Sunward Reports Further Progress from Drilling at Titiribi

• New NW Breccia Zone Intersected at Depth at Cerro Vetas
  
  
• Potentially Higher-Grade Zone Developing
  
  
• Highlights Include CV078: 338.05 Metres Averaging 1.098 g/t Gold Equivalent in Cerro Vetas Stock and 136.5 Metres Averaging 0.89 g/t Gold in NW Breccia Zone

VANCOUVER, July 23, 2012 /CNW/ - Sunward Resources Ltd. ("Sunward" or the "Company") (TSX: SWD; OTCQX:  SNWRF) is pleased to announce successful results from its infill and step-out drilling at the Cerro Vetas zone at the 100%-owned Titiribi Project ("Titiribi" or the "Property"), located approximately 70 kilometers southwest of Medellin, Colombia. Eleven drill rigs operated on the Property on a round-the-clock basis between November 2011 and April 2012. Currently, there are four (4) rigs operating on the Property. Results to date suggest considerable further expansion and enhancement of the known mineralized bodies, which currently host an NI 43-101 compliant Measured & Indicated Mineral Resource of 4.58 million ounces gold (within 275.4 million tonnes grading 0.52 grams per tonne gold and 0.17% copper, using a 0.3 grams per tonne gold cut-off), along with an additional Inferred Mineral Resource of 6.44 million ounces gold (within 359.6 million tonnes grading 0.56 grams per tonne gold using a 0.3 grams per tonne gold cut-off; see Report dated June 2012 available at www.sunwardresources.com and on SEDAR).

The holes reported in this news release were drilled subsequent to the most recent NI 43-101 published resource statement.   This drilling represents a portion of the planned 2012 - 40,000 metre drill program. Assays from further holes will be released as they become available.

Sunward Resources CEO Colin Andrew commented: "We are very pleased that this continued drilling has, in all likelihood, significantly enhanced the extent of mineralization, both in terms of the overall tonnage of material and, more importantly, in terms of the amount of contained gold and copper. Furthermore, there is significant evidence that we may have identified a new higher-grade NW Breccia Zone at depth at Cerro Vetas."  He went on to state that: "These results provide us with more evidence of the scale and potential of the Titiribi District where we plan to conduct further exploration on additional targets later this summer."

Details

In the Cerro Vetas zone, recent drilling has been successful at infilling gaps within the existing drill pattern and also continuing to explore the southwestern and northeastern fringe of the porphyry body. Drilling continues to intersect a series of dioritic intrusive rocks and intrusive breccias collectively forming the Cerro Vetas stock. Details of the latest series of drillholes are given in the table below.  Results are provided for 24 of 25 drill holes (assays awaited for Hole CV094); all intercepts given below employ a 0.3 grams per tonne gold cut-off.

The recent drilling has been primarily geared towards infill drilling in and around the Cerro Vetas diorite stock and include mineralized volcanic and volcaniclastic rocks of the overlying edifice.  Sunward's ability to assess the system continues to evolve, with drillholes oriented in such a manner as to continually test and refine the Company's understanding of the structural and lithological setting of the mineralization. With approximately half the holes drilled to the northwest and the rest to the southeast, Sunward has been able to outline a higher-grade zone on the south-eastern flank of the Cerro Vetas stock. This zone could be further defined by additional shallow drilling on the south-east of the main mineralized zone.  While there is currently insufficient information to identify this zone separately, the potential impact of the size and the grade of this zone could be significant to overall resources.

