Southwestern Resources Corp.
TSX : SWG

Southwestern Resources Corp.

February 20, 2007 08:00 ET

Southwestern Resources Corp.: Partners Approve Drilling Program at Numa West Silver Zone

Copper-Gold Porphyry Discovered Liam Joint Venture, Peru

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 20, 2007) - Southwestern Resources Corp. (TSX:SWG) ("Southwestern" or the "Company") is pleased to announce that the Company and its partner, Newmont Peru S.A.C. (a wholly owned Peruvian subsidiary of Newmont Mining Limited), have submitted the drilling permit application to the Ministry of Mines for the Numa West Zone located in the northeastern part of the 365,000 hectare Liam Joint Venture area. The joint venture partners have agreed to commence an aggressive drilling program at the Numa West Silver Zone once the permit is received. A community access agreement has been signed and a program of extensive trenching and induced polarization geophysics will precede the drilling program. Numa West is an extensive high grade silver mineralizing system associated with north-south trending breccia zones in limestone. The breccias have been traced over a strike length of 2,500 metres and range in width from 5 metres to 50 metres. In places of high topographic relief, the breccias have been observed over a vertical distance of 150 metres. Initial surface sampling has shown that the breccia over the entire 2,500 metres contains high grade concentrations of silver with elevated values of lead and zinc. For example, in an area where the breccia has a true width of 25 metres, rock chip sampling returned a grade of 1,460 grams per tonne silver. A total of 163 rock chip samples collected along the entire 2,500 metre extent of the breccia zone averaged 460 grams per tonne silver, classifying Numa West as one of the most prospective silver plays in Peru.

The Company is also pleased to announce that ongoing regional exploration has resulted in the discovery of a copper-gold porphyry system located within an erosional window in the Tertiary Volcanic sequence. The copper-gold mineralization is hosted within a heavily stockworked diorite porphyry and extends to the southeast under strongly altered volcanics. Limonite rich fracture systems in the volcanics with secondary copper-oxides suggest that the porphyry underlies the volcanics within an area measuring 1,000 metres by 500 metres. The stockwork contains veinlets of quartz and magnetite with abundant chalcopyrite and bornite typical of copper-gold porphyries.

Results of the rock chip sampling program are listed in the following table.



---------------------------------------------
Assay
--------------------
Gold
Width Copper (grams
Sample No. (metres) (percent) per tonne)
---------------------------------------------
308146 2.0 0.71 0.43
---------------------------------------------
308147 2.0 0.72 0.37
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308148 2.0 0.55 0.01
---------------------------------------------
308151 2.0 1.60 0.18
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308152 2.0 0.72 1.43
---------------------------------------------
308153 2.0 0.83 0.31
---------------------------------------------
308154 2.0 0.82 0.37
---------------------------------------------
308155 2.0 1.51 2.70
---------------------------------------------
308156 2.0 0.50 0.28
---------------------------------------------
308157 2.0 0.85 0.16
---------------------------------------------
308158 2.0 1.27 3.93
---------------------------------------------
308159 2.0 0.51 0.25
---------------------------------------------
308160 2.0 0.75 0.93
---------------------------------------------
308161 2.0 0.63 0.22
---------------------------------------------
308162 2.0 0.18 0.25
---------------------------------------------
308163 2.0 0.32 0.10
---------------------------------------------
308164 2.0 0.82 0.54
---------------------------------------------
77596 2.0 0.94 0.10
---------------------------------------------
77597 2.0 4.14 0.64
---------------------------------------------
77598 2.0 1.22 4.03
---------------------------------------------


John Paterson, Southwestern's President and CEO, states, "We are very pleased that the process of permitting to start the drilling at Numa West is proceeding smoothly. In our opinion, Numa West represents one of the top silver prospects in Peru. The discovery of the Surape copper-gold porphyry is very exciting and consistently high copper and gold grades in the first pass sampling program is very encouraging."

Quality Control

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.

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 in China and Peru. The Company has a number of significant projects including the Liam Gold-Silver Project in Peru with Newmont Peru Limited, 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 of the Yunnan Nuclear Industry, 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, and has entered into a Joint Venture Heads of Agreement with Inco Limited, a subsidiary of CVRD Canada Inc., to carry out mineral exploration for nickel, copper and platinum group metals in Yunnan and Sichuan provinces, China. Southwestern also owns 50.4% of the recently listed Zincore Metals Inc., which holds zinc assets in Peru. The Company has working capital of $44 million, total assets of over $100 million, and no debt. 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 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