Silver Swan Group (ASX: SWN) has developed a maiden resource at Measured, Indicated and Inferred categories at its Austin volcanogenic massive sulphide discovery of 1.48 million tonnes grading 1.02% copper, 1.39% zinc, 3.51g/t silver and 0.24g/t gold. The Austin discovery is located near Meekatharra in Western Australia. The resource estimate was prepared in accordance with the JORC (2004) Code. The resource estimate, developed 18 months after the initial discovery, represents contained metal of 15,141 tonnes of copper, 24,376 tonnes of zinc, 167,518 ounces of silver and 11,545 ounces of gold. The bulk of the resource is in fresh rock with a small oxide component of 18,182t. The Austin (Cu-Zn-Ag-Au) discovery is a volcanogenic massive sulphide (VMS) deposit within the Quinns project area. Silver Swan managing director, Susan Vearncombe, said, “reporting our maiden resource, after less than two years as an active explorer gives the company a very strong foundation for what we believe, could develop into a very significant and large base metal discovery.” “The important aspect is that these VMS style ore bodies usually occur in clusters or camps, which offers Silver Swan the opportunity to develop a significant new base metal camp similar to the famous Canadian VMS deposits like Kidd Creek or the Golden Grove VMS deposits, just 250 kms away.” “We have a lot more work to do, we are in a strong financial position and are totally focused on putting holes into the ground to expand on what we have already found and discover multiple new ore bodies in the Quinns area.” “The Quinns area has not had any modern exploration for around 20 years and much of the earlier work was directed to limited areas providing us with the opportunity for success in a period when global copper demand is very strong,” Vearncombe said. The overall resource was calculated using a cut-off grade of 0.4% copper and includes material to the 200m RL (below surface). The resource estimate is based on 28 diamond drill holes and 6 reverse circulation holes. Mineralisation in primary ore starts 43 metres vertically from the surface, plunging ~65° NE. Oxide ore resources at Austin occur just 25 metres below the surface. Resource estimation was completed by Golder Associates in Perth. The resources reported under the requirements of the JORC Code, are at a very high level of confidence, being primarily in the Measured and Indicated categories with a subordinate Inferred category. Ore estimation has already been calibrated for mining loss and dilution by Golder Associates. The bulk of this resource is deemed to fall within an open-pit development and whilst a lower cutoff grade of 0.3% copper is considered appropriate by Golder Associates, SWN has reported at a 0.4% copper lower cutoff grade. There is additional residual zinc mineralisation of 451,019t @ 0.83% Zn at below the Cu cutoff. Oxide component amounts to a total of 18,182t @ 0.64% Cu, 0.31% Zn, 0.24g/t Au & 2.45g/t Ag. Silver Swan Group has completed three drillhole pre-collars at Austin in preparation for additional deep diamond drilling and downhole electromagnetics. These holes will be completed in April-May. The company is also planning for a deep diamond hole (potentially to 800m depth) for electromagnetics using a high powered transmitter in an attempt to expedite the knowledge base of the depth extent of the mineralisation, locations, continuity and the possible presence of parallel ore zones. Part of Silver Swan's overall strategy is to establish a large resource inventory for economic development in the Quinns-Yagahong area. Yagahong lies about 25km NE of the Quinns area. The company will continue to explore and enlarge the Austin deposit and test various locations through the larger Quinns project area for volcanogenic massive sulphides. The Yagahong area is one of Silver Swan?s highest priority exploration targets. Yagahong is considered highly prospective for copper-gold mineralisation, although of a different style to that at Austin. Hence the company is developing its exploration at Yagahong in tandem with Quinns. The company said drilling at Yagahong began in March and will continue into April. Three primary areas are being targeted: Copper Hills South, Lady Alma and Smelter. To date, 13 reverse circulation holes out of a 35 hole programme have been completed and at least three diamond holes will be drilled in April. The initial phase of drilling at Yagahong comprises a total of 5000m, consisting ~4500m of reverse circulation and ~500m of diamond drilling.

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