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Sunset Cove Mining Announces Underground Sampling Results from Carolay Property in Peru

Lorne Woods, President of Sunset Cove Mining reports the following results from underground samples taken on its silver- polymetallic Carolay Property in the province of La Libertad in Peru.

Twelve channel chip samples were taken across the Carolay Vein in underground workings driven along the vein.  Five of these samples gave values of >100 g/t Ag with associated high values of 0.35% Cu, >1% Pb and >1% Zn across veins widths ranging from 0.3 - 0.5 meters.

Channel chip samples of 1.5 meters in length taken from wall rock immediately adjacent to, but not including the vein, averaged 22.6 g/t Ag, 0.05% Cu, 0.13% Pb, and 0.35% Zn, indicating that sulphide mineralization is not limited to the vein structure

"These results come from samples taken from inside the Carolay Vein show that the hanging and foot walls are mineralized," said Woods. "This news leads us to believe the vein structure could be larger than first thought."

As was previously announced in our News Release of November 4, 2010 the following information comes from our NI 43-101 Technical Report. The Carolay vein is the principal mineralized structure which is oriented northwest-southeast (Az. 120°) with 50-60° dip towards the northeast. The Carolay Vein varies in thickness between 0.4 and 1.2 metres. The vein is known to extend over a length of at least 130 metres from underground drift and subdrifts.

The Carolay Vein consists of a shear zone within schists, phyllites associated with pyrrhotite, argentiferous galena as well as sulphides (pyrites, arsenopyrite) silver tellurides oxides (limonite, goethite, hematite and sphalerite). Hydrothermal alteration (argillitization and chloritization) is observed at the contacts between the mineralized vein and host wall rocks.

The vertical extension was observed between two access adits between levels 2,960 metres and 3,025 metres of at least 65 metres. Along strike, the vein was followed with the 2,972 metre level subdrift and the 2,960 metres access drift (adit) for a minimum of 150 metres.

The deposit would represent syngenetic epithermal polymetallic veins and "mantos" or distal replacement metasomatic zones of base metals (Pb, Zn, Au, Ag, Cu) associated with carbonates, limonite, pyrite, arsenopyrite, chalcopyrite, goethite, pyrrhotite, and vesicular iron rich quartz.

The initial metallogeny is of Neoproterozoic epoch of the Maranon Complex where the structures transcut the chlorite schists, phyllites and limestones of the Pucara Group. The vein and contact walls are oxidized and mostly enriched in supergene silver.

The structures and textures are characterized and dominated by the presence of banding and strong foliation. The veins are locally intensely silicified and argillitized and contain silver-rich galena and sphalerite with marmatite.

In addition, the Company confirms that as of the Qualifying Transaction, Horwath Leebosh Appel   SENCRL/LLP has been named as the successor auditors of the Company.  Sunset Cove also announces that it has granted 370,000 stock options to a new director and consultants. The options are priced at $ 0.20 and expire five years from their grant.

Quality assurance/quality control

Steven Park P. Geo, an independent consultant and qualified person as designated by National Instrument 43-101, has reviewed the technical content of this release.

In addition the NI 43-101 Technical report was produced under the supervision of Mr. Alain-Jean Beauregard of Geologica Inc. an independent consultant and qualified person as designated ny National Instrument 43-101 who has reviewed the technical content of this release.

Source:

Sunset Cove Mining Inc.

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