Investors liked what they read of news from Silver Swan Group (ASX: SWN) pushing the share price up 36% on the opening. It's not difficult to see why.
At the Austin base metal discovery in Western Australia, drill hole 09ATD013 intersected 61m @ 1.9% copper from a depth of 58m down-hole including high grade intervals to 9% Cu and 61m @ 5.4g/t silver.
In addition to copper and silver, the mineralisation continues to record significant zinc and gold assays. Austin is part of the Quinns project in the Murchison belt of Western Australia. Austin is about 55 km south of the town of Meekatharra.
Large, high-grade intersections of volcanogenic copper and zinc mineralisation continue to be intersected in diamond drilling at Austin.
Visual observations from diamond hole 09ATD015 show multiple semi-massive to massive sulphide zones from 234.8m to 273.4m, containing both copper and zinc sulphide minerals, further extending mineralisation down-plunge. Additionally, mineralised intersections at shallower depths in this hole may indicate the position of new zones of mineralisation.
Dr Susan Vearncombe MD of Silver Swan Group, said the excellent results continue to reinforce the discovery of significant and exciting volcanogenic copper-zinc mineralisation. This style of mineralisation usually occurs with multiple deposits within a (mining) camp or area.
“The company’s next task is to confirm the resource potential of the known metal system at Austin and to test the other look-alike targets identified with geophysical and geological methods in the Quinns area. The company has identified other targets at Quinns where copper and zinc gossans have been located.”
Mineralisation at Austin occurs beneath only 50m from the surface and comprises all primary sulphides. A massive and continuous high-grade zone of more than 80m in length and up to 50m in true width now extends to a vertical depth of over 200m as indicated by hole 09ATD015. The mineralisation remains open at depth and along the mineralised limbs extending south-southeast and northwest.
With large, high-grade intersections of volcanogenic copper and zinc mineralisation intersections like those encountered, and given ongoing exploration and news pipeline, and tightness of share register more excitement is likely for investors.
London listed Mercator Gold (AIM: MCR) is a substantial shareholder in Silver Swan.