Tuesday, 18 September 2007

The Howard Group Welcomes Anglo Swiss

While Anglo Swiss Resources (ASW: TSX-V / ASWRF: OTCBB) is a story that has been around a long time, it recently rejuvenated work and drilling programs on two of its key properties.

There are a number of interesting points to consider, especially in context of the history behind its Kenville gold property and Fry Inlet diamond project.

Not to be ignored is that between 1890 and 1954 the mine produced just over 2 million grams (2 tonnes) of gold from 181 thousand tonnes of ore. In 1990, Kenville was ranked as the 26th largest producer in B.C.’s history. Since the late 1800’s it has changed hands several times in keeping with the ebb and flow of the mining industry and commodity price cycles. There has not been any meaningful production since 1986.

The Kenville Gold Mine Property is located immediately outside Nelson, British Columbia and sits on a 1,000 acres. It is easily accessed off a highway with excellent infrastructure in place with water, roads, power, and an assay lab. The property is set to operate at a rate of 125 tonnes per day.

Anglo Swiss acquired the mine in 1992 after re-assessing the property with a small amount of test production that confirmed the ore is amenable to flotation with a recovery rate of greater than 85%.

Several significant zones of gold and copper mineralization with silver and molybdenum were found as part of a joint venture with Teck Corp in 1995 with economic grades coming from all 5 drill holes that were completed. A magnetometer survey in 1996 confirmed a large presence of gold, copper, silver and molybdenum just west of the previous successful drill results in a previously unexplored area. Over 1,300 meters (4,200 feet) were subsequently drilled in two areas with 7 new drill holes proving more mineralization was present.

Timing could not have been worse for Anglo Swiss. In spite of successful results, Teck Corp. abandoned the project in early 1997. Public distaste for junior mining companies became prevalent as the Bre-X scandal made front page news and companies with the potential for less than 30 million ounces fell off the radar screen. The NDP government at the time made it even harder for mining in B.C. and things soon came to a stand still.

There has been a great deal of research conducted that involved looking back through archives and records dating back many years along with new geophysics being conducted on the property. Anglo Swiss believes that there is a massive amount of gold and precious metals yet to be discovered and mined in Kenville.

The goal of reaching commerciality is much easier to reach with today’s commodity prices. Finding only 1% copper equivalent at $68 per tonne ore is very profitable at twice the value it was when Teck was looking for it 10 years ago.

Anglo Swiss has all permits, approvals and bonding necessary to continue exploration on this property. Anglo Swiss has maintained the Kenville site throughout its ownership. A combination of strong commodity prices, a receptive investment climate and legislation and tax incentives that encourage exploration and development points to the Kenville mine is a potential “high grade” project based on its history.
Click here to see the brochure on Kenville.

The second part of the story lies in the Northwest Territories in Anglo Swiss’ Fry Inlet Diamond property in the Lac de Gras area consisting of 42 contiguous mineral claims just 360 km north-east of Yellowknife. The claims were acquired in 2005 over two transactions.

In 2003 the Northwest Territories mined over 11.2 million carats worth an estimated 1.24 billion USD surpassing South Africa and becoming the world’s third largest producer of diamonds.

The existing two producing diamond mines in the vicinity are responsible for about 11.5 million carats per year or about 13% of the world’s total dollar value.

ASW is currently drilling with a focus on under-explored areas with unexplained kimberlite indicator mineral trains (KIM’s) and/or kimberlite targets near known kimberlite and diamond mining operations. Anglo Swiss currently has three separate projects that meet criteria covering over 160,000 acres and is under the opinion that these properties are highly prospective.
Click here to see the brochure on Fry Inlet NWT.

We are looking forward to reporting results over the next few months as Anglo Swiss continues in its quest for precious metals and diamonds.