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Message: History

History

posted on Jan 08, 2010 12:44PM

In November 2002, Sulliden bought a 100% interest in the Shahuindo Gold property from Compania Minera Algamarca SA and Exploraciones Algamarca. Exploration on the property began immediately with a geophysical survey and surface exploration as well as fieldwork and two drill campaigns in the years 2003 and 2004 to confirm the geometry and extent of the known mineralization.

Between 1994 and 1998, prior to Sulliden’s purchase of the property, Asarco and its Peruvian subsidiary, Southern Peru Copper, outlined more than 825,000 ounces of gold and 15 million ounces of silver at the San Jose deposit (now defining for the most part the San José Zone). This estimate is a historical estimate that has been suspended and should not be relied upon. It has been presented only for purposes of providing a history of the property. During that period, both companies incurred approximately US$4.0 million in exploration expenditures on the San Jose deposit, including more than 198 drill holes, a detailed resource calculation, composite metallurgical tests and a pre-feasibility study.

The 2003 drilling program consisted of 27 diamond core drill holes totaling 3,388 meters, while the 2004 drilling program consisted of 56 diamond core drill holes totaling 8,504 meters. Sulliden then engaged Met-Chem Canada Inc. to conduct a Technical Report that was published in April 2005 entitled “Resource Estimation Shahuindo Gold Project, Peru”. Met-Chem used the data from the Sulliden drilling campaigns of 2003 and 2004 along with data from Atimmsa, Asarco, and Southern Peru Copper. The data for the resource estimate was comprised of 297 drill holes.

The net result of this drilling program was an increase in the property’s total gold and silver resource by 31% and 35% respectively. These two exploration programs totaling approximately 12,000 meters of drilling have virtually doubled the resource base from that outlined by Asarco and Southern Peru Copper in the 1990’s based on 20,000 meters of drilling. In addition, they confirmed the presence of a large-scale gold system extending over an area of 8 kilometers by 4 kilometers and vertically to a depth of at least 400 meters. The mineralization now is believed to extend virtually continuously over 6 kilometers of strike length on the MMC, with the resource being calculated on approximately 4 kilometers.

In 2005, an NI 43-101 compliant resource estimate completed by Met-Chem Canada Inc. was released on the Shahuindo Gold Project outlining a significant gold resource.

Click HERE for MetChem’s 2005 Resource Estimation for the Shahuindo Gold Project.

Sulliden prides itself in having maintained a strong social presence in the community; and in July 2005, the company was awarded the first prize in social responsibility at the Fourth International Environmental Symposium in Mining and Metallurgy for its work at the Shahuindo Gold project.

In 2007, another exploration program was carried out to test a possible extension of the deposit to the North-West of the main mineralized corridor. This program included adit samples, geochemical soil surveys and 14 drill holes in areas of the Shahuindo property that had never been tested. The results indicated a clear potential for a substantial addition to the gold-silver resources. (see January 2, 2008 press-release for more info)

In March 2009, the five-year legal dispute that disrupted the Shahuindo Gold Project was resolved. With this resolution, Sulliden now holds an undisputed, 100 percent registered ownership of the Shahuindo Gold property as well as secured exploration options on sixteen adjoining mining concessions.

Sulliden is now moving forward with a strong strategic plan to advance the development of its Shahuindo Gold Project towards production.

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