Selkirk Metals Corp.
TSX VENTURE : SLK

Selkirk Metals Corp.

November 09, 2006 09:00 ET

Selkirk Metals Corp.: 22.5% Zinc and 6.2% Lead Over 2 Metres From Creek Zone Surface Samples

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 9, 2006) - Selkirk Metals Corp. ("Selkirk" or the "Company") (TSX VENTURE:SLK) is pleased to provide this update of operations for the Ruddock Creek Property, which is located 100 kilometers north of Revelstoke in the Kamloops and Revelstoke Mining Divisions, British Columbia (the "Property").

Selkirk recently conducted a surface exploration program on the Creek Zone. Two contiguous 1 meter channel samples which were cut across the showing with a diamond saw and returned values of 23.9% zinc and 5.4% lead, and 21.2% zinc and 6.9% lead. The Creek Zone is one of twelve massive sulphide showings at surface that define the 5.5 kilometer long southern edge of the known SEDEX basin. It forms part of a continuous series of massive sulphide showings, including the T and Lower T zones which have been traced at surface for over 600 meters. Previous drilling results from the T Zone included 7.3 meters of 10.6% zinc and 2.24% lead.

Drill holes RD-06-144, 145, 149, 154 through 160 were completed from a single setup above the surface outcrop to extend the Creek Zone down dip and along strike. All 10 holes intersected massive sulphide. This drilling has defined the zone down dip to the north for at least 100 meters and along strike to the east and west for 100 meters. Mineralized intersections in these holes range in thickness from 2.3 meters to in excess of 20 meters. The zone remains open down dip and along strike. This location is approximately 900 meters to the southwest of the westernmost drilling on the E-Zone.

Assay results from the majority of the drilling in 2006 are yet to be received but visual assessment of these holes confirms the continuity of the sulphide mineralization over a sufficient area to justify the initiation of engineering studies. To this end, the Company has now made the decision to proceed with planning for the development of an underground decline. This will facilitate underground diamond drilling and bulk sampling to delineate the E-Zone. The location, direction and related details of the decline will be finalized once all the data from the 2006 field operations have been received and compiled. As part of the ongoing engineering studies, representative samples of the mineralized intervals have been collected for detailed petrographic and metallurgical studies.

Exploration on the Ruddock Creek Property is being conducted under the supervision of the Company's Qualified Person (as defined by NI 43-101), Jim Chapman, P.Geo.

Selkirk is operator, and as of November 1, 2006 has completed the expenditures necessary to earn a 70% interest in the Ruddock Creek Property. Doublestar Resources Ltd. (TSX VENTURE:DSR) holds the remaining 30% interest.

Corporate Update

Further to its news release dated October 11, 2006, Selkirk is pleased to announce that the non-brokered private placement to raise up to $1,000,000 by the issuance of up to 1,666,666 flow-through units ("FT Units") priced at $0.60 per FT Unit has closed. Each FT Unit consists of one flow-through common share and one half of one common share purchase warrant (each whole warrant is hereinafter referred to as the "Warrants"). Each Warrant entitles the holder to purchase one non-flow-through common share at a price of $0.80 per share on or before November 6, 2007, except that if over a period of ten consecutive trading days, the weighted average closing price of the common shares on the TSX Venture Exchange exceeds $1.60, the Company may give notice in writing to the Warrant holders within 30 days of such an occurrence that the Warrants shall expire on the 30th day following the giving of such notice unless exercised by the holders prior to such date.

Selkirk paid a Finder's fee of $12,600, which is equal to 6% of the gross proceeds procured by the Finder. In addition, the Finder received 35,000 Warrants, which is equal to 10% of the FT Units procured by the Finder.

As subscribers to the private placement, Gordon Keevil, Brian Kynoch, James Miller-Tait and Debra Watkins, directors and/or officers of Selkirk, acquired either directly or indirectly an aggregate of 112,500 FT Units.

The securities issued pursuant to the private placement are subject to a hold period that expires on March 7, 2007.

On Behalf of the Board of Directors:

Gordon Keevil, President

For further information on Selkirk Metals Corp. please visit our website at www.selkirkmetals.com.

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of content of this press release

Contact Information

  • Selkirk Metals Corp.
    Gordon Keevil
    President
    (604) 687-2038
    (604) 687-3141 (FAX)
    Website: www.selkirkmetals.com