VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 5, 2014) - Salazar Resources Ltd. (the "Company") (TSX VENTURE:SRL)(FRANKFURT:CCG) is pleased to report an updated National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") compliant mineral resource estimate for the volcanogenic massive sulphide ("VMS") El Domo deposit on its 100% owned (30,327 ha) Curipamba project in Ecuador. Buenaventura Ingenieros S.A. ("BISA") of Lima, Peru, an independent consultant, has prepared and authorized the release of the mineral resource estimate.
Highlights of the updated mineral resource estimate include:
Mr. Fredy Salazar, President and CEO, stated "We are very pleased with this significant increase to both resource categories. The updated mineral resource estimate will form the basis of a Preliminary Economic Assessment (PEA) scheduled to be released in the first quarter of this year."
Table 1. El Domo Project - Mineral Resource Estimate at an NSR cut-off of US$30 per tonne (December 2013), by Buenaventura Ingenieros-BISA
Lithology Unit | Category | Tonnes | Copper | Zinc | Lead | Gold | Silver | Copper | Zinc | Lead | Gold | Silver |
(Mt) | (%) | (%) | (%) | (g/t) | (g/t) | (Mlbs) | (Mlbs) | (Mlbs) | (oz) | (oz) | ||
VMS | Indicated | 5.468 | 2.52 | 3.27 | 0.30 | 3.23 | 59.19 | 303.78 | 394.2 | 36.16 | 567,898 | 10,406,782 |
Grainstone | Indicated | 0.216 | 0.92 | 1.01 | 0.12 | 1.09 | 27.91 | 4.38 | 4.81 | 0.57 | 7,570 | 193,844 |
Breccia | Indicated | 0.345 | 0.49 | 1.33 | 0.13 | 0.76 | 26.91 | 3.73 | 10.12 | 0.99 | 8,431 | 298,519 |
Gypsum | Indicated | 0.051 | 0.94 | 0.39 | 0.03 | 0.34 | 7.40 | 1.06 | 0.44 | 0.03 | 558 | 12,135 |
Total Indicated | 6.080 | 2.33 | 3.06 | 0.28 | 2.99 | 55.81 | 312.95 | 409.56 | 37.76 | 584,457 | 10,911,281 | |
VMS | Inferred | 3.093 | 1.75 | 2.59 | 0.19 | 2.38 | 49.45 | 119.33 | 176.61 | 12.96 | 236,699 | 4,917,969 |
Grainstone | Inferred | 0.170 | 0.96 | 0.69 | 0.10 | 1.00 | 19.24 | 3.60 | 2.59 | 0.37 | 5,466 | 105,170 |
Breccia | Inferred | 0.370 | 0.53 | 0.83 | 0.07 | 0.78 | 24.89 | 4.32 | 6.77 | 0.57 | 9,280 | 296,119 |
Gypsum | Inferred | 0.249 | 1.13 | 0.26 | 0.01 | 0.27 | 4.80 | 6.20 | 1.43 | 0.05 | 2,162 | 38,431 |
Total Inferred | 3.882 | 1.56 | 2.19 | 0.16 | 2.03 | 42.92 | 133.46 | 187.39 | 13.96 | 253,607 | 5,357,690 |
Notes:
The Government of Ecuador, in recent months, presented changes to the Mining Law and has introduced a new medium-sized mining category. The government approval process for production capacity up to 1,000 tonnes of ore per day for underground operations, and up to 2,000 tonnes per day for open pit operations, has been significantly simplified and will be governed by the Mining Law versus having to negotiate taxation and royalty terms with the Government as is the case for larger scale projects. This is of significant importance as these medium sized mining companies will no longer be required to sign a Production Contract with the State and, therefore, will not be subject to windfall taxes but rather have a fixed 4 percent royalty rate. The scale of operations being considered in the PEA for El Domo fall within this range and will be classified as a medium sized mining operation. This will significantly benefit the Company in the form of reduced tax rates. At the present time, the Ministry of Non Renewable Natural Resources is drafting the regulations allowing for an immediate application of these reforms. We are confident the regulations will confirm the rules and provide encouragement for mining development in Ecuador.
As part of the PEA, additional studies are also being conducted to define and refine metal recovery factors and metallurgical processes. The updated resource estimate supports a mining-engineering study that includes both open-pit and underground mining scenarios, as well as design alternatives for infrastructure and support facilities. The Company anticipates having the PEA completed shortly, and looks forward to announcing the results.
Mineral Resource Modeling and Estimation
The December 2013 mineral resource estimate for El Domo was completed by BISA on behalf of Salazar. The mineral resources are classified as indicated and inferred resources in accordance with the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on reserve definitions and adopted by CIM Council.
The mineral resource estimate in El Domo is derived from a total of 168 diamond drill holes (31,770 metres). This updated mineral resource adds 51 new drill holes (10,248 metres) to the 117 drill holes (21,522 metres) used in the January 2012 mineral resources estimate. The average drill hole spacing is approximately 50 meters within the El Domo area. A total of 7736 samples were assayed. A 3D geological interpretation was performed with Leapfrog Mining and the block modelling for the mineral resource estimation was carried out with Vulcan software. The general methodology and parameters used are the following:
The resource estimate and other technical information contained in this release were prepared by or under the supervision of Mr. Gustavo Calvo, P. Geo. of BISA., an independent "qualified person" for the purposes of NI 43-101.
The NI 43-101 technical report in respect of the resource estimate disclosed herein will be filed on SEDAR within 45 days of the date of this news release.
On behalf of the Board of Salazar Resources Limited,
Fredy Salazar, President & CEO
About Salazar Resources Limited:
Salazar Resources Ltd. is a publicly-listed (TSX VENTURE:SRL)(FRANKFURT:CCG) mineral resource company engaged in the exploration and development of new highly prospective areas in Ecuador. Led by a senior Ecuadorian management team and most notably by its namesake, Fredy Salazar, this team has been instrumental in other major discoveries throughout Ecuador. Being based in Ecuador, thus have thorough knowledge of local human and environmental issues, gives the company a strategic advantage, enabling it to complete exploration at a rapid pace. With an excellent property portfolio (3 projects- 42,900 hectares), good geopolitical positioning and a number of strategic corporate and financial partnerships, Salazar has positioned itself to be a strategic player in Ecuador and throughout South America.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Statement
This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. Forward-looking information herein includes, but is not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as the successful completion of the PEA and the timing of completion of the PEA. Such forward-looking information is based on a number of material factors and assumptions, including that contracted parties provide services on the agreed timeframes and that laboratory and other related services are available and perform as contracted. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
Figure 1 - 3D View of the Lithology Model & Figure 2 - Plan View of Resource Estimate are aavailable at the following address: http://media3.marketwire.com/docs/140205_SRL_Fig1-Fig2.pdf
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