SANTIAGO, Chile, Jan. 30, 2013 /PRNewswire/ -- Swingplane Ventures, Inc. (OTC-BB: SWVI) (the "Company") is pleased to announce a NI43-101 report and outlines extensive mineralization.
Swingplane Venture, Inc.'s (the "Company") Algarrobo Property (the "Property") is an Iron Oxide –Copper–Gold (IOCG) property located approximately 850 km north of Santiago, in the III Region, Province of Chanaral, 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 ha (15,224 acres).
A NI 43-101 report on the Property has recently been received by Company. The report was based on separate Due Diligence property evaluations (February and December, 2012) and a review of available information. The report will be available today on the Company's web-site at: www.swingplaneventuresinc.net.
The Main Mineralized Trend is very well defined by abundant workings, both historical and arising from more recent work, ranging from shallow pits and workings to mine development extending to depths up to 450 m below surface. Taken together, these workings delineate at least three "Major Veins", having clearly evident surface extent up to 1.3 km, with an interpreted potential surface extent of at least 4 km along strike.
Results from two Due Diligence property evaluations are interpreted to indicate a significant opportunity to further develop the mineral potential of the Property and increase the current level of development. The Company proposes to increase the current level of development by a series of short term initiatives including, but not limited to, the following:
- Secure receipt of the license required for sale of ore from the Property to the government owned ENAMI facility in Copiapo in January, 2013.
- Initial purchase of two jumbo scoops and a mechanized blast hole.
- Purchase of three, 30 tonne ore trucks to facilitate cost efficient transport of ore from the Property to the ENAMI facility at Copiapo
- Purchase of a grader with which to maintain roads to, and within, the Property.
- Purchase of an Excavator with which to expose and initially develop drifts.
- Purchase of a crusher, Water Truck and D6 to D8 dozer (ore equivalent).
At the current time, limited production in the immediate area emphasizes recovery and sale of high grade copper ore having an average grade of 9% Cu ("Direct Shipping Ore"). In addition, it is believed opportunities exist for realizing additional value from the high grade copper ore documented on the Property and, more specifically, from the drifts currently developed through additional processing of high grade mineralized material. Further processing of high grade mineralized material on-site should be evaluated with the objective of producing a silver- and/or gold-rich copper concentrate. In addition, further processing may present an opportunity for adding separate flotation / processing circuits for recovery of by-product molybdenum, cobalt and/or Light Rare Earth Elements
A number of observations have been made with respect to interpreted development potential of the Property, as follows:
- A number of well mineralized veins, up to 3.5 m thick at surface, exhibiting continuity along strike lengths up to 1.3 km and comprised of high grade copper mineralization, define a trend having minimum dimensions of 8 km northeast-southwest by 2.5 km wide and comprised of at least three Major Veins and an unknown of subsidiary veins.
- High grade lenses have been documented underground, with maximum dimensions of 40 m horizontally by 60 metres vertically. These lenses are tentatively interpreted to represent "blows" along veins, possible dilation zones along mineralized faults, evidence of structural control on development of mineralized veins along active faults and/or intersection of two (or more) mineralized veins and the associated damage zones . Such lenses or "blows" represent concentrations of high grade ore and, therefore, considerable economic value for development.
- A total of five drifts have been developed on the Property. Three of the drifts, the "Veta Gruesa Centre", "Exploration" and Veta Gruesa East, have been developed along the Veta Gruesa, separated by a minimum of 150 m. The remaining two, False Estaca and Descubridora, are developed along interpreted extensions of Major Veins. Work is underway to expose a second drift on the Descubridora Vein, approximately 40 m farther west and at slightly lower elevation, due to the very high grade copper ore (up to 50% Cu) exposed in the initial Descubridora Drift.
- Similar, significant development potential is interpreted along the eastern projection of the Manto Ossa and Veta Gruesa, east of the existing Veta Gruesa East Drift.
- An additional 11 high grade copper mineralized veins have been exposed, with a minimum of 8 additional sites proposed, for subsequent development into production drifts.
- Documented copper grades described vary from background values between 0.3 and 2%, low grade copper between 2 and 5%, to "Direct Smelting Ore" averaging 9%, with high grade copper values in excess of 24% (to as high as 50% Cu content).
