Southwestern Resources Corp.
TSX : SWG

Southwestern Resources Corp.

November 30, 2006 08:01 ET

Southwestern Resources Corp.: Latest Drilling Encounters High Grade Gold and Expands Boka 1 South, Boka Gold Project, Yunnan

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 30, 2006) - Southwestern Resources Corp. (TSX:SWG) ("the Company") is pleased to announce that the latest drilling has encountered high grade gold mineralization at the Boka 1 South Zone and has expanded the zone to the north. Highlights of the drill results include intersections of 13.4 metres of 7.3 grams per tonne gold, 22.0 metres of 3.1 grams per tonne gold and 14.0 metres of 4.9 grams per tonne gold in hole B06-204, 14.3 metres of 18.9 grams per tonne gold in hole B06-207, 17.4 metres of 4.9 grams per tonne gold and 26.9 metres of 4.3 grams per tonne gold in hole B06-208.

B06-204 and B06-208 are located on a new section at Boka 1 South, 50 metres north of previous drilling. Gold mineralization was also intersected in hole B06-212 located on a drill section a further 50 metres north of holes B06-204 and B06-208. Results of this drilling confirm a 100 metre extension of the Boka 1 South Zone in a northerly direction and the zone remains open. In addition, a previously unknown gold zone was intersected at 342 metres downhole in B06-204. High-grade gold mineralization was also intersected in hole B06-207 and included a 4.10 metre interval grading 63.1 grams per tonne gold. Five diamond drill rigs are currently operating at Boka 1.

Southwestern's President, John Paterson, states: "We are very pleased that we have confirmed extensions to the north within the Boka 1 South Zone and plan to further extend our drill grid in this area."

The Boka Project is comprised of 157 kilometres of exploration concessions and mining leases in Yunnan Province, and is accessible by 265 kilometres of paved road north of the capital city of Kunming. The pre-feasibility study at Boka 1 is focusing on geological modeling and resource estimation, mining and metallurgy, environmental and social impact studies. The pre-feasibility study is being carried out under the direction of Ausenco Limited and is anticipated to be completed by the second quarter of 2007.

For drill hole locations, please see the Company's website at www.swgold.com.

Details of the latest drilling are listed in the following table:



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Intersection
------------------- Core Gold
Hole From To Interval(i) Assay
No. (metres) (metres) (metres) (grams/tonne)
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B06-199 20.70 30.20 9.50 3.50
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B06-202 No significant results
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B06-203 71.00 81.00 10.00 2.70
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B06-204 35.10 48.50 13.40 7.30
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including 35.10 37.00 1.90 30.70
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54.50 76.50 22.00 3.10
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342.00 356.00 14.00 4.90
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including 342.00 350.00 8.00 7.50
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B06-205 59.50 63.50 4.00 5.10
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B06-206 35.50 37.50 2.00 1.80
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B06-207 23.00 39.00 16.00 6.70
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including 33.00 37.00 4.00 21.90
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61.30 75.60 14.30 18.90
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including 65.50 69.60 4.10 63.10
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B06-208 82.60 100.00 17.40 4.90
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114.00 124.00 10.00 1.70
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151.50 178.40 26.90 4.20
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B06-209 169.60 180.00 11.40 2.40
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B06-211 71.00 82.00 11.00 2.80
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91.00 96.10 5.10 3.20
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B06-212 75.70 79.70 4.00 1.40
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204.10 232.55 28.45 1.90
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B06-213 10.30 22.10 11.80 3.40
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B06-214 135.80 142.70 6.90 2.30
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162.20 174.40 12.20 1.90
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208.10 220.00 11.90 2.40
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B06-215 281.35 283.75 2.40 3.10
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(i) True widths are not known at this time.


Zone 19

Follow-up of an extensive gold in soil anomaly resulted in the discovery of the Zone 19 gold mineralization which is located within brecciated silicified carbonaceous shale. Zone 19 is located 1.3 kilometres to the southwest of the Boka 1 South Zone. Several trenches and two adits were completed to determine grades and thickness prior to drill testing.

Results of the trench and adit sampling have shown that Zone 19 is comprised of two main breccias situated on a west facing slope and separated by approximately 100 metres of unaltered rock. The two zones vary in thickness from 10 metres to 20 metres and extend in a north-south direction for 900 metres. Assay results from the trenching show quite variable gold grades with 1.5 metre to 2.00 metre individual channel samples ranging between 0.1 gram per tonne gold to 38.7 grams per tonne gold. Within tunnel PD-1, a composite channel of nine metres graded 8.6 grams per tonne gold. A composite channel in tunnel PD-2 over an interval of 3.8 metres graded 1.0 grams per tonne gold.

The Company plans to drill test Zone 19 in early 2007.

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. 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.

Quality Control

Southwestern has implemented a quality control program to ensure best practice in lithogeochemical sampling and analysis of soil, rock chips, trench, tunnel and drill core samples.

All drill core samples (approximately two metre, half-core composites) are shipped directly in security sealed bags to the SGS-China Laboratories preparation facility in Kunming. The entire composite is prepped to -10 mesh and a 500 gram split is sent to the SGS-CSTC Standards Technical Services Ltd. facility in Tianjan for conventional fire assay using a 50 gram charge. Other elements are analyzed using ICP methods at the SGS Canada Inc. facilities in Mississauga, Ontario.

Exploration samples (rock chip, soil, trench and tunnel) are shipped directly in security sealed bags to the assay laboratory of the Northwest Non-Ferrous Geology Research Institute (ISO 9002) located in Xian, Shanxi Province, China and are digested in an aqua regia acid digestion and analyzed for gold and various other elements using atomic absorption.

The Company submits its own standards as a measure of the accuracy of the analysis. Field duplicates and pulp duplicates are routinely analyzed for precision. Routine assay checks from drill core are made at ALS Chemex in Vancouver, B.C. Sample results are received in batches and not as assays for an entire drill hole.

John Zhang, Project Manager for Southwestern in China, is carrying out the exploration program. John Paterson, President, Southwestern Resources Corp. and a member of AUSIMM is the Project's qualified person as defined under National Instrument 43-101.

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