Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

February 26, 2009 08:58 ET

Selwyn Announces Expanded High-Grade Underground Mineral Resources

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 26, 2009) - Selwyn Resources Ltd. (TSX VENTURE:SWN) is pleased to announce an update to the January 2008 NI 43-101 compliant mineral resource estimate for the Selwyn Project in the Yukon. The 2008 exploration program focused on targeting new opportunities for expanding high-grade mineral resources outside of the extent of the known Selwyn zinc-lead deposits. This strategy resulted in the discovery of the new XY West deposit (see September 3, 2008 news release) and a significant step-out in the Don East deposit (see October 28, 2008 news release). The updated mineral resource inventory includes an aggregate 9% increase in high-grade mineralization contained within five deep deposits that form the basis of a mineral resource inventory that conceptually could be mined by underground methods.

Highlights

- The XY West high-grade underground deposit has an Inferred mineral resource of 1,910,000 tonnes grading 7.70% zinc and 2.45% lead.

- The Don East high-grade underground deposit has an Inferred mineral resource of 13,607,000 tonnes grading 8.48% zinc and 2.31% lead.

The Selwyn Project is composed of 14 zinc-lead deposits over a strike length of 37.5 kilometres; noting that most of these deposits represent the near surface expression of one continuous, large mineralized strata that is locally disrupted into discrete deposits by faulting. The mineralized strata remain largely open for expansion of their mineral potential. The updated mineral resource estimate includes the results from a modest exploration program that successfully completed 13 drill holes in 2008 totaling 3,857 metres. The global mineral resources include those reported for all 14 deposits. The high-grade, underground mineral resources are presented in Table 1; which are a subset of the global mineral resources presented in Table 2.

High-Grade Underground Mineral Resources

Exploration over the last four years by Selwyn has been highly successful in tracing well-mineralized, high-grade Active Member over a distance of approximately 24 kilometers and includes the discovery of 5 new, high-grade deposits including the recently discovered XY West deposit (see September 3, 2008 news release), as well as one new high-grade zone at the Anniv Central deposit that requires additional exploration to delineate the extent of the high-grade mineralization.

XY West Deposit

The January 2008 NI 43-101 compliant mineral resource included a high-grade Indicated mineral resource in the XY Central high-grade underground deposit of 10,738,000 tonnes grading 10.38% zinc and 4.41% lead and an Inferred mineral resource of 2,849,000 tonnes grading 10.86% zinc and 4.41% lead (see January 29, 2008 news release). The XY Central high-grade underground deposit remains open for expansion of its mineral potential.

Target generation in early 2008 identified numerous high-priority targets across the Selwyn Project. One such target was located 1.1 kilometres northwest of the known XY Central high-grade underground deposit in the adjacent fault panel. One drill hole was planned for this target and designed to collar into favorable geology noted both on surface and in a historical drill hole that remained in the hanging wall rocks that overlay the Active Member. Drill hole XYC-172 was the discovery drill hole of XY West deposit (see September 3, 2008 news release). Additional drilling of the XY West deposit defined a NI 43-101 compliant Inferred mineral resource of 1,910,000 tonnes grading 7.70% zinc and 2.45% lead containing 0.32 billion pounds of zinc and 0.10 billion pounds of lead. This deposit remains open for expansion of its mineral potential.

Don East Deposit

After the discovery of the Don East high-grade underground deposit in 2007, exploration focused on the higher grade, mineralization at depth. A NI 43-101 compliant Inferred mineral resource was estimated in January 2008 of 11,976,000 tonnes grading 8.59% zinc and 2.3% lead. Target generation around the Don East deposit resulted in the planning of a 450 metre step-out drill hole to the southeast of DON-131 (see January 15, 2008 news release). This drill hole resulted in a fault bounded, 6.0 metre true thickness intercept of well-mineralized Active Member in drill hole DON-142 (see December 4, 2008 news release). Unfortunately, the intercept in DON-142 was faulted off; meaning a true representation of thickness and mineral potential of the Active Member was not possible. This large step-out had its full effect minimized by intersecting only a portion of the Active Member; however, it did allow for a substantial increase in the Don East high-grade deposit target area. The new estimation yielded a NI 43-101 compliant Inferred mineral resource of 13,607,000 tonnes grading 8.48% zinc and 2.44% lead containing 2.54 billion pounds of zinc and 0.73 billion pounds of lead. This deposit remains open for expansion of its mineral potential.



Table 1: Selwyn Project 2009 High-Grade, Underground Deposit Mineral
Resource stimate

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Resource Zn Pb Zn Pb
Deposit Class Tonnes (%) (%) (Blbs) (Blbs)
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XY Central 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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XY West Indicated
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Inferred 1,910,000 7.70 2.45 0.32 0.10
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Don East Indicated
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Inferred 13,607,000 8.48 2.44 2.54 0.73
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Don 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 26,704,000 8.81 2.81 5.11 1.66
-----------------------------------------------------------------------
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Notes for Table 1:

1. Mineral Resources reported above have been calculated as of February 25,
2009 in accordance with the standards of the CIM 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 582 drill holes, totaling
126,127.2 metres, successfully completed on the Selwyn Project over
three separate periods: 1973 to 1981, 2000, and 2005 to 2008.


