Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

January 29, 2008 08:58 ET

Selwyn Announces 2008 Mineral Resources and Expanded High-Grade Underground Resources

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 29, 2008) - Selwyn Resources Ltd. (TSX VENTURE:SWN) is pleased to announce an update to the April 2007 NI 43-101 compliant mineral resource estimate for the Selwyn Project in the Yukon. The 2007 exploration program significantly expanded mineral resources in the Selwyn zinc-lead deposits. The tonnage of Indicated mineral resources increased 78.2% and Inferred mineral resources have increased 7.5%. The updated mineral resource inventory includes substantial high-grade mineralization in three deep deposits that form the basis of a mineral resource inventory that conceptually could be mined by underground methods.

The updated mineral resource estimate includes the results from 106 drill holes completed in 2007 totaling 37,208.6 metres. The expanded mineral resources are reported for 13 individual deposits that form the basis of future conceptual mine planning that is in progress. The various deposits occur over a strike length of 37.5 kilometers representing the near surface expression of one continuous, large mineralized strata that is locally broken into discrete deposits by faulting. The mineralized strata remain largely open for expansion of mineral potential.

Highlights

- Indicated mineral resources are now a cumulative 154,350,000 tonnes, grading 5.35% zinc and 1.86% lead, containing 18.19 Blbs zinc and 6.31 Blbs lead.

- Inferred mineral resources are now a cumulative 231,540,000 tonnes, grading 4.54% zinc and 1.42% lead, containing 23.19 Blbs zinc and 7.23 Blbs lead.

- In addition, the Mineral Potential is estimated from the 3D block model to be at least 245 to 255 million tones, grading from 4.0% to 5.0% zinc and 1.0% to 2.0% lead.

- High-grade underground areas have an aggregate Indicated mineral resource of 16,063,800 tonnes grading 10.25% zinc and 4.43% lead, containing 3.63 Blbs zinc and 1.50 Mlbs lead. Note this is contained within the Indicated mineral resource figure above.

- High-grade underground areas have an aggregate Inferred mineral resource of 23,156,000 tonnes grading 8.86% zinc and 2.80% lead containing 4.52 Blbs zinc and 1.43 Blbs lead. Note this is contained within the Inferred mineral resource figure above.

Mineral Resource Inventory

Since acquiring the Selwyn Project in 2005, Selwyn has, through methodical exploration of its properties in the Selwyn Basin, spent approximately $45 million on exploration activities developing a very detailed, 3D geological model that continues to demonstrate the strong continuity of the stratabound, zinc-lead SEDEX-type mineralization. The continuity of the Active Member has now been traced for 37.5 kilometres by drilling activities with another 28.5 kilometres of very favorable strata unexplored on Selwyn's Yukon mineral claims. Selwyn has made 7 major deposit discoveries; noting that the Selwyn Project now contains 13 drill defined deposits and zones that include mineralization in both the open pit and underground environments. Table 1 summarizes the significant growth in metal content over the last three years.

The Indicated mineral resources for the Selwyn Project now total 154.35 million tonnes grading 5.35% zinc and 1.86% lead for a metal content of 18.19 billion pounds of zinc and 6.31 billion pounds of lead (see Table 2). The Inferred mineral resources total 231.54 million tonnes grading 4.54% zinc and 1.42% lead for a metal content of 23.19 billion pounds of zinc and 7.23 billion pounds of lead (see Table 2). The Inferred mineral resources are generally adjacent to the main areas of drilling in the deeper part of the Active Member. Areas of Inferred mineral resources require more closely spaced drill holes to improve the confidence level for their inclusion in Indicated mineral resources. These closer spaced drill holes will be done from surface drill stations. Drilling in 2007 was very successful in upgrading of Inferred mineral resources to Indicated mineral resources, as well as upgrading mineral potential into both Indicated and Inferred mineral resources.



Table 1: NI 43-101 Compliant Metal Content Growth from 2006 to 2008

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Resource Million Zn Pb Zn Pb
Year Class Tonnes (%) (%) (Blbs) (Blbs)
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February 2006 Indicated 33.50 5.52 2.10 4.08 1.55
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Inferred 112.91 5.40 2.14 13.44 5.31
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----------------------------------------------------------------
April 2007 Indicated 86.60 4.93 1.97 9.41 3.29
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Inferred 215.40 4.71 1.48 22.38 7.03
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January 2008 Indicated 154.35 5.35 1.86 18.19 6.31
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Inferred 231.54 4.54 1.42 23.19 7.23
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Table 2: Selwyn Project 2008 Mineral Resource Estimate

