Silver Swan Group's (ASX: SWN) investors received a boost today in Sydney as it reported "spectacular" results from its recent diamond drilling programme at the Austin volcanogenic massive sulphide (Cu-Zn-Ag-Au) deposit in the Quinns project area of Meekatharra, Western Australia, with grades returned of up to 17% copper and 46% zinc.
Mercator Gold (LON:MCR, OTCBB:MTDGY) holds four million performance shares in Silver Swan, which convert to ordinary shares subject to certain conditions, the most significant of which is the identification by Silver Swan of a minimum 350,000oz gold equivalent in the JORC Indicated Mineral Resource category (or higher) on the tenements sold to it by Mercator.
The high grade copper and zinc mineralisation in hole 10ATD001 included:
- 58m @ 2% Cu from 148m including: 5m @ 10% Cu, 2m @ 17% Cu
- 38m @ 14% Zn from 105m including: 2m @ 46% Zn, 6m @ 33% Zn, 2m @ 25% Zn, 2m @ 24% Zn
- 24m @ 5% Zn from 427m including: 3m @ 10% Zn, 3m @ 8% Zn, 2m @ 7% Zn.
Zinc mineralisation was intersected at 450m depth, some 150m below the current JORC defined resource. Underground potential at Austin has also been confirmed – with future drilling planned to expand mineralisation at depth.
Silver Swan has completed two key diamond drill holes at Austin, targeting the underground potential for economic massive sulphides and increasing the dimensions of the established area of mineralisation.
Results from Hole ATD002 included:
- 10m @ 11% Zn from 296m including: 4m @ 22%, 2m @ 30% Zn
- 2m @ 3% Cu, 11g/t Ag, 0.6g/t Au
- 2m @ 1.25% Cu, 6g/t Ag, 0.4g/t Au
Susan Vearncombe, managing director, said “We look forward to our next drilling phase at Austin to continue to confirm economic underground mineralisation and increase the area of established mineralisation at Austin."
"Drill hole 10ATD001 has demonstrated that we can anticipate higher metals grades as drilling continues, and has confirmed the potential to connect known mineralized zones and increase the drill spacing between holes."
"With $8M cash the company remains well funded to continue accelerating its exploration activities and build on the 1.48 Mt JORC compliant resource base, 82% of which is in measured and indicated categories," Vearncombe added.