Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

January 17, 2008 08:58 ET

Selwyn's Deep Drilling at XY Confirms Down-Dip Mineral Potential

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2008) - Selwyn Resources Ltd. (TSX VENTURE:SWN) is pleased to provide an update on 2007 drilling activities in the XY area of the Selwyn Project. In 2007, 106 drill holes were completed on Selwyn Project totalling 37,208.6 metres. The location of the drill holes can be found on drill plan maps available at www.selwynresources.com.

Highlights

- XYC-171 intersected 23.40 metres true thickness in the underground target grading 9.89% zinc and 5.30% lead, including 8.10 metres grading 18.92% zinc and 10.52% lead.

- XYC-164 intersected 21.80 metres true thickness in the underground target grading 5.13% zinc and 1.43% lead, including 2.40 metres grading 11.34% zinc and 3.27% lead.

Deep Drilling

The 2007 drilling in the XY deposit focused on the XY Central zone, initially completing infill definition drilling within the open-pit environment. A total of 18 diamond drill holes were completed in both the open-pit and underground target areas of the XY Central deposit for a total of 7,699.3 metres. Twelve of these drill holes totalling 2,592.1 metres successfully completed infill definition drilling in the open-pit target, whereas, the remaining six diamond drill holes totalling 5,097.2 metres were targeted at expanding the mineralized area down dip of the high-grade underground Inferred mineral resource (see April 2, 2007 news release). Assay results from the 2007 drilling program are presented in Table 1.



Table 1

-----------------------------------------------------------------------
True
Thick- Thick-
From To ness Pb Zn Pb+Zn ness
Drill Hole (m) (m) (m) (%) (%) (%) (m)
-----------------------------------------------------------------------
XYC-157 842.40 851.20 8.80 1.24 3.90 5.14 4.40
-----------------------------------------------------------------------
Including 842.40 846.10 3.70 1.66 5.60 7.26 1.90
-----------------------------------------------------------------------
XYC-164 1023.10 1050.80 27.70 1.46 5.13 6.59 21.80
-----------------------------------------------------------------------
Including 1026.90 1031.90 5.00 1.78 7.07 8.85 3.90
-----------------------------------------------------------------------
Including 1038.40 1050.80 12.40 1.88 7.17 9.05 9.80
-----------------------------------------------------------------------
Including 1047.70 1050.80 3.10 3.27 11.34 14.61 2.40
-----------------------------------------------------------------------
XYC-170 984.00 987.30 3.30 1.48 5.31 6.79 3.30
-----------------------------------------------------------------------
XYC-171 406.40 432.90 26.50 5.30 9.89 15.19 23.40
-----------------------------------------------------------------------
Including 406.40 415.40 9.00 1.27 4.17 5.44 7.90
-----------------------------------------------------------------------
Including 419.80 432.00 12.20 10.08 17.38 27.46 10.80
-----------------------------------------------------------------------
Including 421.20 430.40 9.20 10.52 18.92 29.44 8.10
-----------------------------------------------------------------------


The wide spaced drill holes in the 2007 deep drilling program at the XY deposit were very successful in confirming the detailed 3D geological model previously used in the NI 43-101 compliant, April 2007 mineral resource estimate by Independent Qualified Person Mr. Cliff Pearson, P.Geo. and Non-Independent Qualified Person, Mr. John O'Donnell. The 2006 drilling defined a NI 43-101 compliant, Indicated mineral resource of 7,394,860 tonnes grading 9.88% zinc and 4.32% lead and an Inferred mineral resource of 1,856,500 tonnes grading 10.41% zinc and 3.71% lead (see April 2, 2007 news release). The 2007 deep drilling also better defined structures in the underground environment that offset the Active Member that hosts the zinc-lead mineralization.

The underground target remains open in all directions and is bounded by fault structures that offset the zinc-lead mineralized Active Member. This new fault offset block is a target area of approximately 500 metres by 800 metres and an approximate width of 20 metres. The mineral potential of this underground target area requires additional drilling and it is unknown if drilling in 2007 was sufficient to define a NI 43-101 mineral resource in the new fault block; however, a detailed study is ongoing as part of the updated mineral resource to be completed in the first quarter of 2008. This detailed study may indicate that additional definition drilling is required to define a compliant NI 43-101 mineral resource.

Drill hole XYC-171 intersected 23.40 metres true thickness in the open-pit target grading 9.89% zinc and 5.30% lead, including 8.10 metres grading 18.92% zinc and 10.52% lead, thereby further confirming the high-grade nature of the zinc-lead mineralization of the high-grade underground deposit. XYC-171 successfully intersected well mineralized zinc-lead Active Member 300 metres from XYC-111 (see August 31, 2006 news release) and 295 metres from XYC-141 (see October 30, 2006 news release).

Two drill holes, XYC-165 and XYC-168, intersected a new fault structure not previously interpreted that vertically offsets the well mineralized Active Member in the underground target area by 300 metres; however, it is important to note that subsequent drilling has intersected well mineralized zinc-lead Active Member in this new offset fault block; confirming significant mineral potential therein. Both XYC-165 and XYC-168 intersected Active Member; however, it was extremely broken up in the fault and did not yield significant results.

