Sunward drills 121.6 metres grading 0.70 grams per tonne gold at Chisperos

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Apr 02, 2012, 09:00 ET

Discovery of additional new porphyry gold-copper body at Chisperos

Infill drilling at Cerro Vetas returns 189.9 metres from surface averaging 0.782 grams per tonne gold equivalent

VANCOUVER, April 2, 2012 /PRNewswire/ - Sunward Resources Ltd. ("Sunward" or the "Company") (TSX: SWD; OTCQX: SNWRF) is pleased to announce further successful results from drilling at the Chisperos zone and the ongoing resource infill drill program at the Cerro Vetas zone at the 100%-owned Titiribi Project ("Titiribi" or the "Property"), located approximately 70 kilometers southwest of Medellin, Colombia. Eleven drill rigs have been operating on the Property on a round-the-clock basis since November 2011, with results to date suggesting considerable expansion and enhancement of the known mineralized bodies at these zones, which currently host an NI 43-101 compliant Indicated Mineral Resource of 2.2 million ounces gold (within 142.94 million tonnes grading 0.480 grams per tonne gold and 0.148% copper, using a 0.3 grams per tonne gold cut-off), along with an additional Inferred Mineral Resource of 6.08 million ounces gold (within 372.7 million tonnes grading 0.507 grams per tonne gold and 0.078% copper, using a 0.3 grams per tonne gold cut-off; see Report dated September 2011 available at www.sunwardresources.com and on SEDAR).

"The discovery of a new gold-copper porphyry target at Chisperos is further evidence of the extensive mineral endowment of Titiribi," said Colin Andrew, Sunward's President and Chief Executive Officer. "These significant drill results, coupled with the proximity of this zone to the more substantial Cerro Vetas zone, open up important scale-related opportunities at Titiribi which is emerging as one of the most significant gold-copper districts in the world. The recent infill drilling campaign at Cerro Vetas provided strong support for potential optimization of mining operations. The drill hole CV062, which returned 189.90 metres from surface averaging 0.512 grams per tonne gold and 0.141% copper, or 0.782 grams per tonne gold equivalent, and added to earlier drilling in this area, will be particularly important when Sunward commences work on the economic aspects of Titiribi."

The holes reported in this news release represent a portion of the currently-budgeted 40,000-metre drill program. Assays from further holes will be released as they become available.

CHISPEROS ZONE

Recent drilling at the Chisperos zone was designed by Sunward to test a number of new geological interpretations for the mineralized body here, following the discovery of epithermal mineralization containing free native gold, often as laminae within hairline banded chalcedony veinlets. The Chisperos zone is of particular interest given that earlier reported metallurgical testwork has demonstrated that greater than 80% of the gold here can be recovered by simple gravity methods.

Recent drilling guided by the new geological model for Chisperos has been successful in identifying longer and higher-grade mineralized intercepts than previously observed for this zone. Best intercepts from the recent drill program include 121.6 metres averaging 0.701 grams per tonne gold from 28.0 metres downhole depth in drillhole CP014; 62.66 metres averaging 0.621 grams per tonne gold in drill hole CP015 from 43.2 metres downhole depth; 41.7 metres averaging 0.762 grams per tonne gold in drill hole CP017 from 120.8 metres downhole depth along with 35.65 metres averaging 0.931 grams per tonne gold from 524.55 metres downhole depth. Significantly, the free gold mineralization at Chisperos often returns higher assay values when analyzed by metallic screen methodologies, with previous check assays having generally shown increased average gold values of up to 20%. The results of such screen assaying for recent drill holes will be reported once available.

In addition to the epithermal mineralization typical of Chisperos, recent drilling was successful in intersecting a new porphyry target, with a number of holes returning significant levels of copper sulphide mineralization. Hole CP024 intersected a dioritic intrusive carrying porphyry gold-copper mineralization, returning 59.8 metres assaying an average of 0.315 grams per tonne gold and 0.104% copper from 177.2 metres downhole depth. Similar mineralization in hole CP026 where 20.3 metres averaging 1.076 grams per tonne gold and 0.105% copper from 700.7 metres was also intersected.

