Electrum Resources plc, the diversified mineral and renewable energy development company, is pleased to draw attention to the announcement made today by Silver Swan Group Limited (ASX: SWN) (“Silver Swan”) regarding the results of drilling at Silver Swan’s Austin deposit in Western Australia. Austin is a volcanogenic massive sulphide (VMS) copper-zinc-silver-gold deposit located within the package of exploration tenements sold to Silver Swan by Electrum in 2008.
- Austin drilling intersects grades up to 14% copper, 9% zinc, 5.9g/t gold and 63g/t silver, with drilling continuing
- High grade copper, gold and silver mineralisation in ATD110 9m at 7.9% copper including 5m at 12% copper and 1.4% zinc 10m at 37.3g/t silver including 7m at 2.0g/t gold
- High grade copper mineralisation in ATD108 22m at 1.6% copper, 8.3g/t silver, 0.36g/t gold 2m at 4.7% copper, 21.1g/t silver, 1.1g/t gold 5m at 4.6% zinc 26m at 0.4g/t gold
- Silver Swan proceeding to an updated resource assessment at Austin and commencing preliminary metallurgical testwork
- Silver Swan cash position A$7 million
Silver Swan’s full 27 October 2010 announcement can be viewed at: http://www.silverswangroup.com.au/pdf/Announcements/2010/OCT10/101027-Drilling_Results_at_Austin.pdf
The closing price of Silver Swan ordinary shares on the ASX today was A$0.35 per share.
Electrum holds four million performance shares in Silver Swan, which convert to ordinary shares subject to certain conditions. The most significant condition 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 Electrum.
On 6 April 2010 Silver Swan announced the completion of a maiden JORC resource statement for the Austin deposit. A total gold equivalent figure of 134,805oz was calculated by Electrum based on metal prices at that date.
Electrum Resources plc is a mineral and renewable energy development company with interests in Argentina, the USA, Indonesia, Thailand and Australia.
Electrum’s interests in Argentina include the Sierra de las Minas and Los Aquirres gold/base metal projects, at which the Company is pursuing an exploration strategy oriented around high grade, smaller tonnage targets potentially suitable for progression towards early mining.
Electrum holds a substantial interest in THEMAC Resources Group Ltd, a company listed on the TSX Venture Exchange. The primary objective of THEMAC Resources Group is to return the Copper Flat project, a former producing copper-molybdenum-gold-silver mine located in New Mexico, USA, to commercial production.
For further information please contact:
|Electrum Resources plc|
|Michael Silver, Chairman||Tel:||+44 (0) 20 7929 1010|
|Patrick Harford, Managing Director|
|Daniel Stewart & Company plc|
|Oliver Rigby/Tessa Smith||Tel:||+44 (0) 20 7776 6550|
|Old Park Lane Capital plc|
|Forbes Cutler||Tel:||+44 (0) 20 7518 2603|
|Director of Corporate Broking|
|Barry Kaplan Associates|
|Larry Kaplan||Tel:||+1 732 747 0702|
Michael Elias (B.Sc (Hons), Fellow and Chartered Professional of the Australasian Institute of Mining and Metallurgy), Non-Executive Director of the Company, has reviewed the technical information contained in this announcement and consents to its inclusion in the form and context in which it appears.