Silver Swan Group (ASX: SWN) is a polymetallic explorer with tenements in the Murchison District of the Yilgarn Craton, Western Australia. The company's current focus is on lode-gold, syn-tectonic copper-gold and volcanogenic massive sulphide (Cu-Zn-Ag-Au) mineralisation in Archaean terranes. Exploration tenements held by Silver Swan in the Murchison District cover 680 square kilometres.
Silver Swan shares up as further high-grade copper and zinc at the Austin project intersected
Shares in Silver Swan Group (ASX: SWN) jumped 2.5c after the company intersected further high-grade copper and zinc during drilling at the Austin volcanogenic massive sulphide project, located about 55km from Meekatharra in Western Australia.
During the morning trade, shares in the Silver Swan increased 2.5c, or 5.6%, to 47c.
The company announced that results from a further five reverse circulation drill holes revealed significant continuity of high grade zinc intersections, extended near surface copper intersections and a new high grade copper zone (6m @ 6% Cu, 19.8g/t Ag & 1.7g/t Au) above the main zone of mineralisation in hole 09ATRC037.
Low-grade copper mineralization is evident over large thicknesses in the majority of holes, connecting high-grade material.
The recent holes were drilled to extend near-surface mineralised boundaries, provide further continuity of the high-grade zinc and copper mineralisation, and to accurately determine interpreted fold positions in a heavily deformed environment.
The drill results from five RC drillholes included 09ATRC029: 11m @ 3.6% Cu, 11g/t Ag & 0.7g/t Au; 3m @ 16.7% Zn & 3m @ 6.5% Zn within an overall mineralized intersection of 91m @ 1.2% Cu & 4g/t Ag; 09ATRC031: 6m @ 10.2% Zn & 5m @ 6.8% Zn and 09ATRC035: 23m @ 1.35% Cu & 5g/t Ag, including 3m @ 3.2% Cu & 5m @ 2.3% Cu.
The geology at Austin is being modeled in 3D in preparation for resource evaluation. This will determine volume and grade for an initial open-pit scenario and make preliminary comment on resources extending beneath an open pit. Future drilling at Austin will focus on developing the underground potential of the deposit.
Silver Swan Group managing director Susan Vearncombe said the latest assays from the Austin VMS project have confirmed the extension of near surface high grade zinc and copper mineralisation and uncovered a new high grade copper zone.
"As we are moving rapidly towards a resource evaluation at the Austin project, it is pleasing that we can continue to extend the dimensions of the resource, particularly given the calibre and thickness of the zinc and copper mineralization," Dr Vearncombe said.
Planning for drilling at Austin and proximal surrounds for 2010 is currently underway.
Drilling of ~80 aircore holes totaling approximately 1500m into the Yagahong radiometric U-anomaly is due to commence later this month. Silver Swan is targeting a large drainage system containing calcrete with an associated, discrete U-radiometric anomaly that is ~5kms NE-SW and ~800m wide.
