Sulliden seeking Peruvian gold

Montreal-based Sulliden Exploration (SUE-M) has resumed drilling on the Las Huaquillas property in northern Peru.

Sulliden completed the first phase of exploration on the

copper-gold-molybdenum project in spring, in order to validate the results obtained in 1992 by local firm Cooperacion Minera Peruano Alemana.

Highlights of this first phase of exploration included the confirmation of epithermal-style gold mineralization in the Los Socavones zone, where drill intercepts included 70.5 metres grading 2.71 grams gold and 19 grams silver per tonne in hole LH97-08 and the discovery of porphyry-style copper-gold-molybdenum mineralization in the Cementerio zone, where hole LH97-04 cut 99.5 metres grading 0.47% copper, 0.11 gram gold and 4.5 grams silver.

The US$1-million second-phase program followed in the summer, with geophysical, geochemical and geological surveys over the extensions of the grid and reconnaissance geological and geochemical surveys outside of the expanded grid zone.

The geochemical soil and stream sediment survey identified four zones with copper-gold-molybdenum, copper-molybdenum and gold anomalies.

The induced-polarization (IP) survey identified several, medium-to-strong chargeability anomalies that correspond well with the soil geochemical anomalies. Specifically, the Cementerio zone is characterized by circular chargeability anomalies with diameters of up to 1.3 km. In the Los Socavones zone, the anomaly is elongate and runs for more than 2.1 km. Drilling in 1992 and 1997 tested only a 400-metre-long portion of this anomaly. The San Antonio and Albacete zones have also strong and wide (200-to-800-metre) anomalies, which have yet to be drilled.

Sulliden has begun a diamond drilling program, which will consist of 17 holes totalling 3,800 metres in order to test geochemical and geophysical targets. On the Los Socavones zone, six drill holes (comprising 1,400 metres) will test the lateral and vertical extensions of the zone in order to define a preliminary resource. Three drill holes (500 metres) will also verify the sector known as El Huabo, which is characterized by strong geophysical and geochemical anomalies.

At Cementerio-El Chalpon, six drill holes (1,400 metres) will test the various geophysical and geochemical anomalies and the complete width of the porphyry-style mineralization of drill hole LH97-04.

At the San Antonio zone, one hole will be drilled to 300 metres.

One hole will also be drilled on the Albacete zone, to test coincident copper-gold-molybdenum (geochemical) and IP anomalies.

By year-end, Sulliden expects to be able to formulate a reserve estimate for the Los Socavones zone and to estimate the size of the Cementerio porphyry zone.

Sulliden holds a 100% interest in the Las Huaquillas project.