SWG cranks up exploration

Vancouver — With several of its joint-venture partners gearing up to test a number of projects in Peru, the second half of 2001 is shaping up to be interesting for Southwestern Gold (SWG-T).

On the Winter property, Southern Peru Copper (PCU-N) is set to drill-test several geophysical anomalies that lie adjacent to the Los Chancas copper porpyhry prospect. The rig is expected to turn next week. Southwestern’s partner will target a high-grade supergene chalcocite blanket above primary copper mineralization.

At the Minaspata project, Barrick Gold (ABX-T) is gearing up to drill-test three high-sulphidation gold targets. The major can earn a 51% stake by spending US$1.5 million over three years and making payments of US$500,000 to equal partners Southwestern Gold and Cambior (CBJ-T).

On the 287-sq.-km Bambas West project, a mapping and sampling program by equal partners Southwestern Gold and Inco (N-T) has discovered significant zinc mineralization on the Lince property. Field activities have identified two zones that are separated by a 1-km area covered by overburden.

The northern zone is underlain by a zinc skarn manto. This has been traced for 1.2 km along strike and averages 5 metres in thickness. Mineralization consists mainly of zinc-copper oxides. The southern zone is reportedly associated with a zinc-copper skarn body traced for 1.2 km along strike and up to 300 metres in width. The partners have not determined its thickness.

Both zones are hosted in Copacabana limstones and show potential to host a large-tonnage zinc deposit.

Under the terms of the joint-venture agreement, Inco must spend US$1 million on the project. This year’s program is slated to include geochemical and rock-chip sampling, geophysics and drilling.

Newmont Mining (NEM-N) is expected to drill-test the Puno gold property this summer. The property is located in the Southern Peru Tertiary Belt. The major can earn a 50% stake by spending US$1.5 million.

Australian-based Pasminco is conducting more metallurgical test work at the Accha zinc project. This is regarded as the second largest undeveloped zinc deposit in Peru. It hosts an indicated and inferred resource of 9 million tonnes grading 9% zinc. Pasminco can earn a 51% interest by spending US$5 million by May 2002.

In southern Argentina, at the large Tecka ultramafic complex, Partners Consolidated Jaba (JBA-V) and Southwestern Gold have launched a soil geochemical program.

Tecka is regarded as one of the largest unexplored layered complexes in the world. It covers a land area bigger than the prolific Stillwater complex in Montana.

The complex consists of a basal ultramafic zone hosting peridotites and pyroxenites, followed by a transitional zone that leads into an upper mafic zone. Geological mapping shows that it is at least 100 km long and more than 3 km thick. Sulphides have been identified throughout the package. Higher concentrations were found in the transition zone within the central part of the complex. Here, layered chalcopyrite and pyrrhotite have been noted. Trench samples have been taken from this zone. Assay results are pending.

To date, 600 soil samples and 140 rock-chip samples have been collected from Tecka. Assay results are pending.

Consolidated Jaba picked up the mineral exploration rights to explore for platinum group metals (PGMs) on the 01,918-sq.-km property earlier this year.

Southwestern Gold initially earned a 45% interest in the property by advancing Jaba US$210,000 for acquisition and related costs. By making a series of staged exploration expenditures totalling US$3 million over a three-year period, Southwestern can earn up to a 71% interest.