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Resource Zn Pb Zn Pb
Deposit Class Tonnes (%) (%) (Blbs) (Blbs)
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XY Deposit Indicated 44,450,000 6.17 2.64 6.05 2.58
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Inferred 45,940,000 4.20 1.32 4.25 1.34
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XY Nose Zone Indicated
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Inferred 7,320,000 4.08 2.20 0.66 0.35
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Brodel Indicated
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Inferred 12,100,000 4.31 1.16 1.15 0.31
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HC Zone Indicated 8,600,000 4.01 1.04 0.76 0.20
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Inferred 19,370,000 3.83 1.09 1.63 0.46
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HC West Zone Indicated 19,680,000 5.46 1.56 2.37 0.68
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Inferred 10,220,000 5.42 1.50 1.22 0.34
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Don East Zone Indicated 35,490,000 5.37 1.63 4.20 1.27
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Inferred 41,070,000 5.23 1.61 4.74 1.46
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Don Zone Indicated 11,230,000 5.99 2.17 1.48 0.54
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Inferred 16,290,000 5.62 1.99 2.02 0.71
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Anniv East Deposit Indicated 16,920,000 4.15 1.20 1.55 0.45
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Inferred 16,050,000 4.04 1.08 1.43 0.38
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Anniv Central Deposit Indicated 17,980,000 4.52 1.51 1.79 0.60
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Inferred 40,120,000 4.63 1.48 4.09 1.31
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West Extension Inferred 6,880,000 4.30 1.25 0.65 0.19
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HP Indicated
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Inferred 6,180,000 4.55 1.23 0.62 0.17
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OP Indicated
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Inferred 1,770,000 4.18 1.29 0.16 0.05
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OP West Indicated
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Inferred 1,380,000 2.67 0.86 0.08 0.03
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Pelly North Indicated
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Inferred 6,850,000 3.20 0.90 0.48 0.14
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Total Indicated 154,350,000 5.35 1.86 18.19 6.31
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Total Inferred 231,540,000 4.54 1.42 23.19 7.23
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Notes for Table 1:
1. Mineral Resources reported above have been calculated as of January 28,
2008 in accordance with the standards of the Canadian Institute of
Mining, Metallurgy and Petroleum and National Instrument 43-101.
2. A 2% zinc grade cut-off was applied to the new mineral resource
estimate.
3. The Mineral Resource Estimate uses all 570 drill holes, totaling
123,442 metres, successfully completed on the Selwyn Project over
three separate periods: 1973 to 1981, 2000, and 2005 to 2007.


High Grade Underground Mineral Resources

Recent exploration over the last three years by Selwyn has now continuously traced the zinc-lead mineralized Active Member along the 14.6 kilometre length of the Don Valley resulting in discovery of five new deposits including the deep underground mineral resource of the Don East deposit. Exploration in Don Valley commenced in 2005 with drilling that was designed to test for shallow mineralization.

Initial drilling resulted in discovery of high-grade mineralization in Don deposit and a remodeling of the area for a conceptual, laterally extensive, higher-grade core zone. The 2006 drilling shifted to deeper drilling to define the continuity of higher-grade mineralization at depth. The focus for 2007 drilling was also primarily the delineation and expansion of the deep underground targets in the Don Valley and at XY Central deposit; but, also included the conversion of Inferred to Indicated mineral resources within the conceptual proposed open pit areas.

High-Grade XY Zone Mineral Resource

Historically, Placer Dome had estimated a non-compliant Inferred mineral resource of 8,100,000 tonnes (8,900,000 short tons) grading 10.60% zinc and 5.50% lead that was reviewed and disclosed in a June 2005 NI 43-101 compliant report. This report was prepared by Independent Qualified Person, Mr. Al Burgoyne, P.Eng., and filed on www.sedar.com (note that this mineral resource estimate predates NI-43-101 and should not be relied upon). In April 2007, a NI 43-101 compliant, underground mineral resource was prepared by Independent Qualified Person, Cliff Pearson, P.Geo., and Non-Independent Qualified Person, John J. O'Donnell, P.Geo., that included an 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); which compared very favorably to the work done previously by Placer Dome during the late 1970's and early 1980's.

During the course of tabulating the overall mineral resources of the XY deposit a subset of the XY Indicated resource was extracted to quantify the mineral resources available to provide higher grade areas suitable for underground mining (see Table 3). This yielded a NI 43-101 compliant Indicated mineral resource of 10,738,000 tonnes grading 10.38% zinc and 4.41% lead containing 2.86 billion lbs zinc and 1.04 billion lbs lead. This high-grade XY resource is included within the overall XY zone Indicated resource shown in Table 2. There is also an Inferred mineral resource of 2,849,000 tonnes grading 10.86% zinc and 4.41% lead containing 0.68 billion lbs zinc and 0.28 billion lbs lead. Note this is contained within the Inferred mineral resource shown in Table 2.

