Southwestern, Teck sign Peruvian joint-venture deal

A joint-venture agreement covering 54 exploration concessions in the Rosario-Pichicane mineral belt in southern Peru has been signed by Southwestern Gold (SWG-T), Teck (TEK-T) and Cedimin.

Southwest and Teck each hold 25% interests in the joint venture, with the remaining half held by Cedimin.

One of the more interesting prospects in the 48,300-hectare package is the Pichicane, which hosts silver-gold-lead-zinc mineralization in a manto within andesitic volcanics and volcaniclastic sediments.

Surface and underground panel sampling returned encouraging values, including 345 grams silver, 0.93 gram gold, 4.82% lead and 7.89% zinc over a 20-sq.-metre area. Sampling over another 100-sq.-metre area returned an average grade of 221 grams silver, 0.71 gram gold, 2.29% lead and 5.32% zinc.

The mantos occur within two horizons; their combined thickness is about 60 metres.

Sampling over 1,000 metres of strike length along the mantos returned an average grade of roughly 60-100 grams silver per tonne and 0.5 gram gold with subordinate lead and zinc values.

A geophysical program will attempt to define drill targets.

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