In addition, some of the northwest-oriented holes are now allowing deeper testing of the newly discovered gold-rich NW Breccia zone. This zone is now known, from limited drill-testing, to host a Measured and Indicated Mineral Resource of 44.3 million tonnes grading 0.58 grams per tonne gold for a contained 0.83 million ounces of gold, along with an Inferred Mineral Resource of 51.7 million tonnes grading 0.78 grams per tonne gold containing 1.31 million ounces of gold.  For example:

				Hole CV078 has several important intercepts in the Cerro Vetas stock, including a 338.05 metre interval from 112.0 metres grading 1.098 grams per tonne gold equivalent.  Additionally, this hole intersected the NW Breccia in a 136.5 metre zone from 853.5 metres downhole, grading 0.890 grams per tonne gold, with trace copper.
				Hole CV082 has several long intervals of mineralization within the Cerro Vetas stock.  In addition, the hole just clipped the edge of the NW Breccia intersecting a 3.48 metre zone at 928.02 metres, grading 12.346 grams per tonne gold with trace copper.

Continuity of the Cerro Vetas mineralization continues to be established and expanded.  Examples of just two (2) of the holes are given below:

				Hole CV087, drilled northwest through the southwest fringe of the Cerro Vetas stock, is essentially mineralized throughout the upper 700 metres of the hole, including a 176.85 metre interval from 472.14 metres grading 0.592 grams per tonne gold and 0.268% copper, or 1.105 grams per tonne gold equivalent.
				Hole CV075, drilled northwest through the northeastern margin of the Cerro Vetas stock, had numerous intercepts, including a 217 metre interval from 227.0 metres grading 0.522 grams per tonne gold and 0.128% copper.

A complete table of intercepts for recent drilling at Cerro Vetas is included below. A map of these drill hole locations and geological sections through the Cerro Vetas project can be found at www.sunwardresources.com.

