Sulliden Exploration Inc -
Yorkton Securities says buy
Sulliden Exploration Inc SUE
Shares issued 9,769,507 1999-10-29 close $1.05
Monday Nov 1 1999
Mr. Doug Leishman and Mr. Art Ettlinger say why
Early in September, Sulliden Explorations Inc. announced initial results from an ongoing exploratic program on its Santo Toribid property in north-central Peru. These results highlighted the development of two previously unrecognized potential drill targets. The location of the property, only 3.5 kilometres from Barrick Gold's Pierina gold deposit, and the fact that the targets are hosted in the Calipuy volcanic - as is the Pierina deposit - should insure strong investor interest in the upcoming drill program.
The Santo Toribio property consists of 48 separate mining concessions covering an area of approximately 934 hectares and has been held by a Peruvian family for a number of years. From 1951 to 1992, there has been intermittent mining (underground and open pit) on the northern block, from a number of separate, east-striking polymetallic veins (Santo Toribip, Soledada and Jecanca) with silver, lead and zinc being recovered.
The company's main focus on this property is the southern area of the mining concessions. There, company geologists have identified two new potential drill targets. The first, described as the Silica Cap, measures approximately 300 by 500 metres and is characterized by intense silicification (up to 15-per-cent veinlets of quartz-silica-goethite-limonite-hematite). Surface alteration is characterized by a strong multi-element gold, silver, arsenic, antimony and lead anomaly that covers most of the silica cap. Grab samples, from silicified porphyry and pyroclastic host rocks, assay up to 2.08 graqms per tonne (g/t) gold and 302 g/t silver. Narrow faults and zones of brecciation trending in two different directions (east-west and northeast-southwest) with quartz-sulphide veins of up to one metre in thickness, returned assays of up to 11 g/t gold and 1755 g/t silver.
The second area of interest is referred to as Boliche and La Rubia and covers an area of approximately 400 by 700 metres. This area is characterized by a series of at least 12 separate veins arranged in an orthogonal pattern and hosted by lapilli tuffs. Individual veins have widths up to 4 metres and have been traced for up to 300 metres along strike. An envelope of anomalous geochemistry (gold-silver-arsenic-antimony with lead and zinc) characterizes this area. Based on mapping and sampling, the east-west veins appear to be enriched in silver-lead-zinc and antimony while the other set of veins contain arsenic minerals. Individual assays from the various veins ranged up to 17.1 g/t gold and 1360 g/t silver.
The company may earn a 50-per-cent interest in this property by completing $2.5-million (U.S.)in exploration expenditures and paying $1.2-million (U.S.) to the owner over three years. The largest part of the cash payment ($1.15-million(U.S.) is payable on the third anniversary of the agreement. Once vested, the company and Minera Santo Toriblo, S.A., the vendor, would proceed on a joint venture basis.
The company has recently announced the completion of two private placements (the largest portion at $1.00 per share) which raised the company $1.55-million. Exploration plans are to commence a drill program of at least 1,000 metres on the Bofiche and La Rubia target almost immediately. At the same time, additional geological and geophysical surveys will be completed over the Silica Cap target in preparation for a 2,000-metre drill program to commence early in the new year. The company has identified two previously unrecognized drill targets in an area sure to attract significant market attention. Based on this, we rate Sulliden Explorations Inc. a Buy for the speculative type of investor.
For further information please see Sulliden's Web site httl2://www.sulliden.com
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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