Southwestern to drill in Peru

Diamond drilling is about to begin on the San Jose polymetallic property in Peru.

The property, held by Southwestern Gold (SWG-T), is 25 km southeast of the Cerro Verde mine in that country’s primary porphyry copper belt. Stockwork copper-molybdenum-gold mineralization is associated with the roof zone of a large porphyry system covered by thin sediments.

Trenching has identified an anomalous copper-molybdenum-gold zone measuring 2 by 2.5 km. The zone, according to Southwestern, is associated with a typical leached cap containing remnant oxide copper mineralization. Copper values in the oxide zones range up to 2.5%, and the zone is open to the south.

Within the anomalous area, 12 zones of visible, coarse gold were detected.

Rock-chip panel samples from one of these zones indicate a 30-metre section grading 5 grams gold per tonne.

Vancouver-based Southwestern can acquire a 100% interest in the property for cash payments subject to a 2.5% net smelter return royalty, which can be purchased from a private vendor for US$1 million.