Selwyn Resources Ltd.

Selwyn Resources Ltd.

August 13, 2009 09:28 ET

Selwyn Resources Receives Regulatory Approval of Vinata Property Acquisition

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2009) - Selwyn Resources Ltd. (TSX VENTURE:SWN) ("Selwyn") is pleased to announce that it has received final regulatory approval of the previously-announced (July 22, 2009) option to acquire an interest in the Vinata zinc-silver property in the state of Chihuahua, Mexico. The acquisition agreement grants Selwyn an option to acquire an initial 50% interest in the Vinata Property from Savant Explorations Ltd. ("Savant"), and upon exercising of that option, a second option for Selwyn to increase its interest to 55% by making additional expenditures. The documentation for the transaction has been completed.

Selwyn and Savant are planning a ground geophysical IP survey to refine drill targets, followed by an initial 1,800 metre drilling program budgeted at USD$450,000. Line cutting for the IP survey has commenced and the drilling is scheduled to commence in late September. Drilling will test targets for high grade silver-zinc-lead mineralization.

Vinata Property

Vinata consists of 89 square kilometres of mineral lands in the prolific Santa Eulalia-Naica mineral trend. The Santa Eulalia and Naica mining districts have collectively produced several hundred million ounces of silver. At Vinata, previous artisanal surface mining of silver bearing manganese mineralization in the cover volcanics is thought to have occurred in the upper part of a silver-zinc-lead "Santa Eulalia-type" deposit that is postulated at depth. Vinata represents a rare opportunity to acquire a large property position associated with the surface expression of a potential new district-scale discovery.

The local geology and interpreted high level alteration at Vinata show many similarities to the Santa Eulalia District, 55 kilometres to the north, which hosts numerous silver-zinc-lead deposits within Upper Cretaceous limestone beneath altered cover volcanics. Mining at Santa Eulalia has occurred in a number of structural trends over a strike length of approximately 3,000 metres and up to 800 metres of vertical extent. Alteration extends into the overlying Tertiary volcanic rocks and is characterized by extensive clay alteration and manganese with geochemically anomalous of silver, zinc and lead.

Historic mining on the Vinata Property was focused on mining silver-bearing manganese oxide veins within a number of structurally controlled vein and breccia replacement bodies within Tertiary volcanic rocks believed to immediately overlie the Upper Cretaceous limestones, similar to that at Santa Eulalia. The previous surface mining of argentiferous manganese oxide mineralization at Vinata has occurred intermittently over a north-northwesterly trend of approximately 3,000 metres.

Mapping at Vinata has identified well-defined vein-breccia structures flanked by extensive clay-altered volcanic rocks hosting highly anomalous silver, zinc and lead in micro-veinlets of carbonate. This alteration and mineralization is interpreted to be the uppermost part of a mineralizing system. The planned drilling will test the continuity of the mineralized structures to depth and the possible occurrence of manto and chimney type mineralization.

Selwyn is focused on the development of the Selwyn Project in the Yukon as a major new zinc-lead mine. The Selwyn Project is advancing towards feasibility and development as a large scale mine providing a secure supply of zinc and lead to meet the future needs in Asia and beyond. The Vinata Project provides another growth opportunity for Selwyn shareholders.

This news release contains forward-looking statements concerning the Vinata Property and the development of the Selwyn Project. These 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 results and other risk factors that are beyond Selwyn's control. There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release.

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
    Selwyn Resources Ltd.
    Jasmin TamDoo
    Manager of Investor Communications
    (604) 801-7240 or Toll-free: 1-888-989-9188
    (604) 689-8355 (FAX)