SANTIAGO, CHILE -- (Marketwire) -- 02/08/13 -- Swingplane Ventures, Inc. (OTCBB: SWVI) (the "Company" or "Swingplane") is pleased to update information pertaining to the Algarrobo property.
The Algarrobo Property (the "Property") is 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 hectares.
The current limited artisanal workings are now producing 9% copper ore on 10 acres. The 3 current veins that are being worked on have been trenched and sampled and shown to be over 6 km in length. From existing information on adjacent mines i.e: the Viuda Mine, which is 250 meters in depth, the evidence suggests that we have the same formation.
Historical documents from San Roman drafted in 1890 talk about the production on the Algarrobo. In 1860 the British were extracting 15% copper in such quantities that they deemed it feasible to build a railway to the nearby port town of Caldera where they also built a smelting plant and shipped copper to Europe. Evidence of the railway is still on the property. The mine was abandoned after 25 years due to the lack of technology. The only reason the copper is still abundant on the Algarrobo is because it is buried under sand. There is very little historical information to be found, other than the San Roman documents.
The artisanal workings on the property are currently producing 2000 tonnes per month on three drifts. The mines are roughly 10 meters wide and 150 meters long and are worked with very rudimental methods where by the workers blast into the drifts and haul the boulders out, hand sort and reduce them to 3 inch rocks with hand tools. The ore is then ready to ship to ENAMI, the local government owned processing plant, approximately 60km away. ENAMI does not accept less than 9% copper.
Recent ore produced from the Descubrodoras vein runs as high as 50% copper content. At an average of 9% per tonne, ENAMI pays an estimated $582/tonne. With each 1% increase in grade the payment per tonne increases by an estimated $60. The high grade piles of hand sorted 40% ore would, therefore, pay $2,408/tonne. Eight additional exposed mineralized veins are ready for production and eleven more proposed will be ready for extraction when licenses are granted. The estimated time for licensing is 2 to 3 months as we are already in production on the property. With the purchase of heavy equipment we will increase production to an estimated 5,000 tonnes / month. We are currently stockpiling high grade ore and the ore below 9% as we intend to construct our own processing facility. We will only ship 9% ore to ENAMI.
Preliminary exploration has been interpreted to suggest high potential for identification of additional high grade copper mineralized veins for subsequent development into additional producing drifts.
Preliminary exploration also suggests mineralized trends and major vein identification in bedrock over 8 km. Five major veins have been identified and are currently being worked on. Each vein contains a multitude of subsidiary veins. The 5 major veins in question suggest that mineralization occurs over a 4 km trend and there is no reason to indicate that the mineralization is any different from the adjacent ore bodies at the Viuda mine which reach a depth of 550 meters or the same ore body as the Cerra Negro north district which is extensive and forms dominantly large ore bodies.
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