- The potential depth extent of high grade mineralization, extending from a near surface oxide zone through a transitional zone to an underlying sulphide zone, is currently unknown, however, there is no information suggesting it would not extend below the current depth of the existing workings. The maximum depth of historical workings (i.e. 450 m – Viuda Mine) is interpreted to have been limited by technology available rather than the base of sulphide mineralization.
- Currently, "Direct Shipping Ore" shipped from the Property has received payment predominantly for copper. ENAMI currently pays for copper recovered from either copper oxide or copper sulphides, retaining the first gram of gold and/or the first ounce of silver from any "Sulphide" ore processed. Further processing of the copper ore on-site may result in production of a silver- and/or gold-rich copper concentrate, thereby maximizing the value of gold and/or silver content
- In addition, further processing of the copper ore may present an opportunity for adding separate flotation / processing circuits for recovery of by-product molybdenum, cobalt and/or Light Rare Earth Elements
The area including the Property encompasses an abundance of workings, within which all known major mineralized veins identified to date are located. Recent exploratory work is interpreted to indicate excellent potential for identification, and subsequent development, of multiple, high grade copper mineralized veins over a large area, potentially extending from the Roble tenures, through the eolian sand covered Angela tenures to the south, southwest and west.
Mineralized veins were previously interpreted to be limited to those comprising the north-northeast – west-southwest trending Major Veins. Recent exploration is interpreted to suggest that, in addition to the Major Veins, at least two additional sets of subordinate, subsidiary and/or en echelon copper mineralized veins have been identified, which supplement the mineral potential of the Major Veins. Thickness, grade and mineralogy of veins identified on the Property, and immediately adjacent ground, is interpreted to suggest significant potential for identification of both additional high grade copper-rich veins and confirmation of potentially economic copper mineralization at greater, but potentially minable, depth
High grade mineralization identified at, and near surface, is dominated by "almagrado", an informal term for an intimate mix of high grade copper minerals and hematite. An extensive suite of copper oxides, copper sulfates and secondary copper, interpreted to comprise supergene enrichment, dominate near surface, oxide mineralization. Extensive development of these supergene minerals is closely associated with high grade copper mineralized veins as an accompanying halo of lower grade mineralization. Supergene oxides transition to hypogene sulphide minerals at greater depth below surface. The near surface, oxidized mineralization has been extensively worked to date, with deeper transitional, mixed oxide / sulphide and deeper sulphide mineralization reported predominantly from the deeper historical workings. .
The Company believes there is potential for discovery, and subsequent development, of a large number of additional, high grade copper mineralized veins similar to those currently developed drifts. In support of this interpretation, Company has had an additional 11 high grade copper mineralized veins exposed, with a minimum of 8 additional sites proposed, for subsequent development.
Given the overall size of and the extent of the workings developed within, and immediately adjacent to, the Property, the number of samples taken to date from the Property to evaluate the grade of veins exposed in workings is very small. However, the development potential of the Property and immediately adjacent ground, is well established, although poorly documented. The terms of the Option Agreement require an increase from the current level of development, concurrent with an exploration program to further evaluate the Property.
Recently developed workings on the Property, namely the "Veta Gruesa Centre", "Exploration", Veta Gruesa East, False Estaca and Descubridora drifts, attest to the significant potential that exists for identification of new areas for development on high grade mineralized veins. These new workings have been developed predominantly within the last year, on veins up to 3.5 metres thick and yielding copper grades in excess of 24% (to as high as 50% Cu content). Sale of "Direct Shipping Ore" is pending, requiring receipt of a license from ENAMI specific to the Property. The Company anticipates receipt of the license within a month, facilitating transport and sale of stockpiled ore.
In summary, the Property is interpreted to have considerable potential to host high grade, copper mineralized, Iron Oxide-Copper-Gold (IOCG)-style vein mineralization, comprising both exploration and development potential for the Property. This interpreted potential is from high grade copper mineralized veins, and includes possible production of copper concentrate from current "waste" dumps and low grade, copper mineralized haloes surrounding high grade veins, as well as from elevated levels of background copper mineralization, proposed for future evaluation. Recommended exploration in the short term will be undertaken with an emphasis on developing existing and/or newly discovered, well mineralized, high grade copper veins into small scale operations with which to develop anticipated cash flow for the Company.
The content of this news release has been reviewed by Rick Walker, B.Sc., M.Sc., P. Geo., a Qualified Person for the purposes of NI 43-101, with the ability and authority to verify the authenticity and validity of the data herein.
President and Director
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SOURCE Swingplane Ventures, Inc.