SANTIAGO, CHILE -- (Marketwire) -- 02/19/13 -- Swingplane Ventures, Inc. (OTCBB: SWVI) (the "Company" or "Swingplane") is pleased to update information pertaining to the Algarrobo property.
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 Copiapo, 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).
The Property is currently in limited production, with ore being stockpiled until the license necessary to sell "Direct Shipping Ore" to the ENAMI facility at Copiapo has been received. The license is specific to the Property and is required before ore can be shipped from the Property and sold to the government smelter and processing facility. Receipt of the license is expected within a month.
Current production on the Property is very simple. After each blast to advance the drift, ore is transported from the face to surface for hand-sorting by visual grade. "Low grade" material (i.e. below approximately 5% Cu) is stockpiled for sale as copper leachable ore. "Direct Shipping Ore" (having an average estimated minimum grade of 9% copper) will be shipped directly to the ENAMI facility at Copiapo, approximately 43 km south-southeast of the Property. Approximately 500 tonnes of high grade copper mineralized material has been stockpiled until such time as the ENAMI certificate is received.
The Company is committed to increasing the current level of production on the Property, as follows:
•Securing receipt of the ENAMI license required for sale of ore in March, 2013. •Initial purchase of two jumbo scoops (current operation uses a "skid-steer" underground) and a mechanized blast hole driller (blast faces currently drilled by hand). •Purchase of three, 30 tonne dump trucks to facilitate cost efficient transport of ore from the Property to the ENAMI facility at Copiapo •Completion of a partially graveled road from the Drifts through sandy overburden to the Camina Japanese. Currently, ore needs to be transported to the north over Cerro Algarrobo to a paved road, then south to Copiapo. Gravelling the remainder of the access road will significantly reduce transport costs of ore from the Property to 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.
In addition, subsequent work proposed includes, but is not limited to, the following:
•A drill program to establish continuity of vein(s) in proximity to active drifts, with regularly spaced drill pads sufficient to delineate a NI 43-101 compliant mineral resource for each drift with which to plan future underground development along the vein(s) and optimize production. •Preliminary testing to evaluate potential to process low grade ore from "waste dumps" remaining from historical operations and/or current development, having copper grades between 0.7 and 3%, for recovery of a copper concentrate. (Note: The minimum Cut-Off grade will be determined from proposed metallurgical testing and is, therefore, arbitrarily set at 0.7%). •Exploration to further develop known, well mineralized, high grade copper veins and to identify new mineralized veins for subsequent development for production.
At the current time, limited production emphasizes recovery and sale of high grade copper ore having an average minimum grade of 9% Cu ("Direct Shipping" ore). In addition to increasing the current level of production of direct shipping ore, the Company proposes to undertake metallurgical testing of the high grade mineralized material currently being produced from the active drifts. The purpose of the proposed metallurgical testing is to determine the character of the material, identify expected and possible primary (i.e. Cu) and secondary (i.e. Au and Ag) commodities, as well as potential by-products (Co, Mo, Fe, Rare Earth Elements) available through further processing.
A total of six drifts, each approximately 3 m wide x 4 m high, have been driven on three separate, high grade copper mineralized veins. Three drifts (the "Exploration," "Veta Gruesa Centre" and "Veta Gruesa East" drifts), separated by a minimum of 150 m, were driven at a high angle into, or along, what is believed to be the same well mineralized, copper-bearing vein (Veta Gruesa). The vein has a variable thickness, between 2 and 4 m, of moderate to high grade copper ore. Production on the "Exploration" drift has been temporarily halted as the ore has been found to be an approximately 50:50 mix of sulphide and oxide ore, totaling approximately 3% copper and, therefore, unsuitable to meet the 9% ENAMI minimum for Direct Shipping ore.
