Algarrobo Newly Discovered Vein System Contains Close to One Hundred Mineralized Veins and Visible Gold
SANTIAGO, Chile, Feb. 11, 2013 /PRNewswire/ -- Swingplane Ventures, Inc. (OTC-BB: SWVI) (the "Company" or "Swingplane") is pleased to update information pertaining to the Algarrobo property.
The Algarrobo Property (the "Property") is located approximately 850 km north of Santiago, in the III Region, Province of Copiapo, Chile. The city of Copiapo is located approximately 43 km to the southeast of the Property, with the small port city of Caldera 25 km to the east. The Property consists of 32 tenures, comprising a total of 6,161 hectares.
Mineralization on the Algarrobo property clearly belongs to the Iron-Oxide-Copper-Gold (IOCG) deposit style, with copper, gold and iron as the principal metals, and accessory silver, cobalt, uranium and REE metals, typical for the Chilean Iron-belt.
Visible Gold has been detected in the stockpiles and smelter grade shipments, averaging about 2 g/t. Individual samples from vein material assayed up to 8 g/t gold. Visible gold in IOCG deposits is very rare.
Freeport McMoran's Grasberg Gold mine produces with an average of grade of .56 g/t, which displays the ability of the above gold grades averaging 2 g/t on the Algarrobo property and the individual samples from the veins of up to 8 g/t gold content on the Algarrobo property to be an additional economic benefit, in addition to the production of copper.
Channel sampling near "Veta Gruesa" documented an average background of 0.36% Cu. Stockpiles from production (leach plant shipping preparation) return between 1.0% to 5.0% copper
At today's level of exploration, Algarrobo contains close to one hundred mineralized veins, with more veins likely to be discovered as large scale exploration continues in the sand covered areas to the southwest on the property. Observed strike continuation depends on the vein type, main-first-second-third, and ranges from a few hundred meters to several km. Newly discovered vein systems show higher grade mineralization to what existed in old Algarrobo and is interpreted to indicate highly promising exploration potential existing towards the southwest on the property. Dozens of previously ignored, siderite veins appear to have commercial copper grades under present day conditions, with grades expected to increase considerably with depth.
The Algarrobo mining district is an important area of historic mining activity. At the beginning of the 20th century, the mines in the immediate area of the Algarrobo property, Caldera, III region (Atacama) of Chile were the principal source of high grade copper (minimum cut-off grade of 8-10% Cu to provide a minimum of 12% Cu smelter-grade ore) were sent in the past to a smelter in Caldera. The amount of ore produced from the approximately 40 mines in the area warranted the construction of a railroad, connecting the smelter in Caldera with the Algarrobo district in approximately 1900.
Exploration activity subsequent to 2008 emphasized exploration of the interpreted extension of the mineralized Algarrobo vein system evident at surface toward the southwest. Interpretation of the available data suggested continuation of the exposed vein system below sand cover. As a result of exploration, including geophysics, drilling and trenching, the Algarrobo (and/or other vein systems) are interpreted to extend approximately 12km, from the Panga mine in the north to the Bellavista mine in the southwest. Visible mineralization can be traced nearly continuously for approximately 5 km (2,5 km width) from a northern limit at the Panga Mine to a point 4 km southwest of the Alicia Mine, and separated from it by a sand covered depression. Trenching of geophysical anomalies resulted in discovery of several new mineralized veins having characteristics very similar to those observed on the Algarrobo occurring at lower elevations (approximately 700m) on the Sierra de la Gloria mountain range (underlying the Angela 15A concession). From there, the mineralized zone is interpreted to continue another 6 km to the southwest under sand cover to the next rock outcrop near the Bellavista mine at the southern end of the Pampa de Caracoles, which marks the southwestern limits of the Algarrobo claims.
Vein and vein systems having different orientations (N/S, E/W, NW/SE) are known to exist in the area, however, veins in these orientations were only infrequently mined. Recent exploration has shown that to the south, underlying sand covered areas, these veins become more predominant, with an increase in both their width (0.5 -10 m) and frequency, interpreted to have greater mineral potential than the principal veins historically mined on the Algarrobo property.
It is believed that the Algarrobo project is located in a very special tectonic setting between the Atacama fault system and transversal faults. The especially rich mineralized veins and structures have to have an important magmatical source, most probably of porphyry type, for the hydrothermal activity of prolonged time and space driven by forces and conditions related to the Atacama fault system.
Given these characteristics, Algarrobo presents a highly promising exploration target for discovery of a medium to large volume IOCG deposit and its source. Alternatively, the extraordinarily high number of commercially mineralized veins, in addition to what further exploration is strongly expected to discover, Algarrobo should be developed into a high volume production vein type operation at first.
This press release as been extracted from a report prepared by Johannes Lindorfer, a Director of the Company and who is very familiar with the Algarrobo property, having visited the property many times. A full copy of his report can be viewed on our website www.swingplaneventuresinc.com .
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SOURCE Swingplane Ventures, Inc.