Global Mineral Resource Inventory

Since acquiring the Selwyn Project in 2005, Selwyn has made 8 major deposit discoveries; noting that the Selwyn Project now contains 14 drill defined deposits and zones that include mineralization in both the open pit and underground environments. Table 2 summarizes the significant growth in metal content over the last four years. The Indicated mineral resources remained the same as for 2008 at 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 3). The Inferred mineral resources increased in 2008 because of the discovery of XY West deposit and the step-out on Don East deposit; meaning the Inferred mineral resources now stand at 234.15 million tonnes grading 4.54% zinc and 1.41% lead for a metal content of 23.43 billion pounds of zinc and 7.28 billion pounds of lead (see Table 3). 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.

Mineral Potential

In addition to the Indicated and Inferred resources estimated in this report, the mineral potential remains unchanged from the January 2008 mineral resource estimate; 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 kilometers of strike length with the drilling results from 2005 to 2008. Importantly, all drill holes that have intersected the Active Member have contained zinc and lead sulphide mineralization. The possible 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. Mr. Jason Dunning, P.Geo., also a Non-Independent Qualified Person, has reviewed the updated mineral resource 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 similar variography as applied in the January 2008 mineral resource estimation, 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 January 2008 NI 43-101 report for the Selwyn Project that was prepared by Independent Qualified Person, Cliff Pearson, P.Geo., and Non-Independent Qualified Person, John J. O'Donnell, P.Geo. 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 that was prepared by Independent Qualified Person, Mr. Al Burgoyne, P.Eng. These reports can be viewed at www.sedar.com.

The Selwyn Project 2008 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 ACME Analytical Laboratories Ltd. ("ACME") that includes blanks, duplicates and standards. At ACME, base metal analyzes 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.



Table 2: NI 43-101 Compliant Metal Content Growth from 2006 to 2009

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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
-------------------------------------------------------------------------
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
-------------------------------------------------------------------------
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
-------------------------------------------------------------------------
Inferred 231.54 4.54 1.42 23.19 7.23
-------------------------------------------------------------------------
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February 2009 Indicated 154.35 5.35 1.86 18.19 6.31
-------------------------------------------------------------------------
Inferred 234.15 4.54 1.41 23.43 7.28
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Table 3: Selwyn Project 2009 Mineral Resource Estimate

-------------------------------------------------------------------------
-------------------------------------------------------------------------
Resource Zn Pb Zn Pb
Deposit Class Tonnes (%) (%) (Blbs) (Blbs)
-------------------------------------------------------------------------
XY Central Indicated 44,450,000 6.17 2.64 6.05 2.58
-------------------------------------------------------------------------
Inferred 45,940,000 4.20 1.32 4.25 1.34
-------------------------------------------------------------------------
XY Nose Indicated
-------------------------------------------------------------------------
Inferred 7,320,000 4.08 2.20 0.66 0.35
-------------------------------------------------------------------------
XY West Indicated
-------------------------------------------------------------------------
Inferred 1,910,000 7.70 2.45 0.33 0.10
-------------------------------------------------------------------------
Brodel Indicated
-------------------------------------------------------------------------
Inferred 12,100,000 4.31 1.16 1.15 0.31
-------------------------------------------------------------------------
HC Indicated 8,600,000 4.01 1.04 0.76 0.20
-------------------------------------------------------------------------
Inferred 19,370,000 3.83 1.09 1.63 0.46
-------------------------------------------------------------------------
HC West Indicated 19,680,000 5.46 1.56 2.37 0.68
-------------------------------------------------------------------------
Inferred 10,220,000 5.42 1.50 1.22 0.34
-------------------------------------------------------------------------
Don East Indicated 35,490,000 5.37 1.63 4.20 1.27
-------------------------------------------------------------------------
Inferred 41,770,000 5.22 1.59 4.81 1.46
-------------------------------------------------------------------------
Don Indicated 11,230,000 5.99 2.17 1.48 0.54
-------------------------------------------------------------------------
Inferred 16,290,000 5.62 1.99 2.02 0.71
-------------------------------------------------------------------------
Anniv East Indicated 16,920,000 4.15 1.20 1.55 0.45
-------------------------------------------------------------------------
Inferred 16,050,000 4.04 1.08 1.43 0.38
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Anniv Central Indicated 17,980,000 4.52 1.51 1.79 0.60
-------------------------------------------------------------------------
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
-------------------------------------------------------------------------
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 234,150,000 4.54 1.41 23.43 7.28
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Notes for Table 3:
1. Mineral Resources reported above have been calculated as of February 25,
2009 in accordance with the standards of the CIM 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 582 drill holes, totaling
126,127.2 metres, successfully completed on the Selwyn Project over
three separate periods: 1973 to 1981, 2000, and 2005 to 2008.


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. These forward- looking statements are based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond Selwyn's control. As a result, actual results may differ materially from the expected results. 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) 801-7240 or Toll Free: 1-888-989-7240
    International Toll Free: 1-866-940-5019
    or
    Selwyn Resources Ltd.
    Jasmin TamDoo, Manager of Investor Communications
    (604) 801-7240 or Toll Free: 1-888-989-7240
    International Toll Free: 1-866-940-5019
    (604) 689-8355 (FAX)
    Email: info@selwynresources.com
    Website: www.selwynresources.com