|Southwestern Resources Boka Project Update
Jun 18, 2007 -- Southwestern Resources Corp. (Toronto:SWG.TO - News) ("Southwestern" or "the Company") has been advised by the engineering consultants on the pre-feasibility study at its 90%-owned Boka project in China that additional metallurgical test work is required, particularly on the sulphide portion of the orebody, in order to complete the pre-feasibility study. All other aspects of the pre-feasibility study are well advanced, including the resource and reserve estimation, mine plan, tailings design, and social and environmental impact assessment studies. The additional metallurgical testing is expected to take six months to complete, with the full pre-feasibility report now expected by the end of 2007.
A 2005 scoping study at Boka identified both oxide and sulphide ores within the deposit. A conventional milling, gravity circuit and carbon-in-leach process is being considered for the oxide portion of the orebody. Preliminary metallurgical test work contemplated a flotation process for the sulphide portion of the orebody; however initial flotation tests did not sufficiently reduce the carbon content. The engineering consultants will now conduct additional flotation tests and will also evaluate other processing techniques to improve recoveries from the sulphide portion, such as bio-oxidation and pressure oxidation.
Southwestern President and CEO John Paterson said delays in delivering samples to the lab in Perth contributed to the setback in completing the pre-feasibility study. "Although we anticipate the first several years of mining will be in the oxide portion of the orebody, we need to identify the best metallurgical option for the sulphide portion in order to complete a full pre-feasibility study. We understand the urgency of completing the study and are pushing the consultants to fast-track this additional test work."
Southwestern is a Vancouver-based mineral exploration company engaged in the identification, acquisition, evaluation and exploration of gold, silver and base metals mineral properties in China and Peru. The Company has a number of significant projects including the Liam Gold-Silver Project in Peru with Newmont Peru Limited, the Antay Porphyry Copper-Gold Project in Peru with Anglo American Exploration Peru S.A. and the Boka Gold Project in China with Team 209 of the Yunnan Nuclear Industry, where a pre-feasibility study is under way. The Company is also exploring for porphyry copper-gold in a large area of southwestern Yunnan Province, China under a joint venture with Newmont Overseas Exploration Limited, and has entered into a Joint Venture Heads of Agreement with Inco Limited, a subsidiary of CVRD Canada Inc., to carry out mineral exploration for nickel, copper and platinum group metals in Yunnan and Sichuan provinces, China. Southwestern also owns 49.73% of the recently listed Zincore Metals Inc., which holds zinc assets in Peru. At the end of the first quarter of 2007 the Company had $41 million in cash and short-term investments, $37 million in other investments, and no debt. Southwestern is a reporting issuer in British Columbia, Alberta, Manitoba, and Ontario and trades on the Toronto Stock Exchange under the symbol SWG.