Sandspring Resources Ltd. Confirms Discovery of Satellite Gold Deposit 1.2 km Southeast of the Current Six Million Ounce M&I Gold Resource at Toroparu
DENVER, COLORADO -- (Marketwire) -- 05/31/12 -- SANDSPRING RESOURCES LTD. (TSX VENTURE: SSP) ("Sandspring" or the "Company") is pleased to announce the discovery of a new gold mineralized body, called the SE zone, which is situated 1.2 km southeast of the eastern edge of its Toroparu Gold Deposit located in the Republic of Guyana (see Figure 1). The most recent mineral resource estimate for the Toroparu Gold Deposit contains 240.89 million tonnes @ 0.78 g/t Au for 6,034,000 ounces in the Measured and Indicated categories and 179.18 million tonnes @ 0.69 g/t Au in the Inferred category contained within an optimized pit at a cutoff grade of 0.28 g/t Au (see the Sandspring press release dated January 30, 2012).
The initial discovery of mineralization in the SE zone occurred in TPD 313, which tested a gold anomaly identified by a semi-regional geochemical program conducted within the Toroparu Gold Deposit area (see Sandspring press release dated February 22, 2012). A follow-up drill campaign comprised of 20 core holes along 50 m spaced fences east and west of the initial discovery hole, was carried out in two phases, TPD 363 to 370 and TPD 378 to 390, to vertical depths of 200 to 300 m.
The gold intercepts in these core holes have apparent widths of 25 m to more than 100 m and show a good grade distribution of disseminated medium-grade interspersed with higher-grade zones. 3D modeling of the assay results identifies an east-west orientated and west plunging mineralized envelope, which is quite similar in form and orientation as the higher-grade core zone in the Main East zone of the Toroparu Gold Deposit (see Figure 2). Mineralization is open to the east and to depth. Much less abundant copper sulphides in the SE zone highlights a difference in mineralization style between this area and the Main East zone of the Toroparu Gold Deposit.
Results from the initial exploratory hole, TPD 313, were reported in the Sandspring press release dated February 29, 2012. Results from TPD 363, 365, & 366 were reported in a press release dated March 22, 2012. Additional results from the SE zone reported in this release include TPD 367-370 and TPD 378-390. Highlights from the reported drill holes include:
-- TPD 313: 107 m at 0.97 g/t Au including 80 m of 1.09 g/t(1)
-- TPD 363: 87.0 m at 1.60 g/t Au(2)
-- TPD 365: 22.5 m at 1.74 g/t Au (63 m to 88.5 m) and 12 m at 1.28 g/t Au
(97.5 m to 109.5 m)(2)
-- TPD 366: 52.5 m at 1.23 g/t Au (82.5 m to 135 m) and 52.5 m of 0.92 g/t
Au (189.0 m to 241.5 m)(2)
-- TPD 367: 21.0 m at 1.27 g/t Au (112.5 m to 133.5 m)
-- TPD 378: 66.0 m at 1.45 g/t Au (67.5 m to 133.5 m) and 109.5 m at 1.14
g/t Au (148.5 m to 258 m)
-- TPD 384: 25.5 m at 1.28 g/t Au (171.0 m to 196.5 m) and 16.5 m of 1.79
g/t Au (199.5 m to 216 m)
-- TPD 386: 18.0 m at 1.36 g/t Au (10.0 m to 28.0 m) and 40.5 m at 0.83 g/t
Au (60 m to 100.5 m)
-- TPD 390: 54.0 m at 1.74 g/t Au (150.0 m to 204.0 m)
(1) previously reported in February 29, 2012 press release
(2) previously reported in March 22, 2012 press release
No gold assays intervals reported in the above highlights had to be top cut. The top cut applied to intercept reporting at the Toroparu Gold Deposit is 12 g/t Au; consistent with the top cut of the Toroparu Mineral Resource estimate.
Werner Claessens, VP Exploration states: "The discovery of the first satellite deposit is an important achievement for the team. The SE zone has a strike length of more than 400 m and is still open to the east. Further, these results show a good and steady gold grade distribution over interesting widths in the saprolite as in the bedrock. I am confident that our systematic exploration approach will lead to more discoveries and demonstrate that the Upper Puruni area has district potential."
