Algarrobo Property Being Advanced More Quickly Than Expected by Swingplane Ventures
By Steven Ralston, CFA
The stock price of Swingplane Ventures (SWVI: OTCBB) continued to rally this week as more information about the potential of the Algarrobo property has been released, since our previous article. The project is advancing more quickly than expected with near-term production having been pursued more aggressively than previously indicated.
Over the last two months, test shipments of low-grade ore were delivered, some of which already have been graded and processed by ENAMI (with payments having been issued). In addition, further descriptions of drift development in the press releases have clarified the extent of vein discovery and development on two of the 32 tenures controlled by Swingplane’s option.
Swingplane Ventures is focusing currently on the discovery of high-grade copper ore to the south of the past producing Estaca and Viuda mines, predominately in the tenures of Ruble 5B and Ruble 5. However, while exposing the high-grade veins through drifting (using heavy machinery to make a horizontal cut to access a mineralized vein), haloes of low-grade ore have been encountered. Management decided to test the economic viability of the fringe ore by shipping 500 tonnes to the ENAMI facility at Copiapo for leach processing.
To date, payments totaling $30,845 have been received for 130 tonnes of material grading between 1.88% and 4.28% Cu from the Veta Gruesa vein. Payment has not yet been received for the ore from the Descubridora vein, which graded significantly higher (between 7.75% and 8.8% Cu). Utilizing the information released, we calculate that if all 500 tonnes are comparable in grade and composition to the ore thus far graded and sold, approximately $200,000 should be received from this test of low-grade-ore.
High-grade copper ore (grading higher that 9% Cu), the primary emphasis in Swingplane’s development of the Algarrobo property, is being stockpiled in anticipation of the issuance of a license for the sale of high-grade material to ENAMI. Since a license already had been issued for the property in 2009, a new license is expected to be issued in the near future. Management estimates that over 400 tonnes of Direct Shipping Mineralized Material with an average grade between 10% and 12% Cu has been amassed from the drifts. Again, making use of the tonnage, grades and payment information provided by the company in its press releases, we estimate that at least $400,000 should be received for this high-grade stockpile.