Salazar Provides Inferred Resource Estimate for El Domo Deposit at Las Naves, Curipamba Project, Ecuador

Transcription

1 W Georgia, Vancouver, BC, V6C-2Z4 Phone: Fax: Salazar Provides Inferred Resource Estimate for El Domo Deposit at Las Naves, Curipamba Project, Ecuador VANCOUVER, BRITISH COLUMBIA February 25, Salazar Resources Ltd. (TSX VENTURE: SRL.V)(FRANKFURT: CCG.F) is pleased to report the first independent inferred resource estimate at El Domo, Las Naves Area, Curipamba Project, Ecuador. The report was prepared by Peter Karelse P. Geo., of PK Geologic Services Ltd. in Sudbury, Ontario using CIM guidelines for reporting mineral resources. The resource estimate is based upon drill assay results (2634 m in 13 drill holes) (See Table 1). A block model created with Gemcom (see Figure 1), defined an inferred resource approximately 4.08 million tonnes at 3.48 grams per tonne ( g/t ) gold, g/t silver, 2.51 % copper, 4.55 % zinc and 0.47 % lead. The inferred resource was calculated using a 1 g/t gold cut-off grade and an average density of 4.2 tn/m³. Highlights of the inferred resource estimate are: TABLE 1: El Domo VMS Deposit Inferred Mineral Resource Estimate Cut-off Tonnes Gold Silver Gold Silver (g/t) Au (g/t) (g/t) ounces ounces 1 4,082, ,000 9,900,000 Tonnes Copper Lead Zinc Copper Lead Zinc (%) (%) (%) Million Lbs Million Million Lbs Lbs 4,082, The El Domo Deposit is a newly discovered massive sulphide, rich in chalcopyrite + sphalerite + galena + pyrite with % sulphide content. The body occurs about 50 m below the surface and is broadly sub-horizontal. It has a length of about 450 m, North-South, and is approximately 150 m wide. The thickness varies from 5.8 to 19 m. The body is open to the North, South and West. Fredy Salazar, President and CEO states, The discovery of Eocene VMS mineralization at Curipamba, which is about 40 km South of the well-known Macuchi Unit, significantly extends the prospectively of the Western Cordillera for this type of deposit. The Salazar landholding has the potential to be an important mineral district, possibly on the scale of Tambo Grande/Las Lomas in the Lancones Basin of northern Perú. A copy of this report will be available for viewing on SEDAR.

2 Sample preparation was performed by ALS Chemex and BSI Inspectorate Labs in Quito, Ecuador, using standard industry practices (Sample prep -32). Analytical work was carried out at the ALS Chemex and BSI Inspectorate Laboratories in Lima, Peru using fire assay methods for gold (Au-25 procedure). Standard samples, blanks and duplicate check samples were randomly inserted to ensure quality control. Based on these results, Salazar will commence a pre-feasibility study at El Domo as soon as possible. This will begin with metallurgical testing and extensive infill drilling. In addition to the infill drilling, there have been five other geophysical anomalies identified locally with similar signatures to El Domo that will be drill tested immediately. In addition, the Phase 2 work program will include: A regional geophysics program comprising 100 linear kilometres of IP with lines spaced every 500 metres and magnetometry and gravimetry which will comprise the area between La Vaquera, the El Domo Deposit and finishing at the Piedras Blancas Anomaly. Geological mapping at a detailed scaled will be carried out at Sesmo Sur and La Vaquera, with the purpose to understand the mineralized body intercepted during the phase 1 drilling program, and also to further understand the significant geochemical and geophysical anomalies in the area. Phase 2 Drill Program: 4500 metres of drilling in 30 diamond drill holes ( DDH ) along the El Domo Anomaly with the purpose to delineate the VHMS mineralization (Tambo Grande type) encountered in that area metres in 22 DDH at geochemistry and geophysics anomalies at the Sesmo Sur and La Vaquera anomalies and at the other geochemical and geophysical anomalies in the area metres in 14 DDH targeting other geochemical and geophysical anomalies at the Las Naves concession area. Salazar also intends to carry out further exploration at the Las Naves area at Sesmo Sur, El Gallo, Roble 1 and El Roble anomalies. The first phase of drilling intercepted stockworks of sphalerite + chalcopyrite and semi-massive to massive sulphide bodies with significant values in these areas. Previous results include: Sesmo Sur: g/t gold and 31 g/t silver in drill hole 01; m at 2.54 g/t gold and g/t silver in drill hole 05; 15.6 m with 1.45 g/t gold and 17.4 g/t silver in drill hole 09. El Gallo: g/t gold and 157 g/t silver in drill hole 15; 8,25 m with 5.80 g/t gold and 66 g/t silver in drill hole 16; g/t gold and 338 g/t silver in drill hole 17 and g/t gold and 17.8 g/t silver in drill hole 18. El Roble: 5.45 m with 2.82 g/t gold, 34.4 g/t silver, 2.14% copper and 0.95 % zinc. Corporate Update A new mining law was approved on January 29, 2009 and published in Ecuador s Official Gazette No There is a four month period between this date and when the industry can expect to see the regulations for the new Mining Law. Although Salazar recognizes this to be a tremendous step forward for mining and exploration in Ecuador, there still remains a level of uncertainty due to the regulations not yet published. Salazar plans continued collaboration with the government and remains optimistic for a clear mandate from

