Selkirk Metals Corp.
TSX VENTURE : SLK

Selkirk Metals Corp.

May 20, 2008 07:00 ET

Selkirk Metals Corp.: Ruddock Creek Underground Programs Reaching First Milestone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 20, 2008) - Selkirk Metals Corp. ("Selkirk" or the "Company") (TSX VENTURE:SLK) is pleased to provide this update of operations on the Ruddock Creek Property, located 100 km north-northwest of Revelstoke in the Kamloops and Revelstoke Mining Divisions, British Columbia.

In October of 2007, Selkirk commenced the underground exploration program, the most important operation to date on the Ruddock Creek Property. This program includes a one kilometer long decline, lateral development and approximately 10,000 meters of underground diamond drilling. It is all designed to enable detailed drilling of approximately 50% of the E-Zone that has not been defined by surface drilling. Due to the depth of this portion of the E-Zone from surface, the detailed drilling necessary to complete resource calculations, engineering and development could only be completed through the underground program. No further surface drilling of the E-Zone is required as the upper portion has been drilled at the required spacing.

Since the year end break, the underground development program has continued uninterrupted and is at a length of approximately 620 meters. Other than one area of difficult ground conditions, the progress has been excellent since January and there has been no lost time due to weather or operational difficulties. The decline is now nearing the first milestone of 650 meters where the initial phase of underground diamond drilling will commence. Drilling is now expected to be underway in early June. The drilling from this location will test the up dip component of the E-Zone from the deepest defined point to date. The decline will continue to be developed to a length of approximately 900 meters where the lateral development will be completed to the east to establish drilling stations proximal to the deposit, at which time a second drill will be added. The two drills should be able to complete the 10,000 meters program by early fall.

Approximately 24,000 meters of surface diamond drilling by Selkirk over the past 3 years has defined the E-Zone continuously for 1.2 kilometers down the plunge from where the Zone is exposed at surface. Based on this length and the average dip and thickness of the zone as defined to date, the indicated size of the zone is sufficient to contain a tonnage of the target mineralization that would justify development. Selkirk is therefore progressing with related engineering and environmental studies, regional and local consultation and initiating the permitting process. Once the diamond drilling has been completed, the results will be compiled to determine the final resource contained within the target area and this will, in turn, be used for mine planning and the completion of a scoping study as soon as possible thereafter.

"We have been working diligently since we first became involved in the Ruddock Creek Property and are about to make the next major step to realizing production. The commencement of underground drilling and the intersection of the E-Zone at depth will clearly define the potential of this important Property to Selkirk and its shareholders. We are very pleased with the underground program over the past four months and look forward to a successful conclusion of the program and the completion of the scoping study," stated Gordon Keevil, President. Operations on the Ruddock Creek Property are being conducted under the supervision of the Company's Qualified Persons (as defined by NI 43-101), Jim Miller-Tait, P.Geo., Vice President of Exploration and Tom Colbourne, P.Eng., Vice President of Mining.

COMPANY UPDATE

The Company has entered into a Client Services Agreement (the "Agreement") with RAP Capital Corp. (the "Consultant") of Suite 800-1199 West Hastings Street, Vancouver, British Columbia, Canada, V6E 3T5, executed April 23, 2008.

Pursuant to the Client Services Agreement, the Consultant will assist in formulating plans and budgets for the enhancement of the Company's image and the distribution of information concerning the Company to existing shareholders, brokerage firms, and registered representatives, institutional investors, fund managers, securities analysts, potential investors who have contacted the Company seeking such information, the media and others as appropriate, among other services for a period of three months beginning on April 23, 2008. The Agreement shall automatically renew on a month to month basis, subject to early termination in accordance with the termination provisions of the Agreement. As partial consideration for the services to be provided by the Consultant, the Company has agreed to pay the Consultant a fee of $1,500 per month plus GST, out of the Company's working capital.

The Consultant has advised that it holds, directly 11,000 common shares of the Company.

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