St Andrew Goldfields Ord STADF

Lots a liars in mining- buyer beware!

[moe4]

Southwestern Resources shares fall after errors made in assay results, Related Symbols: T.SWG 8/27/2007 9:14:00 AM VANCOUVER (CP) - Southwestern Resources Corp. (TSX:SWG) shares fell Monday by 15 per cent after the mining company said resources at its Boka gold project in China were "significantly less" than previously reported because of errors in assay results. The Vancouver-based junior resource company's stock was down 31 cents at $1.73 in trading on the Toronto Stock Exchange after the company said it was working on providing new estimates. The shares had been worth more than $6 until Southwestern announced on July 19 that it had discovered problems with the resource estimate. Since then the company has undertaken a review of the property and expects to complete a new estimate in the next eight weeks. "Based on this work and its preliminary analysis of the now largely validated database to date, Southwestern believes that the mineral resource at its Boka project is significantly less than previously reported, but there are still indications of gold mineralization in drill holes and historical mine workings," the company said. But, Southwestern added, it's still too early to provide any assurances as the resources at Boka and its economic viability. The Vancouver-based company also said Monday it was suing former CEO John Paterson, seeking to recover losses and damages. It also includes allegations of fraud, insider trading, and breach of fiduciary, statutory and contractual duties. None of the allegations has been tested in court. Southwestern is mineral exploration company with properties in China and Peru. © The Canadian Press, 2005