Hole #	Azimuth	Incl.	From	To	Int	Au g/t	Cu %	Au Eq g/t


CP014	205	-50	28.00	149.60	121.60	0.701	0.016	0.732
	and		415.97	432.50	16.53	0.403	0.035	0.470
	and		471.00	475.50	4.50	1.289	0.063	1.410
	and		531.00	542.55	11.55	0.551	0.031	0.610

CP015	205	-50	43.20	105.86	62.66	0.621	0.014	0.648
	and		140.60	183.10	42.50	0.477	0.012	0.500
	and		198.69	205.00	6.31	2.858	0.014	2.885
	and		393.60	418.20	24.60	1.017	0.034	1.082
	and		481.50	495.10	13.60	0.786	0.060	0.901
	and		511.30	522.60	11.30	0.395	0.031	0.454
	and		543.00	553.80	10.80	0.461	0.033	0.524

CP016	205	-50	71.90	78.60	6.70	0.376	0.006	0.388
	and		150.24	174.30	24.06	0.404	0.016	0.435

CP017	205	-50	57.80	74.00	16.20	0.403	0.009	0.420
	and		120.80	162.50	41.70	0.762	0.014	0.789
	and		267.50	281.87	14.37	0.440	0.017	0.473
	and		497.00	510.50	13.50	0.481	0.029	0.537
	and		638.00	656.00	18.00	0.366	0.030	0.424

CP018	205	-50	28.35	41.85	13.50	0.628	0.006	0.640

CP019	205	-52	42.70	62.70	20.00	0.568	0.016	0.599
	and		163.00	178.20	15.20	0.634	0.014	0.661
	and		225.35	235.85	10.50	0.794	0.029	0.850
	and		526.80	555.30	28.50	0.518	0.038	0.590
	and		562.80	582.00	19.20	0.344	0.027	0.396
	and		594.00	604.50	10.50	0.415	0.013	0.440

CP020	205	-51	Assays awaited

CP021A	205	-62	Assays awaited

CP022	205	-50	Assays awaited

CP023	205	-50	84.30	97.80	13.50	0.338	0.005	0.348
	and		524.55	560.20	35.65	0.931	0.020	0.969

CP024	205	-52	177.20	237.00	59.80	0.315	0.104	0.514

CP026	205	-49	580.00	588.60	8.60	0.559	0.020	0.597
			636.00	681.00	45.00	0.368	0.075	0.512
			700.70	721.00	20.30	1.076	0.105	1.277
Gold Equivalents calculated using a price of Au at US$ 1,114 per Toz and Cu at US$ 3.07 per lb

Note: Cut-offs stated at 0.3 grams per tonne gold

CERRO VETAS ZONE

In the Cerro Vetas zone, recent drilling has been successful at infilling gaps within the existing drill pattern and also continuing to explore the south-eastern fringe of the porphyry body. Highlights of the latest drill holes are as below.

Drill hole CV061 encountered a sequence of brecciated basic metamorphics containing strong mineralization and returned 270.0 metres averaging 0.479 grams per tonne gold and 0.257% copper (0.972 grams per tonne gold equivalent), from 464.5 metres downhole depth.

Drill hole CV062 intersected multiple mineralized sections including 189.9 metres from surface averaging 0.512 grams per tonne gold and 0.141% copper (0.782 grams per tonne gold equivalent) within dioritic intrusives, and a further intersection of 132.5 metres (from 558.0 metres downhole depth) within metabasalts and breccias averaging 0.468 grams per tonne gold and 0.192% copper (0.836 grams per tonne gold equivalent) along with several narrower, but significant, intersections.

Drill hole CV065 intersected 132.3 metres from near surface (2.1 metres downhole depth) averaging 0.425 grams per tonne gold and 0.189% copper (0.787 grams per tonne gold equivalent) within several sills and dykes of diorite cutting hydraulically fractured breccias.

Drill hole CV066 intersected multiple mineralized sections within diorites and associated intrusive breccias including 266.7 metres (from 181.3 metres downhole depth) averaging 0.416 grams per tonne gold and 0.234% copper (0.865 grams per tonne gold equivalent) and a further intersection of 176.8 metres (from 459.2 metres downhole depth) averaging 0.640 grams per tonne gold and 0.196% copper (1.016 grams per tonne gold equivalent) with a further intersection of 69.6 metres (from 817.0 metres downhole depth) averaging 0.558 grams per tonne gold and 0.027% copper (0.610 grams per tonne gold equivalent).

Drill hole CV069 returned 145.0 metres averaging 0.465 grams per tonne gold and 0.153% copper (0.758 grams per tonne gold equivalent) from 285.5 metres downhole depth through a sequence of diorites and dioritic intrusive breccias, amongst additional mineralized intersections within potassic-altered diorites.

A complete table of intercepts for recent drilling at Cerro Vetas is included below. A map of these drill hole locations can be found at www.sunwardresources.com.

