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Sunward More Than Doubles Measured and Indicated Resources at Titiribi Project, Colombia in Newly-Updated 43-101 Report

June 4, 2012

        --  Measured & Indicated Mineral Resources Increase to
            Approximately 4.6 Million Ounces of Gold (6.3 Million Ounces of
            Gold Equivalent)1

        --  Inferred Mineral Resources Increase to Approximately 6.4
            Million Ounces of Gold (7.5 Million Ounces of Gold Equivalent)1

        --  Average Gold Grade of Measured and Indicated Mineral Resource
            Increases by Approximately 8.3%; Gold Grade of Inferred
            Resource Grows by 9.8%

        --  Resource Expansion Drilling is Continuing

VANCOUVER, June 4, 2012 /CNW/ – Sunward Resources Ltd. (“Sunward” or the “Company”) (TSX: SWD; OTCQX: 
SNWRF)
is pleased to announce that it has completed an updated mineral
resource estimate for its 100%-owned Titiribi Project (“Titiribi” or
the “Project”) located in Antioquia Department, approximately 70
kilometers southwest of the city of Medellin, Colombia. Since
publication of the previous National Instrument 43-101 (“NI 43-101″)
compliant resource statement in September 2011, Sunward has had up to
eleven drill rigs active at Titiribi, primarily drilling at the Cerro
Vetas and Chisperos mineralized zones. This drilling is continuing.

A Technical Report respecting the updated resource estimate was prepared
by Behre Dolbear & Company (USA), Inc. (“Behre Dolbear”) in accordance
with NI 43-101. The full technical report will be filed on SEDAR and be
made available on the Company’s website.

Behre Dolbear has reported that, based on a cut-off of 0.3 grams per
tonne gold (as used in the September 2011 report), the Titiribi project
currently hosts 275.4 million tonnes (“Mt”) of Measured and Indicated
Mineral Resources averaging 0.52 grams per tonne gold, and thus
containing 4.58 million ounces (“Mozs”) of gold. In addition, the
Project contains substantial amounts of copper in the Measured and
Indicated Resource categories resulting in a corresponding
gold-equivalent resource of 6.28 Mozs. (Please refer to Tables 1.1 and
1.2 below for complete details).

These figures represent a substantial increase in the overall amount of
gold and gold-equivalent contained in Titiribi’s Measured and Indicated
Resources, which, in September 2011, stood at 142.9Mt grading 0.48
grams per tonne gold and 0.15% copper for 2.20 Mozs gold and 3.50 Mozs
gold-equivalent.  Importantly, the stated gold grade for resources in
these categories increased by 8.3% to 0.52 grams per tonne.

Inferred Resources (359.6Mt averaging 0.56 grams per tonne) at Titiribi
also increased, rising to 6.44 Mozs gold from 6.08 Mozs. Factoring in
copper content in the Cerro Vetas mineralized zone, Inferred Resources,
expressed in gold-equivalent, now total 7.51 Mozs. The average gold
grade of the Inferred Resources reached 0.56 grams per tonne, a 9.8%
increase.

The current resource model also identified a higher-grade zone of
breccia-hosted, gold-dominant mineralization in the northwest sector of
the Cerro Vetas porphyry (the “Northwest Breccia”). This zone hosts a
Measured and Indicated Mineral Resource of 44.3Mt grading 0.58 grams
per tonne gold for a contained 0.83 Mozs of gold, along with an
Inferred Mineral Resource of 51.7Mt grading 0.78 grams per tonne gold
containing 1.31 Mozs of gold.

“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 recent drilling, we
have both significantly increased the gold resource, and also improved
the confidence level for the endowment. Considering that Cerro Vetas
and Chisperos are only two (2) of seven (7) mineralized zones currently
identified on the property, Sunward is well positioned to turn Titiribi
into a major mining district with multiple gold and gold-copper
operations.”

