SW Res., partners explore southern Peru

Vancouver — Southwestern Resources (SWG-T) has entered into two joint ventures to explore for gold and copper in southern Peru.

The first partnership, with Newmont Mining (NEM-N), entails exploration of a volcanic-hosted high-sulphidation epithermal gold system on Southwestern’s Liam property. Newmont believes this gold system could potentially continue on to Cambior‘s (CBJ-T) Minaspata property.

Drilling by Cambior on Minaspata intersected thick, deeply oxidized zones of anomalous gold over large areas. These areas are characterized by strongly pyritic and argillic alteration. Anomalous gold, copper, lead and zinc are known to exist at depth.

Mineralized boulders carry grades of up to 4.77 grams gold per tonne gold.

By spending US$5 million in the first four years and drilling at least 1,000 metres in the first year, Newmont and Southwestern can each earn a 25.5% interest for a combined 51% stake in Minaspata. The partners can then earn another 9% by spending US$5 million before the sixth anniversary. Newmont will manage and operate the project.

The other joint venture is focused on Southwestern’s Antay project, in which Anglo American (AAUK-N) can earn a 55% interest by spending US$5 million on exploration and paying US$5 million over five years.

Antay is 80 km from BHP Billiton‘s (BHP-N) Tintaya porphyry copper mine, where production more than doubled in 2004 as a result of higher prices.

The property comprises three deposits: Sayta, Ccora and Sihuamago. Geological, geochemical and geophysical work has turned up mineralized quartzite, structural breccias, hydrothermal breccias, and porphyry stockworks with copper and molybdenite sulphides.

Low-sulphidation gold, silver and base metal mineralization has been found in the central portion of the property, whereas skarn-type gold and copper are known to exist in the southern part.

Once vested, Anglo will have the option of earning another 15% in the project by producing a bankable feasibility study.