Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

March 30, 2011 11:23 ET

Selwyn Announces Getty Deposit Mineral Resources

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 30, 2011) - Selwyn Resources Ltd. (TSX VENTURE:SWN) ("Selwyn") is pleased to announce a NI 43-101 compliant mineral resource estimate for the Getty deposit in Nova Scotia. The Getty deposit is part of the mineral assets included under the purchase agreement reached with Acadian Mining Corporation ("Acadian") to acquire, either directly or indirectly, all of the issued and outstanding shares of ScoZinc Limited ("ScoZinc"), a wholly owned subsidiary of Acadian, and thereby acquire all of the mineral and other assets associated with the Scotia mine located in Nova Scotia (see February 8, 2011 news release).

Highlights

  • The Getty deposit has a base case (2.0% zinc equivalent cutoff value) Measured and Indicated mineral resource of 4,360,000 tonnes grading 1.87% zinc and 1.44% lead (a combined 3.57% zinc equivalent).
  • The Getty deposit has a base case (2.0% zinc equivalent cutoff value) Inferred mineral resource of 960,000 tonnes grading 1.73% zinc and 1.59% lead (a combined 3.60% zinc equivalent).

Resource Category
Zn Eq. % Cutoff Tonnes Zn
(%)
Pb
(%)
Zn
Eq. %
Measured 1.50 1,930,000 1.81 1.26 3.30
Indicated 1.50 3,790,000 1.62 1.21 3.05
Measured + Indicated 1.50 5,720,000 1.68 1.23 3.13
Inferred 1.50 1,350,000 1.52 1.31 3.06
Measured 2.00* 1,550,000 1.97 1.45 3.68
Indicated 2.00* 2,810,000 1.82 1.44 3.51
Measured + Indicated 2.00* 4,360,000 1.87 1.44 3.57
Inferred 2.00* 960,000 1.73 1.59 3.60
Measured 2.50 1,180,000 2.14 1.68 4.12
Indicated 2.50 1,950,000 2.06 1.70 4.07
Measured + Indicated 2.50 3,130,000 2.09 1.69 4.09
Inferred 2.50 680,000 1.95 1.88 4.16
Measured 3.00 860,000 2.34 1.95 4.64
Indicated 3.00 1,300,000 2.35 2.03 4.74
Measured + Indicated 3.00 2,160,000 2.35 2.00 4.70
Inferred 3.00 460,000 2.21 2.23 4.85

Notes:

  1. Zinc equivalent % (Zn Eq.%) = zinc % + (lead % x 1.18) and based upon mill recoveries of 89.3% for zinc and 89.5% for lead; US$1.10/lb for zinc and US$1.15/lb lead; smelter returns of 85% for zinc and 95% for lead.
  2. The mineral resource statement is at the base case (*) 2% zinc equivalent grade cut-off that represents potential for open-pit development.
  3. The effective date of this resource estimate is March 28, 2011.

The Getty deposit is located approximately 1,500 metres west of the Scotia mine and mill complex, and comprises potentially open pittable zinc-lead sulphide mineralization similar to that at Scotia mine. Zinc-lead mineralization at the Getty deposit consists of disseminated to locally semi-massive sphalerite and galena occurring within a dolomitized carbonate reef of the Lower Carboniferous age Gays River Formation. The Getty deposit is one of a series of related zinc-lead mineralized reefs located west of the Scotia mine Main and Northeast deposits. Other examples include the Carroll's Farm and Carroll's Corner zinc-lead exploration targets located 1.5 kilometres and 2.5 kilometres, respectively, west of the Getty deposit. These exploration targets are also an integral part of this series of mineralized reefs and are considered highly prospective targets warranting follow-up drilling.

The estimation of mineral resources of the Getty deposit is based on 138 drilled holes completed by Acadian in 2007 and 2008, and 184 historic drill holes completed during the 1970's by prior operators. Getty Northeast Mines Limited drilled 181 of these historic drill holes and the remaining 3 drill holes were completed by Imperial Oil Limited. It should be noted that Quality Control and Quality Assurance protocols for the 2007 and 2008 drilling programs by Acadian included the systematic insertion of independent analytical standards and blanks plus duplicate sample analyses and independent check sample analyses.

The mineral claims hosting the Getty deposit as well as certain peripheral mineral claims are subject to a 1% royalty to Globex Resources Ltd. One half of this royalty can be purchased at any time for a purchase price of CAD$300,000.

Mineral Resource Evaluation

The evaluation of mineral resources for the Getty deposit was commissioned by Selwyn as part of a re-evaluation of all mineral resources on the Scotia mine property. Shortly, Selwyn will release an independent updated mineral resource report for the Main and Northeast deposits.