Four of the drifts have been developed since February, 2012, as follows:
•The "Veta Gruesa East" vein was developed on the Veta Gruesa vein, located approximately 190 m east of the "Veta Gruesa Centre" Drift. •A drift was developed on what was thought to be the Estaca Vein, but has since been interpreted as a splay off the Estaca (the "False Estaca"). •Two drifts, Descubridora I and II, have been developed on the interpreted western continuation of the Descubridora vein ("Descubridora" drift), both of which have returned very high grade copper mineralized, vein material from initial near surface exposures.
With the exception of the two recently developed Descubridora drifts, the drifts are a minimum of 30 m in length, with the "Veta Gruesa Centre" drift reported to approach 100 m in length. The Descubridora I Drift was exposed in early December, 2012 and consists of very high grade copper ore grading up to 46.58% Cu. Given the high grade nature of this near surface ore, the Descubridora II Drift was developed, exposed beneath sandy overburden at a slightly lower elevation and approximately 40 m farther west than the Descubridora I Drift.
Results from two separate Due Diligence property evaluations (February and December, 2012) are interpreted to indicate there is a significant opportunity to further develop the mineral potential of the Property and increase the current level of production.
Management believes there exists a tremendous opportunity to develop a state of the art processing facility designed to recover a copper concentrate from low grade (i.e. below 3.0%) copper mineralized material. Design of the proposed facility would emphasize production of copper concentrate from ore having a copper grade possibly as low as 0.7% (currently treated as "waste"), with possible additional circuits for secondary and by-product metals, further increasing the economic potential of the Property.
The Property is believed to have excellent potential for identification and subsequent development of additional high grade copper-bearing veins. 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 production operations with which to develop a 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.
Safe Harbor Statement
THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS," AS THAT TERM IS DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. STATEMENTS IN THIS NEWS RELEASE, WHICH ARE NOT PURELY HISTORICAL, ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY STATEMENTS REGARDING BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE FUTURE.
EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED BY, OR THAT INCLUDE SUCH WORDS AS "ESTIMATE," "ANTICIPATE," "BELIEVE," "PLAN" OR "EXPECT" OR SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS CONTAINED IN THIS NEWS RELEASE INCLUDE STATEMENTS RELATING TO THE COMPANY'S PLANS TO ENTER INTO A MINING OPTION AGREEMENT WITHIN THE NEXT FORTY-FIVE DAYS. RISKS AND UNCERTAINTIES FOR THE COMPANY INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH MINERAL EXPLORATION AND FUNDING AS WELL AS THE RISKS SHOWN IN THE COMPANY'S MOST RECENT ANNUAL AND QUARTERLY REPORTS ON FORM 10-K AND FORM 10-Q, RESPECTIVELY, AND FROM TIME-TO-TIME IN OTHER PUBLICLY AVAILABLE INFORMATION REGARDING THE COMPANY. OTHER RISKS INCLUDE RISKS ASSOCIATED WITH THE REGULATORY APPROVAL PROCESS, COMPETITIVE COMPANIES, FUTURE CAPITAL REQUIREMENTS AND THE COMPANY'S ABILITY AND LEVEL OF SUPPORT FOR ITS EXPLORATION AND DEVELOPMENT ACTIVITIES. THERE CAN BE NO ASSURANCE THAT THE COMPANY'S EXPLORATION EFFORTS WILL SUCCEED AND THE COMPANY WILL ULTIMATELY ACHIEVE COMMERCIAL SUCCESS. THESE FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS NEWS RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS, EXPECTATIONS AND INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE REASONABLE, THERE CAN BE NO ASSURANCE THOSE BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS WILL PROVE TO BE ACCURATE. INVESTORS SHOULD CONSIDER ALL OF THE INFORMATION SET FORTH HEREIN AND SHOULD ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE COMPANY'S PERIODIC REPORTS FILED FROM TIME-TO-TIME WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.
THIS NEWS RELEASE HAS BEEN PREPARED BY MANAGEMENT OF THE COMPANY WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. NO SECURITIES REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED OF THE CONTENTS OF THIS NEWS RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALLTHERE BE ANY SALE OF THESE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION.
President and Director
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