Drill hole		Azimuth		Inclination		From (metres)		To (metres)		Interval (metres)		Gold (grams per tonne)		Copper (%)		Gold Equivalent (grams per tonne)			Zone			Grade thickness (grams per tonne Gold Equivalent per metre)
CV071		142		-54		121.00		150.00		29.00		0.305		0.137		0.564			Cerro Vetas stock			16.4
						212.60		220.00		7.40		0.345		0.083		0.502			Cerro Vetas stock			3.7
						259.50		321.00		61.50		0.416		0.191		0.777			Cerro Vetas stock			47.8
						635.50		669.00		33.50		0.383		0.172		0.708			Cerro Vetas stock			23.7
CV072		225		-86		255.90		266.40		10.50		0.423		0.255		0.905			Cerro Vetas stock			9.5
CV073		322		-50		234.00		275.70		41.70		0.315		0.278		0.839			Cerro Vetas stock			35.0
						290.00		460.00		170.00		0.529		0.149		0.810			Cerro Vetas stock			137.7
						505.00		524.50		19.50		0.533		0.071		0.666			Cerro Vetas stock			13.0
						529.50		551.00		21.50		0.822		0.133		1.073			Cerro Vetas stock			23.1
						565.00		646.20		81.20		0.560		0.154		0.850			Cerro Vetas stock			69.0
						678.00		772.00		94.00		0.542		0.176		0.875			Cerro Vetas stock			82.3
CV074		142		-57		26.50		47.40		20.90		0.362		0.048		0.452			Cerro Vetas stock			9.4
						58.00		78.00		20.00		0.407		0.050		0.500			Cerro Vetas stock			10.0
CV075		322		-50		101.40		105.10		3.70		2.194		0.187		2.546			Cerro Vetas stock			9.4
						202.45		214.55		12.10		0.501		0.348		1.157			Cerro Vetas stock			14.0
						342.00		375.10		33.10		0.397		0.198		0.771			Cerro Vetas stock			25.5
						411.50		419.50		8.00		1.353		0.370		2.052			Cerro Vetas stock			16.4
						442.00		572.80		130.80		0.632		0.144		0.905			Cerro Vetas stock			118.4
						592.10		643.80		51.70		0.389		0.141		0.654			Cerro Vetas stock			33.8
						768.30		789.30		21.00		0.534		0.031		0.593			NW Breccia			12.5
						803.50		833.30		29.80		0.734		0.020		0.772			NW Breccia			23.0
CV076		142		-51		0.00		77.65		77.65		0.846		0.299		1.409			Cerro Vetas stock			109.4
						160.80		168.40		7.60		0.333		0.262		0.828			Cerro Vetas stock			6.3
						180.10		199.70		19.60		0.272		0.189		0.628			Cerro Vetas stock			12.3
						222.85		237.20		14.35		0.946		0.210		1.343			Cerro Vetas stock			19.3
						475.50		520.00		44.50		0.502		0.034		0.567			Cerro Vetas stock			25.2
CV077		142		-51		108.50		117.50		9.00		0.346		0.144		0.617			Cerro Vetas stock			5.6
						129.00		138.00		9.00		0.424		0.208		0.818			Cerro Vetas stock			7.4
						145.50		162.00		16.50		0.359		0.176		0.691			Cerro Vetas stock			11.4
						227.00		444.00		217.00		0.522		0.128		0.763			Cerro Vetas stock			165.6
						407.60		428.10		20.50		0.476		0.174		0.805			Cerro Vetas stock			16.5
						445.50		458.30		12.80		0.356		0.136		0.613			Cerro Vetas stock			7.8
						493.25		502.50		9.25		0.319		0.149		0.600			Cerro Vetas stock			5.6
						747.93		752.10		4.17		0.647		0.136		0.903			Cerro Vetas stock			3.8
CV078		322		-51		9.00		46.50		37.50		0.294		0.138		0.555			Cerro Vetas stock			20.8
						112.00		450.05		338.05		0.657		0.234		1.098			Cerro Vetas stock			371.2
						467.00		538.00		71.00		0.387		0.202		0.768			Cerro Vetas stock			54.5
						574.00		748.00		174.00		0.457		0.145		0.730			Cerro Vetas stock			127.0
						853.50		990.00		136.50		0.890		0.026		0.940			NW Breccia			128.3
CV079A		142		-50		281.70		303.85		22.15		0.600		0.283		1.145			Cerro Vetas stock			25.4
						686.75		708.30		21.55		0.304		0.159		0.610			Cerro Vetas stock			13.1
CV080		322		-55		132.60		140.28		7.68		0.389		0.170		0.710			Cerro Vetas stock			5.5
						223.00		349.30		126.30		0.704		0.242		1.161			Cerro Vetas stock			146.6
						682.50		866.00		183.50		0.523		0.153		0.812			Cerro Vetas stock			149.0
						944.00		996.00		52.00		0.640		0.050		0.734			NW Breccia			38.2
