Anglo Swiss Resources Inc.(TSX-V: ASW) (OTCBB: ASWRF) (BERLIN: AMO)
Basic Shares 130.2 million
Fully Diluted 150 million
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View the tour via the links at the bottom of this commentary.
The exploration industry’s quest for gold and minerals is usually focused on drill results and assay samples that come from intersecting valuable minerals with the drill bit and pulling a core sample from the ground. This core sample reflects how much potential value the minerals have by the length and quality of mineralization.
Imagine having the ability to walk down a drill hole and see gold and other metals for yourself. This is the best analogy for what it was like on our recent tour of the Kenville Gold Mine just outside of Nelson, British Columbia.
I was in awe throughout the three plus kilometers that we walked into the mountain looking at sophisticated webs of multiple vein structures in the walls, floor and ceiling that carry hundreds of meters of valuable minerals such as gold, silver, led, tungsten, molybdenum and zinc scattered throughout.
One can appreciate the difficulty in hitting one of these high grade veins with the drill bit from over 100 meters above ground once you see how the veins pinch and swell throughout the mine.
Anglo Swiss is currently waiting for assay results from the remaining 100 chip samples that were taken from the walls inside the mine. Tonnes of ore carrying valuable gold and other minerals had been taken out before mining halted in the early 1950’s.
The existing known structures at the main mine opening (adit) called the 257 level have recently been rehabilitated and is the current focus of an industry compliant NI 43-101 resource report that is near completion. This report, which is expected in Q3 is being authored by an independent geologist named Richard Munroe. This regulatory compliant report will highlight existing known workings plus a new vein discovery that has a strike length now proven over 300 meters (1000 feet) and is still open in all directions.
Level 257 is only one small portion of a six- level mine. The current vein discoveries are all open to depth.
Chip samples were independently collected and examined. They contained to date up to 210 grams of gold per tonne. To comply with the independent rules of sample collection, the chip samples were taken exactly every two meters throughout four areas of the adit in which some landed on high grade gold zones where others missed completely. All will be put together to give an average grade of gold for the report.
Geologist Richard Munroe came to take a look at what he heard was an exciting opportunity at the Kenville Gold Mine in August 2008. Although he planned to take a brief visit, he is still there. He is convinced that the known mineralization has a much larger source somewhere in the mountain and he is determined to find it.
Richard is a respected forensic geologist and is the perfect man to piece together all of the old known and unknown workings at Kenville. He is blending his new knowledge of the past with recent discoveries and an end goal of determining the future value of this giant project. Richard has worked on many large projects over his 31 years as a geologist spanning the globe from Mexico to Mongolia. His enthusiasm for this project is obvious and he is a perfect fit with Anglo management.
Between where our tour took place at level 257 and another opening up the mountain called level 275 lies a magical place aptly named the Jewelry Box. There are tonnes of rich ore that had been blasted sometime in or before the 1950’s that were never removed.
Old rusted tools are scattered about throughout this area left behind a half century ago from a job that was never completed. Gold was only $35 per ounce back then and this combined with a flooded mine, caused workers to pack up and leave.
In 2007 Anglo discovered a multiple vein structure known as the Eagle Vein during surface exploration drilling. The company now knows that this distinct structure runs for at least 700 meters and is open in three directions. While walking through the mine it was pointed out that modern methods of exploring this structure would start to take place approximately 200 meters from inside the adit. Anglo will blast its way from inside visually following the veins by using standard drifting techniques which means the blasters will simply follow the veins as they disappear into the mountain up, down, left or right.
We witnessed one area with an ore shute that had been flooded for over a half century. A flashlight provided a look into the abyss allowing us to see 50 feet down through crystal clear water. This alluded to the fact that ore had been taken up from a structure below many years ago. This is all yet to be rediscovered as the technology today will allow for this large area of high grade ore to be pumped dry and re-evaluated.
One of the most fascinating parts of the three and a half hours we were underground ended at a newly discovered place called Green River Stope. Our lights showed us something as we climbed a ladder that few geologists have seen in their entire careers. A bright blue trail of copper pouring down from an upper level that is yet to be explored. As Richard described in the Kenville Mine where there is copper there is gold and this level of concentration is pointing to a large source coming from above. These discoveries are keeping Richard glued to this project in hopes of finding the motherlode or source engine feeding this gold mine. This portion of the mine will be roped off and can be enjoyed on tours for many years to come.
According to management it would cost a new exploration company roughly $150 million and many years to recreate what Anglo already has in infrastructure on level 257 alone.
Anglo will use the drill bit to find new structures from both above and below ground and drift for the high grade rock ensuring that the rock being taken to the company’s new mill facility is carrying the highest grade gold and mineralization possible for processing.
Over the next 12 months Anglo is hoping to prove that it has at least one million ounces of gold measured within NI 43-101 guidelines.
While spending the day at Kenville we also toured the company’s mill facility which is to be up and running efficiently by early Q4. When fully operational, management tells us the mill will be capable of processing 200 tonnes per day at full capacity and there will be enough ore from inside the mine to feed this capacity for many years.
Something not to be forgotten is the fact that for every ounce of gold that is found in these quartz structures there is about two ounces of silver and also led, zinc and molybdenum improving the value of each tonne of ore.
Anglo is a very exciting and unique opportunity as it is close to proving a resource as well as producing its own gold which is now close to $1000 per ounce. If the company reaches its goal of proving one million ounces in the next year shareholders can do the basic math on a potential return.
Now try and imagine what the other five higher levels of the Kenville Gold Mine could hold.
Please ensure you watch both parts of the video :
To See video of tour lead by Richard Munroe please click this link
Anglo Swiss Resources Inc. 
