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 ozs.), a 215% increase over the mid-2005 estimate conducted by engineering firm Hatch. An additional inferred resource of 8.9 million tonnes of 2.66 grams gold (about 800,000 contained ozs.) was also tabled in the latest study.
Southwestern Resources president and CEO John Paterson called results “an important milestone for the project and the Company, and it allows us to move forward with confidence to complete the pre-feasibility study.” Engineering firm Ausenco is leading the pre-feasibility study expected for completion 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 four 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 on which Paterson continues, “we are confident 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 that retains a 10% carried 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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