Results from infill hole TPD 361 (Toroparu Gold Deposit), step-out holes to the south of the main deposit (TPD 372-374) and from exploration holes TPD 373-377 in the western part of the Toroparu resource zone can be found in Exhibit 1. Exploration holes TPD 373-377 indicate several low to moderate grade gold intercepts and confirm the potential to find satellite deposits to the NW of the main deposit at Toroparu.
The location, orientation, and depth of drill holes TPD 361, 367 to 390 can be found in plan and longitudinal view at the following links:
Figure 1: SE Zone Drill Hole Location Plan View: http://media3.marketwire.com/docs/SSP3105_figure1.pdf
Figure 2: SE Zone Hole Location Longitudinal View: http://media3.marketwire.com/docs/SSP3105_figure2.pdf
The detailed list of drilling results for drill holes TPD 361, 367 to 390, including depth and length of interval, and uncapped higher grade intervals can be found at the following link:
Exhibit 1: http://media3.marketwire.com/docs/SSP3105_exhibit1.pdf
The reported holes TPD 367-390 represent an additional 7,652 m of diamond core drilling within the Toroparu Gold Deposit area (Exhibit 1). A total of 165,727 m of drilling has been reported to date from the Toroparu Gold Deposit.
Additionally, the Company's systematic reconnaissance drill program utilizing reverse circulation (R/C) drilling over two multi-kilometer surface gold anomalies located several kilometers to the northwest of the Toroparu Gold Deposit is ongoing (see Sandspring's Press Release of February 20, 2012).
Analytical testing and reporting of quantitative assays for the results reported in this press release was performed independently by Acme Analytical Laboratories Ltd. ("AcmeLabs"). AcmeLabs is an ISO9001: 2008 accredited laboratory. A system of blanks, standards and duplicates were added to the Toroparu sample stream by the Company to verify accuracy and precision of assay results supplementing a variety of internal QA/QC tests performed by AcmeLabs.
All data verification and quality assurance/quality control procedures of the Company were applied specifically to the results contained in this press release, and the data herein has been verified by Mr. Brian Ray, P.Geo., Senior Resource Geologist with Sandspring and a Qualified Person under NI 43-101, in accordance with the procedures of the Company. The data verification procedures and quality assurance/control procedures adopted by the Company and applied to the work being reported in this press release can be found in Section 11.0 and Section 12.0 of the "Technical Report, Updated Resource Estimate and Preliminary Economic Assessment of the Toroparu Gold-Copper Deposit", No. 234 with an effective date of January 30, 2012 and dated March 12, 2012. The Technical Report was filed on SEDAR under the Company's profile on March 13, 2012 (www.sedar.com).
Mr. Brian Ray, P.Geo., Senior Resource Geologist with Sandspring and a Qualified Person under NI 43- 101, has reviewed and approved the technical content of this press release.
Sandspring Resources Ltd. is a Canadian junior mining company currently in advanced exploration and prefeasibility assessment of the multi-million ounce Toroparu Gold Deposit in the Republic of Guyana. Visit Sandspring's website at www.sandspringresources.com.
To view Sandspring's previous disclosure on the latest resource estimate please see: Sandspring Resources January 30, 2012 Press Release.
To see the Preliminary Economic Assessment for the Toroparu Gold Deposit please see: Sandspring Resources March 22, 2011 PEA.
Additional information on Sandspring can be viewed on SEDAR under the Company's profile at www.sedar.com or on Sandspring's website at www.sandspringresources.com.
This press release includes certain forward-looking statements concerning future performance and operations of the Company as well as management's objectives, strategies, beliefs and intentions. Forward- looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management at the time such statements are made. All forward-looking statements and information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the Company's successful advancement of the Toroparu Gold Deposit toward feasibility and obtaining positive results from ongoing evaluation and testing of multiple gold targets located elsewhere in the Company's landholdings, among other risks as described in our public filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. Sandspring Resources Ltd. has an ongoing obligation to disclose material information, as it becomes available.
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 release.
Contacts:
Sandspring Resources Ltd.
Richard A. Munson
CEO
(720) 854-0104
info@sandspringresources.com
www.sandspringresources.com