Hole #	Azimuth	Incl.	From	To	Int	Au g/t	Cu %	Au Eq g/t


CV059	322	-50	320.60	343.10	22.50	1.047	0.034	1.112
	and		415.70	444.50	28.80	0.412	0.042	0.493

CV060	142	-55	0.00	53.80	53.80	0.305	0.140	0.573

CV061	142	-55	464.50	734.50	270.00	0.479	0.257	0.972
	and		863.50	875.50	12.00	4.566	0.047	4.656

CV062	322	-54	0.00	189.90	189.90	0.512	0.141	0.782
	and		222.70	240.50	17.80	0.394	0.063	0.515
	and		422.85	438.60	15.75	0.727	0.089	0.896
	and		465.10	516.15	51.05	0.345	0.177	0.684
	and		558.00	690.50	132.50	0.468	0.192	0.836

CV063	321	-50	322.10	403.50	81.40	0.301	0.175	0.637

CV064	230	-60	Assays awaited

CV065	142	-58	2.10	134.40	132.30	0.421	0.188	0.776

CV066	322	-50	181.30	448.00	266.70	0.416	0.234	0.865
	and		459.20	636.00	176.80	0.640	0.196	1.016
	and		817.00	886.60	69.60	0.558	0.027	0.610

CV067	228	-84	Assays awaited

CV068	142	-51	103.40	113.00	9.60	0.306	0.167	0.626
	and		145.50	151.50	6.00	0.752	0.135	1.011
	and		210.00	235.00	25.00	0.870	0.165	1.186
	and		269.00	307.50	38.50	0.337	0.135	0.596
	and		321.00	351.85	30.85	0.313	0.121	0.545
	and		674.80	701.00	26.20	0.342	0.124	0.580
	and		723.00	731.00	8.00	0.319	0.088	0.488
	and		776.00	827.00	51.00	0.549	0.087	0.716

CV069	142	-51	42.00	84.00	42.00	0.399	0.117	0.623
	and		96.50	149.50	53.00	0.432	0.129	0.679
	and		160.00	217.50	57.50	0.332	0.122	0.566
	and		285.50	430.50	145.00	0.465	0.153	0.758
Gold Equivalents calculated using a price of Au at US$ 1,114 per Toz and Cu at US$ 3.07 per lb

Note: Cut-offs stated at 0.3 grams per tonne gold

Colin J. Andrew, CEng MIMMM, FGS is a qualified person under National Instrument 43-101, and has reviewed and is responsible for the contents of this news release.

Sample Preparation Assays QA/QC:

Drill core was logged, cut and sampled by Sunward personnel at the Company's facilities in Colombia. 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 analyzed at Inspectorate America's ISO 9001:2000 accredited laboratory in Reno, Nevada, USA, a facility that follows internationally accepted methods and procedures and has stringent quality control and assurance practices.

At the sample preparation facility in Medellin the samples were crushed to >80% passing -10 mesh using a terminator jaw crusher; split to 250 grams; pulverized using a LM2 ring pulverizer to over 90% passing -150 mesh; split into 125 grams aliquots which were then sent to Inspectorate 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 grams per tonne 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 following an aqua regia digest. Blanks, field and laboratory duplicates duplicate samples and a number of internationally approved and registered analytical standard samples were routinely randomly inserted into the preparation and analysis process as part of Sunward's normal quality assurance and quality control program. Any analytical batch of assays wherein inserted standards assayed without the acceptable limits are rejected.

ABOUT SUNWARD:

Sunward Resources is a well-capitalized, Canadian-based company focused on the exploration and development of gold/copper porphyry projects in Colombia. The 100%-owned Titiribi Project is located approximately 70 kilometres southwest of the city of Medellin, Colombia, in Antioquia department, within the historical Titiribi mining district (estimated total production of 1.5 to 2 million ounces gold equivalent). Access is by paved highway from Medellin.

Titiribi hosts an NI 43-101-compliant Indicated Mineral Resource of 2.2 million ounces of gold within 142.94 million tonnes grading 0.480 grams/tonne gold and 0.148% copper and an Inferred Mineral Resource of 6.08 million ounces of gold within 372.7 million tonnes grading 0.507 grams/tonne gold and 0.078% copper, both assessed using a 0.3 grams/tonne gold cut-off. Based on the above, Titiribi also hosts 465.9 million pounds of copper in the Indicated Resource and 645.7 million pounds of copper in the Inferred Resource. Titiribi thus contains 3.50 million ounces of gold equivalent in the Indicated Resource category and a further 7.90 million ounces of gold equivalent in the Inferred Resource category, calculated on the basis of gold price of $1,114 per ounce and copper price of $3.07 per pound (See Report dated September 2011 available at www.sunwardresources.com and on SEDAR.)

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 nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Sunward Resources Ltd.