Silver Swan Update

Electrum Resources plc, the diversified mineral and renewable energy development company, is pleased to draw attention to the announcement made today by Silver Swan Group Limited (ASX: SWN) (“Silver Swan”) regarding the progress of drilling at Silver Swan’s Austin prospect in Western Australia. Austin is a volcanogenic massive sulphide (VMS) copper-zinc-silver-gold deposit located within the package of exploration tenements sold to Silver Swan by Electrum in 2008.

  • Seven holes completed so far by Silver Swan during ongoing drilling programme at Austin; sulphide mineralisation intersected in all holes
  • Two upper zone holes intersected 40m and 60m of semi-massive to massive sulphides with visible zinc and copper mineralisation; five deeper holes hit sulphides variously over ~10m intervals, also with visible sphalerite and chalcopyrite
  • Assay results to be announced by Silver Swan when a representative number of assays are received
  • Drilling expected to continue until end of October

Silver Swan’s full 30 September 2010 announcement can be viewed at Silver Swan's webstie.

The closing price of Silver Swan ordinary shares on the ASX today was A$0.38 per share.

Electrum holds four million performance shares in Silver Swan, which convert to ordinary shares subject to certain conditions. The most significant condition is the identification by Silver Swan of a minimum 350,000oz gold equivalent in the JORC Indicated Mineral Resource category (or higher) on the tenements sold to it by Electrum.

On 6 April 2010 Silver Swan announced the completion of a maiden JORC resource statement for the Austin deposit. A total gold equivalent figure of 134,805oz was calculated by Electrum based on metal prices at that date.

On 6 April 2010 Silver Swan announced the completion of a maiden JORC resource statement for the Austin deposit. A total gold equivalent figure of 134,805oz was calculated by Electrum based on metal prices at that date.

On 21 June 2010 Silver Swan announced results from previous drilling at Austin, including intersections of:

58m at 2% Cu from 148m including:

5m at 10% Cu

 

2m at 17% Cu

38m at 14% Zn from 105m including:

2m at 46% Zn

 

6m at 33% Zn

 

2m at 25% Zn

 

2m at 24% Zn

24m at 5% Zn from 427m including:

3m at 10% Zn

 

3m at 8% Zn

 

2m at 7% Zn

 

About Electrum

Electrum Resources plc is a diversified mineral and renewable energy development company which specialises in identifying undervalued projects and structuring them to maximise their development and capital raising potential. Electrum has a substantial interest in THEMAC Resources Group Ltd, a company listed on the TSX Venture Exchange. The primary objective of THEMAC Resources Group Ltd is to return the Copper Flat project, a former producing copper-molybdenum-gold-silver mine located in New Mexico, USA, to commercial production. Electrum also has solar energy interests in New Mexico along with numerous other promising assets elsewhere in the world.

 

For further information please contact:

Electrum Resources plc
Michael Silver, Chairman Tel: +44 (0) 20 7929 1010
Patrick Harford, Managing Director
Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
Daniel Stewart & Company plc
Oliver Rigby/Tessa Smith Tel: +44 (0) 20 7776 6550
Old Park Lane Capital plc
Forbes Cutler Tel: +44 (0) 20 7518 2603
Director of Corporate Broking
Bankside Consultants Ltd Tel: +44 (0) 20 7367 8888
Simon Rothschild
Barry Kaplan Associates
Larry Kaplan Tel: +1 732 747 0702

 

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