Santa Barbara Resources Limited (TSX-V: SBL - “Santa Barbara” or
the “Company”) announces that Rio Alto Mining Limited (“Rio Alto”) has
notified the Company of its election to withdraw from the agreement
whereby Rio Alto was granted an option to earn and acquire up to a 66%
interest in the Company’s Sancos gold property in Peru.
As announced November 12, 2013, drill holes from the latest drill
program at the Sancos Central area returned gold intercepts of 50 m @
1.10 grams per tonne (g/t) gold, including 24 m @ 1.71 g/t gold at
shallow depth, 98 metres @ 0.51 g/t gold near surface, 140 m @ 0.36 g/t
gold from surface and 108 m @ 0.38 g/t gold from surface. Drill hole
SARC 040 with the drill intercept of 50 m @ 1.10 g/t gold is located
approximately 120 m north of and at similar altitudes to the area of
highest grade trench results obtained from surface in prior work
programs. The other drill holes, in conjunction with the results of the
first drill campaign which included 154 m @ 0.45 g/t gold and 94 m @
0.47 g/t gold from surface as well as seven other adjacent drill holes,
form a coherent cluster of drill intercepts within the central breccia
zone of Sancos Central in an area measuring 500 m by 160 m. The gold
mineralization in this zone remains open at depth.
In addition, nine out of twelve of the other drill holes intersected
anomalous gold values throughout Sancos Central ranging from 14 m @ 0.19
g/t gold to 116 m @ 0.17 g/t gold. A 2 m @ 2.35 g/t gold intersection in
SARC 033 may indicate the presence of a potential feeder structure at
Sancos Northeast.
Christoph Lassl, CEO of the Company commented: “We are disappointed that
Rio Alto has decided not to further explore the Sancos project due to
other priorities. However, we are very pleased with the results received
from our recent drill program at Sancos. Defining the extent of a
potential better grade gold zone will require a follow-up drill program.
Santa Barbara is currently seeking another partner to fund and further
explore the Sancos project.”
The technical content of this news release has been reviewed by Stewart
Wallis P.Geo., consultant to the Company, who is a Qualified Person as
defined by National Instrument 43-101.
Sancos Project
The Sancos Project is located in the mining-friendly Ayacucho Region of
Peru. The property hosts a large high-sulphidation epithermal
gold-silver mineralized system. The Sancos Project encompasses 8,200
hectares, with 2,000 hectares held directly by Santa Barbara. Santa
Barbara has the option, subject to certain back-in rights, to acquire a
100% interest in the remaining 6,200 hectares of the Sancos project from
Barrick Gold’s Peruvian subsidiary (the “Barrick Option”). The terms of
the Barrick Option, including Barrick’s back-in right in certain
circumstances, are described in the notes to the annual financial
statements of Santa Barbara.
About the Company
Santa Barbara is a South American mineral explorer focusing on Peru and
Chile. The Company has 25.3 million shares outstanding.
ON BEHALF OF THE BOARD
“Christoph Lassl”
_______________________________
Christoph Lassl, President and
Chief
Executive Officer
Please visit the Company’s web site: www.sbr-ltd.com
. For further information, please contact Christoph Lassl, President and
Chief Executive Officer. Telephone: 56-9-81490442 or email: christoph@sbr-ltd.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 release.
This news release contains certain statements that may be deemed
“forward-looking” statements. Forward looking statements are statements
that are not historical facts and are generally, but not always,
identified by the words “expects”, “plans”, “anticipates”, “believes”,
“intends”, “estimates”, “projects”, “potential” and similar expressions,
or that events or conditions “will”, “would”, “may”, “could” or “should”
occur and include, without limitation, statements regarding the
Company’s plans with respect to exploration activities and a statements
about potential economic gold mineralization on the Sancos Project. Although
Santa Barbara believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results
may differ materially from those in forward looking statements. Forward
looking statements are based on the beliefs, estimates and opinions of
the Company’s management on the date the statements are made. Except as
required by law, the Company undertakes no obligation to update these
forward-looking statements in the event that management’s beliefs,
estimates or opinions, or other factors, should change.
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