Southwestern Resources Corp.
TSX : SWG

Southwestern Resources Corp.

September 14, 2005 17:20 ET

Southwestern Resources Corp.: Exploration Update-Liam Gold-Silver Project, Peru Joint Venture Acquires Additional 97,000 Hectares, New Mineralized Zones Identified

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 14, 2005) - Southwestern Resources Corp. (TSX:SWG) is pleased to announce new developments on the Liam Gold-Silver Project located in the Tertiary Volcanic Belt of southern Peru. A second phase of drilling at Cerro Queshca, located within the Liam Core Area, has expanded the limits of known gold-silver mineralization and a third phase is planned. In the Liam Regional Project, new zones of gold-silver mineralization have been identified at Careli and Ibel and further detailed sampling has significantly expanded the size of the Astana-Farallon zone. As a result of the success of the regional exploration, the Joint Venture has acquired an additional 97,000 hectares of prospective ground, doubling the total land package to approximately 191,000 hectares.

Within the Liam Core Area, the second phase drilling program at Cerro Queshca focused on testing for extensions to mineralization between holes QS-010 and QS-015. The following table lists drillhole results for holes containing significant gold-silver mineralization.



Intersection Assay
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Hole From To Interval Gold Silver
No. (metres) (metres) (metres) grams/tonne grams/tonne
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QS-017 9.35 56.40 47.05 1.48 24.30
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QS-018 70.10 102.00 31.90 2.93 4.40
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QS-021 111.95 116.10 4.15 1.79 17.96
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134.00 136.90 2.90 0.70 24.70
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Drillholes QS-019, QS-020, and QS-022 to QS-033 did not intersect any significant mineralization. The next phase of drilling at Cerro Queshca in October will focus on the eastern extension of the host lithology. A permit to drill will be submitted for an additional 66 to 70 drill holes in the Liam Core Area.

Within the Liam Regional Area, extensive surface rock chip sampling programs were conducted in the Astana-Farallon, Ibel and Careli zones. At Astana-Farallon, a large epithermal gold-silver system has now been identified over an area of 10 kilometres by 4.5 kilometres. Within this broad alteration system, four separate gold-silver zones have been sampled with over 500 samples collected. Areas with anomalous gold-silver values include Astana (300 metres by 200 metres), Farallon (1200 metres by 800 metres), Astana South (200 metres by 100 metres) and Astana Southwest (600 metres by 200 metres). All of the mineralization is associated with extensive fracture systems containing druzy quartz, hematite and barite hosted within a rhyodacite. Crackle breccias and tectonic breccias are also present within the system.

In all of the above areas, anomalous zones are defined by gold values from 0.10 grams per tonne to 12.1 grams per tonne and silver values from 1.0 gram per tonne to 450 grams per tonne. Farallon and Astana are approximately three kilometers apart, and the area between the two zones is mainly covered by overburden. Limited soil and rock-chip sampling in the area between Farallon and Astana returned anomalous gold values and may indicate continuity between these two zones. A detailed soil sampling program has commenced. The Zone is presently in the permitting stage for dripping. It is anticipated that the drilling program will be initiated this fall.

On the Ibel prospect, two areas of mineralization were sampled including Huamancharpa Sur and Huamancharpa Norte. At Huamancharpa Sur, an altered and mineralized area extending for 1,200 metres by 800 metres is associated with silicified and moderately stockworked shales. Limonite after pyrite and arsenopyrite is common in the stockwork areas. Over 400 rock chip samples have been collected with more than 30% of samples having gold values above 0.1 grams per tonne to a maximum of 3.7 grams per tonne. The Joint Venture is presently conducting further sampling programs in this area prior to targeting a drill program.

In the Huamancharpa Norte area, the main gold-silver mineralization is associated with hydrothermal breccias and veins. Four separate zones of hydrothermal breccias and veins have been identified, varying in length from 450 metres to 3,000 metres and widths between 1.0 metre and 10 metres. Rock chip sampling within the breccias returned gold values of generally less than 0.5 grams per tonne.

Six kilometres southeast of Ibel, an area of veins and hydrothermal breccias was discovered at Huacullo and sampled in detail. The breccias and vein structures extend for up to 1,200 metres and range in thickness from 0.5 metres to 10 metres. Rock chip sampling across the veins and breccias generally returned gold values above 0.2 grams per tonne with several values ranging between 10 grams per tonne and 19 grams per tonne gold. These veins and breccias are unusual in that they contain high molybdenum concentrations from 200 parts per million up to 1,300 parts per million.

On the Careli prospect, gold mineralization extends for 700 meters and up to 300 meters in width. Further regional work by Newmont Peru Limited identified two new zones of gold-silver mineralization. Final permits for drilling at Careli are expected within the next few months. Once the permits are received, drilling will commence immediately.

The Liam Gold-Silver Project is the subject of two joint venture 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). The new areas staked cover 96,792 hectares, and will fall within an expanded Liam Regional Area. The Liam Project is located approximately 190 kilometres northwest of the city of Arequipa and 20 kilometres north of the Arcata Silver-Gold Mine.

Maps showing drill-hole locations, gold-silver mineralized zones and land position can be viewed on the Company website at www.swgold.com/.

Quality Control

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, an ISO 9001:2000 registered laboratory 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 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.
    Timo Jauristo
    VP, Corporate Development
    (604) 669-2525
    or
    Southwestern Resources Corp.
    John G. Paterson
    President
    (604) 669-2525
    or
    Southwestern Resources Corp.
    Daniel G. Innes
    VP, Exploration
    (604) 669-2525
    (604) 688-5175 (FAX)
    info@swgold.com
    www.swgold.com