Sulliden Exploration Inc. (TSX:SUE) reports that it has filed its financial statements and management's discussion and analysis for the financial year ended April 30, 2008.
The Company reported a net loss for the year of $3,318,428 compared to a loss of $1,538,346 in the year ended April 30, 2007. Included in the loss for 2008 is $1,777,752 in respect of the write-down in the Vikingo and Torrine joint venture properties. Included in the loss for 2007 is stock-based compensation charge of $838,792, compared to a stock-based compensation charge of $150,280 in the current year.
During the year the Company invested $4.1 million in exploration and development, including legal fees, on its Peruvian properties, compared to $2.79 million in 2007.
At April 30, 2008 the Company had cash and investment certificates of $2.03 million compared to $4.9 million at April 30, 2007. Subsequent to the end of the year a further $1,078 000 was raised through the exercise of outstanding warrants at $1.00 per share. Sulliden has sufficient cash to continue funding its legal, property maintenance and administrative costs but will need to raise further funds to undertake its planned exploration programs. The Company had previously contemplated a Rights Offering to shareholders but this has been deferred pending developments in the Shahuindo litigation.
Successful Exploration Program at Shahuindo
During the fiscal year ended April 30, 2008, Sulliden successfully carried out an exploration program on its Shahuindo property in Peru in accordance with all legal requirements, and with the authorization of the surface owners, pursuant to a nine month Exploration Permit that was properly issued to Sulliden by the Ministry of Energy and Mines of Peru in April 2007.
The 2007 drilling program, which totalled approximately 3,710 meters of diamond drilling in 14 holes demonstrated that the Shahuindo mineralised trend extends for another two kilometers to the north-west of the resource defined in the Principal Zone. The results indicate clearly the potential for substantial additional gold-silver resources to the NW of the known Principal Zone. Four holes also intersected extensive, but unexpected, sub-economic zinc mineralization.
Additional drilling will be needed to test if new resources may be found in this newly discovered part of the trend. Of significance, however, is that the northwest extension of the mineralized corridor appears to be extending into the Chimu Formation instead of the Carhuaz Formation that hosts the Principal Zone. Barrick's Norte-Alto Chicama gold mine, located just 25 km to the north of Shahuindo, is precisely hosted in this same Chimu Formation.
Since the completion of the 2007 drill program a detailed mapping and sampling phase was conducted. The objective was to fill-in gaps in the 2003, 2004 and 2007 mapping programs to generate a detailed geological map covering the entire mineralized trend (an area of approximately 8.5 km per 1.5 km) hosting the various resource Zones. Compilation of results is underway. -- www.cnxmarketlink.com
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