Sulliden eyes Peruvian gold

Junior Sulliden Exploration (SUE-M) intends to explore a property 3 km south of the Pierina gold mine in Peru.

The Montreal-based company can earn a half-interest in the Santo Toribio property from a Peruvian company by paying US$1.2 million and spending US$2.5 million over 3.5 years. In the first six months, Sulliden must spend US$100,000 and pay US$50,000.

Santo Toribio covers 774 ha that are considered prospective for high-sulphidation epithermal gold mineralization. Preliminary grab samples from a silicified pumice unit returned up to 0.6 gram gold per tonne, and high-grade sphalerite-galena-silver veins have been sporadically mined since 1951.

Geologically, the property is underlain by Tertiary volcanics belonging to the Calipuy Formation. This is the same volcanic package that hosts the Pierina deposit, where owner Barrick Gold (ABX-T) has outlined proven and probable reserves of 103.69 million tonnes 2.16 grams gold.

Pierina entered commercial production in late 1998, pouring just under 57,000 oz. of gold by year-end.

Geological mapping and geochemical sampling at Santo Toribio will begin shortly, and continue for the next several months.