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Gold/Mining/Energy : Southwestern Gold -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (174)	10/14/1999 9:33:00 AM
From: Flea	Read Replies (1) \| Respond to of 585

Southwestern/Teck discover new gold zone at Poracota Southwestern Gold Corporation SWG Shares issued 15,298,280 Oct 13 close $4.65 Thu 14 Oct 99 News Release Also Teck Corp (TEK.B) Mr. George Plewes reports A new gold zone (the Puma aone) on the Poracota gold project in Southern Peru has been discovered. The property, which comprises 14,300 hectares of exploration concessions, is 150 kilometres northwest of the city of Arequipa in the Orcapampa gold district. Field work carried out in l999 focused on testing six areas of alteration that had not been addressed in earlier work at Poracota. Results of this work have confirmed that four of these areas are good gold targets and one of the target areas, the Puma zone, returned very significant gold/silver values in surface grid rock chip sampling. The Puma zone, which is exposed over an area of 400 metres by 200 metres, averaged 1.3 grams per tonne gold and 55 g/t silver. Mineralization is coincident with an extensive area of hydrothermal alteration characteristic of a high-sulphidation epithermal system. Gold and silver mineralization is hosted by a hydrothermally altered Tertiary volcanic/sediment sequence characterized by vuggy (residual) silica, argillization and alunite. The mineralization is associated with a number of breccia bodies and may be related to large-scale structures. The Puma zone is the fourth gold zone to be discovered on the Poracota property. Zone A is the northern most zone and is defined over a surface area of 250 metres by 250 metres. Zone B (700 metres south of zone A) is the largest zone and is defined over an area 1,300 metres by 500 metres. Zone C is one kilometre south of zone B and is defined over an area of 350 metres by 150 metres. The Puma zone lies 2,500 metres south of zone C and all four zones are believed to be part of the same mineralizing system. To date, only the A and B zones have been drill tested. Most of the drilling was carried out in the B zone where an upper zone of gold mineralization (10 to 35 metres thick with an average grade of three g/t gold) is being defined in a gently dipping tabular body over a strike length of 800 metres with a down dip extent of between 100 and 400 metres. The upper zone remains open. A second lower grade mineralized zone has been intersected below the upper zone and is up to 31 metres thick and averages over one g/t gold. Only two holes were drilled deep enough to intersect the lower zone. Poracota is a very large high-sulphidation gold system that will require additional drilling to define its resource potential. A number of exploration programs are being considered to expand the A and B zones and to test the C zone and the newly discovered Puma zone. The Poracota property is a joint venture between Southwestern and Teck Corporation. Under the terms of the agreement, each partner will contribute their respective share of the exploration costs until a decision is made to prepare a feasibility study. The feasibility study will be financed 100 per cent by Teck and if a decision is made to place the deposit into commercial production, then Teck will arrange for all financing. Teck can earn an additional 20-per-cent interest by making a payment of $7.5-million (U.S.) at the time of a positive production decision. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com