Sulliden Gold Corporation Ltd TSX:SUE announced assays from its Shahuindo Gold and Silver Project in northern Peru. Results include 1.17 g/t gold and 21.6 g/t silver over 104.6 metres (including 3.15 g/t gold and 58.1 g/t silver over 14.9 metres), 1.2 g/t gold and 19 g/t silver over 52.5 metres (including 2.09 g/t gold and 35 g/t silver over 23.7 metres), 1.55 g/t gold and 6.2 g/t silver over 34.5 metres (including 2.59 g/t gold and 1.7 g/t silver over 16 metres) and 1.52 g/t gold and 64.1 g/t silver over 12.9 metres (including 2.92 g/t gold and 140.9 g/t silver over 7.7 metres).
VP Corporate Development Scott Moore tells ResourceClips.com, “The Shahuindo project has changed quite a bit since the new management came in. It is a large-tonnage, low-grade gold and silver deposit in northern Peru. We put out a new resource model in June of this year showing about 3.4 million ounces of gold, up from about 1.3 million ounces on the previous resource. We’re in the midst of a 70,000-metre drill program in 2011—we’re about half way through—and these results are part of that drill program. We’ll do another 35,000 metres this year and probably another 70,000 or 80,000 metres in 2012. In conjunction with that, we’re doing all the engineering studies, and hopefully we’ll be in a position to have a mine permit and mine construction in 2012.
“Our team has built a number of mines around the world,” continues Moore, “and this would be a very simple mine. We’re targeting on the current resource somewhere around greater than 150,000 ounces, and the ultimate size might be a little bit bigger than that. It’s going to be a good, low-cost, heap-leach gold project which, in the area where we are, is a very similar type of mine to Barrick’s and Newmont’s.
We think ultimately that this thing could be somewhere in the neighbourhood of 4 million to 6 million ounces.—Scott Moore
“The average grade of our deposit is 0.5 to 2 g/t. So 100 metres of 1.17 g/t is quite substantial and a nice big chunk, both in grade and in thickness. Also we’re getting some exciting results in the East Zone, where we looked at lowering the oxidation front by about 50 metres deeper than we had originally interpreted the geology to be. That will, of course, bring more oxide mineralization into the resource, which will be positive for a mining scenario.
“We are in the midst of a feasibility study right now. In fact, in conjunction with the June resource, we put out the metallurgical test work from the study, showing 89% recoveries from the heap leach. We’ll have that done sometime in late fall, probably.
“Our stock price has been negatively affected by a lot of uncertainty with the new President of Peru,” Moore adds. “But, we feel in the long term that it’s probably more beneficial for us than having a right-wing candidate win by a very small margin. Our management team has run mines in Brazil when Lula [da Silva] got elected and in Nicaragua when Daniel Ortega got elected. At the end of the day, the pro-leftist candidate has to fund the social agenda, and that means they have to have good economic drivers in the economy. In Peru mining is the economic driver. We have just seen announcements of cabinet postings of very centrist, very moderate individuals, and they’ll be keeping the central bank governor [Julio Velarde] in place for another 5 years. So we suspect that there will be very minimal impact on the economy. It would seem that Humala’s policies are trying to address the concerns of the market.
“This is a mine; at the end of the day, it’s just a matter of how big it’s going to be. We’re 2.2 million ounces of oxide right now, which is driving the feasibility. We think ultimately that this thing could be somewhere in the neighbourhood of 4 million to 6 million ounces of oxide, so it’s going to be a substantial project. Hopefully, we’ll start construction sometime in 2012, with a one-year mine build.”
Moore concludes, “We’ll continue to put out drill results every 4 to 6 weeks. We’re still expanding the resource. We’ve got targets outside of the central corridor that continue to be drilled, and it’s just going to continue to get bigger.”
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or G. Scott Moore
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by Greg Klein and Ted Niles