Southwestern Resources cuts more gold at Boka 7

Vancouver — Southwestern Resources (SWG-T) has tabled more assay results from drill holes collared north of the existing tunnels at the Boka 7 gold zone at the company’s Boka gold project in Yunnan province China.

Drillholes B03-13, B03-14, B03-15 and B03-16 were collared 200 to 600 metres apart and all intersected gold mineralization. Confirmation of gold mineralization in hole B03-16 extended the Boka 7 gold zone to a point 1,100 metres northwest of the existing tunnels. Gold mineralization in drill holes is associated with heavy quartz-carbonate plus sulphide alteration on carbonaceous rocks and igneous breccias.

Results of the drill holes are as follows;

• Hole B03-13 cut 41.7 metres averaging 2.8 grams gold per tonne, starting 137.8 metres down-hole. This included a 21.55-metre section that averaged 4.2 grams gold.
• Hole B03-14 cut 31.0 metres averaging 3.2 grams gold, starting 166.8 metres down-hole. This included a 10.1-metre section that averaged 4.1 grams gold and a 31.9-metre section that averaged 2.9 grams gold.
• Hole B03-15 cut 107.3 metres averaging 2.4 grams gold, starting 107.0 metres down-hole. This included a 20.8-metre section that averaged 4.8 grams gold.
• Hole B03-16 cut 89.2 metres averaging 3.1 grams gold, starting 99.2 metres down-hole. This included a 27.1-metre section that averaged 5.3 grams gold.

Southwestern states that the mineralization intersected in these holes is associated with a strong gold-in-soil anomaly and can be seen in outcropping as well as in trenches along a steep west dipping slope. Further soil sampling to the south of Boka 7 indicates the soil anomaly continues for a further 2 km within the joint venture concessions.

Southwestern is now in the midst of a 20,000-metre diamond drilling program using six drill rigs. The company plans to drill 50-metre-spaced holes at the Boka 1 gold zone and 200-metre-spaced holes to test the 5,000-metre-long gold-in-soil anomaly located to the south of Boka 1.

The company has also commenced a detailed mapping, soil sampling and structural interpretation over the entire joint venture concession area. An initial scoping study will also commence in November to address various issues such as mining costs, logistics, social and environmental issues.

Gold mineralization at Boka is associated with quartz-carbonate stockworks and heavy sulphide breccia zones hosted by carbonaceous sediments, igneous breccias and, in places, gabbro.

The Boka project is a Sino-Foreign Co-operative Joint Venture between the Company and Team 209 of the Yunnan Nuclear Industry. Southwestern stands to earn a 90% interest by spending US$4 million over 4 years and making a payment of US$1.7 million.