Summarizing all of these recent geological developments at the Titiribi
project, the authors of the Report note, “Sunward has done an
outstanding job of following industry best standards,” and add that,
“the results of the drilling completed to date at Cerro Vetas,
Chisperos, Porvenir, Junta and Candela give us confidence that, with
additional drilling, there is an excellent likelihood that resources at
the Titiribi Project could grow substantially.”

Continued Mr. Andrew, “This report affirms not only the continuing
growth potential of the gold and copper resource at Titiribi, but also
the consistency and continuity of the mineralized bodies. Combined with
a well-understood conceptual metallurgical process circuit, these are
the types of characteristics that have made porphyry deposits one of
the preferred targets for large mining developments globally.”

The updated resource estimate covers the Cerro Vetas, Chisperos-Virgen,
and the Northwest Breccia zones. The Northwest Breccia zone is located
on the northwestern periphery of the Cerro Vetas zone while the
Chisperos-Virgen zone is immediately to the northeast of Cerro Vetas. 
This new resource statement is based on incorporation of an additional
42 drill holes for an additional 27,791 metres of diamond core
drilling. The resource estimates are now based upon 120 drill holes in
the Cerro Vetas and Chisperos zones for a total of 73,362 metres of
drilling. Subsequent to the cut-off date for the current resource, an
additional 32 holes have been completed in Cerro Vetas and Chisperos
totaling 19,703 metres. The results from these drill holes will be
included in a subsequent resource update. No resources are currently
estimated for recently-discovered mineralization at the Junta, Candela
and Porvenir Zones.

(______________________________ )
(1) Full resource statement to NI 43-101 standards included in text.

Significant Increase in Grade of Global Resource

The increased grades of both the Measured and Indicated and the Inferred
Resources, noted by Behre Dolbear, were partly the result of the
incorporation into the current resource model of recent drill holes
intercepting higher-grade mineralized zones, including drill holes
CV058 (38.1 metres grading 3.02 grams per tonne gold and 0.50% copper)
and CV053 (30.0 metres grading 2.39 grams per tonne gold and 0.38%
copper).  Behre Dolbear interprets this drilling as having intersected
a “well-mineralized phyllically altered zone” which has “allowed for
the discovery of much higher-grade mineralization adjacent to the core
of the intrusive”.  The Report further concludes that this new
development “allows for a potentially large increase in
well-mineralized tonnage.”

Geology of the Titiribi Project

The Report confirms that the Titiribi Project contains several separate
mineralized zones, and although all appear related to a large
Miocene-age post-caldera intrusive system, each is spatially separate.
These zones include porphyry gold-copper style mineralized intrusions
at the Cerro Vetas, Candela, Porvenir, Margarita, Rosa and Junta
prospects; gold-dominant, breccia-hosted mineralization peripheral to
the Cerro Vetas porphyry and earlier (possibly pre-caldera)
low-sulphidation, epithermal gold-antimony-zinc mineralization at
Chisperos-Virgen.

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

The Chisperos mineralized zone is generally gold-dominant, and consists
of parallel to sub-parallel mineralized zones that are both
stratigraphically and structurally controlled and hosted in a
volcano-sedimentary sequence of tuffs and tuffaceous sediments. At
Chisperos, zones of bedding-controlled mineralization in volcanoclastic
sediments pass apparently uninterrupted through diatreme breccia that
cuts through the sediments. At Virgen, mineralized diorite dikes cut
through diatreme breccia. Thus, an important age relationship can be
established. Early diatreme breccia predates both low-angle thrust and
high-angle, northwest-striking hydrothermal feeder faults, as
mineralization related to those faults also mineralizes the breccia,
and mineralization along the low-angle faults passes uninterrupted
through the diatreme breccia. Northwest-striking hydrothermal feeder
faults are post-diatreme breccia and pre-date the diorite that hosts
mineralization at Virgen.

