Oct. 26, 2010 (Canada NewsWire Group) --
VANCOUVER, Oct. 26 /CNW/ - Philip O'Neill, CEO and Director of Sunward Resources Ltd. (the "Company" or "Sunward") (TSX-V: SWD), announced today that the company has completed a geological reinterpretation of the La Candela gold target on the Titiribi project, with drilling of this target expected to begin in November or early December 2010. This drilling program will run concurrently with the drilling program already underway at Cerro Vetas where the company's ongoing geophysical and geochemical surveying has also expanded the anomaly associated with the Cerro Vetas deposit and identified two new mineralization targets, bringing the total number of potential mineralized zones identified by geophysics and gold-in-soil geochemistry to seven.
The La Candela target is located approximately 1 kilometre southwest of the Cerro Vetas deposit (site of a 43-101 inferred resource of 230 million tonnes grading 0.5 g/t gold and 0.2% copper, using a 0.3 g/t cut-off, technical report dated May 19, 2010), and is defined by a zone of high magnetic response and a roughly coincident gold-in-soil anomaly envelope generally having returned assay values of over 0.13 g/t gold as part of regional soil geochemical survey. The La Candela anomaly is similar in tenor to the soil anomaly associated with the Cerro Vetas deposit, and is one square kilometre in size — approximately four times the lateral extent of the mineralization envelope that hosts the existing resource at Cerro Vetas. The La Candela target was the site of a drill hole completed by Windy Knob Resources in December 2008 that intercepted 46 metres assaying 0.41 g/t gold, confirming the mineralized nature of this target (Windy Knob Resources' Quarterly Activities Report, dated January 16, 2009, Australian Securities Exchange website: http://www.asx.com.au/asxpdf/20090116/pdf/31flnw8ns9d76h.pdf). A report in 2008 by Fathom Geophysics identified La Candela as a priority target based on the "donut" geophysical signature of the zone and similarity to other significant porphyry deposits globally (NI 43-101 technical report dated May 19, 2010).
Recently-acquired soil geochemistry data also indicate that the Cerro Vetas target could extend further to the north, west, and southeast than previously identified, increasing the size of the Cerro Vetas target by approximately three times beyond the existing resource envelope defined by drilling. Three rigs are currently drilling the Cerro Vetas target and one rig is currently drilling the Chisperos/Virgen target.
"The Cerro Vetas mineralized zone that Sunward is currently working to expand is just one of several geophysical and geochemical anomalies prospective for porphyry-style mineralization on the Titiribi project," said Mr. O'Neill. "La Candela is a high priority target given its similarity to the zone of known and extensive mineralization at Cerro Vetas, the fact that it has previously drill-tested gold, and the large size of the anomaly relative to other targets on the Titiribi project. With our geological re-interpretation now complete, we expect to begin drilling to determine the extent of mineralization at La Candela in November or early December."
The newly-identified mineralization targets, named La Junta and La Rosa, are large aeromagnetic anomalies roughly overlain by gold-in-soil anomalies that have returned assay values up to 0.2 g/t gold as part of Sunward's regional soil geochemical sampling program. Both are considered prospective for large zones of porphyry gold-copper mineralization. All targets lie within Sunward's existing mineral licenses at the Titiribi project.
The La Junta target is located approximately 2.5 kilometres southeast of the Cerro Vetas deposit. Significantly, it is situated at the intersection of a north/south fault trend hosting the historic Zancudo-Independencia mines and a northwest/southeast fault trend hosting the historic mines of Valderama, Frana, Don Efe and Cateador. The La Rosa target is located approximately 4 kilometres southeast of Cerro Vetas.
These two new targets are in addition to the already-identified targets of Porvenir (approximately two kilometres south of Cerro Vetas) and Margarita (approximately 3 kilometres south of Cerro Vetas), whose large lateral extent has been re-confirmed by the company's recently-completed soil geochemical survey, taking the number of targets identified on the Titiribi project by geophysics and gold-in-soil surveying to seven.
A NSAMT ground geophysical survey is currently being completed over these new targets to prepare them for drilling. The Sunward board of directors has approved a US$4.0 million exploratory drill program for 2011 to comprehensively test each of these new targets.
Visit www.sunwardresources.com/links/titiribimaps.php for location maps of all new targets.
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.
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 g/t gold and 0.2% copper using a 0.3 g/t 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 historic Titiribi mining district (estimated total gold production of 3 to 5 million ounces). Access is by paved highway from Medellin. Mineralization at Titiribi is hosted within a number of porphyry stocks and porphyritic dykes and sills. The dominant mineral associated with mineralisation 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 31,000 metres of drilling have 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 17,000 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 working at the Titiribi project.
About The Company:
Sunward Resources is a well-capitalized Canadian based company focussed 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.
Sample Preparation, Assays, QA/QC:
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 analysed at Inspectorate America's ISO 9001:2000 accredited laboratory in Reno, Nevada, USA. At the sample preparation facility in Medellin, the samples were crushed to over 80% passing -10 mesh using a terminator jaw crusher; split to 250g; pulverized using a LM2 ring pulveriser to over 90% passing -150 mesh; split to 125g, and then sent to Inspectore 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 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. Blank and standard samples were routinely inserted into the preparation and analysis process as part of Sunward's quality assurance and quality control program.
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.
SUNWARD RESOURCES LTD.
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