Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

September 24, 2009 09:28 ET

Selwyn Resources Expands XY High-Grade Mineral Potential

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 24, 2009) - Selwyn Resources Ltd. (TSX VENTURE:SWN) is pleased to provide an update on 2009 drilling activities in the XY area of the Selwyn Project. Two drill holes were completed as part of the geotechnical drilling program. The location of the drill holes can be found on drill plan maps available at www.selwynresources.com. Drilling has resumed to follow up on these results and to test additional targets in the XY Central deposit area.

Highlights

- XYC-181 intersected 5.73 metres true thickness at a shallow depth grading 14.20% zinc and 3.74% lead, including 1.72 metres grading 28.66% zinc and 7.54% lead.

Geotechnical Drilling

The 2009 geotechnical drilling, in vicinity of the XY Central high-grade underground deposit, was undertaken to provide rock structure data pertinent to the design for an advanced exploration decline that would provide access for drilling the known mineralization, as well as the exploration targets deep in the core of the Synclinal Structure hosting the XY area deposits. The proposed decline and lateral drifts will provide a cost effective platform for testing these deep exploration targets. A total of two diamond drill holes were completed along the trace of the decline for a total of 695.70 metres.

Although the geotechnical drill holes were not designed to intersect the zinc-lead bearing Active Member, drill hole XYC-181 intersected a fault bounded 5.73 metres true thickness of Active Member approximately 70 metres southeast of the northwest edge of the 2009 mineral resource estimate block model (see February 29, 2009 news release). The location of this fault zone along the lower contact of the Active Member suggests that it is possible this drill hole did not fully test the mineral potential in this area because there was Active Member broken-up within the entire fault zone.

The mineralization in XYC-181 is consistent with results from two previous drill holes, XYC-142 and XYC-145; both located approximately 140 metres to the southeast from XYC-181. These two drill holes intersected similar widths and grade of well mineralized zinc-lead Active Member. XYC-142 intersected 14.25 metres true thickness of Active Member grading 10.03% zinc and 2.75% lead including 1.79 metres grading 44.90% zinc and 10.42% lead (October 30, 2006). XYC-145 intersected 11.96 metres true thickness of Active Member grading 8.76% zinc and 2.64% lead including 3.58 metres grading 20.84% zinc and 6.06% lead (January 10, 2007 news release). The assay results from the XYC-181 are presented in Table 1. Additional drilling in the vicinity of XYC-142, XYC-145, and XYC-181 is in progress.



Table 1

-------------------------------------------------------------------------
True
From To Thickness Pb Zn Pb+Zn Thickness
Drill Hole (m) (m) (m) (%) (%) (%) (m)
-------------------------------------------------------------------------
XYC-181 206.00 215.30 9.30 3.74 14.20 17.94 5.73
-------------------------------------------------------------------------
Including 206.00 208.80 2.80 7.54 28.66 36.20 1.72
-------------------------------------------------------------------------
Including 213.30 215.30 2.00 3.26 14.04 17.31 1.23
-------------------------------------------------------------------------


The intercept in XYC-181 is significant because it means the NI 43-101 compliant underground high-grade mineral resource at XY Central deposit (January 29, 2009 news release) remains open for expansion in a northwesterly direction towards the newly discovered NI 43-101 compliant underground high-grade mineral resource at the XY West deposit (see February 29, 2009 news release).

The January 2008, NI 43-101 compliant underground high-grade mineral resource at XY Central was done by Independent Qualified Person, Cliff Pearson, P.Geo., and Non-Independent Qualified Person, John J. O'Donnell, P.Geo. (see January 29, 2008 news release). This study yielded an Indicated mineral resource in the high-grade underground deposit of 10,738,000 tonnes grading 10.38% zinc and 4.41% lead and an Inferred mineral resource of 2,849,000 tonnes grading 10.86% zinc and 4.41% lead. The February 2009 NI 43-101 compliant mineral resource estimate saw no changes in the XY Central area, but did provide a mineral resource estimate for the XY West deposit. This study was done by Non-Independent Qualified Person John J. O'Donnell, P.Geo. (see February 26, 2009 news release) and yielded an Inferred mineral resource of 1,917,600 tonnes grading 7.70% zinc and 2.45% lead. The XY West deposit remains open for expansion of its mineral potential.

The new target area between the underground high-grade mineral resources of XY Central and XY West deposits is approximately 500 metres in length, by 200 metres in width and 6 metres in true thickness. The possible quantity and grade of this mineral potential in the new target area is conceptual in nature, as there has been insufficient drilling to define a mineral resource and it is uncertain if additional exploration will result in any of this potential being realized as a mineral resource. However, one reason to be very confident about additional drilling in this new target area is that a historic drill hole successfully completed by a former operator intersected 3.05 metres of well mineralized zinc-lead Active Member in XYC-095; which graded 6.30% zinc and 1.90% lead. This historic drill hole is located 400 metres northwest of XYC-181 and the Active Member in both drill holes remains open for expansion in this area.

Recent modeling of Selwyn's detailed 3D geological model, including XYC-181, reveals that the NI 43-101 compliant mineral resources for both the underground high-grade deposits at XY Central and at XY West remain open in all directions for expansion. Although these mineralizing systems are bounded by fault structures that commonly offset the zinc-lead mineralized Active Member, the new intersection in XYC-181 confirms the accuracy of the detailed 3D geological model that is being used to define extensions to the known mineralization.

The Selwyn Project exploration program is being reviewed by Vice President Exploration, Mr. Jason Dunning, M.Sc., P.Geo. The onsite activities for the Selwyn Project are directed by Exploration Manager, John J. O'Donnell, P.Geo. Both Mr. Dunning and Mr. O'Donnell are Qualified Persons within the meaning of National Instrument 43-101. All assay data has been through internal validation of quality assurance and quality control. Selwyn has established a sampling and assay control program with blind insertion of assay blanks, standards and duplicates for the Selwyn Project; however, it should be noted that there is also a quality control and quality assurance program in place at ACME Analytical Laboratories Ltd. ("ACME") that includes blanks, duplicates and standards. At ACME, silver and base metal analyses are conducted by a 23-element, four-acid digestion, ore-grade ICP-AES technique.

Selwyn's focus is the exploration of its properties that make up the Selwyn Project in the Yukon, which hosts large tonnages of zinc-lead mineralization. The known deposits have the potential for the large scale production, and provide a secure supply of zinc and lead to meet the future needs of the zinc market in Asia and beyond.

This press release contains forward-looking statements concerning mineralization at the Selwyn Project. These forward- looking statements are based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond Selwyn's control. As a result, actual results may differ materially from the expected results. Additional drilling is required to confirm the potential of the new discovery areas and expansions of the current resource areas and the extension of the higher grade deep mineralization to depth. There is no assurance that such additional drilling will expand mineral resources or that the resources being defined can be developed as an economically attractive mine, and there are many uncertainties associated with permitting and other factors that could delay such development.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Selwyn Resources Ltd.
    Dr. Harlan Meade
    President and CEO
    (604) 801-7240 or Toll-free: 1-888-989-9188
    or
    Selwyn Resources Ltd.
    Jasmin TamDoo
    Manager of Investor Communications
    (604) 801-7240 or Toll-free: 1-888-989-9188
    (604) 689-8355 (FAX)
    info@selwynresources.com
    www.selwynresources.com