Vancouver — Over two years after its preliminary assessment on the Boka gold project in Yunnan Province, China, Southwestern Resources (SWG-T, SWGGF-O) has tabled a revised estimate showing a significant resource increase on the deposit.
The Boka 1 deposit is now estimated to host 31.2 million measured and indicated tonnes grading 3.05 grams gold per tonne (just over 3 million contained ounces), a 215% increase over the mid-2005 estimate conducted by engineers Hatch.
An additional inferred resource of 8.9 million tonnes of 2.66 grams gold (about 800,000 contained ounces) was also tabled in the latest study.
Southwestern Resources president and CEO John Paterson called the results an “important milestone for the project and the company, and it allows us to move forward with confidence to complete the prefeasibility study.”
Engineering firm Ausenco is leading the prefeasibility, expected to be completed by mid-2007.
About two-thirds of the measured and indicated resource is within Boka 1 North and one-third in Boka 1 South. The estimate was compiled from 171 drill holes on Boka 1 collared on 50-metre centres plus data from surface trenches and adits. A minimum lode thickness of 4 metres was applied in the study.
Current drilling on the project shows some northward expansion potential at Boka 1 South. Southwestern is also drilling at Boka 19, where Paterson says “we are confident we will add to the known resource base.”
The Boka deposit occurs in a stratabound geologic environment. Gold mineralization is hosted in Middle Proterozoic carbonaceous shales and calcareous siltstones within a thrust zone exhibiting extensive multi-phase breccia and shear development plus quartz-carbonate and sulphide (pyrite) replacement. Twelve known gold zones have been identified along a 25-km structural trend within the specific stratigraphic unit.
Boka is a joint venture between Southwestern (90%) and Team 209 of the Yunnan Nuclear Industry of Yunnan Province (a carried 10% interest).
Based on its 46 million shares outstanding, Southwestern Resources posts a $422-million market capitalization at its recent $9.22 trading price. The stock has a 52-week price range of $7.04 to $15.95.
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