3 the government for the future of international investment in Ecuador s new exploration and mining industry. Key highlights for Salazar s Projects: - The new law does not establish any limits to the number of concessions that a Company (Ecuadorian or Foreign) can hold in the exploration stage. Once at exploitation stage the new law states titleholders may hold up to 5000 hectares; - Maximum size of a concession is 5000 hectares; - Titles to be granted for 25 years with an option to renew for an additional 25 year term; - Initial exploration expenses of $5.45 USD per hectare; Before any phase of activity commences, the regulations of the new Mining Law must be published. Salazar is continuing to maintain good community relations as well as relations with local authorities. Prior to the Mining Mandate, Salazar received all required environmental licenses based on acceptable environmental impact assessments. Once the regulations have been approved, Salazar will be drill ready and the technical team is in place to immediately begin the Phase 2 work program. The Company remains well financed. Recently, Salazar has formed two subsidiary companies, Mataje Colombia and SRL Peru, which will enable the Company to acquire new prospects in South America. The geological team that discovered the Curipamba Project and surrounding areas remains working with the Company evaluating prospective projects throughout South America. Mr. Fredy Salazar, President and CEO stated, We are pleased with the direction Ecuador has taken over the past couple of months and look forward to commencing our Phase 2 work program. I would like to thank all our stakeholders for their loyal support, patience and understanding over this past frustrating year. We remain hopeful for an exciting I and our technical team will be attending the PDAC in Toronto, Canada, March 1-4, 2009, booth #2945. Salazar will also be giving a presentation on March 2, 2009 at 2:20pm in Room 801A John Buckle, P.Geo., P.Geoph., the qualified person for the company, has reviewed this news release for its accuracy. To view maps and photos related to the Curipamba Project please visit: ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED Fredy Salazar Fredy Salazar, President & CEO Salazar Resources Limited Salazar Resources Ltd. is a publicly-listed (TSX-V:SRL) 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, including Aurelian's Fruta del Norte discovery, IAMGold's Quimsacocha Deposit, Mozo Deposit, Ex Newmont's Cangrejos Project and International Minerals Rio Blanco and Gaby Deposit. Being an Ecuadorian based company gives the company a strategic advantage enabling the company to complete exploration at a rapid pace. With an excellent property portfolio (4 projects - 151,000 hectares), good geopolitical positioning and a number of

4 strategic corporate and financial partnerships, Salazar has positioned itself to be a strategic player in Ecuador and throughout South America. For further information, please contact: Fredy Salazar, President & CEO, Salazar Resources Limited T or E: fsalazar@salazarresources.com Nick DeMare, Director & Secretary, Salazar Resources Limited T or E: ndemare@chasemgt.com Jeff Tindale, Investor Relations, Empire Communications Inc. T: or E : info@salazarresources.com The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. Table 2: El Domo intersections used for resource calculation Drill Hole From To *Intercept Gold Silver Copper Lead Zinc (m) (m) (m) (g/t) (g/t) (%) (%) (%) CURI CURI CURI includes includes CURI CURI includes CURI CURI CURI CURI CURI CURI

5 FIGURE 1: Gemcom 3D model of El Domo massive sulphides, topographic surface and interpreted faults. from P. Karelse, P.Geo.