SALAZAR ANNOUNCES AN UPDATED RESOURCE REPORT OF 5.53 MT INDICATED AND 1.46 MT INFERRED AT ITS HIGH GRADE VMS EL DOMO DEPOSIT
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1 SALAZAR ANNOUNCES AN UPDATED RESOURCE REPORT OF 5.53 MT INDICATED AND 1.46 MT INFERRED AT ITS HIGH GRADE VMS EL DOMO DEPOSIT VANCOUVER, BRITISH COLUMBIA, January 12, Salazar Resources Ltd. (TSX.V: SRL; FSE: CCG) is pleased to announce an updated National Instrument compliant Mineral Resource Estimate for the Volcanogenic Massive Sulphide ( VMS ) El Domo deposit on its 100% owned (30,327 ha) Curipamba project in Ecuador. Roscoe Postle Associates Inc. of Toronto, Canada ( RPA ), independent resource estimation consultant for Salazar, has prepared and authorized the release of the Mineral Resource Estimate. The El Domo Mineral Resource Estimate is based on an NSR cutoff value of US$50 per tonne. The Indicated Mineral Resource is 5.53 million tonnes at an average grade of 2.4% Cu, 2.5% Zn, 0.3% Pb, 2.8 g/t Au, and 48.4 g/t Ag, containing million pounds Cu, million pounds Zn, 36.5 million pounds Pb, thousand ounces Au, and 8.6 million ounces Ag. In the Inferred Mineral Resources category there are an additional 1.46 million tonnes at an average grade of 1.9 % Cu, 2.8% Zn, 0.3 % Pb, 2.4 g/t Au, and 52.2 g/t Ag, containing 61.2 million pounds Cu, 90.1 million pounds Zn, 9.6 million pounds Pb, thousand ounces Au and 2.45 million ounces Ag. Table 1: El Domo Mineral Resource Estimate (October 2011) Category Tonnes Copper Zinc Lead Gold Silver Copper Zinc Lead Gold Silver (Mt) (%) (%) (%) (g/t) (g/t) (M lbs) (M lbs) (M lbs) (ozs) (ozs) Indicated ,000 8,605,000 Inferred ,600 2,450,000 Notes: 1. CIM definitions were followed for mineral resources 2. The Mineral Resource Estimate is based on the interpretation of massive and semi-massive sulphide, a NSR cutoff of US$50 per tonne, and a minimum true thickness of 2.0 meters 3. Metal prices used are US$3.50/lb Cu, US$1.15/lb Zn, US$1.15/lb Pb, US$1,400/oz Au, and US$26.00/oz Ag Metallurgical recovery factors assumed were 87% Cu, 88% Zn, 65% Pb, 60% Au and 55% Ag 5. Common industry smelter terms were assumed 6. Bulk density was estimated based on specific gravity determinations for each rock type Fredy Salazar, President and CEO, commented: We are delighted with the new Mineral Resource Estimate which almost doubles the 2010 resource estimate. Additionally, there has been a significant increase in quality as the bulk of the Mineral Resource (79%) is now in the Indicated category. Further, since the cut-off date for the resource calculation an additional 7,000 metres have been drilled with continued encouraging results. Significant diamond drill-hole intersections to date from the El Domo deposit are contained in Table 2." Table 2: El Domo Significant Drill Holes to Date Hole # From To Intercept Gold Silver Copper Lead Zinc (m) (m) (m) (g/t) (g/t) (%) (%) (%) CURI CURI CURI CURI CURI
2 Hole # From To Intercept Gold Silver Copper Lead Zinc (m) (m) (m) (g/t) (g/t) (%) (%) (%) CURI CURI CURI CURI CURI CURI CURI CURI CURI CURI CURI CURI CURI CURI , CURI , CURI CURI CURI CURI CURI CURI CURI CURI CURI CURI CURI CURI CURI Notes: 1. Intercepts reported are intersection lengths 2. All drill results above have been previously released
3 Figure 1: El Domo Pierce Points Map with Resource Outlines Salazar continues to maintain an aggressive exploration and delineation program at El Domo which remains open in several directions. The focus of the current diamond drilling program is to continue to increase the size and quality of the current resources at the El Domo deposit while additionally exploring for new zones of mineralization outside of the El Domo deposit.
4 Figure 2: 3D View of El Domo Resource Wireframes The volcanogenic massive sulphide (VMS) mineralization at El Domo is a Kuroko-style deposit hosted within a volcano-sedimentary sequence of Eocene age. Mineral Resource Estimate Methodology and Parameters The El Domo Mineral Resource Estimate is based on 78 surface diamond drill holes and assays from a total of 874 samples. The current drill spacing at El Domo is approximately 50 metres. A conventional approach of geological interpretation and block modelling was utilized for the Mineral Resource Estimate at El Domo. The general methodology and parameters used are: Geological model based on the interpretation of massive and semi-massive sulphide intersections digitized on 50m spaced sections and forming a number of mineralization lenses (3D geological solids). Mineralization intersections evaluated using a NSR cut off of US$50 and a 2 metre minimum width. Statistics of assays within the mineralized zones evaluated and grade capping applied Copper grades were capped at 17 %, zinc grades at 20 %, lead grades at 8 %, gold grades at 22 g/t and silver grades at 400 g/t prior to compositing. The impact of capping grades at these levels resulted grades that are lower than the uncapped assays from drilling, the decrease in grade is % for Au, 17.52% for Ag, 0.57% Cu, 5.04% for Pb and 17.20% for Zn. Capped assays composited to 2 meter lengths Variography using the 2 metres composites completed Grade estimation completed using inverse distance weighting methods. Tonnage factor applied based on a total of 536 specific gravity measurements. All blocks within the geological interpretation of mineralization classified as resource. Classification of indicated resource based on demonstrated geological continuity of the main lens of massive sulphide mineralization. The resource estimate and other scientific and technical information contained in this news release were prepared by or under the supervision of Mr. Jamie Lavigne, P. Geo, of Roscoe Postle Associates
5 Inc., an independent qualified person under National Instrument Standards of Disclosure for Mineral Projects ( NI ). The NI 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 Fredy Salazar, President & CEO Salazar Resources Limited About Salazar Resources: Salazar Resources Ltd. is a publicly-listed (TSX.V: SRL; FSE: 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 an Ecuadorian based company gives Salazar Resources Ltd. 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. For further information, please contact: Investor Relations info@salazarresources.com 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. This press release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, are 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 The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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