Silver Swan Group (ASX:SWN) has a busy quarter in store after wrapping a $5 million capital raising in the September quarter.
Stakewell Gold Project
Encouraging oxide gold mineralisation was intersected during the September quarter at the Stakewell gold project, located 50 kilometres south of Meekatharra along the Great Northern Highway in Western Australia.
The search is on for high-grade and oxide lode gold at Stakewell for Silver Swan's Susan Vearncombe. Silver Swan has drilled 11 reverse circulation holes for a total of 878 metres to follow-up on high-grade gold intersections at
the historic Kohinoor open-pit and underground gold mine.
Previously released intersections from Stakewell have included: 10 metres at 3.2 grams per tonne gold from 259 metres and 8 metres at 5.7g/t gold from 22 metres.
It has commenced drill-testing the first of four oxide targets to the east of the Kohinoor open-pit.
Near-surface oxide gold targets are associated with northwest-southeast trending quartz veins in fault arrays within amphibolite host rocks.
Four potential oxide gold targets have been identified; the first oxide target has been drilled successfully and drilling continues.
Quinns VMS project
Quinns is located 55km south of Meekatharra covering a tenement area of 45km2, where Silver Swan discovered the Austin volcanogenic massive sulphide (VMS) deposit in the Quinns project area and subsequently defined a JORC Resource of 1.48 million tonnes at 1.02% copper, 10.39% zinc, 0.24g/t silver and 3.31g/t gold.
There is a very large 25 kilometres of strike with potential for VMS mineralisation at two stratigraphic levels. Investors may recall that VMS deposits will often vary in size, are generally high grade and are mostly found in clusters within regions.
The style of the Austin VMS discovery at Quinns and the highly favourable rock chemistry across the greater Quinns
region would provide managing director Susan Vearncombe with plenty of encouragement for the company’s search for additional VMS deposits within its highly prospective landholding in the region to un-earth further discoveries.
In the December quarter, Silver Swan will re-visit the Austin deposit to determine the potential for stacked sulphide lenses to the east and west of the current massive sulphide mineralisation and potential for enlargement of the orebody in terms of both width and depth.
Flinders and Murchison Wonder Prospects, Quinns VMS Project
The Flinders prospect is located in the northern part of the Quinns VMS Project area. This is a lateral position
to the Tasman prospect where drilling intersected 6.0m at 3.0% zinc.
The Flinders prospect has a surface expression with a large (100m x 30m) gossanous and ferruginous outcrop known as the Flinders Gossan and structural elements indicating a plunge shallowly to the west.
During the September quarter, Silver Swan drilled one diamond and one reverse circulation hole into the Flinders area and followed up with fixed loop and downhole electromagnetics.
These surveys resulted in the identification of a series of strong linking conductor plates over 500m of strike, along with 30m of intense alteration and a 12m wide zone of sulphide mineralisation in 11FLD001. An additional conductor was located a further kilometre to the southeast.
Six reverse circulation pre-collar drillholes have been completed and diamond drilling is in progress to extend
these holes at depth through the electromagnetic targets.
A fixed loop electromagnetic survey at the Murchison Wonder prospect returned a strong conductor plate dipping south and plunging east. An initial reverse circulation hole has returned 1m at 5.3% zinc, 9g/t silver, 0.2% copper, 1 metres at 2.7% zinc, 6g/t silver and 1 metre at 0.7% zinc and 4g/t gold from 131 metres.
Three reverse circulation holes and one RC pre-collar have been drilled at Murchison Wonder. The precollar hole will be completed with a diamond ‘tail’ during the next Quarter as part of the current drilling programme.
Results of the other reverse circulation holes are awaited.