SW Res. cuts more gold at Boka 7

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

Holes 13-16 were collared 200-600 metres apart, and all intersected gold mineralization. Confirmation of mineralization in hole 16 extended the Boka 7 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 13 intersected 41.7 metres averaging 2.8 grams gold per tonne starting at a down-hole depth of 137.8 metres. This included a 21.55-metre section of 4.2 grams gold.

— Hole 14 cut 31 metres of 3.2 grams gold starting at 166.8 metres down-hole, including a 10.1-metre section of 4.1 grams gold and a 31.9-metre section that averaged 2.9 grams gold.

— Hole 15 cut 107.3 metres of 2.4 grams gold starting at 107 metres down-hole, including a 20.8-metre section of 4.8 grams gold.

— Hole 16 returned 89.2 metres grading 3.1 grams gold starting at 99.2 metres down-hole, including a 27.1-metre section of 5.3 grams gold.

The mineralization is associated with a strong gold-in-soil anomaly and can be seen in outcropping as well as in trenches along a steeply west-dipping slope. Further soil sampling south of Boka 7 indicates the soil anomaly continues for a further 2 km.

Southwestern is 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 south of Boka 1.

Meanwhile, crews are carrying out mapping, soil sampling and structural interpretation over the entire joint-venture concession area. Also, an initial scoping study will address mining costs, logistics, and social and environmental concerns.

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 Southwestern Resources and the Yunnan nuclear industry. Southwestern stands to earn a 90% interest by spending US$4 million over four years and paying US$1.7 million.

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