Silver Swan Group continues to intersect VMS mineralisation at Quinns

Silver Swan Group (ASX: SWN) has intersected volcanogenic massive sulphide (VMS) mineralisation in six of seven holes drilled at the Flinders prospect within its Quinns VMS Project, with a highlight intersection of 10 metres at 4.7% zinc from 247 metres, including 6 metres at 7% zinc and 4 metres at 0.5% copper.

One hole, located southwest and along strike of the main Flinders zone, returned 1 metre at 9.1 grams per tonne (g/t) gold and, importantly, is in an ideal structural location for superposed, late gold mineralisation.

A defining factor of the Quinns Project’s potential is its location in the Yilgarn region of Western Australia, an area full of VMS discoveries including Golden Grove Minerals & Metals Group's 19 million tonnes at 2.8% copper, 0.2% zinc project.

The region also boasts Independence Group's (ASX: IGO) Teutonic Bore project of 1.55 million tonnes at 1.6% copper, 3.1% zinc as well as the Jaguar 2.55 million tonnes at 2.4% copper, 5.6% zinc project. 

These latest assays add to the previous highly promising results of 5 metres at 1.18% zinc from 258 metres, including 1 metre at 2.57% zinc, and 11 metres at 0.19% copper from 259 metres, including 1 metre at 0.76% copper.

These results occur within an 11 metre intersection of sulphide mineralisation and a 45 metre zone of intense VMS-related alteration

The most recent drilling program at the Flinders prospect comprised one reverse circulation and six diamond deep holes over a strike of 1 kilometre for a total of 2,342 metres.

Importantly, mineralised intersections have confirmed a new and persistent VMS cell at Flinders which is another step toward identifying a cluster of VMS cells that have now been identified at Austin, Flinders and Tasman.

Further work needs to be done, including multi-element geochemistry, as well as analysis of existing drill results and downhole geophysics results recently received to help identify future drill targets. Drilling is expected to recommence during the March quarter of 2012.

The Quinns Project covers an area of 45 square kilometres and has a maiden JORC Resource for the Austin deposit of 1.48 million tonnes at 1.02% copper, 1.39% zinc, 0.24g/t silver and 3.31g/t gold.

Significantly, nearly 1.2 million tonnes of that is in the higher confidence Measured and Indicated categories.

To date, Silver Swan has defined 25 kilometres of strike with the potential to host VMS mineralisation.


Cash

At the end of October Silver Swan had a cash balance of $5.5 million. Interestingly, the company has a market capitalisation of just $8 million.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/23490/silver-swan-group-continues-to-intersect-vms-mineralisation-at-quinns--23490.html