Thursday, 31 January 2008

Anglo Swiss Stock Declines After Finding Multiple High Grade Gold, Copper And Silver Intercepts On Its Kenville Property

Anglo Swiss Resources - (ASW: TSX-V) (ASWRF: OTCBB) (AMO: BERLIN)

With gold, copper and silver reaching all time highs, it is a perfect time for Anglo Swiss to announce that it found high grades of all three....however within minutes of market opening today ASW stock started to get hammered. As the market opened ASW stock took a turn for the best climbing to $0.56. As I prepared this blog for dissemination the stock started to drop quickly and the phone never stopped ringing. It seems the market was looking for more glory than it got in the news that was released.

Assay results are in from Anglo Swiss' phase one, 1,365 meter, (4900 foot) drill program and 5 out of 5 holes found mineralization with up to 42 grams of gold per tonne (g/t) and 1.5% copper.

Click here to read the press release.

The company knew that it was on to something when visual mineralization was present in all of the holes drilled in phase one. Now with assay results backing the visual report the company can focus on two important aspects of this section of its Kenville property, the gold/copper porphyry and the Eagle gold vein.

The recent drilling program covered only a small portion of 20% of the Kenville property and it has proved the accuracy of the earlier geophysical report on this small portion. It is a rarity for a mining company to hit mineralization in all of its drill samples.

Imagine this small piece of the Kenville property that was just drilled as a piece of cake. Now imagine flipping the cake upside down so the icing is on the bottom. This is a great analogy for this piece of the property. The icing is the gold vein and the cake is the porphyry portion that is amicable to open pit mining.

In addition, the gold, copper, and silver porphyry play looks like it could be of commercial value. More drill results will have to define the value before ASW will know whether it is worth mining. Companies in the area such as the Mount Polley Mine are in production with an average of 0.36% copper and 0.27 g/t of gold. Anglo Swiss has proven values much higher than that. With commodity prices as high as they are, a large tonnage of these lower grades can equate to strong profits, especially if infrastructure is not expensive.

Based on these early results, a 10,000 meter drill program will be launched this year starting in the spring after the snow melts. One drill will be working to further define the Eagle gold vein that has shown gold values up to 82.15 g/t from drilling done by Teck in the 90's and 42 g/t on its recent findings. With such high grades present, this gold vein is now considered a priority and the 2008 drill program should indicate just how big this deposit is.

Anglo Swiss now knows that the Eagle Gold Vein runs approximately 150 meters or 492 feet long and varies from 1.65 - 5.1 meters or 5.4 - 16.7 feet in width.

With the latest financing complete at just over $4 million, phase two is fully funded.

The Kenville mine may have the makings of being a commercial mine once again. Many companies have found similar grades to what Anglo Swiss has found worldwide but these companies need to spend hundreds of millions on infrastructure. Kenville is almost ready for business. All of the infrastructure - roads, power and water are in place so the transition from exploration to production could be done cheaply and quickly.