scale, to be viewed as Titiribi's lead-in project assessed on a standalone basis. The main benefits of this approach lie in potentially significantly reduced initial capital costs, effective use of the existing infrastructure and Sunward's ability to fund additional development at Titiribi from future cash flows from Cerro Vetas. This strategy especially makes sense from the standpoint of efficient utilization of capital in highly restrictive capital markets."
A complete table of intercepts for recent drilling at Cerro Vetas is included below. A map of these drillhole locations and geological sections through the Cerro Vetas project can be found at www.sunwardresources.com.
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 and 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 g/t 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.
Sunward Resources is a well-capitalized, Canadian-based company focused on the exploration and development of gold/copper porphyry projects in Colombia. The 100%-owned 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 to date of 1.5 to 2 million ounces gold equivalent). Access is by paved highway from Medellin.
Titiribi currently hosts an NI 43-101 compliant Measured & Indicated Mineral Resource of 4.6 million ounces gold (within 275.4 million tonnes grading 0.52 grams per tonne gold and 0.17 per cent copper, using a 0.3 grams per tonne gold cut-off), along with an additional Inferred Mineral Resource of 6.4 million ounces gold (within 359.6million 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).
Titiribi thus contains 6.28 million ounces of gold equivalent in the Measured & Indicated Resource categories and a further 7.51 million ounces of gold equivalent in the Inferred Resource category, calculated on the basis of gold price of $1,114 per ounce and copper price of $3.07 per pound (See Report dated September 2011 available at www.sunwardresources.com and on SEDAR.)
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," "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.
|Hole No.||Azimuth||Incl.||From (m)||To (m)||Int (m)||Au g/t||Cu %||Au Eq g/t||Zone|| Grade thickness
g/t Au Eq/m
|Note:|| Gold Equivalents calculated using a price of Au at US$1,114 per Toz and Cu at US$3.07 per lb
|Note:|| Cut-offs stated at 0.3 g/t gold
SOURCE: Sunward Resources Ltd.
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Investors & Media:
Kimberly Lim, Manager of Investor Relations
+1 604 568 7617
Colin Andrew, CEO
+353 87 241 2290