Selkirk Metals Corp.
TSX VENTURE : SLK

Selkirk Metals Corp.

October 11, 2006 09:00 ET

Selkirk Metals Corp.: Massive Sulphide Zinc-Lead Horizon Continues to Expand on the Creek and E-Zone Ruddock Creek Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 11, 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 km north of Revelstoke in the Kamloops and Revelstoke Mining Divisions, British Columbia (the "Property").

Drilling has commenced on the first of 12 additional zones of massive sulphide mineralization that serve to outline the SEDEX basin at Ruddock Creek. Recent Creek Zone drilling represents a significant stepout of the drilling to date and is located 900 metres southwest of the westernmost drilling at the E-Zone. To date, 4 holes have intersected massive sulphide over widths of between 6.3 and 10.64 metres at the Creek Zone. The Creek Zone is located along the southern edge of the known SEDEX basin and forms part of a continuous series of massive sulphide showings, including the T and Lower T showings which have been traced at surface for over 600 metres. Previous drilling results from the T Zone included 7.3 metres of 10.6% zinc and 2.24 % lead. This series of massive sulphide showings forms a part of the 5kms long "Ruddock Creek Massive Sulphide" system. Drilling will continue to extend the Creek Zone both along strike and down dip.

Two other drill rigs continue to operate on the E-Zone and are extending the E-Zone along strike to the west and down dip to the north. The zone has now been intersected for over 1 kilometer down plunge from surface, and the width where defined in sufficient detail, is approximately 400 meters. Significant zones of massive sulphide mineralization have been intersected which confirm the interpretation of the zone as a continuous massive sulphide horizon dipping to the north at 45 degrees, and plunging at 40 degrees to the west. The zone remains open to the west where the most westerly drill hole RD-06-152, which was recently completed, intersected the massive sulphide horizon with assays pending.

The most recently received drill results are from holes located along the northern and eastern edge of the massive sulphide horizon in the E Zone area. These intersected narrow zones of massive sulphide mineralization consistent with the interpretation of a westerly trending SEDEX basin. DDH-06-129 at the east edge of the E Zone intersected 4.65% zinc plus lead over 5.38m, DDH-06-131, 132, 136 and 137 are all located along the northern edge of the basin and encountered combined zinc plus lead values of 9.9% over 2.95m, 5.2% over 5.1m, 8.8% over 1.3m and 5.2% over 1.9m respectively. Drill hole DDH-06-127 located along the southern edge of the basin intersected 5.84% combined zinc plus lead over 7.26m. DDH-06-128 was not completed due to technical problems.

As a result of the successful 2006 drilling program on the E-Zone which has confirmed the continuity of the massive sulphide mineralization, the Company has now made the decision to proceed with planning for the development of an underground decline. This will facilitate underground diamond drilling to fully delineate the E Zone mineralization and allow for bulk sampling. The construction of road access to Light Lake, where the decline will be collared, is nearing completion, and will be finished prior to the end of the 2006 program. The location, direction and final details of the decline will be finalized once all the data from current field operations have been received and compiled.

As the Company has mentioned previously the assay results from the majority of the drilling in 2006 are yet to be received but visual results have served to confirm the continuity of the sulphide mineralization over a sufficient area to justify the initiation of engineering studies. As part of these studies representative samples of the base metal mineralization are being collected for detailed petrography and metallurgical studies in anticipation of commencing a scoping study. As the final results from the 2006 drilling program are received the Company will complete a resource analysis, which will in turn be updated as exploration continues and as part of the planned scoping study.

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.

Pursuant to the option agreement with Doublestar Resources Ltd. (TSX VENTURE:DSR) Selkirk has now completed the obligations to acquire a 60% interest in the Ruddock Creek Property and has notified Doublestar of its intention to proceed with the additional expenditures necessary to earn a 70% interest.

CORPORATE

Selkirk also wishes to announce a 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. 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 is exercisable into one non-flow-through common share for twelve months from the date of issuance at a price of $0.80, 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 will pay a Finder's fee equal to 6% of the gross proceeds raised by the Finder, payable in cash. In addition, the Finder will receive warrants equal to 10% of the FT Units placed by the Finder, with each warrant exercisable into one common share at a price of $0.80 for twelve months from the date of issuance.

The Company anticipates that there may be insider participation in the above private placement, for which the Finder will not receive a commission.

The proceeds from this offering will be dedicated to the exploration and on-going development of the Company's Ruddock Creek Property.

The above private placement is subject to all regulatory and board approvals.

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