Sulliden outlines geochem targets at Shahuindo (November 24, 2003)

Reconnaissance soil geochemistry by Sulliden Exploration (SUE-T) at the Shahuindo property in Cajamarca department, northern Peru, has outlined targets with elevated gold concentrations.

The 90-line-km survey identified a zone where soils had gold concentrations above 200 parts per billion (0.2 gram per tonne) immediately overlying known mineralization at the San Jose surface gold showing. The result confirmed that there is a gold dispersion halo in soils above the Shahuindo mineralization.

That anomalous zone extends about 300 metres north of the defined area of the Breccia zone occurrence, which was drilled earlier this year. There, six holes established a minimum strike length of 500 metres with gold grades ranging from 1.15 grams to 2.14 grams per tonne and silver grades from 22 to 159 grams per tonne. The core lengths of the intersections ranged from 24 to 140 metres.

Two other geochemical anomalies coincided with the West zone and East zone occurrences, which were also drilled earlier in the year. At the West zone, an area of about 800 metres by 300 metres was found to contain soils with gold concentrations of 120 to 3,500 parts per billion (0.12-3.5 grams per tonne). A single hole drilled mid-year at the West zone returned grades of 0.95 gram gold and 2 grams silver per tonne over a core length of 30 metres.

At the East zone, a 400-metre anomaly lies to the north and along strike. Another zone of high gold values exists north of the main contact of the Shahuindo porphyry body and coincides with a zone of high chargeability found in earlier induced-polarization surveying.

Private investment firm Socrate Capital holds a 30% interest in Shahuindo, which it earned by providing Sulliden with US$1.5 million for exploration work on the property this year.