Salazar Provides Corporate Update: Key Development in Ecuador Mining Industry
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/06/11 -- Salazar Resources Ltd. (TSX VENTURE: SRL)(FRANKFURT: CCG) (or 'the Company') wishes to comment on a December 5th news release from Kinross Gold Corp. (Kinross) announcing an agreement in principle with the Government of Ecuador for the development and exploitation of Ecuador's largest gold deposit, Fruta del Norte (FDN).
The news release disclosed that a non-binding agreement in principle has been reached regarding key fiscal and legal parameters for the exploitation of FDN. While a number of additional steps are required to conclude a final and binding agreement, this is a very important milestone in the ongoing advancement of Ecuador's mining sector. The agreement with Kinross is expected to form a template for future agreements with other companies for the development of Ecuador's substantial mineral resources. Key objectives of the agreement are to develop Ecuador's mineral resources in a socially responsible manner, to the benefit of all stakeholders.
Fredy Salazar, CEO, states, 'We are very pleased to see the Ecuadorian government reach a deal with Kinross, this is a positive and significant development for all mining companies and mining investors in Ecuador. We would like to congratulate both the government of Ecuador and Kinross on this important achievement and look forward to increased mining investment in the country.'
EL DOMO UPDATE
Salazar has completed significant diamond drilling on the El Domo deposit, with 157 diamond drill holes completed to-date, which have outlined a curvilinear deposit with a strike length of approximately 850 m north-south, with east-west widths ranging between 200 to 300 meters, and an average thickness of approximately 10 meters. The deposit is sub-horizontal and lies at depths of between 50 and 180 meters below surface. Significant mineralization has recently been intersected beneath an andesite sill that flanks the deposit to the east. The presence of the mineralization beneath the andesite is a very important discovery as the andesite had previously been considered to cut off the mineralization, and this area now potentially could add resources to the deposit. Further follow-up drilling is planned beneath the andesite to confirm this potential. Recently reported significant results (Dec 1; Nov 23; Nov 3; Oct 25; and Oct 18, 2011 Press Releases) from El Domo are outlined in the table below:
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Width
Hole From To (i) Gold Silver Copper Lead Zinc
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# (m) (m) (m) (g/t) (g/t) (%) (%) (%)
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CURI 115 34.5 47.3 12.8 4.01 137.85 3.43 0.56 3.56
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Incl 34.5 41.53 7.03 7.07 230.16 5.17 0.97 5.96
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CURI 122 53.68 61.86 8.18 3.3 100.05 0.68 0.87 9.95
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CURI 123 65.1 77.1 13.6 11.03 379.6 3.45 1.58 25.2
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Incl 67.8 76.35 8.55 14.09 524.4 4.73 2.06 36.59
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CURI 131 165.66 166.96 1.3 4.71 155.65 1.62 1.88 19.89
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CURI 132 125.2 141.14 15.94 0.97 14.84 1.85 0.04 0.67
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Incl 129.33 140 10.67 1.06 15.7 2.58 0.03 0.77
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Incl 133.18 140 6.82 1.02 9.91 3.56 0.02 0.28
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CURI 135 133.71 143.37 9.66 6.23 183.43 1.36 1.13 6.93
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Incl 133.71 139.87 6.16 8.01 250.51 1.56 1.23 8.5
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CURI 136 193.25 194.5 1.25 1.2 29.8 2.02 0.02 0.93
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CURI 137 103.87 113.81 9.94 3.48 91.95 4.4 0.52 14.83
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Incl 106.61 110.33 3.72 7.79 187.66 10.35 0.85 34.26
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CURI 139 176.78 181.74 4.96 1.14 15.43 1.65 0.02 0.15
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CURI 141 221.68 222.9 1.22 1.04 38.67 1.49 0.73 2.88
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CURI 142 180.85 182.61 1.76 0.72 5.73 1.9 0.01 0.08
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Incl 180.85 181.73 0.88 1.09 8.66 3.67 0.01 0.1
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CURI 143 201.08 205.36 4.28 3.99 89.76 1.34 0.46 7.89
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Incl 201.08 204.8 3.72 4.49 102.13 1.48 0.53 9
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CURI 145 182.35 187.41 5.06 0.96 16.54 1.45 0.32 1.07
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CURI 146 84.83 91.5 6.67 1.2 18.64 0.05 0.18 0.48
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CURI 148 164.14 182.06 17.92 1.21 6.41 2.36 0.01 0.37
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Incl 174.52 182.06 7.54 0.98 7.28 4.69 0 0.03
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Incl 174.52 180.46 5.94 1.19 8.56 5.49 0 0.04
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(i) Widths represent down hole core lengths
Fredy Salazar, CEO, states, 'Our current NI 43-101 compliant resource is calculated on our first 18 holes at El Domo and since then we have drilled an additional 139 holes, 61 of which will be used in our updated resource which we look forward to reporting on shortly, while the additional holes will be used in future resource calculations as we continue to explore and define the potential at El Domo.'
Kieran Downes, P.Geo., a qualified person as defined by National Instrument 43-101, is responsible for the technical information provided in this release.
ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED
Fredy Salazar, President & CEO
Salazar Resources Limited
About Salazar Resources: 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 having 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.
This press release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. 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. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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.
Contacts:
Salazar Resources Ltd.
Investor Relations
647-925-8781
info@salazarresources.com
www.salazarresources.com
