Southwestern cuts more gold at Boka (May 08, 2003)

Vancouver — Southwestern Resources (SWG-T) has tabled more encouraging results form the Boka gold project, in Yunnan province, China.

Results form holes B03-02a (partial), B03-03, B03-04 and B03-05 in the Boka 1 North area have been received. Boka 1 North is part of an extensive gold mineralization system that extends about 5 km from Boka 11 in the north to Boka 7 in the south. Southwestern is currently drilling broad spaced holes (150 to 900 metres apart) to test the extent of the mineralized system.

All of the following holes were drilled at an angle of minus 70 degrees and Southwestern states that the down-hole widths are believed represent the true widths of mineralization. Highlights of the results are as follows;

• Hole B03-02a cut 10.45 metres averaging 3.21 grams gold per tonne starting 229.8 metres down-hole. Results are still pending from a 158.15-metre interval that started at 240.25 metres down-hole.
• Hole B03-03 cut 85.3 metres averaging 1.29 grams of gold, starting 40 metres down-hole. This included a 12.9-metre section that averaged 3.21 grams gold.
• Hole B03-04 cut 81.4 metres averaging 3.22 grams gold, starting 167.1 metres down-hole. This included a 10.6-metre section that averaged 9.06 grams gold, and a 32.9-metre section that averaged 1.95 grams gold. The hole ended in mineralization.
• Hole B03-05 cut 11.8 metres averaging 3.74 grams gold, starting 83.7 metres down-hole.

Hole B03-05 was drilled at the south end of Boka 1 North and intersected the mineralized horizon from 83.7 metres to 95.5 metres. At 95.5 metres the hole intersected a strong east-west post-mineralization structure and continued in the structure to the end of the hole at 307 metres. This section will be redrilled. Southwestern plans to collar the new hole 150 metres to the east of B03-05.

The company is currently drilling four widely spaced holes in Boka 1 North and Boka 1 South.

Hole B03-06 at Boka 1 South is collared about 900 metres south of B03-05 and is currently at 484.5 metres. Southwestern reports that variable amounts of sulphide and quartz-carbonate stockwork occur from 154 metres to the present depth of drilling. The hole cut the mineralized horizon about 500 metres down-dip from the tunnels at Boka 1 South.

Hole B03-09 was collared about 300 metres northwest of B03-2a and is currently in the mineralized horizon at a depth of 262.6 metres. Sulphide and quartz-carbonate stockwork occur from a depth of 153 metres. This hole is the first to test the Boka 11 zone.

Hole B03-08 was collared about 600 metres north of B03-06 and is currently in the mineralized horizon at a depth of 197.6 metres with variable quartz-carbonate sulphide mineralization starting at 125 metres.

Hole B03-07 was collared 120 metres northeast of hole B03-04 and is currently in the mineralized horizon at a depth of 330 metres. The quartz-carbonate stockwork and sulphide mineralized zone was intersected at 175 metres in the hole.

Gold mineralization is associated with quartz-carbonate stockworks and heavy sulfide breccia zones hosted in carbonaceous sediments and in places by gabbro.

Soutwestern recently completed a detailed soil survey between Boka 1 and Boka 11 in the north and Boka 1 and Boka 7 in the south. Results have outlined a continuous, prominent gold-in-soil anomaly between Boka 1 and Boka 7, a distance of 3,000 metres. The anomaly remains open to the south. The survey was conducted along 200 metre spaced east-west trending lines with samples collected at 100 metre stations.

The company is investigating various options to expedite the sample processing procedures. On of the options it is considering is having an independent qualified prep lab established in Kunming.

Southwestern has recently shipped four 200-kg samples of both oxide and sulphide material to SGS-Lakefield Research in Ontario, for preliminary metallurgical studies.

The Boka project is a Sino-Foreign co-operative joint venture between the Southwestern and Team 209 of the Yunnan Nuclear Industry. Southwestern can earn a 90% interest by spending US$ 4 million over four years and making a payment of US$ 1.7 million.