Southwestern Resources Corp.
TSX : SWG

Southwestern Resources Corp.

December 18, 2006 07:00 ET

Surface Sampling at Southwestern's Pacapausa Property in Peru Continues to Define High Grade Silver Zones

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 18, 2006) - Southwestern Resources Corp. (TSX:SWG) ("Southwestern" or "the Company") reports further encouraging trench results at its 100%-owned Pacapausa Silver/Gold Project in Peru ("Pacapausa"). First phase drilling is scheduled to begin in January 2007, subject to receiving all necessary drilling permits.

Pacapausa comprises 7,933 hectares of exploration concessions in the Southern Peru Tertiary Volcanic Belt, 250 kilometres northwest of Arequipa and adjacent to the operating Explorador Mine. The property is underlain by several northeast-southwest trending low sulphidation epithermal veins and breccia/stockwork zones. Pacapausa is subject to an option agreement with Minera Oro Vega S.A.C. ("Oro Vega"), the Peruvian subsidiary of International Minerals Corporation, under which Oro Vega is the operator and has the option to earn a 70% interest by meeting certain work commitments, completing a feasibility study, and financing the project into production.

Oro Vega has defined five target areas on the property (Principal, A, B, C, D), each consisting of disseminations of pyrite and various silver minerals within quartz veins, stockworks, breccias and zones of silica flooding. Results of Oro Vega's channel sampling of veins in the Principal target are listed in the following table. Several samples were collected from wider zones, listed below, and the results are averaged over the zone.



--------------------------------------------------------------
Sample Sample length(1) Silver Gold
Number (metres) (grams per (grams per
tonne) tonne)
--------------------------------------------------------------
12770 0.75 563.0 0.06
--------------------------------------------------------------
12771 1.20 496.0 0.06
--------------------------------------------------------------
12772 1.70 1,370.0 0.23
--------------------------------------------------------------
12785 1.80 351.0 0.13
--------------------------------------------------------------
12789 0.85 570.0 2.75
--------------------------------------------------------------
12791 3.65 318.0 0.14
--------------------------------------------------------------

--------------------------------------------------------------
12796 1.35 743.0 0.31
--------------------------------------------------------------
12797 0.85 150.0 0.08
--------------------------------------------------------------
12798 3.40 269.0 0.15
--------------------------------------------------------------
12799 1.90 607.0 0.41
--------------------------------------------------------------
Weighted Average 7.50 426.0 0.20
--------------------------------------------------------------

--------------------------------------------------------------
12788 0.80 874.0 0.25
--------------------------------------------------------------
12803 0.50 459.0 0.59
--------------------------------------------------------------

--------------------------------------------------------------
12777 1.70 146.0 0.12
--------------------------------------------------------------
12778 1.45 246.0 0.18
--------------------------------------------------------------
Weighted Average 3.15 192.0 0.15
--------------------------------------------------------------

--------------------------------------------------------------
12783 0.50 970.0 0.44
--------------------------------------------------------------

--------------------------------------------------------------
12761 1.50 244.0 0.06
--------------------------------------------------------------
12762 2.70 32.7 0.03
--------------------------------------------------------------
12763 2.25 238.0 0.14
--------------------------------------------------------------
Weighted Average 6.45 153.0 0.08
--------------------------------------------------------------
(1)Due to the variable nature of mineralization at Pacapausa, true
widths of mineralization cannot be determined from the sample
lengths.


The southern half of the Principal target is underlain by a stockwork/breccia zone outcropping over an area of 350 metres by 150 metres. Previous sampling in this area also returned high-grade silver values (see Southwestern's news release dated April 18, 2006). Oro Vega is presently carrying out a trenching program over this target.

Work is in progress on targets A, B, C and D. These targets are comprised of both vein systems and stockwork zones. Reconnaissance chip sampling (1 metre by 2 metres) of the veins in targets A and B returned a number of high-grade silver values ranging between 699 and 1,130 grams per tonne. In the stockwork zones, results included a 4.3 metre chip sample assaying 148 grams per tonne silver and 2.3 grams per tonne gold. Two samples were also collected in a breccia zone, and returned results of 5.3 metres grading 35.5 grams per tonne silver and 0.48 grams per tonne gold, and 3.7 metres grading 57 grams per tonne silver and 0.51 grams per tonne gold.

Targets C and D are underlain by veins and also contain disseminated mineralization within wall rocks. At target D, two samples collected in wall rock material adjacent to the main vein returned 159 grams per tonne silver and 0.17 grams per tonne gold over two metres, and 84 grams per tonne silver and 0.07 grams per tonne gold over 1.3 metres.

Results of the latest sampling have confirmed the presence of high-grade silver in veins, stockworks, breccias and silicified zones adjacent to veins associated with a low sulphidation epithermal mineralization system. A number of drill platforms and access roads have been constructed in the Principal area, with additional platforms being constructed at targets A, B, C and D.

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 50.3% of the recently listed Zincore Metals Inc., which holds zinc assets in 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 is a reporting issuer in British Columbia, Alberta, Manitoba, and Ontario and trades on the Toronto Stock Exchange under the symbol SWG.

Quality Control

Samples are sent to the ALS Chemex laboratory in Lima, Peru for sample preparation and analysis using standard industry methods. ALS Chemex is an ISO 9002 registered laboratory and is preparing for ISO 17025 certification. 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 digestion and is analyzed for 34 elements by ICP-AES. Higher grade silver, lead, copper and zinc are analyzed by AAS. High-grade gold is analyzed by fire assay and gravimetric finish.

John Paterson, President and Chief Executive Officer of Southwestern and a member of AUSIMM, is the Qualified Person ("QP") for Pacapausa, as defined under National Instrument 43-101. As the project's QP, he has supervised the preparation of the technical information reported in this news release.

Forward-looking Statements

Statements in this release that are forward-looking are subject to various risks and uncertainties concerning the specific factors disclosed in the Company's Annual Information Form for the fiscal year ended December 31, 2005 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