Southwestern Resources Corp.

Southwestern Resources Corp.

March 16, 2005 08:30 ET

Southwestern Resources Corp.: Exploration Update; Discovery of High Sulphidation Gold System, Liam Project, Peru




MARCH 16, 2005 - 08:30 ET

Southwestern Resources Corp.: Exploration Update;
Discovery of High Sulphidation Gold System, Liam
Project, Peru

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 16, 2005) -
Southwestern Resources Corp. (TSX:SWG) is pleased to provide the
following exploration update on the Liam Gold-Silver Project, located in
southern Peru approximately 190 kilometres northwest of the City of
Arequipa and 20 kilometres north of the Arcata silver-gold mine. The
Liam Project is the subject of two agreements with Newmont Peru Limited,
one covering the Liam Core Area (3,500 hectares) and the other covering
the Liam Regional Area (91,195 hectares).

In the Liam Core Area Newmont, as operator, completed further drilling
at Cerro Crespo and Cerro Queshca. At Cerro Queshca, hole QS-015
intersected 46 metres grading 2.1 grams per tonne gold and 22.5 grams
per tonne silver. Gold mineralization in this hole is confined to a
unique volcanic lithology and is the same rock type as that intersected
in hole QS-010 (24.55 metres of 6.0 grams per tonne gold and 67.6 grams
per tonne silver) located 150 metres north. Extensive rock chip sampling
completed by Newmont within a 40 metre thick section above the collar of
hole QS-015 returned gold grades commonly above one gram per tonne gold
with 12% of the values above 10 grams per tonne gold. Above the gold
bearing unit, a fragmental volcanic rock containing high silver appears
to represent a cap zone to the gold mineralization. This high silver
bearing fragmental rock extends for approximately 800 metres east of
hole QS-015. The gold bearing unit does not outcrop to the east and
Newmont is carrying out a detailed induced polarization survey to
outline the gold bearing unit underneath talus. A second phase drill
program at Cerro Queshca is planned to commence shortly and is designed
to test below overburden along the 800 metre strike length east of hole

Latest drill results from Cerro Crespo and Cerro Queshca are outlined in
the following table. For hole locations, visit our website at

Intersection Assay
----------------- ---------------
Gold Silver
(grams (grams
Hole From To Interval per per (i)Gold
No. (metres) (metres) (metres) tonne) tonne) Equivalent
Li-028 38 58 20 1.7 5.3 1.7

Li-029 16 52 36 1.1 11.3 1.2
62 70 8 1.3 12.2 1.4

Li-031 24 80 56 0.3 46.1 0.7
hole bottomed in mineralization

QS-015 10 56 46 2.1 22.5 2.3
including 22 44 22 3.1 32.7 3.4
(i) Gold equivalents calculated using a ratio of 120 to 1 gold to
silver based on metallurgical results.

Newmont completed bottle roll tests on nine composite core samples of
various types of mineralization from Cerro Crespo and Cerro Queshca.
Test work was carried out at Newmont's Metallurgical Research Department
at the Yanacocha mine site. A total of 63 bottle roll tests were
conducted on the nine composites. Results of the bottle roll tests on
quarter inch material showed gold extractions ranged between 91 percent
and 95 percent. Silver extractions are highly dependent on crush size
and cyanide strength and ranged from 28 to 56% at a -10 mesh particle
size. These results indicate that the Cerro Crespo-Cerro Queshca
mineralization is amenable to heap leaching.

On the Liam Regional Area, further exploration has resulted in the
discovery of a new gold zone in the Careli Area. Careli is underlain by
a poorly outcropping zone of vuggy silica extending along strike for 700
metres and up to 200 metres wide. Extensive rock chip channel sampling
of the Careli Zone indicates the northwest section commonly contains
gold grades above one gram per tonne with the central and southeastern
portions commonly containing gold grades between 0.2 to 0.5 grams per
tonne. The Careli Zone represents a large epithermal system and the
joint venture partners plan to complete an induced polarization survey
over the area prior to drilling. Permitting for the drilling program is
now in process.

In addition to Careli, the Astana and Farallon gold zones discovered
eight kilometres southwest of Cerro Crespo were re-sampled in detail.
The Astana Zone, like Careli, is a high sulphidation epithermal
gold-silver system and extends over an area of 400 metres by 600 metres
and is exposed over a 100 metre vertical interval. Results of rock chip
sampling at Astana returned an average gold equivalent grade of 1.8
grams per tonne. Farallon is located one kilometre east of Astana and is
underlain by a low sulphidation gold-silver system. Initial surface rock
chip sampling has also been completed at Farallon with values ranging
between 0.06 grams per tonne gold to 5.5 grams per tonne gold. Both
Astana and Farallon are at the permitting stage for drilling.

The Liam Project Area is underlain by nine known gold-silver zones and
an aggressive regional exploration program is ongoing. The next drill
phase will concentrate on Cerro Queshca, Astana, Farallon and Careli.

Quality Control

Newmont is the operator of the Liam Core Area and Southwestern is the
operator of the Liam Regional Area.

Southwestern Resources Corp. has implemented a quality control program
under the supervision of L.D.S. Winter, P.Geo. (independent qualified
person) to ensure best practice in lithogeochemical sampling and
analysis of trench and core 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
9001:2000 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.

Southwestern Resources Corp. is exploring in several countries for
precious and base metals. The Company has a number of significant
projects including the Boka Gold Project in China with Team 209, where a
major drilling program is being conducted, the Yunnan Porphyry
Copper-Gold Project in Yunnan Province, China with Newmont Overseas
Exploration Limited, the Liam Gold-Silver Project in Peru with Newmont
Peru Limited and the Antay Porphyry Copper-Gold Project in Peru with
Anglo American Exploration Peru S.A. as well as the 100% owned Accha
Zinc Project in Peru.

Statements in this release that are forward-looking statements are
subject to various risks and uncertainties concerning the specific
factors disclosed under the heading "Risk Factors" and elsewhere in the
Corporation'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.
    John G. Paterson
    (604) 669-2525
    (604) 688-5175 (FAX)
    Southwestern Resources Corp.
    Daniel G. Innes
    VP, Exploration
    (604) 669-2525
    (604) 688-5175 (FAX)