Southwestern Resources Corp.:
Positive Preliminary Assessment on Boka 1 Gold Zone, Boka Gold Project, Yunnan Province, China
Monday July 18, 5:17 pm ET
Conference Call Scheduled
VANCOUVER, British Columbia--(BUSINESS WIRE)--July 18, 2005--Southwestern Resources Corp. (TSX:SWG - News) is pleased to announce that Hatch Limited ("Hatch") has completed a preliminary assessment (the "Study") on the Boka 1 Gold Zone located in Yunnan Province, China and concludes positively on the scope for developing a mining operation. The Study, dated June 30, 2005 and which includes resource estimates, was prepared in accordance with the standards and definitions of National Instrument 43-101. A copy of the report will be posted on the Company's website at www.swgold.com and filed on SEDAR.
Management's objectives for the Study were to develop realistic operating parameters in China and apply these operating parameters to assess mining at Boka. The Study addresses a first pass assessment of the resource base at Boka 1 and Boka 7, and the scope of future production. Boka 1 and Boka 7 are two of several targets that have been identified on the Boka Project (see attached map). The Study adopted a conservative approach in estimating grade and tonnage. High-grade gold values were cut to 31 grams per tonne and only 67 drill holes (to April 25, 2005) were used to estimate the resource base. Mineralization is open in all directions at both Boka 1, where drilling continues, and Boka 7. The Study considers the Boka Project to be one of the significant gold discoveries of recent years.
The Study concludes positively on the scope for developing a mining operation with a capacity to support production levels of 200,000 ounces of gold per annum. It recommends that a pre-feasibility study commence immediately. The pre-feasibility study will include further infill and expansion drilling to define the limits of the resources that have been outlined to date at Boka 1 and Boka 7, as well as drilling of the other targets on the Boka Project including Lower Boka 7, Boka 8, Boka 11 and the new targets discovered in the southern portion of the Project area. As the resource base at Boka is further defined, management believes there is scope for potentially significant positive revision of the mining and processing rates described in the Study.
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