West-northwest-striking, steeply-dipping faults are presently believed
to be the conduits for low temperature hydrothermal fluids, which
deposited a low-sulphidation epithermal assemblage of chalcedonic
silica, carbonate, adularia, free gold and base-metal sulphides within
fracture zones, often to bonanza grade over narrow intervals (such as
in recent drill hole CP027, which intersected 113.5 grams per tonne
gold over 1.05 metres) and also created disseminated mineralized zones
within stratabound shallow dipping, favourable stratigraphic
lithologies.

Ongoing Work Program at Titiribi

Sunward currently has seven (7) drill rigs operating at Titiribi,
continuing to investigate zones that contain the currently-identified
resource. In addition, the Company has begun mobilizing rigs to
exploration target zones on the south of the property, where Phase I
drilling yielded extremely promising results, such as drill hole JT009
at the Junta target, which returned 43.7 metres grading 0.78 grams per
tonne gold and 0.41% copper, from surface. Sunward expects to commence
Phase II drilling at the Junta, Porvenir and Candela targets within the
coming month. In addition, the Company will be carrying out Phase I
drilling at two (2) new targets – Margarita and Rosa -where recent
field mapping has identified surface-outcropping, mineralized diorite
porphyry bodies. Results of this drilling will be released as they are
received.

In addition to these currently-identified porphyry targets, the Report
concludes that good potential exists for discovery of additional
mineralized zones, with the authors noting that “higher-grade mineralization may lie buried beneath thin post-mineral
cover.” Sunward is currently conducting additional field mapping programs,
aimed at investigating areas of such potential.

Additional Information

Behre Dolbear assigned Mr. Joseph A. Kantor and Dr. Robert E. Cameron to
undertake the project.  Both are recognized as Qualified Professionals
by the Mining and Metallurgical Society of America (MMSA) and as
Qualified Persons under NI 43-101.  The Company’s Chief Executive
Officer, Colin J. Andrew, CENG MIMMM, FGS, is a Qualified Person under
NI 43-101 and has reviewed and is responsible for the contents of this
news release.

     ______________________________________________________________________________
    |Table 1.1    Titiribi Measured and Indicated Mineral Resource                 |
    |                                                                              |
    |______________________________________________________________________________|
    |                              (0.3 g/t Au Cutoff as of May 9, 2012)           |
    |______________________________________________________________________________|
    |         |         |      |     |    |         Contained Metal   |     Au     |
    |         |         |Tonnes| Au  | Cu |___________________________|Equivalence1|
    |   Model |   Class |      |     |    |   Au  | Au |   Cu   | Cu  |            |
    |         |         | (M)  |(g/t)|(%) |       |    |        |     |   (M oz)   |
    |         |         |      |     |    |  (kg) | (M |(tonnes)| (M  |            |
    |         |         |      |     |    |       |oz) |        |lbs) |            |
    |_________|_________|______|_____|____|_______|____|________|_____|____________|
    |   Cerro |Measured |   7.5| 0.46|0.16|  3,460|0.11|  12,241| 27.0|      0.19  |
    |   Vetas |_________|______|_____|____|_______|____|________|_____|____________|
    |         |Indicated| 159.7| 0.50|0.17| 79,987|2.57| 266,890|588.4|      4.19  |
    |_________|_________|______|_____|____|_______|____|________|_____|____________|
    |                                                                              |
    |______________________________________________________________________________|
    |Chisperos|Indicated|  63.9| 0.52|  - | 33,287|1.07|     -  |   - |      1.07  |
    |_________|_________|______|_____|____|_______|____|________|_____|____________|
    |                                                                              |
    |______________________________________________________________________________|
    |   NW    |Indicated|  44.3| 0.58|  - | 25,824|0.83|     -  |   - |      0.83  |
    | Breccia |         |      |     |    |       |    |        |     |            |
    |_________|_________|______|_____|____|_______|____|________|_____|____________|
    |                                                                              |
    |______________________________________________________________________________|
    |Measured +         | 275.4| 0.52|  - |142,557|4.58| 279,131|615.4|      6.28  |
    |Indicated          |      |     |    |       |    |        |     |            |
    |___________________|______|_____|____|_______|____|________|_____|____________|
    |1 Gold Equivalence calculated using US$1,114 per ounce gold, US$3.07 per pound|
    |copper, and 100% recovery of both metals                                      |
    |______________________________________________________________________________|

