Selkirk Metals Corp.
TSX VENTURE : SLK

Selkirk Metals Corp.

July 06, 2009 07:00 ET

Selkirk Metals Corp.: Banks Island Gold Project-Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2009) - Selkirk Metals Corp. (TSX VENTURE:SLK) ("Selkirk" or the "Company") is pleased to provide this review of the Banks Island Gold Property which was acquired in the summer of 2007 as a result of the acquisition of Doublestar Resources Ltd. ("Doublestar"). The 100% owned Banks Island Gold Property (the "Property") is located 105 km south of Prince Rupert, BC on the west central side of Banks Island at tidewater in an area of previous mining exploration which included extensive diamond drilling and underground development. The Property covers 2990.4 ha and consists of five cell claims totalling 155 cells. The ground was originally staked when mineralization was discovered in 1960 and was extensively worked until the late 1980's by various exploration companies.

To date, 20 zones of gold mineralization have been defined within an area of approximately 25 square kilometers. The mineralization is associated with large regional structural features and related intrusive complexes and occurs in quartz veins and stockworks with varying amounts of sulphides and in skarns associated with the intrusive contacts. Four main zones, the Kim, Tel, Discovery and Bob have been the focus of the majority of exploration. The other zones have only had reconnaissance level exploration.

The following table contains a summary of unclassified resources for the main four zones. Information has been derived from Minfile Nos. 103G 021, 024, 025 and 026. While the historic data is non-43-101 compliant, the Company feels that the information is of significant benefit for the evaluation of this project.



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Zone Name Tonnes Grade (g/t)
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KIM 77,896 7.1
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TEL 71,349 14.4
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DISCOVERY 58,361 15.5
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BOB 45,350 40.1
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Weighted average 252,956 17.0
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The Kim Deposit, amenable to open pit mining, consists of an east-west trending quartz stockwork, 20 m wide, of which only 300 m of a 1,200 m length has been explored by diamond drilling from which the resource tabulated above has been calculated. There have been 5,273 m in 73 diamond drill holes completed into the Kim Zone to a maximum depth of 180 m. The resource of the Kim Zone is calculated from the drilling to a pit depth of only 25 m and a waste:ore ratio of 4.05:1.

The Tel Deposit consists of a quartz vein and quartz breccia zones hosted in an east-west striking fault zone with lenses up to several metres in width with strike lengths varying from 20 to 100 m in length. There has been 10,778 m of diamond drilling in 92 holes completed to date.

The Discovery Zone consists of a steeply dipping gold bearing vein system, varying in width from less than a metre to several metres in thickness, trending southeast-northwest. There have been 3,680 m of diamond drilling completed in 39 drill holes into the Zone.

The Bob Zone consists of a quartz vein system hosted by a shear zone striking east-west and dipping north at 80 degrees. Underground development includes a decline for a length of 420 m to a vertical depth of 65 m. In addition, drilling has intersected the mineralization to a depth of 140 m. There have been a total of 35 drill holes totaling 2,541 m drilled into the Bob Zone.

Previous exploration companies have explored by prospecting, geological mapping, soil and geophysical surveying, trenching, diamond drilling and underground excavation. The mineralization of the four zones is similar with the sulphides in order of abundance occurring as pyrite, pyrrhotite, chalcopyrite, arsenopyrite, sphalerite, galena and molybdenite. The gold values increase relative to the amount of sulphides, especially pyrite. In 1988 Bacon Donaldson & Associates completed preliminary metallurgical studies on core and trench samples from the Kim and Tel Zones with gold recoveries of 95% by cyanidization and 85-90% by flotation.

Selkirk is planning a comprehensive surface exploration program including soil geochemical sampling, geological mapping, prospecting, trenching and diamond drilling. Most of the known gold zones have not been evaluated in any detail and together with the large (25 square kilometer) target area outlined by the mineralization represents an excellent target for new mineralized zones, from high grade deposits suitable for underground development to larger tonnage lower grade deposits that could be amenable to open pit development.

This news release has been reviewed and approved by the Company's Qualified Person (as defined by NI 43-101), Jim Miller-Tait, P.Geo., Vice President of Exploration. While the Company is completing a thorough review of its property portfolio including Banks Island, in light of current market conditions and commodity prices, the Ruddock Creek zinc-lead-silver and Catface copper porphyry projects remain the Company's highest priority projects.

On Behalf of the Board of Directors:

Gordon Keevil, President

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.

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