Vancouver — Low gold prices have prompted Southwestern Resources (SWG-T) to stop exploring the Haoya project in Mongolia and move on to the Yialing nickel-platinum group project in the Yunnan province of China.
The Haoya project is some 650 km northwest of Beijing. Southwestern had been working it since 1999.
The company has outlined a 4.8 km-by-150-metre gold zone through a series of 107 trenches, two declines, two shafts and 2,800 metres of diamond drilling.
Southwestern pegged the inferred resource at more than 150 million tonnes averaging 1.2 grams gold per tonne.
Due to the low gold grades, the company has decided to shift its focus to more prospective nickel-platinum targets.
With a similar geological environment to the prolific Noril’sk mine area in Siberia, the Yialing project covers 62,000 sq. km and already has several stream sediment geochemical anomalies. The company has launched a mapping and sampling program over these target areas.
Southwestern can earn an 80% stake in the property by spending US$3 million over four years.
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