Vancouver, British Columbia CANADA, October 13, 2011 /FSC/ – Santa Barbara Resources Limited (SBL – TSX Venture), (the “Company”) is pleased to announce the results of a recently completed controlled source audio-frequency magnetotelluric geophysical survey (CSAMT) conducted on the Company’s flagship Sancos Project in Peru.
The CSAMT resistivity survey was conducted by Quantec Geoscience Peru S.A.C., Arequipa, Peru, a subsidiary of Quantec Geoscience, Toronto, Canada, over an area of approximately 1 kilometre (“km”) wide and 3.5 km long. Individual survey lines cover the principal target area at Sancos Central with 100 metre (“m”) line spacing for detailed investigation and then extend from this zone with 400 m spacing as a scout survey over additional potential target areas towards the northeast. In total, 24.6 line-km were surveyed.
Santa Barbara’s President Christoph Lassl comments: “The CSAMT geophysical survey has identified three deep-rooted strong resistivity anomalies as well as one shallow anomaly within the alteration area at Sancos Central as well as to the southwest and to the northeast of Sancos Central. Potential feeder zones within these anomalies are up to 300 m wide, 750 m long and reach to depths in excess of 500 m. It is remarkable that the currently known gold mineralization identified at Sancos Central in surface trenches as well as in drill holes is hosted by only a portion of one of these target zones whereas the other areas of the resistivity anomalies are untested and two of them are completely new zones. The correlation of potential feeder zones to the broader alteration and gold mineralization has been interpreted from the deep penetrating CSAMT survey method. The exploration potential of all of these areas has been enhanced by the new survey results.”
CSAMT Survey Results
The CSAMT resistivity survey has revealed a total of four significant resistivity anomalies. One of these anomalies, the “Sancos Central Anomaly”, hosts all of the currently known gold mineralization defined in trenches and drill holes at Sancos Central. This anomaly shows a massive resistive body of more than 200 m thickness over an area of 800 m by 800 m and is open to the south and northwest. This area corresponds well with the presence of mapped siliceous alteration on surface. At deeper levels, from about 300 m below surface, this widespread resistivity anomaly gives way to an approximately 750 m long and 300 m wide, east-west orientated zone of high resistivity which continues to depths in excess of 500 m. This deep-reaching high-resistivity trend is interpreted as a potential feeder zone to the currently known mineralization at Sancos Central. While the overall resistivity zone was known before, the definition of the potential feeder zone is a new development.
A 700 m by 700 m resistivity anomaly, the “Northeast Anomaly”, with similar characteristics as described above was encountered 100 m to the northeast. The potential feeder zone to this resistivity high measures approximately 700 m by 250 m in a northwestern orientation and extends to depths of greater than 500 m. This is a new exploration target.
An additional new, strong, vertically deep-reaching resistivity anomaly, the “Southwest Anomaly”, is identified on the edge of the current resistivity survey and 200 m to the southwest of the Sancos Central Anomaly. The surface footprint of the anomaly is not defined to date. However, according to the vertical resistivity profiles a width of about 300 m, similar to the feeder zone at the Sancos Central Anomaly, is indicated.
A 1 km by 1 km wide, up to 200 m thick, moderate resistivity anomaly, the “North Anomaly”, is present in the northern portion of the survey area. Widespread silicification is present on surface within this anomaly. However, due to the reconnaissance level survey line spacing the definition of this anomaly is moderate.
The described cluster of well-defined resistivity anomalies within only a small portion of the alteration zone over which the current detailed resistivity survey was conducted highlights the significant exploration potential of the Sancos project. The resistivity anomalies are interpreted to contain potentially wide and continuous feeder zones to gold mineralization, representing prime exploration targets. Such targets will be evaluated in the context of the entire geological information available to date and the interpretation of the comprehensive data package should provide new drill targets for the next drill campaign.
Maps and sections of the CSAMT geophysical survey can be viewed on the Company’s web site at www.sbr-ltd.com.
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. Following up on large areas with significant values of gold in trenches, Santa Barbara has drilled 4,533 m at Sancos to date. Gold values have been intersected over more than 200 m vertical extent, starting from surface. Results are encouraging. The best intercepts are 154 m @ 0.45 grams per tonne (“g/t”) gold and 94 m @ 0.47 g/t gold, each starting from surface and ending in mineralization, with all intercepts occurring in oxide material. Bulk leach extractable gold metallurgical testwork on drill chips returned 66 % to 93 % gold recoveries with an average of 86 %, obtained from samples up to 232 m down-hole depth (201 m below surface), suggesting excellent leachability to significant depths. Santa Barbara has recently received a drill permit for the Sancos project from the Peruvian Ministry of Energy and Mines, authorizing the construction of up to 300 individual drill platforms and related access roads over a period of 46 months.
Santa Barbara has the option, subject to certain back-in rights, to acquire a 100% interest in the 6,200 hectare Sancos Project from Barrick Gold Corporation’s Peruvian subsidiary.
The technical content of this news release has been reviewed by Stewart Wallis P.Geo., consultant to the Company, who is the Qualified Person for the Company.
About the Company
Santa Barbara is also exploring the San Francisco project in the prolific Northern Chilean Maricunga gold belt where initial exploration has returned encouraging trench results, including 21.4 m of 0.85 g/t gold associated with black banded quartz veinlets. Such veinlets are indicative of high-level porphyry/epithermal gold mineralization in the district. Geochemical sampling as well as a geophysical magnetic survey has outlined several target areas for the initial drill program, which is planned for early 2012.
Santa Barbara is a South American mineral explorer focusing on Peru and Chile. The Company has 22.8 million shares outstanding and is well funded with about C$ 2.1 million in the treasury.
ON BEHALF OF THE BOARD
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: 56-2-2462545, Fax: 56-2-2462565 or email: email@example.com.
Address: Manquehue Norte 151 – Oficina 906, Las Condes, Santiago, Chile.
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. 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.
SANTA BARBARA RESOURCES LIMITED
Unit 1, 15782 Marine Drive
White Rock, British Columbia V4B 1E6
Web page: www.sbr-ltd.com