Southwestern Resources Corp.
TSX : SWG

Southwestern Resources Corp.

December 04, 2006 07:00 ET

Southwestern Resources Announces Positive Drilling Results and Discovery of a New Gold-Silver Zone at Liam

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 4, 2006) - Southwestern Resources Corp. (TSX:SWG) ("Southwestern" or the "Company") is pleased to announce that positive drill results have been received for the Huacullo and Astana gold-silver zones at the Liam Property in Peru. In addition, regional exploration has resulted in the discovery of Aluja, a new gold-silver zone. The discovery brings the total number of identified target areas at the Liam Property to 14.

Highlights of the latest drill results include an intersection of 72.45 metres grading 1.1 grams per tonne gold and 42 grams per tonne silver in hole AS-006, 1.65 metres grading 1.35 grams per tonne gold and 133.5 grams per tonne silver in hole HUA-004 and a 2.30 metre intersection grading 11.5 grams per tonne gold and 91.30 grams per tonne silver in hole HUA-008.

The Liam Gold-Silver Project is a 50/50 joint venture between Southwestern and Newmont Peru Limited. The Liam Property covers 367,000 hectares in the Department of Cuzco in the southern portion of the Peru Tertiary Belt, 170 kilometres northwest of the city of Arequipa.

Huacullo

The Huacullo area is underlain by five low-sulphidation type breccia/vein zones trending in a northwest-southeast direction. The largest of these vein breccia zones extends for two kilometres and varies from one metre to 20 metres in width. Vein textures and trace element signatures are similar to veins being mined in the district. Four widely spaced drill holes (150 metres to 700 metres apart) were completed on the largest vein and one hole was drilled in each of the other four veins as an initial test to determine if grades increase at depth. Results of drilling have shown that some of the grades of the vein systems are increasing at depth. The joint venture partners are now in the planning stages of a second phase of drilling.

Results from the first phase drilling program at Huacullo are listed in the following table:



-------------------------------------------------------------------------
Intersection Assay Gold
--------------- Core --------------------- Equivalent
Interval Silver Gold (ii)
From To (i) (grams (grams (grams
Hole No. (metres) (metres) (metres) per tonne) per tonne) per tonne)
-------------------------------------------------------------------------
HUA-001 16.00 18.35 2.35 16.6 1.60 1.90
-------------------------------------------------------------------------
HUA-002 117.45 117.90 0.45 144.0 3.20 6.00
-------------------------------------------------------------------------
HUA-003 No significant results
-------------------------------------------------------------------------
HUA-004 89.10 90.75 1.65 133.50 1.35 4.00
-------------------------------------------------------------------------
HUA-005 110.50 112.65 2.15 16.32 2.90 3.20
-------------------------------------------------------------------------
HUA-006 147.50 148.40 0.90 109.00 0.10 2.30
-------------------------------------------------------------------------
HUA-007 No significant results
-------------------------------------------------------------------------
HUA-008 93.55 95.85 2.30 91.30 11.50 13.30
-------------------------------------------------------------------------
including 94.80 95.85 1.05 70.60 22.40 23.80
-------------------------------------------------------------------------
(i) Interval reported is core length. True widths are not known at
this time.
(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.


Southwestern's President, John Paterson, states: "We are pleased that the grades, especially for silver, are increasing with depth at Huacullo. The program is at an early stage and with just four holes drilled along the two kilometre vein, we expect the next phase of drilling will confirm continuity of the mineralization at depth."

Astana

The Astana area is underlain by a high-sulphidation type gold-silver zone extending for 300 metres by 200 metres. Highlights of the latest drilling at Astana include an intersection of 72.45 metres grading 1.1 grams per tonne gold and 42 grams per tonne silver. The Astana zone remains open to the east and south.

Results of the latest drilling at Astana are listed below.



-------------------------------------------------------------------------
Intersection Assay Gold
--------------- Core --------------------- Equivalent
Interval Silver Gold (ii)
From To (i) (grams (grams (grams
Hole No. (metres) (metres) (metres) per tonne) per tonne) per tonne)
-------------------------------------------------------------------------
AS-006 103.55 176.00 72.45 42.0 1.1 1.9
-------------------------------------------------------------------------
206.30 208.20 3.10 445.0 3.1 12.0
-------------------------------------------------------------------------
AS-007 52.00 82.00 38.00 40.4 0.8 1.6
-------------------------------------------------------------------------
(i) Interval reported is core length. True widths are not known at
this time.
(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.


Aluja

Aluja is a new discovery located approximately 30 kilometres north of Cerro Crespo. The area is underlain by a number of low-sulphidation epithermal vein and breccia zones hosted in the Barrosa Volcanics. Three main vein/breccia systems were identified with the largest extending for over 1,000 metres with widths of 0.5 metres to 5.0 metres. Gold values in 1.0 metre and 2.0 metre channel samples across this main vein system range from 0.1 grams per tonne gold to 1.8 grams per tonne gold. Further evaluation of the zone is planned and will include trenching and ground geophysical surveys.

About Southwestern

Southwestern Resources 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 a number of significant projects including the Antay Porphyry Copper-Gold Project in Peru with Anglo American Exploration Peru S.A. and the Boka Gold Project in China with Team 209, where a major drilling program is being conducted. The Company is also exploring for porphyry copper-gold in a large area of southwestern Yunnan Province, China under a joint venture with Newmont Overseas Exploration Limited. At the end of September 2006, the Company had working capital of $47.2 million, total assets of over $100 million, and no debt. Southwestern Resources is a reporting issuer in British Columbia, Alberta, Manitoba, and Ontario and trades on the Toronto Stock Exchange under the symbol SWG.

Southwestern has implemented a quality control program to ensure best practices in lithogeochemical sampling and analysis of the trench samples. Samples are crushed at the ALS Chemex preparation lab in Lima, Peru to minus 80 mesh and pulverized to greater than 85% passing 200 mesh. The pulps are sent to ALS Chemex in Vancouver, BC. ALS Chemex is an ISO 9002 registered laboratory and is preparing for ISO 17025 certification. Samples are digested in an aqua regia acid digestion and are analyzed for 34 elements by ICP-AES. Over-limit gold and silver analyses are further analyzed by fire assay-atomic absorption finish and gravimetric methods respectively.

The Qualified Person ("QP") for the Liam Property is Stewart Winter, P.Geo. As the QP, he has prepared or supervised the preparation of the scientific or technical information for the property.

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