News: Southern Crown Resources finds major fault system at Alaskan gold-silver project

Southern Crown Resources (ASX:SWR) has completed a detailed ground magnetic survey over the Luna–Luna East prospects in Alaska, which has highlighted a major fault and dyke system, analogous to an intrusion related gold deposit and a potential breccia pipe.

A scout geochemical sampling program commenced during August to test the top of the bedrock and refine additional targets, and SWR has completed an oversubscribed placement, receiving commitments for $650,000 at $0.05 per share to meet exploration expenditure.

The projects are located in the Tintina gold belt, endowed with over 60 million ounces of gold and Luna is similar prospect type to the 45 million ounce Donlin Creek deposit located in the same belt.

The key Luna-Quicksilver prospect contains two undrilled outcropping semi-massive sulphide stockworks about 1.2 kilometres apart in a system that is over 700 metres wide and striking over 5 kilometres.

Rockchip and channel sampling of Luna outcrop has returned up to 64.7 grams per tonne gold and 74g/t silver while the Luna East sulphide outcrop has returned up to 1.2% copper and 90gt silver.

Southern Crown previously signed the option with unlisted Australian company Afranex Gold to acquire the companies that hold the rights to the three projects with an expiry date of the earlier of 4 months after the completion of 1,200 metres of core drilling or 31 December 2015.

On exercising the option, it will issue 30 million shares to the major vendor group as well as $100,000 to Afranex for exploration and corporate costs.

This option deal allows SWR to test targets without sacrificing its tight capital structure, and flat topography of the projects provides cost effective access and exploration.

Bedrock drilling is expected to commence shortly.

Capitalised at just $2 million, there is potentially a lot of upside to SWR's current share price.

 

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