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Salazar boosts resources to 5.53 mln indicated tonnes at El Domo deposit

Last updated: 06:56 13 Jan 2012 AEDT, First published: 07:56 13 Jan 2012 AEDT

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Salazar Resources (CVE:SRL)(FRANKFURT:CCG) Thursday announced an updated NI 43-101-compliant mineral resource estimate for the volcanogenic massive sulphide (VMS) El Domo deposit at its 100 percent-owned Curipamba project in Ecuador, significantly boosting resources.

Thursday afternoon shares were up 24 percent to $0.62.

The indicated resource consists of 5.53 million tonnes at an average grade of 2.4 percent copper, 2.5 percent zinc, 0.3 percent lead, 2.8 grams per tonne (g/t) gold and 48.4 g/t silver, containing 292.6 million pounds copper, 304.8 million pounds zinc, 36.5 million pounds lead, 498.0 thousand ounces gold and 8.6 million ounces silver.

In the inferred category, there are an additional 1.46 million tonnes at an average grade of 1.9 percent copper, 2.8 percent zinc, 0.3 percent lead, 2.4 g/t gold and 52.2 g/t silver, containing 61.2 million pounds copper, 90.1 million pounds zinc, 9.6 million pounds led, 112.6 thousand ounces gold and 2.45 million ounces silver.

Salazar's president and CEO, Fredy Salazar, said: "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 percent) 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."

Roscoe Postle Associates was the independent resource estimation consultant. The El Domo estimate is based on a net smelter royalty cutoff value of $50 per tonne.

The company 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 deposit.

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