High-Grade Don Deposit Mineral Resource

In 2005, DON-004 intersected 40.18 metres of well mineralized zinc-lead Active Member in Don Valley where the favourable strata had not seen any previous drilling activity. DON-004 was the discovery drill hole for an underground deposit. The drill hole intersected two bands of higher-grade mineralization grading 7.93% zinc and 1.80% lead across 7.81 metres (true thickness) and 4.71% zinc and 1.74% lead across 7.13 metres (true thickness) respectfully. Both bands of Active Member are part of a 34.10 metre (true thickness) intersection grading 3.64% zinc and 0.99% lead (see October 25, 2005 news release). Subsequent drilling in 2006 and 2007 has confirmed the continuity of the well mineralized zinc-lead Active Member in the Don deposit. Each drill hole intersected high-grade mineralization in the Active Member, particularly along the basal section, just before entering into the footwall rocks. DON-074 is also an excellent example of the high-grade nature of the Don deposit having intersected a true thickness of 31.63 metres grading 10.20% zinc and 3.91% lead including a 4.30 metre thick basal section grading 35.97% zinc and 16.01% lead (see July 9, 2007 news release).

A high-grade subset of the Don deposit mineral resources was extracted from the overall mineral resources of the Don deposit (see Table 3), to quantify conceptual areas suitable for underground mining. This yielded a NI 43-101 compliant Indicated mineral resource of 5,325,000 tonnes grading 9.98% zinc and 3.86% lead containing 1.17 billion lbs zinc and 0.45 billion lbs lead. This high-grade Don deposit mineral resource is included within the overall Don deposit mineral resource shown in Table 2. There is also an Inferred mineral resource of 5,335,000 tonnes grading 7.94% zinc and 2.95% lead containing 0.93 billion lbs zinc and 0.35 billion lbs lead (see Table 3). Note the high grade resource is contained within the global Inferred mineral resource shown in Table 2.

High-Grade Don East Deposit Mineral Resource

The 2007 discovery of higher grade mineralization at depth in the Don East deposit was a significant milestone for the Selwyn Project, as it was the third confirmed underground, high-grade mineral resource on the property, and is located directly adjacent to the Don deposit underground mineral resource, thereby providing possible engineering synergies for conceptual mine planning. This discovery also reinforces Selwyn's concept of a laterally extensive, high-grade zone of zinc-lead mineralization within the Active Member. Drill hole DON-106 intersected 22.50 metres true thickness of well mineralized Active Member at a depth of 510.20 metres grading 8.09% zinc and 1.79% lead including 12.30 metres grading 11.13% zinc and 2.23% lead (see September 4, 2007 news release). This discovery is also significant because it is a 465 metre down-dip step-out beneath mineralization within the open-pit mineral resource of the Don East deposit, and similarly reinforces the mineral potential for laterally continuous higher grade mineralization in Don Valley at depth.

Similarly, a subset of the Don East Inferred mineral resources was extracted to quantify the mineral resources available to provide higher grade areas suitable for underground mining within the overall mineral resources of the Don East deposit (see Tables 2 and 3). This yielded a NI 43-101 compliant Inferred mineral resource of 11,975,460 tonnes grading 8.59% zinc and 2.3% lead lead containing 2.27 billion lbs zinc and 0.61 billion lbs lead. This high-grade Don East Inferred mineral resource is included within the global Don East deposit Inferred mineral resource shown in Table 2.

High-Grade HC West Deposit Mineral Resource

Although the HC West deposit was discovered in 2006 (see August 31, 2006 news release), results from the 2007 drilling program began to indicate the opportunity for the delineation of a higher-grade mineralized core that could be conceptually mined using underground techniques. HC West is the fourth confirmed, yet possible underground, high-grade mineral resource on the property, and is located 2,200 metres southeast of the Don East deposit underground mineral resource, thereby providing possible engineering synergies for conceptual mine planning. This discovery, like the Don, Don East, and XY underground mineral resources, reinforces the concept of a laterally extensive, high-grade zone of zinc-lead mineralization within the Active Member.

The high-grade subset of the HC West Inferred mineral resources was extracted to quantify the mineral resources available to provide higher grade areas suitable for underground mining within the overall mineral resources of the HC West deposit (see Tables 2 and 3). This yielded a NI 43-101 compliant Inferred mineral resource of 2,996,000 tonnes grading 9.73% zinc and 3.00% lead lead containing 0.64 billion lbs zinc and 0.20 billion lbs lead. This high-grade HC West Inferred mineral resource is included within the overall HC West Inferred mineral resource shown in Table 2.