CV081		322		-56		83.50		113.10		29.60		0.288		0.190		0.652			Cerro Vetas stock			19.3
						141.25		279.50		138.25		0.346		0.193		0.716			Cerro Vetas stock			99.0
						294.50		318.50		24.00		0.469		0.035		0.536			NW Breccia			12.9
CVC082		322		-58		230.75		239.00		8.25		0.424		0.240		0.884			Cerro Vetas stock			7.3
						522.00		696.00		174.00		0.273		0.172		0.603			Cerro Vetas stock			104.9
						862.50		907.50		45.00		0.388		0.066		0.515			NW Breccia			23.2
						928.02		931.50		3.48		12.346		0.034		12.412			NW Breccia			43.2
CV083		140		-50		261.00		320.80		59.80		0.405		0.191		0.770			Cerro Vetas stock			46.0
						336.00		368.00		32.00		0.344		0.055		0.451			Cerro Vetas stock			14.4
						578.50		644.00		65.50		0.605		0.164		0.920			Cerro Vetas stock			60.3
CV084		322		-51		581.50		590.50		9.00		0.682		0.064		0.805			Cerro Vetas stock			7.2
CV085		322		-49		103.80		130.60		26.80		0.263		0.126		0.506			Cerro Vetas stock			13.6
						186.00		338.00		152.00		0.316		0.186		0.672			Cerro Vetas stock			102.1
						645.00		730.00		85.00		1.209		0.295		1.775			Cerro Vetas stock			150.9
						936.85		962.00		25.15		0.370		0.057		0.480			Cerro Vetas stock			12.1
						985.50		1104.00		118.50		0.449		0.023		0.494			Cerro Vetas stock			58.5
CV086		142		-52		139.80		150.50		10.70		0.619		0.175		0.955			Cerro Vetas stock			10.2
						165.00		249.70		84.70		0.335		0.178		0.677			Cerro Vetas stock			57.3
CV087		322		-55		98.60		360.85		262.25		0.298		0.203		0.688			Cerro Vetas stock			180.4
						472.15		649.00		176.85		0.592		0.268		1.105			Cerro Vetas stock			195.4
						961.00		962.50		1.50		25.600		0.019		25.636			NW Breccia			38.5
CV088		141		-60		17.20		82.10		64.90		0.516		0.221		0.940			Cerro Vetas stock			61.0
						179.60		192.00		12.40		0.458		0.337		1.104			Cerro Vetas stock			13.7
						247.70		254.50		6.80		0.438		0.328		1.066			Cerro Vetas stock			7.2
						298.50		326.37		27.87		0.483		0.340		1.134			Cerro Vetas stock			31.6
CV089		322		-50		No significant mineralization
CV090		142		-55		23.50		242.00		218.50		0.584		0.204		0.975			Cerro Vetas stock			213.0
						402.65		410.50		7.85		0.574		0.225		1.006			Cerro Vetas stock			7.9
						466.40		474.70		8.30		0.307		0.028		0.360			NW Breccia			3.0
CV091		319		-60		232.74		244.15		11.41		0.458		0.211		0.863			Cerro Vetas stock			9.8
						272.80		298.30		25.50		0.434		0.233		0.880			Cerro Vetas stock			22.4
						311.80		404.80		93.00		0.508		0.150		0.796			Cerro Vetas stock			74.0
						805.00		816.50		11.50		0.379		0.103		0.576			Cerro Vetas stock			6.6
						828.50		935.00		106.50		0.364		0.137		0.627			Cerro Vetas stock			66.8
						1026.50		1031.00		4.50		0.400		0.164		0.714			Cerro Vetas stock			3.2
CV092		141		-51		136.50		160.00		23.50		0.379		0.240		0.839			Cerro Vetas stock			19.7
						179.50		298.65		119.15		0.510		0.254		0.996			Cerro Vetas stock			118.7
						611.50		644.50		33.00		0.605		0.225		1.036			Cerro Vetas stock			34.2
						658.50		667.30		8.80		0.477		0.177		0.817			Cerro Vetas stock			7.2
CV093		140		-50		89.00		104.00		15.00		0.609		0.088		0.778			Cerro Vetas stock			11.7
						120.50		140.00		19.50		0.312		0.040		0.389			Cerro Vetas stock			7.6
						149.50		158.50		9.00		0.401		0.040		0.477			Cerro Vetas stock			4.3
						176.50		334.50		158.00		0.701		0.152		0.992			Cerro Vetas stock			156.7
						345.25		358.50		13.25		0.787		0.402		1.557			Cerro Vetas stock			20.6
CV094		322		-50		Assays awaited
CV095		142		-50		336.67		344.90		8.23		0.509		0.100		0.700			Cerro Vetas stock			5.8
						370.50		376.50		6.00		0.368		0.093		0.546			NW Breccia			3.3
Note:   Gold Equivalents calculated using a price of gold at US$1,114 per ounce and copper at US$3.07 per pound
Note:   Cut-offs stated at 0.3 grams per tonne gold

