Southwestern Resources Corp.

Southwestern Resources Corp.

March 11, 2008 07:15 ET

Southwestern Resources: Millo-Azucar Project Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 11, 2008) - Southwestern Resources Corp. (TSX:SWG) ("Southwestern" or the "Company") is pleased to provide an update on its Millo-Azucar project in Peru.

The Millo-Azucar project is located in southern Peru, within the area of the greater Liam Joint Venture (between Southwestern and Newmont Peru Limited, a wholly owned subsidiary of Newmont Mining Corporation). It covers several low sulphidation epithermal vein systems around a large high sulphidation alteration zone. Millo-Azucar is a Joint Venture with Yamana Gold Inc. ("Yamana"), whereby Yamana is earning a 70% interest in the project by funding all costs through to the completion of a pre-feasibility study.

Yamana recently completed a 15 hole (3,814 metres) second-phase drill program on the project and the drilling was carried out at both the Espanola low sulphidation vein system (nine holes) and the Millo high sulphidation zone (six holes). Drill assay results have been received with exciting results returned from the nine holes on the Espanola veins. The holes drilled on the Millo high sulphidation zone did not return significant results. Results for the nine holes at Espanola are as follows:

Interval Grade
---------------------------- --------------- Gold
From To Length Gold Silver Equivalent
Hole No. (metres) (metres) (metres)(1) (g/t)(2) (g/t) (g/t)(4)
PTT-004(3) 81.80 84.80 3.00 1.16 99.20 3.14
PTT-013 84.50 89.20 4.70 1.93 463.66 11.20
PTT-014 64.50 65.85 1.35 12.60 88.90 14.38
PTT-015 139.75 154.05 14.30 1.17 97.03 3.11
PTT-016 129.90 132.25 2.35 0.91 208.68 5.08
PTT-017 168.10 169.20 1.10 1.17 714.00 15.45
PTT-018 154.15 155.05 0.90 3.42 408.00 11.58
PTT-019 46.70 51.05 4.35 0.29 40.88 1.11
PTT-020 47.60 52.40 4.80 0.45 53.23 1.51
(1) Interval reported in down-hole core length as true widths are not
known at this time.
(2) Grams per tonne.
(3) PTT-004 was originally drilled in 2006 to 80.30 metres and was
deepened during the second drill phase.
(4) 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.

Previous drilling of six holes by Yamana (then Meridian Gold Inc.) in 2006 at Espanola (see News Release dated February 1, 2007), was highlighted by a 20.30 metre intersection grading 317 grams per tonne silver and 2.65 grams per tonne gold in hole PTT-004, a 17.10 metre intersection grading 162 grams per tonne silver and 1.80 grams per tonne gold in hole PTT-005 and a 0.70 metre intersection grading 814 grams per tonne silver and 27.10 grams per tonne gold in hole PTT-007.

Results from both phases of drilling Espanola are very encouraging. The original drilling at Espanola was focussed in two areas, approximately one kilometre apart, along the north-northwest striking Espanola vein system. The recent drilling is mostly from one of these areas, which consists of a 500 metre by 400 metre area of various Espanola veins and the Colonial vein, an east-west intersecting vein. The new holes are both step-outs from the previous drilling and holes on new veins. Recent field work by Yamana indicates that the Espanola vein system extends for at least 3.5 kilometres in strike-length and at least three additional, sub-parallel veins have been identified. Mapping, sampling and additional drill target generation on the identified veins will continue through the second quarter of 2008.

Yamana has applied for a "Category C" drill permit with the Peruvian Government, which, when approved, will enable Yamana to construct more than the presently approved 20 drill pads. Approval is expected early in the second quarter of this year and Yamana will then begin a third phase of drilling to test the greater strike-length of the Espanola vein system and other associated, recently identified, veins.

Quality Control

Yamana, as operator of the joint venture on the Millo-Azucar Project, sends samples to the ALS Chemex laboratory in Lima, Peru, an ISO 9002 registered laboratory that is preparing for ISO 17025 certification. Yamana's quality control and quality assessment procedures include the analysis of its own blanks, standards and duplicates, introduced among the batches of samples, in addition to those used by the laboratory for its routine testing. Rock samples are crushed to greater than 70% passing 10 mesh, and pulverized to greater than 85% passing 200 mesh. A fraction of the pulps is analyzed for gold by fire assay and AAS. Another fraction of the pulps is digested in aqua regia acid and is analyzed for 34 elements by ICP-AES with Quantitative Low Detection Mercury by AAS. Ore grade silver, lead, copper and zinc analyzes are further analyzed by AAS. High-grade gold and silver values are analyzed by fire assay and gravimetric finish.

Qualified Person

Alejandro Losada-Calderon, Vice-President Exploration of Southwestern, is the qualified person as defined by National Instrument 43-101 for the Company and has verified the data contained in this news release.

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. The Company has a number of significant projects, including the Liam gold-silver project in Peru with Newmont Peru Limited. 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 news release that are forward-looking statements are based on the current expectations, beliefs, assumptions, estimates and forecasts about the Company's business and the industry and markets in which it operates. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements due to a number of factors, including but not limited to, the Company's access to additional capital to fund future activities, the loss of mineral properties or the inability to obtain mining licenses, the inherently risky nature of the Company's activities and its lack of experience in bringing an exploration property into production, its ability to repatriate any earnings, foreign exchange fluctuations, the political stability and economic uncertainty of those areas in which the Company carries on operations and the lack of infrastructure in those areas, title risks, the risks and uncertainties associated with joint ventures and the Company's reliance on third parties, statutory and regulatory compliance, the adequacy and availability of insurance coverage, the Company's dependence upon employees and consultants and fluctuations in mineral prices and other risks detailed in the Company's filings with the Canadian Securities Authorities. These risks, as well as others, could cause actual results and events to vary significantly. The Company expressly disclaims any intent or obligation to update these forward-looking statements, unless the Company specifically states otherwise.

Contact Information

  • Southwestern Resources Corp.
    Timo Jauristo
    Interim President & CEO
    (604) 669-2525
    Southwestern Resources Corp.
    David Black
    Chair of the Board
    (604) 669-2525