Southwestern Resources Corp.

Southwestern Resources Corp.

April 30, 2009 08:01 ET

Southwestern Provides Update on Millo Project, Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 30, 2009) - Southwestern Resources Corp. (TSX:SWG) ("Southwestern" or the "Company") is pleased to provide an update on its Millo project, located in southern Peru, 130 kilometres southwest of Cusco, and surrounded by the Liam Joint Venture (between Southwestern and Hochschild Mining PLC). Millo is a joint venture with Yamana Gold Inc. ("Yamana"), whereby Yamana is earning a 70% interest in the project by funding all costs through to the completion of a pre-feasibility study.

Yamana recently completed a third-phase drill program of six holes, comprising 1,996.4 metres, on the project. Five of the six holes were drilled in the Espanola vein system and the sixth hole was drilled in the newly discovered Peruanita vein, which is located 250 metres east of the Espanola veins. Results for the six holes are as follows:

Core Gold Silver Gold EQ (i)
From To Interval Assay Assay Assay
Hole No. (metres) (metres) (metres) (g/t) (g/t) (g/t)
PTT-021 70.45 70.75 0.30 0.86 120.20 3.04
115.75 121.90 6.15 0.15 27.69 0.65
150.00 156.10 6.10 0.11 21.66 0.50
158.75 172.20 13.45 0.05 10.19 0.24

PTT-022 140.00 147.15 7.15 1.32 159.29 4.22
153.55 156.30 2.75 1.38 199.07 5.00
221.55 232.20 10.65 0.38 64.05 1.54

PTT-023 95.40 100.25 4.85 0.41 44.91 1.23
138.00 140.60 2.60 0.26 26.96 0.75
222.00 222.75 0.75 0.93 135.30 3.39

PTT-024 321.85 328.60 6.75 1.01 156.61 3.86
337.15 339.30 2.15 2.21 402.57 9.53

PTT-025 200.40 203.35 2.95 0.44 42.88 1.22
248.95 252.00 3.05 3.22 95.48 4.96
280.45 284.20 3.75 0.53 42.22 1.29
374.80 375.25 0.45 0.81 97.79 2.58

PTT-027 100.45 110.90 10.45 1.48 195.10 5.03
121.40 123.40 2.00 0.19 49.00 1.08
129.40 132.40 3.00 0.62 92.80 2.31

(i) Gold EQ - Gold Equivalent is calculated for intervals greater than
or equal to 10 g/t silver, using US$500/oz Au, and US$9/oz Ag. The
formula used is as follows: AuEQ equals Au g/t + (Ag g/t x 9.0/500.0).

Note that there is no PTT-026 drill hole

In the previous two drill phases, Yamana has drilled 15 holes in the Espanola veins, results of which were released March 11, 2008 and February 1, 2007. The first five holes in the above table, drilled in the Espanola veins, continue to demonstrate strong silver and gold mineralization along considerable strike length. Four of the five holes were drilled with 200 to 250 metre drill spacing to the south of previous drilling and now indicate at least 900 metres of additional mineralization to the north-northwest striking Espanola vein system. The total strike length of the Espanola vein system drilled to-date is at least 1.4 kilometres. However, previous mapping indicates that the greater Espanola vein system extends for at least 3.5 kilometres in strike and consists of at least three distinct, sub-parallel, vein sets. The sixth hole in the table (PTT-027) was drilled in the Peruanita vein, which is one of the additional veins sub-parallel to the Espanola veins. Based on these encouraging new results, the Peruanita vein could represent a significant new addition to project size potential.

The new results are being evaluated together with the previous drilling results and new surface mapping to better understand the greater vein distribution, geometry and size potential of the greater Espanola and sub-parallel veins. That information will be used to determine the next phase of work to advance the project. Both in-fill drilling at Espanola, additional drilling at Peruanita and first pass drilling of several additional vein targets are anticipated.

Quality Control

Yamana, as operator of the joint venture on the Millo Project, sends samples to the ALS Chemex laboratory in Lima, Peru, an ISO 9001 and 17025 registered laboratory. Yamana'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 analyses are further analyzed by AAS. High-grade gold and silver values are analyzed by fire assay and gravimetric finish.

Qualified Person

Dr. Alejandro Losada-Calderon, Vice-President Exploration of Southwestern, is the qualified person as defined by National Instrument 43-101 for the Company and has verified the data contained in this news release.

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. The Company has a number of significant projects, including the Liam gold-silver project in Peru. Southwestern is a reporting issuer in British Columbia, Alberta, Manitoba, and Ontario and trades on the Toronto Stock Exchange under the symbol SWG.

Forward-looking Statements

Statements in this news release that are forward-looking statements are based on the current expectations, beliefs, assumptions, estimates and forecasts about the Company's business and the industry and markets in which it operates. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements due to a number of factors, including but not limited to, the Company's access to additional capital to fund future activities, the loss of mineral properties or the inability to obtain mining licenses, the inherently risky nature of the Company's activities and its lack of experience in bringing an exploration property into production, its ability to repatriate any earnings, foreign exchange fluctuations, the political stability and economic uncertainty of those areas in which the Company carries on operations and the lack of infrastructure in those areas, title risks, the risks and uncertainties associated with joint ventures and the Company's reliance on third parties, statutory and regulatory compliance, the adequacy and availability of insurance coverage, the Company's dependence upon employees and consultants and fluctuations in mineral prices and other risks detailed in the Company's filings with the Canadian Securities Authorities.

These risks, as well as others, could cause actual results and events to vary significantly. The Company expressly disclaims any intent or obligation to update these forward-looking statements, unless the Company specifically states otherwise.

Contact Information

  • Southwestern Resources Corp.
    Timo Jauristo
    Interim President & CEO
    (604) 669-2525
    Southwestern Resources Corp.
    David Black
    Chair of the Board
    (604) 669-2525