Salazar Reports Updated Resource Estimate for El Domo, Curipamba, Ecuador
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 28, 2010) - Salazar Resources Ltd. (the "Company") (TSX VENTURE:SRL)(FRANKFURT:CCG) - Mr. Fredy Salazar, President and CEO is pleased to announce the results of an updated resource estimate for the El Domo deposit at its Curipamba volcanogenic massive sulfide ("VMS") Property, Ecuador. The Company holds a 100% interest in the mineral rights to the El Domo deposit. The estimate was prepared by Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA"), effective September 24, 2010.
Category Tonnes Copper Lead Zinc Gold Silver Copper Lead Zinc Gold Silver
('000) (%) (%) (%) (g/t) (g/t) (M lbs) (M lbs) (M lbs) (ozs) (ozs)
Indicated 623 3.70 0.41 4.16 3.0 98.0 50.8 5.6 57.1 60,000 1,963,000
Inferred 2,499 3.24 0.37 4.28 4.3 79.5 178.5 20.4 235.7 346,000 6,388,000
Notes:
1. CIM definitions were followed for mineral resources.
2. Mineral resources are estimated at a net smelter return cut-off of US$50 per tonne.
3. Metal prices used are US$3.25/lb Cu, US$1.10/lb Zn, US$0.90/lb Pb, US$1,050/oz Au and US$18.00/oz Ag.
4. Metallurgical recovery factors assumed were 75% Cu, 85% Zn, 50% Pb, 60% Au and 55% Ag.
5. Common industry values for smelter terms were assumed.
6. A density of 3.6 t/m3 was used for the massive sulphides and a density of 2.7 t/m3 for two small hanging wall mineralized lenses, based on specific gravity determinations on core samples.
The El Domo deposit is located in the Central Las Naves concessions that form part of the approximately 500 sq km Curipamba VMS camp which is one of the three major hydrothermal centers in the Ecuadorian Andes. The Curipamba district has all of the features of a major VMS district and aggressive exploration programs are being implemented to discover additional resources. The presence of the numerous untested geophysical anomalies adjacent to El Domo is a reminder of the district potential.
Mr. Fredy Salazar, President & CEO, states, "Within two years of stepping foot on the Curipamba VMS Property, the Company has delivered a significant copper-gold-zinc rich resource and has defined a series of additional exploration targets within the district. This new resource estimate incorporates our latest drill hole results and geological interpretation and has been thoroughly prepared by a world class team of experts. We are particularly pleased by the strength and continuity of the copper and gold grades and that more than 20% of the El Domo resource is in the Indicated Mineral Resource classification. Recent results have added to our confidence in the El Domo deposit. Our objective is to continue to expand the Curipamba resources sufficiently to spur a scoping level economic evaluation later this year. A metallurgical test program has already been initiated and representative samples from throughout the resource areas have been shipped to Canada for testing."
Resource Estimate Methodology
The database for the resource estimate on the El Domo deposit comprises 18 core drill holes. A total of 186 assays for copper, lead, zinc, gold and silver are situated within the resource wireframe, which was built based on a net smelter return (NSR) cut-off value of US$50 per tonne. The resource wireframe was built from a set of north facing vertical sections spaced at 50 m apart and it is based on a recent geological and structural interpretation provided by Mr. Jim Mayor, Senior Geological Consultant for Salazar. Two metre length composites were produced that honoured the resource wireframes. Grades were estimated by an inverse distance squared method for all blocks. Indicated Mineral Resources were estimated in an area of the deposit characterized by drill holes spaced at approximately 50 metres. Inferred Mineral Resources were estimated for the remainder of the deposit.
As part of the preparation of this resource estimate, Scott Wilson RPA completed independent data verification.
The resource estimate reported in this press release were produced by Scott Wilson RPA under the supervision of Wayne Valliant, P.Geo., a Qualified Person as defined by National Instrument 43-101 ("NI-43-101"). Mr. Wayne Valliant has reviewed and verified the contents of this release. Scott Wilson RPA and Mr. Valliant are independent advisers to the Company. The preparation of a NI 43-101 compliant technical report is expected to be completed within approximately 10 days of this press release.
The major components of the statutory and regulatory framework governing the mining industry in Ecuador are new and continue to evolve - the Constitution was approved in September, 2008, the mining law came into effect on 29 January, 2009 and the regulations to the mining law were published on 16 November, 2009 - consequently there are few precedents and only limited experience with their administration and application. It is possible that these factors could materially impact the mineral resource estimate disclosed herein.
About the Curipamba VMS Property
The Curipamba property is situated within the Eocene submarine volcanic arc of Ecuador and is the southernmost of three significant VMS districts. The immediate geological setting of the deposit (referred to as El Domo), comprises gently dipping strata bounded by high-angle NNE and NW striking faults. The footwall rocks are a flow dome complex. The overlying VMS deposit ranges from 4m to plus 30m in thickness and was followed by finely laminated tuffaceous sediments. Andesite dykes, 20m to possibly 100m wide are often emplaced along the northeasterly trending faults.
The significant features of the deposit include the presence of a unique rock in the immediate hanging wall that is referred to as grainstone breccias. It is an excellent marker horizon that formed an excellent trap for hydrothermal fluids. The VMS horizon is often characterized by a 0.5 to 1.0m cap of precious metal-sphalerite mineralization. Chalcopyrite is dominant in the rest of the VMS with anomalous precious metals. The immediate footwall to the VMS is characterized by gypsum-anhydrite representing a zone of sodium depletion caused by the hydrothermal fluids. The El Domo deposit is one of numerous geochemical and geophysical anomalies in the greater Curipamba property.
ON BEHALF OF THE BOARD OF
SALAZAR RESOURCES LIMITED
"Fredy Salazar"
Fredy Salazar,
President & CEO |
