Cominco drills SW Gold’s Peruvian properties

Delayed by road construction, a 9-hole drill program is expected to begin later this month on the high-grade Accha zinc-lead property in Peru.

Cominco (TSE) can earn an initial half interest in the property from Southwestern Gold (TSE) by submitting a bankable feasibility study and paying US$1.25 million over four years.

An additional 20% can be earned by arranging all financing, and paying Southwestern an additional US$5 million within 30 days of production.

The Accha hosts Mississippi Valley Type lead-zinc mineralization within Cretaceous limestones. Of four zones identified, the Tetiminas is the largest, extending for 320 metres along surface with widths of up to 75 metres.

Results from rock chip sampling include: 76 metres of 30.8% zinc and 4.3% lead; 54 metres of 28.1% zinc and 1.4% lead; 23 metres of 14.3% zinc and 2.6% lead; 28 metres of 38.1% zinc and 2.1% lead; 11 metres of 25.7% zinc and 2.2% lead; and 27 metres of 34.7% zinc and 0.9% lead.

Elsewhere in Peru, a minimum-6,000-metre drill program is planned for Southwestern’s San Antonio, Cristo Rey, Pistoro and Huancaylla properties. Under a separate joint-venture agreement, Cominco can earn an initial 51% interest by spending US$6 million on exploration over four years and paying US$1.6 million over three years.

Respective to each property, Cominco can earn an additional 9% interest by completing a bankable feasibility study and a further 10% by arranging all financing and paying Southwestern US$5 million.

Situated along the Tintaya-Ferrobamba belt, the properties host various types of precious and base metal mineralization.