In Peru, about 160 km northwest of Arequipa, SWG is exploring the Poracota gold property, which is shared equally with
Poracota is in a Tertiary-aged volcanic collapse structure or caldera. Extensive hydrothermal activity has altered an area of about 35 sq. km, and numerous locations exhibit zones which host gold-rich pyrite and native gold mineralization. SWG believes that an extensive network of faults and fractures channeled mineral-rich fluids along permeable beds.
To date, exploration has defined four prospective zones, all of which are thought to be part of the same mineralizing system. These are:
– the A zone, which is the most northerly zone and covers a surface area measuring 250 by 250 metres;
– the B zone, 700 metres to the south, which covers 1,300 by 500 metres;
– the C zone, which is 1 km south of the B zone and covers a 350-by-150-metre area; and
– the Puma zone, which is 2.5 km south of the C zone and spans 600 by 200 metres.
Widely spaced preliminary drilling on the B zone indicates that it is host to a 10-to-35-metre-thick tabular body with a strike length of 800 metres and a downdip extent ranging from 100 to 300 metres. The zone, which carries a preliminary resource of about 14.5 million tonnes grading 2.26 grams gold per tonne, is interpreted to be a stratabound, gold-bearing lens within a thicker, 30-to-100-metre alteration structure. Gold mineralization is open downdip and along strike to the south.
The Puma zone represents a highly altered area along a large, east-westerly trending fracture system. Limited sampling has returned average gold grades of 1.3 grams gold, the highest value being 3.77 grams gold. Preliminary drilling is planned for later this year.
Meanwhile, SWG is encouraged by early-stage work at its partially owned Accha zinc-lead project, 80 km south of Cuzco in southern Peru. The operator is Australian-based Pasminco, a major zinc mining and refining company, which can earn a 51% interest in the property by spending US$5 million on exploration over four years. So far, it has spent US$1 million on drilling and a scoping study. Pasminco can increase its interest to 70% by funding a bankable feasibility study and arranging all production financing.
Four areas of high-grade Mississippi Valley Type zinc-lead mineralization have been identified, though only one of these, Tetiminas, has been drilled to the extent of a preliminary resource estimate. The indicated and inferred oxide resource calculated at the Tetiminas zone is 9 million tonnes grading 9% zinc, or 1.8 billion lbs. of contained zinc metal. The zone has been traced over a strike length of 550 metres and remains open to the west, and SWG says the potential to expand this resource is excellent.
According to the scoping study, Accha has the potential to produce zinc at the rate of 75,000 tonnes per year. Preliminary metallurgical studies indicate that the resource (minable by open-pit methods) boasts zinc recoveries of about 90%, and on-site zinc cathode production has been deemed the most economic way to go. A comprehensive prefeasibility study is planned.
SWG has also spent three years prospecting in the Luicho area of Peru, and now holds a 100% interest in two properties, Luicho and Evita. These share the same stratigraphy that hosts the low-sulphidation epithermal mineralization found at a property held by
In northern Chile, SWG has optioned the West Fissure copper porphyry property to New York-based Asarco.
West Fissure is in the region’s main porphyry copper belt. Exploration has focused on uncovering blind deposits in areas of extensive gravel cover. Asarco, which has outlined several drill targets based on geophysical surveys, is earning a 51% interest in the project by spending US$1 million on exploration over two years. It can earn a further 9% by funding a bankable feasibility study.
In north-central China, SWG and
The property, 650 km northwest of Beijing in the Tien Shen gold belt, hosts a large gold-mineralizing system. This area hosts several giant, sediment-hosted thermal aureole gold deposits, including Muruntau (140 million oz.) and Sukoi Log (40 million oz.).
SWG and Global-Pacific (in which SWG holds a 13.5% equity interest) inked two deals in 1999 — one with the China National Non-Ferrous Corp., and the other with Brigade 217 of the China Nuclear Industry. According to these agreements, SWG and Global can earn an 80% interest in the property by spending US$2.5 million on exploration and paying US$1.1 million in cash over three years. Once the earn-in is complete, a joint-venture company will be formed, with ownership shared among SWG, with a 56% interest, Global-Pacific, with 24%, and Brigade 217, with 20%.
To date, two prospects, CSH and Y, have been explored on the 235-sq.-km Haoya property. The most advanced of these, CSH, represents a 4.8-km-long gold zone hosted in altered carbonaceous sediments. More than 100 trenches, two declines and two shafts have aided in delineating the zone. The decline returned values averaging 1.5 grams gold, whereas the trenches averaged 1 gram gold.
Based on widely spaced drilling, the CSH zone contains an inferred resource of about 150 million tonnes averaging 1.2 grams gold. The structure, which varies in thickness from 40 to 140 metres, remains open to the west. Extensive definition drilling will attempt to define minable reserves.
The Y prospect, about 20 km west of CSH, is hosted in granites and has been traced over a strike length of 3 km. SWG reports that results from sampling and trenching warrant further exploration.
Through subsidiary Canabrava Diamonds, SWG holds a 100% interest in the Whitefish Lake project and a half-interest in the Kap and Rocky Island Lake projects. All three are near Wawa, Ont.
Kennecott’s geophysicists are modeling some newly discovered anomalies on the Whitefish Lake and Kap South properties in preparation for follow-up ground geophysics and drill-testing. Additional exploration on the Kap and Rocky Island Lake properties is planned for spring and summer.
Recently, Canabrava acquired a new diamond project, in the eastern Superior Craton of Ontario and Quebec. The Frontenac project consists of about 1,800 ha of mining claims spread out over 12 properties. Each of the properties covers either known kimberlite bodies or well-defined targets based on indicator mineral and geophysical anomalies. Five targets are drill-ready and will be tested as soon as a drill rig can be mobilized. In addition, the exploration program will include ground geophysical surveys and the verification of previous microdiamond results on known pipes.
The properties were acquired from a group of prospectors in exchange for $21,000 in cash and 150,000 shares of Canabrava.
The subsidiary is also engaged in two joint ventures in Brazil, where it is seeking out alluvial diamond mining opportunities a
nd primary kimberlite exploration targets. Most of the projects are in an area of Minas Gerais state where many large diamonds (greater than 100 carats in size) have been discovered from alluvial mining.
In addition to its mineral assets, SWG holds a 26% equity interest in Maxy Oil & Gas and an 11.9% equity stake in Americomm, another oil and gas company.
SWG has 17 million shares fully diluted and $20 million in its coffers.
Be the first to comment on "Diversity key to Southwestern Gold’s strategy"