Vancouver Shares of Southwestern Resources (SWG-T) rose on active trading after the company tabled phase one drill results from its Millo-Azucar gold-silver project in southern Peru.
Located 570 kilometres southeast of Lima, Millo-Azucar is comprised of 6,700 hectares of concessions, which are being explored by Southwestern and partner Meridian Gold (MNG-T).
Meridian is earning a 70% stake in the project by funding all exploration costs through to the completion of a pre-feasibility study.
The first phase of drilling was comprised of 12 holes that are probing a series of low sulphidation epithermal veins occurring within a prominent northeast trending belt.
Highlights include hole PTT004, which coughed up a 20.3-metre intersection grading 317 grams silver, per tonne and 2.65 grams gold. Hole PTT005 returned a 17 metre intercept, grading 162 grams silver, and 1.80 grams gold.
The stock reacted by closing up 2 to $7.77 in Toronto after trading as high as $8.05 on February 1, the day the drill results were released. That was on volume of 1.4 million shares. Meridian rose 82 to $35.12
The company said all veins intersected in the first phase drill program remain open in all directions and a more extensive second phase drilling program is planned after the rainy season ends in April.
Southwestern said a first phase drill program is also planned to test the large high sulphidation gold-silver zone already identified on the property.
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