     _____________________________________________________________________________
    |Table 1.2   Titiribi Inferred MineralResource                                |
    |                                                                             |
    |_____________________________________________________________________________|
    |                              (0.3 g/t Au Cutoff as of May 9, 2012)          |
    |_____________________________________________________________________________|
    |         |        |      |     |    |         Contained Metal   |     Au     |
    |         |        |Tonnes| Au  | Cu |___________________________|Equivalence1|
    |   Model |  Class |      |     |    |   Au  | Au |   Cu   | Cu  |            |
    |         |        | (M)  |(g/t)|(%) |       |    |        |     |   (M oz)   |
    |         |        |      |     |    |  (kg) | (M |(tonnes)| (M  |            |
    |         |        |      |     |    |       |oz) |        |lbs) |            |
    |_________|________|______|_____|____|_______|____|________|_____|____________|
    |   Cerro |Inferred| 205.2| 0.51|0.09|104,669|3.37| 176,205|388.5|      4.44  |
    |   Vetas |        |      |     |    |       |    |        |     |            |
    |_________|________|______|_____|____|_______|____|________|_____|____________|
    |                                                                             |
    |_____________________________________________________________________________|
    |Chisperos|Inferred| 102.6| 0.54|  - | 54,987|1.77|     -  |   - |      1.77  |
    |_________|________|______|_____|____|_______|____|________|_____|____________|
    |                                                                             |
    |_____________________________________________________________________________|
    |   NW    |Inferred|  51.7| 0.78|  - | 40,579|1.31|     -  |   - |      1.30  |
    | Breccia |        |      |     |    |       |    |        |     |            |
    |_________|________|______|_____|____|_______|____|________|_____|____________|
    |                                                                             |
    |_____________________________________________________________________________|
    |Total Inferred    | 359.6| 0.56|  - |200,235|6.44| 176,205|388.5|      7.51  |
    |__________________|______|_____|____|_______|____|________|_____|____________|
    |1 Gold Equivalence calculated using US$1,114 per ounce gold, US$3.07 per     |
    |pound copper, and 100% recovery of both metals                               |
    |_____________________________________________________________________________|

Note to Tables:

The mineral resources are reported in accordance with Canadian
Securities Administrators’ NI 43-101 and have been estimated in
conformity with generally accepted CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines.  No Reserves conforming to these standards have been
estimated as the Company has not advanced exploration and evaluation
work to the point of developing plans, production schedules and
economic analysis.

The Authors would also note that the Inferred Resource estimates have a
great amount of uncertainty as to their existence and economic and
legal feasibility. It cannot be assumed that all or any part of an
Inferred mineral resource will ever be upgraded to a higher category.
Under Canadian NI 43-101, estimates of Inferred mineral Resources may
not form the basis of feasibility or pre-feasibility studies or
economic studies except for a preliminary economic assessment or
scoping study. Investors are cautioned not to assume that any or all of
the Inferred Resources exist or are economically or legally mineable.

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 Tonnes per ounce Au, US$3.07 per
         pound Cu) three (3) 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 “Measured Resources”, “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.

NI 43-101 Standards of Disclosure for Mineral Projects 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. Unless otherwise
indicated, 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.

A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or
quality, densities, shape, and physical characteristics are so well
established that they can be estimated with confidence sufficient to
allow the appropriate application of technical and economic parameters,
to support production planning and evaluation of the economic viability
of the deposit. The estimate is based on detailed and reliable
exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough to confirm both
geological and grade continuity.

An Indicated Mineral 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.

An Inferred Mineral 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.

Sample Preparation Assays QA/QC:

This Resource estimate relies upon drill core obtained by the Company as
part of its exploration activities at Titiribi.  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 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.

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.


Source: PR Newswire