La Codosera's Gold Project in Spain should take centre stage given the extensive gold mineralisation and historic results including 10 metres at 3.6 grams per tonne (g/t) gold and 4.6 metres at 2.3g/t gold; 8 metres at 3 g/t gold; 7.1 metres at 2.7g/t gold; 4 metres at 5.9g/t gold and 16 metres at 1.5g/t gold.
The region is also a major gold producer - estimated up to 65 million ounces. New gold deposits are coming on-stream e.g. Salave 1.68 million ounces, so there is no doubting the prospectivity for Silver Swan.
Silver Swan will leverage its VMS and gold discovery skills into this new terrain.
The company has closed its fully underwritten non-renounceable rights issue to raise A$2.1 million, receiving applications for more than 10 million shares from shareholders.
This raised over $321,000 of the $2.1 million, with arrangements now being made with boutique investment and advisory group Cygnet Capital, underwriter of the rights issue, for the placement of the remaining 55.7 million shares.
Silver Swan offered existing shareholders one new share for each two existing shares held each at $0.032 per share, and one free attaching listed option for every two new shares issued, exercisable at $0.07 each on or before 30 June 2015.
The funds will help to accelerate the evaluation of Silver Swan's two main projects.
On completion of the rights issue Silver Swan will have around $4 million in cash to accelerate drilling programs at its two main projects, the La Codosera Gold Project in Spain and the Quinns VMS Project in the Yilgarn region of Western Australia.
Silver Swan began an auger drilling program at La Codosera in July comprising planned holes focused initially on the Monteviejo and Los Bastos prospect areas.
An initial 12 diamond drill holes for a total of 1,100 metres will target a stacked lode gold system over a strike length in excess of 1 kilometre.
The initial program will also inform Silver Swan's current structural model in order to target the system extension to depth. The program will test mineralisation in the upper 100 metres from surface.
Meanwhile, Silver Swan has begun diamond drilling at its Quinns North VMS project, which hosts a JORC Resource of 1.48 million tonnes at 1.02% copper, 1.39% zinc, 0.24g/t gold and 3.3 g/t silver at the Austin Deposit.
To date, Silver Swan has defined 25 kilometres of strike with the potential to host VMS mineralisation.
The Quinns Project is strategically located 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.
Silver Swan is drilling for potential copper-rich feeder zones to the upper zinc mineralisation intersected at Quinns North, targeting the discovery of potential new VMS cells to expand the project's existing Resource.
La Codosera should be seen as a natural evolution for Silver Swan as it is leveraging its proven VMS and gold discovery skills in Australia into a proven terrain in Spain.
Silver Swan expands its resources portfolio into a proven large VMS deposit region and prime gold district in Spain.
La Codosera shows evidence of extensive gold mineralisation much of which is undrilled. Mapping and sampling of La Codosera will be followed by drill testing mid - late in 2012. This will pay close watching given the discoveries to date and proven ability of Silver Swan's Susan Vearncombe to make VMS and gold discoveries.
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