Vancouver, British Columbia Anglo Swiss Resources Inc. (TSX Venture: ASW) (OTCBB: ASWRF) (BERLIN: AMO), March 31, 2009, 8:00 am EST – announces that a 43-101 compliant Technical Report by Munroe Geological Services Ltd (“MGS”) states that in excess of 16.5 million tonnes of valuable surface sand and gravel has been identified on a portion of the Company’s 100% owned Kenville Gold Mine property located near Nelson in south-eastern British Columbia.
The measured resource of the high quality sand and gravel, which will be processed into aggregate product for industrial and commercial uses, sells “from our experience in 2008 we sold aggregate product between $15 and $18 per tonne” in the words of company President Len Danard. “We are extremely pleased to have the measured resource of the aggregate potential confirmed as it overlays our gold exploration area. This resource with the anticipated gold revenue is expected to provide a significant cash flow to the Company.”
Anglo Swiss Resources in conjunction with its consultants has completed the initial engineering specifications and identified the appropriate 200 tonne/hour processing equipment that will be utilized for the aggregate processing operation. The Company has targeted a late summer start for these operations, which are subject to an amendment of the Company’s existing quarry permit.
The Technical Report was completed using computer modeling with data obtained from a total of 79 sites that included trenches and drill holes from the 2007 and 2008 exploration programs. The Technical Report is available on SEDAR at:
Technical Report
The Kenville Gold Mine property consists of 15 crown granted mining claims, 10 staked claims and 3 parcels of deeded surface property. They are 100% owned by Anglo Swiss Resources Ltd. The Technical Report only covers a portion of that property suite blocked out as approximately one square km and a half km area on the west and east banks of Eagle Creek respectively. It is important to note that the study area only covers roughly 106 hectares of the 188 hectare crown grant land and none of the mineral claim land. There is additional aggregate material over the remaining mineral tenure that has not been quantified.
The Kenville Gold Mine property is well serviced with access and logging road systems with running water, the City of Nelson electrical supply and a fully developed mine building complex from the main quarry and gold operations.
The development of an aggregate operation in relation to a current mine operation is a common procedure and many of the synergies from the existing mine footprint and equipment spread can be used to augment the valuation. Anglo Swiss Resources is already in a strong commercial position as it is a mine and is a permitted supplier of construction grade materials from the waste rock operations. Also the fact that this operation is on the Company’s crown granted land with existing water, power and a crushing and screening plant is extremely beneficial to the Company. Having the local infrastructure and open market place in the south-eastern Kootenay region of British Columbia and the northwestern United States are also positive factors.
Washington State is currently facing a massive shortfall in construction aggregates. As there is always a lag in accurate government reporting it is prudent to extrapolate the data sets where possible to specific market areas. Washington’s short fall is generally noted as 22.5 million tons of construction aggregate just for normal expansion requirements (2004 estimates).
Since the shut down of the Lafarge Metaline Falls quarry north of Spokane in 2002 there has been no permitted replacement for that region. Smaller local quarries have been trying to keep up with the demands but customers are even turning to suppliers in Idaho. There is a moderate supply of pit run materials but high quality concrete and asphalt grade aggregate is missing from the markets. Should the Kenville Mine aggregate pass its mortar bar and concrete prism tests it would be able to enter that market. Even using the harder waste rock from mine operations would produce a higher grade stone than the soft sedimentary materials currently available in the Spokane market.
A significant amount of technical work and testing is required at the outset but financial rewards are expected from the development of the aggregate potential from the surficial materials. A wide general product line mixed with a value added portion may provide a stable long term financial base for the company. The feed from the sand and gravel development should dovetail well into that current production line. The new feed stock supply would augment grain size variability to allow for more gap grading opportunities.
The author based limited reliance on the information from the staff and records of Anglo Swiss, the drill data from MPH Consulting and the core logging by Greg Thomson, P.Geo. and Kodiak Measurement Services Inc. which also preformed engineering volume calculations with computer models of the drill and test hole data.
The computer models utilized by MGS plotted 79 sites on the study area with the known topographic elevations and contours. An average overburden depth is 6.5 m over an averaged area of 1,059,255 square meters. The Kodiak model (Kodiak Measurement Services Inc.) resulted in the calculation of a measured resource of 6,885,159 bank cubic meters. Using the accepted bulk density average of 2.4 tonnes per cubic meter, the study area tonnage would be 16,524,380 tonnes of measured resource material available for processing into aggregate products.
The author used personal inspections and measurements to obtain the majority of the data for the Technical Report; limited information was obtained from the 2007 and 2008 exploration programs. The sand and gravel target areas are situated on top of and around several old and current gold mine areas. Metal values in proximity to the contact may be expected.
While some limited gold and other metal values may be realized as a by product of the general aggregate production process it is not valued or considered in the scope of the Technical Report, the focus of the Report is the overlaying glacial tills and gravels draped over the rock structure. The program was a success, as preliminary volume figures were identified due to the thin draping of what may be economically viable construction aggregate materials.
Edward J. Nunn, P.Eng., of Anglo Swiss Resources Inc. and Richard Munroe, FGAC, P.Geo. of Munroe Geological Services Ltd. are the Qualified Persons who have reviewed and acknowledge this press release.
