Southwestern Resources Corp.
TSX : SWG

Southwestern Resources Corp.

February 01, 2007 07:00 ET

Southwestern Resources Corp.: First Phase Drilling on Millo-Azucar Project, Peru Returns Intersection of 317 Grams Per Tonne Silver and 2.65 Grams Per Tonne Gold Over 20.30 Metres

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 1, 2007) - Southwestern Resources Corp. (TSX:SWG) ("Southwestern" or "the Company") is pleased to announce that positive drill results have been received for the first phase drilling program on the Millo-Azucar Project located in Southern Peru. The Milo-Azucar Project is a joint venture between the Company and Minera Meridian Peru S.A.C. (a wholly owned subsidiary of Meridian Gold Inc.) whereby Meridian is earning a 70% interest in the Project by funding all exploration costs through the completion of a pre-feasibility study. The Millo-Azucar Project is underlain by a series of low sulphidation epithermal veins occurring within a prominent northeast trending belt of well-known high grade vein mines such as Arcata, Ares and Santo Domingo. The Millo-Azucar joint venture is operated by Meridian and comprised of 6,700 hectares of exploration concessions located 570 kilometres southeast of Lima at altitudes between 4,600 and 5,200 metres.

The first phase drilling program was comprised of 12 holes and highlights of this drilling include a 20.30 metre intersection grading 317 grams per tonne silver and 2.65 grams per tonne gold in hole PTT004, a 17.10 metre intersection grading 162 grams per tonne silver and 1.80 grams per tonne gold in hole PTT005 and a 0.70 metre intersection grading 814 grams per tonne silver and 27.10 grams per tonne gold in hole PTT007. All veins intersected in the first phase drilling program remain open in all directions and a more extensive second phase drilling program is planned to commence in April after the rainy season. A first phase drilling program is also planned to test the large high sulphidation gold-silver zone identified on the property.

Details of all drill intersections are listed in the following table.



--------------------------------------------------------------------------
Intersection Gold Assay
---------------- --------------------------------
Gold
Core Gold Silver Equivalent
Hole From To Interval(i) (grams per (grams per (grams per
No. (metres) (meters) (meters) tonne) tonne) tonne)
--------------------------------------------------------------------------
PTT-001 1.90 2.20 0.30 1.90 115 4.20
--------------------------------------------------------------------------
56.90 57.50 0.60 0.86 112 3.10
--------------------------------------------------------------------------

--------------------------------------------------------------------------
PTT-002 84.15 88.22 4.07 0.89 142 3.72
--------------------------------------------------------------------------
including 85.22 86.72 1.50 2.14 323 8.60
--------------------------------------------------------------------------

--------------------------------------------------------------------------
PTT-003 77.95 78.95 1.00 0.36 33 1.02
--------------------------------------------------------------------------

--------------------------------------------------------------------------
PTT-004 40.80 61.10 20.30 2.65 317 8.99
--------------------------------------------------------------------------
including 40.80 45.30 4.50 2.54 662 15.79
--------------------------------------------------------------------------


--------------------------------------------------------------------------
including 52.60 57.10 4.50 6.46 513 16.72
--------------------------------------------------------------------------
75.50 77.00 1.50 2.31 177 5.85
--------------------------------------------------------------------------

--------------------------------------------------------------------------
PTT-005 69.40 86.50 17.10 1.80 162 5.78
--------------------------------------------------------------------------
including 70.90 75.40 4.50 2.84 225 7.34
--------------------------------------------------------------------------
including 81.40 85.50 4.10 2.95 282 8.59
--------------------------------------------------------------------------

--------------------------------------------------------------------------

--------------------------------------------------------------------------
PTT-006 56.00 57.50 1.50 2.01 103 4.07
--------------------------------------------------------------------------

--------------------------------------------------------------------------
PTT-007 16.50 18.00 1.50 2.18 122 4.62
--------------------------------------------------------------------------
33.90 34.40 0.50 2.00 131 4.62
--------------------------------------------------------------------------
99.60 100.30 0.70 27.10 814 43.38
--------------------------------------------------------------------------

--------------------------------------------------------------------------
PTT-008 23.40 24.20 0.80 0.40 36 1.13
--------------------------------------------------------------------------
57.90 58.36 0.46 0.64 51 1.66
--------------------------------------------------------------------------
64.35 65.85 1.50 0.87 22 1.31
--------------------------------------------------------------------------

--------------------------------------------------------------------------
PTT-009 76.60 78.07 1.47 0.43 64 1.70
--------------------------------------------------------------------------
80.50 81.70 1.20 0.26 41 1.07
--------------------------------------------------------------------------
92.50 95.05 2.55 0.76 82 2.40
--------------------------------------------------------------------------
97.80 100.65 2.85 0.81 92 2.65
--------------------------------------------------------------------------

--------------------------------------------------------------------------
PTT-010 59.50 60.40 0.90 0.83 98 2.79
--------------------------------------------------------------------------

--------------------------------------------------------------------------
PTT-011 50.90 52.00 1.10 0.57 55 1.67
--------------------------------------------------------------------------
103.00 104.50 1.50 0.35 42 1.18
--------------------------------------------------------------------------
153.45 154.63 1.18 0.30 48 1.26
--------------------------------------------------------------------------
177.70 179.20 1.50 0.54 78 2.10
--------------------------------------------------------------------------
(i) Interval is core interval.
(ii) Gold equivalent based on a silver-gold ratio of 50:1. Metallurgical
recoveries have not been determined and therefore have not been
considered in the gold equivalent calculation.


About Southwestern

Southwestern is a Vancouver-based mineral exploration company engaged in the identification, acquisition, evaluation and exploration of gold, silver and base metals mineral properties in China and Peru. The Company has working capital of $44 million, total assets of over $100 million, and no debt. Southwestern is a reporting issuer in British Columbia, Alberta, Manitoba, and Ontario and trades on the Toronto Stock Exchange under the symbol SWG.

Quality Control

Meridian is operator of the Joint Ventures on the Millo and Azucar Projects and Southwestern's Qualified Person for the Project is John G. Paterson, M. AUSIMM, President of the Company. Samples are sent to the ALS Chemex laboratory in Lima, Peru. ALS Chemex is an ISO 9002 registered laboratory and is preparing for ISO 17025 certification. Meridian's quality control and quality assessment procedures include the analysis of its own blanks, standards and duplicates, introduced among the batches of samples, in addition to those used by the laboratory for its routine testing. Rock samples are crushed to greater than 70% passing 10 mesh, and pulverized to greater than 85% passing 200 mesh. A fraction of the pulps is analyzed for gold by fire assay and AAS. Another fraction of the pulps is digested in aqua regia acid and is analyzed for 34 elements by ICP-AES with Quantitative Low Detection Mercury by AAS. Ore grade silver, lead, copper and zinc analyzes are further analyzed by AAS. High-grade gold and silver values are analyzed by fire assay and gravimetric finish.

Forward-looking Statements

Statements in this release that are forward-looking are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.

Contact Information

  • Southwestern Resources Corp.
    Meghan Brown
    Manager Investor Relations
    (604) 669-2525
    (604) 688-5175 (FAX)
    Email: info@swgold.com
    Website: www.swgold.com