The mineral resource estimate has an effective date of March 28, 2011 and was supervised and prepared by Independent Qualified Persons Mr. Michael Cullen, P.Geo. and Ms. Chrystal Kennedy, P.Geo. as defined by National Instrument 43-101, who both work for Mercator Geological Services of Dartmouth, Nova Scotia. In accordance with National Instrument 43-101, the Technical Report will be filed on SEDAR within 45 days. For the purposes of this news release, Mr. Jason Dunning, P.Geo., Selwyn's Vice President of Exploration is Selwyn's designated Non-Independent Qualified Person for the purposes of this study and has reviewed and approved the contents of this press release.

The mineral resource estimate is based on three-dimensional block model developed using Gemcom Surpac® Version 6.0.3 software and validated results for 322 diamond drill holes. The model is coordinated to the local grid for the adjacent Scotia (Gays River) mine, and blocks are 2.5 metres x 2.5 metres x 2.5 metres with no sub-blocking. Inverse distance squared (ID2) interpolation methodology utilized 1 metre down-hole assay composites of lead and zinc values within a wire-framed deposit solid containing 26 orientation sub-domains. Grade interpolation was carried out using domain-specific search ellipse orientations. Major, semi-major and minor axis ranges for the ellipses were 75 metres, 75 metres and 37.5 metres, respectively. The included sample range for grade interpolation was from 1 to 12, with no more than 4 samples from a single drill hole. Specific gravity (SG) values for model blocks were calculated from block metal grades using the formula SG = 1 / (Pb% / (86.6 * 7.6) + Zn% / (67.0 * 4.0) + (1 – Pb % / 86.6 – Zn % / 67.0) / 2.82). Zinc Equivalent % (Zn Eq. %) equals Zn % + (Pb % * 1.18) and is based on mill recoveries of 89.3% for zinc and 89.5% for lead, US$1.10/lb Zn and US$1.15/lb Pb metal pricing and smelter returns of 85% for Zn and 95% for Pb. The mineral resource statement is at the base case is 2% Zn Eq. cutoff value that reflects the open pit development potential of this deposit.

Measured Mineral Resources include all blocks with grades based on three drill holes and a minimum of 9 included samples, with not more than 4 composites from a single drill hole, for which the averaged distance to included samples was 28 metres or less with no sample greater than 50% of the major axis range (37.5 metres) from the block. Indicated Mineral Resources include all blocks with grades based on two or more drill holes and a minimum of 5 included samples, with not more than 4 composites from a single drill hole, for which the averaged distance to included samples was 40 metres or less with no sample greater than 75% of the major axis range (56.5 metres) from the block. Inferred Mineral Resources include all remaining blocks present within the deposit solid for which interpolated grades were present.

Selwyn's main focus remains the exploration and development of its properties that make up the Selwyn Project in the Yukon, by the joint venture comprised of Selwyn and Chihong Canada Mining Ltd. The Selwyn Project has both the potential to have large scale production and to provide a secure supply of zinc and lead to meet the future needs of the zinc and lead markets in Asia and beyond. The acquisition of ScoZinc will provide Selwyn with a new opportunity for growing the Company, expanding its management team, building mine production experience and providing cashflow to fund growth as it advances the Selwyn Project.

Forward Looking Statements

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, which is also referred to as "forward-looking statements". Wherever possible, words such as "plans", "expects", or "does not expect", "budget", "scheduled", "estimates", "forecasts", "anticipate" or "does not anticipate", "believe", "intend", and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify forward-looking information. In particular, this news release describes future events and conditions related to the Scotia Mine, the Getty Deposit, the Selwyn Project and Selwyn's plans for exploration and development of such. Forward-looking information is based on management's reasonable assumptions, estimates, expectations, analyses and opinions on the date of this news release. These are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the estimation of Mineral Resources for the Getty Deposit, Selwyn's ability to carry on exploration and development activities, the price of zinc and lead and recovery rates from milling operations at the Scotia Mine, Selwyn's ability to operate in an efficient and effective manner and Selwyn's ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Selwyn's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, many of which are beyond Selwyn's control. These factors include, but are not necessarily limited to, results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of Mineral Resource estimations, receipt and security of mineral property titles, receipt of licenses to conduct mining activities, project cost overruns or unanticipated costs and expenses, the availability of funds, fluctuations in metal prices, currency fluctuations and general market and industry conditions. There is no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on this information. Selwyn does not undertake to update any forward-looking information, except as, and to the extent required by, applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Selwyn Resources Ltd.
    Dr. Harlan Meade
    President and CEO
    +1 (604) 801-7240 or Toll-free: +1 (888) 989-9188
    or
    Selwyn Resources Ltd.
    Catalin Chiloflischi
    Manager of Investor Communications
    +1 (604) 801-7240 or Toll-free: +1 (888) 989-9188
    +1 (604) 689-8355 (FAX)
    info@selwynresources.com
    www.selwynresources.com