Colin J. Andrew, CEng MIMMM, FGS is a qualified person under National Instrument 43-101, and has reviewed and is responsible for the contents of this news release.

Sample Preparation Assays QA/QC:

Drill core was logged, cut and sampled by Sunward personnel at the Company's facilities in Colombia. In the case of the drilling results referred to herein the samples were prepared at Inspectorate America's sample preparation facility in Medellin, Colombia and then analyzed at Inspectorate America's ISO 9001:2000 accredited laboratories in Reno, Nevada, USA, a facility that follows internationally accepted methods and procedures and has stringent quality control and assurance practices.

At the sample preparation facility in Medellin the samples were crushed to >80% passing -10 mesh using a terminator jaw crusher; split to 250 grams; pulverized using a LM2 ring pulverizer to over 90% passing -150 mesh; split into 125 grams aliquots which were then sent to Inspectorate America's laboratories in Reno for assay. Gold was analyzed by fire assay with Inductive Coupled Plasma (ICP) finish with a lower detection limit of 2 ppb. Samples above 5 grams per tonne were assayed by fire assay with gravimetric finish. In addition to gold, a suite of 30 other elements including silver and copper were assayed by ICP-AES following an aqua regia digest.  Blanks, field and laboratory duplicates duplicate samples and a number of internationally approved and registered analytical standard samples were routinely randomly inserted into the preparation and analysis process as part of Sunward's normal quality assurance and quality control program.  Any analytical batch of assays wherein inserted standards assayed without the acceptable limits are rejected.

ABOUT SUNWARD:

Sunward Resources is a well-capitalized, Canadian-based company focused on the exploration and development of the 100%-owned Titiribi Project in Colombia.  The Titiribi Project is located approximately 70 kilometres southwest of the city of Medellin, Colombia, in Antioquia department, within the historical Titiribi mining district (estimated total production of 1.5 to 2 million ounces gold equivalent). Access is by paved highway from Medellin.

Titiribi hosts an NI 43 101-compliant Measured and Indicated Resource of 4.6 million ounces of gold contained within 275.4 million tonnes grading 0.52 grams per tonne and Inferred Resource of 6.4 million ounces of gold contained within 359.6 million tonnes grading 0.56 grams per tonne. All Titiribi resources were assessed using a 0.3 grams per tonne gold cut-off.  Titiribi also hosts 279,131 tonnes of copper in the Measured and Indicated Resource and 176,205 tonnes of copper in the Inferred Resource. For more information, please see the Company's press release dated June 4, 2012 as published on SEDAR and on the Company's website, as well as the technical report by Behre Dolbear & Company (USA), Inc. dated June 1, 2012.

Cautionary Statement Regarding Forward Looking Information

This news release contains forward-looking information within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking information. Forward-looking information may include, but is not limited to, statements with respect to future activities of the Company; the Company's plans for its mineral properties; the Company's business strategy, plans and outlook; the merit of the Company's properties; exploration results; mineral resource estimates; work plans and timelines; completion of transactions; shareholder value; projections and targets; the future financial or operating performance of the Company, its subsidiaries and its projects; operating and exploration expenditures and costs of future exploration and other activities; and approvals, permits and licenses. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "possible", "budget", "scheduled", "strategy", "goal", "objective", "potential", "estimates", "assumes", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any results, performance or achievements expressed or implied by the forward-looking statements. Such uncertainties and factors include, among others, inherent risks involved in the exploration of mineral properties; risks associated with foreign operations; risk relating to title to the Company's properties; the uncertainties involved in resource estimates and in interpreting drilling results and other geological data; fluctuations in currency exchange rates and commodity prices; uncertainties regarding the issuance of approvals, licenses and permits; risks related to competition; risks related to the Company's ability to acquire additional mineral properties; the availability of and costs of required financing; economic, political and social uncertainties; accidents and labour disputes; and political instability, insurrection or war; as well as those factors discussed under "Risk Factors" in the Company's Annual Information Form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to that the Company's exploration of its properties and other activities will be in accordance with the Company's public statements and stated goals, that there will be no material adverse change affecting the Company or its properties, anticipated costs and timing for the Company's activities and such other assumptions as set out herein. Forward-looking statements are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

 

SOURCE: Sunward Resources Ltd.

Corporate Contact:
Brenda Dayton
604.568.7617
[email protected]