Feb 7 2011
Sunward Resources today announced that drill hole CV028 intersected a zone of gold-copper mineralization at the southern extension of the Cerro Vetas target, Titiribi project, significantly higher in grade than other mineralized intercepts previously observed at the project.
CV028 returned a weighted average assay value of 1.17 g/t gold, 0.16% copper and 1.04 g/t silver over 104.5 metres, between 0 and 104.5 metres down-hole depth. Significantly, this mineralized intercept represents the first-ever noted occurrence at the Titiribi project of higher-grade mineralization at surface.
Sunward's drilling program at the Cerro Vetas zone had previously intersected this higher-grade mineralization at depth in drill hole CV019, which returned a weighted average assay of 1.17 g/t gold and 0.38% copper over 104.6 metres between 570.5 and 675.1 metres down-hole depth (see Sunward news release dated August 10, 2010), as well as in drill hole CV027, which returned 1.02 g/t gold and 0.23% copper over 51 metres between 240.5 and 291.5 metres down-hole depth (see Sunward news release dated January 24, 2011).
The company has recently been pursuing structural modeling of higher-grade zones at Cerro Vetas with the aim of better targeting drilling to intersect this mineralization. Modeling suggests the higher-grade zone is developed at the intersection of a near-vertical, east-west striking fault structure with a moderately north-dipping fault structure. Based on this work, it was predicted that higher-grade mineralization would be encountered near surface toward the southern extent of the Cerro Vetas zone. In order to test this model, drill hole CV028 was collared on the southern portion of the Cerro Vetas anomaly, approximately 330 metres south of previously-announced drill hole CV027 (602 metres grading 0.58 g/t gold and 0.20% copper - see Sunward news release dated January 24, 2011). Not only does the mineralized intercept in CV028 support the accuracy of the structural modeling, it also represents the most southerly mineralized intercept encountered at Cerro Vetas as part of Sunward's current drill program - suggesting the potential for expansion of the deposit in this direction.
CV028 was drilled on a trend of 232 degrees with a dip of 50 degrees. The hole intersected mineralized porphyry from surface, followed by an unmineralized phase of the Cerro Vetas intrusive at 130 metres down-hole depth. The drill hole exited the barren intrusive at 286 metres down-hole depth and encountered another zone of mineralized porphyry, which returned weighted average assay values of 0.36 g/t gold and 0.22% copper over 54 metres, between 287.5 and 341.5 metres down-hole depth. This mineralized zone also contains elevated levels of molybdenum, with a weighted average value of 28 parts per million (0.0028%) over the 54 metre interval. The molybdenum mineralization extends beyond the gold-copper mineralized zone, with a 400.5 metre interval assaying 20 ppm molybdenum (0.002%) from 287.5 to 688.0 metres down-hole depth. This molybdenum zone at depth is consistent with a molybdenum-in-soil anomaly that occurs on the western side of the Cerro Vetas porphyry intrusive.
Sunward is now drilling to investigate the extent of the Cerro Vetas porphyry southward, with drill holes CV035 and CV036. This drilling is approaching the La Candela anomaly, one of seven zones of strong gold-in-soil values coincident with high magnetic response identified so far at the Titiribi project
The company plans to begin drilling both the La Candela target and the Porvenir target within days.
Jonathan Challis, FIMMM, is a qualified person under National Instrument 43-101, and has reviewed and is responsible for the contents of this news release.
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 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 41,000 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 26,400 metres completed by Sunward Resources. The mineralized body at Cerro Vetas remains open in all directions and at depth. Sunward Resources currently has four drill rigs operating to expand mineralization at the Titiribi project.
Source: Sunward Resources