Table 3: Selwyn Project 2007 Underground Target Mineral Resource Estimate

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Resource Zn Pb Zn Pb
Deposit Class Tonnes (%) (%) (Blbs) (Blbs)
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XY Deposit Indicated 10,738,000 10.38 4.41 2.46 1.04
-------------------------------------------------------------------------
Inferred 2,849,000 10.86 4.41 0.68 0.28
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Don East Zone Indicated
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Inferred 11,976,000 8.59 2.30 2.27 0.61
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Don Zone Indicated 5,325,000 9.98 3.86 1.17 0.45
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Inferred 5,335,000 7.94 2.95 0.93 0.35
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HC West Indicated
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Inferred 2,996,000 9.73 3.00 0.64 0.20
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Total Indicated 16,063,000 10.25 4.23 3.63 1.50
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Total Inferred 23,156,000 8.86 2.80 4.52 1.43
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Notes for Table 3:
1. Mineral Resources reported above have been calculated as of January 28,
2008 in accordance with the standards of the Canadian Institute of
Mining, Metallurgy and Petroleum and National Instrument 43-101.
2. A 2% zinc grade cut-off was applied to the new mineral resource
estimate.
3. The Mineral Resource Estimate uses all 570 drill holes, totaling
123,542 metres, successfully completed on the Selwyn Project over two
separate periods: 1973 to 1981 and 2005 to 2007.


Mineral Potential

In addition to the Indicated and Inferred resources estimated in this report, a mineral potential was estimated which contains 245 to 255 million tonnes with an estimated grade of between 4.0-5.0% zinc and 1.0-2.0% lead. The mineral potential represents the down dip and strike extension of the Indicated and Inferred resources taken from a polygonal long-section model. The mineral potential represents a small portion of the interpreted extent of the Active Member that hosts all known zinc-lead mineralization in the Selwyn District.

The Active Member has now been defined over 37.5 kilometres of strike length with the drilling results from 2005 to 2007. Importantly, all drill holes which have intersected the Active Member have contained zinc and lead mineralization. The potential quantity and grade of this mineral potential is conceptual in nature, as there has been insufficient drilling to define a mineral resource and it is uncertain if additional exploration will result in any of this potential being realized as a mineral resource.

Mineral Resource Evaluation

The updated mineral resource estimate was prepared by Non-Independent Qualified Person John J. O'Donnell, P.Geo., the onsite Qualified Person for Selwyn in conjunction with Independent Qualified Person Cliff Pearson, P.Geo., of Pearson Geological Ltd. of Victoria, BC. Mr. Pearson has overseen the resource estimation, and will audit and review the writing of the related NI 43-101 compliant Technical Report. Mr. Pearson has also reviewed and approved the contents of this news release. In accordance with National Instrument 43-101, the Technical Report will be filed on SEDAR within 45 days.

The geologic continuity of the Selwyn Project mineralization is well established through diamond drilling and historical underground development. The NI 43-101 compliant mineral resources were estimated using ordinary kriging of a 3D block model using Minesight software. All databases were updated and verified with mineralized intercepts composited on 1.5 meter intervals. Classical statistical evaluation methods were applied to the databases; accompanied by variography and the block model was populated with a restricted search for high-grade outliers. Bulk density was assigned for each block in the 3D block model thereby allowing for the mineral resources to be classified and reported following a thorough 3D block model validation.

Note that all discussion of previous NI-43-101 compliant Indicated and Inferred mineral resources are referenced in the April 2007 NI 43-101 report for the Selwyn Project. In reviewing historical resources, all discussion of Indicated mineral resources that predate introduction of NI 43-101 should be considered as Inferred mineral resources. All historical Inferred mineral resources that predate NI 43-101 should be considered as areas of mineral potential requiring further definition through drilling. Historical mineral resources are referenced in the June 2005 NI 43-101 report for Howard's Pass. These reports can be viewed at www.sedar.com.

The Selwyn Project 2007 exploration program was overseen by Vice President Exploration, Mr. Jason Dunning, M.Sc., P.Geo. The onsite activities for the Selwyn Project were 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 analyses 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. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Selwyn to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are based on assumptions and judgments of management regarding results of exploration activities that may prove to be inaccurate as a result of additional exploration and other risk factors beyond Selwyn's control. Such factors include, among others, the risks associated with the estimation or realization of mineral resources, possible variations in ore grade as additional drilling is carried out and other risks of the mining industry. 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

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