XYC-157 targeted an area down-dip of the April 2007 Indicated mineral resource; which is also in the new fault block defined by drill holes XYC-165 and XYC-168. Drill hole XYC-157 successfully intersected well mineralized Active Member at a depth of 842 metres; however, poor in-hole drilling conditions forced the abandonment of the drill hole prior to reaching footwall rocks to the Active Member. The mineralization in XYC-157 is 450 metres from XYC-171 and 440 metres downdip of XYC-141 (see October 30, news release), and 720 metres from XYC-116 (see August 31, 2006 news release). Selwyn believes this area to be of very high exploration potential requiring additional drilling to define the mineral potential of the high-grade mineralization in this fault block.

Two drill holes target the deepest and northwestern extent of the mineral potential from the high-grade underground deposit. XYC-164 intersected 21.80 metres true thickness grading 5.13% zinc and 1.46% lead including 2.40 metres grading 11.34% zinc and 3.14% lead. XYC-164 drill hole is 320 metres from XYC-157, 460 metres from XYC-138 (see January 10, 2007 news release), and 380 metres from XYC-124 (see September 21, 2006 news release). XYC-170, collared off of the same set-up as XYC-164, tested the up-dip area and successfully intersected well mineralized zinc-lead Active Member; however, the Active Member was truncated by a fault with the drill hole passing immediately into footwall rocks. These two drill holes are the deepest and most northwestern intercepts of well mineralized Active Member that continue to demonstrate that there is significant opportunity to expand the known mineral potential of the high-grade underground deposit.

A selected list of previously released intercepts from the 2006 deep drilling program are presented in Table 2 and include XYC-111 and XYC-116 (see August 31, 2006 news release); XYC-124 (see September 21, 2006 news release); XYC-133 (see October 10, 2006 news release); XYC-138 (see January 10, 2007 news release); XYC-141 (see October 30, 2006 news release); XYC-150 (see November 24, 2006 news release).



Table 2

-----------------------------------------------------------------------
True
Thick- Thick-
From To ness Pb Zn Pb+Zn ness
Drill Hole (m) (m) (m) (%) (%) (%) (m)
-----------------------------------------------------------------------
XYC-111 340.95 355.40 14.45 5.86 9.16 15.02 13.47
-----------------------------------------------------------------------
Including 352.00 355.40 3.40 15.75 21.74 37.50 3.20
-----------------------------------------------------------------------
XYC-116 328.82 361.18 32.36 4.31 8.43 12.74 29.31
-----------------------------------------------------------------------
Including 351.69 361.18 9.49 11.68 17.54 29.23 8.60
-----------------------------------------------------------------------
XYC-124 345.10 380.60 35.50 2.42 6.66 9.08 33.40
-----------------------------------------------------------------------
Including 345.50 349.90 4.40 2.05 18.99 21.04 4.10
-----------------------------------------------------------------------
Including 345.10 355.65 11.40 1.60 7.56 9.17 10.70
-----------------------------------------------------------------------
Including 368.60 380.60 12.00 4.47 9.78 14.25 11.30
-----------------------------------------------------------------------
Including 373.35 376.12 2.77 12.96 22.68 35.64 2.60
-----------------------------------------------------------------------
XYC-133 280.90 300.10 19.20 1.74 6.38 8.12 14.70
-----------------------------------------------------------------------
281.75 287.60 5.85 2.68 10.56 13.24 4.50
-----------------------------------------------------------------------
281.75 285.45 3.70 3.30 12.72 16.03 2.80
-----------------------------------------------------------------------
XYC-138 297.30 304.60 7.30 1.62 7.66 9.28 5.25
-----------------------------------------------------------------------
Including 301.20 304.60 3.40 2.39 12.83 15.22 2.45
-----------------------------------------------------------------------
XYC-141 394.30 428.10 33.80 2.26 8.64 10.90 24.72
-----------------------------------------------------------------------
Including 394.50 402.30 7.80 3.01 13.15 16.16 5.70
-----------------------------------------------------------------------
Including 414.50 423.80 9.30 2.94 15.17 18.11 6.80
-----------------------------------------------------------------------
Including 419.90 423.80 3.90 4.91 26.56 31.47 2.85
-----------------------------------------------------------------------
XY-150 402.10 437.50 35.40 2.12 5.80 7.92 29.35
-----------------------------------------------------------------------
Including 402.10 408.90 6.80 5.30 12.01 17.31 5.64
-----------------------------------------------------------------------
Including 406.00 408.90 2.90 9.12 18.81 27.93 2.4
-----------------------------------------------------------------------
Including 422.80 431.30 8.50 1.67 6.14 7.81 7.05
-----------------------------------------------------------------------
Including 428.00 431.30 3.30 1.62 7.03 8.65 2.74
-----------------------------------------------------------------------
Including 435.40 437.50 2.10 6.77 15.85 22.62 1.74
-----------------------------------------------------------------------
Including 428.00 437.50 9.50 2.41 6.78 9.18 7.88
-----------------------------------------------------------------------


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 International Plasma Laboratories ("iPL") and ACME Analytical Laboratories Ltd. ("ACME") that includes blanks, duplicates and standards. At iPL, base metal analyzes are conducted by wet fire assay and at ACME, silver and base metal analyses are conducted by a 17-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 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.

Contact Information

  • Selwyn Resources Ltd.
    Dr. Harlan Meade, President and CEO
    (604) 682-5474 or Toll Free: 1-877-682-5474
    International Toll Free: 1-800-8682-5474
    or
    Selwyn Resources Ltd.
    Jasmin TamDoo, Manager of Investor Communications
    (604) 682-5474 or Toll Free: 1-877-682-5474
    International Toll Free: 1-800-8682-5474
    (604) 682-5404 (FAX)
    Email: info@selwynresources.com
    Website: www.selwynresources.com