Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

July 19, 2011 08:30 ET

Selwyn Continues To Confirm Don Deposit Mineralization

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 19, 2011) - Selwyn Resources Ltd. ("Selwyn") (TSX VENTURE:SWN) is pleased to announce additional drill results from the drilling of the 62 lens of the Don deposit at Selwyn Project, Yukon Territory. The drill results are part of the definition drilling program in the Don deposit that is being conducted by Selwyn Chihong Mining Ltd. ("SCML"), the joint venture company equally owned by Selwyn and Chihong Mining Canada Ltd. Chihong Mining Canada Ltd. is a wholly owned subsidiary of Yunnan Chihong Zinc and Germanium Co. Ltd.

Highlights: 62-lenses of the Don Deposit

  • DON-163 intersected 6.83 metres true thickness grading 6.71% zinc and 3.71% lead, including 2.45 metres grading 10.08% zinc and 2.72% lead;
  • DON-167 intersected 8.15 metres true thickness grading 7.41% zinc and 3.24% lead including 0.93 metres grading 21.54% zinc and 13.62% lead; and
  • DON-174 intersected 10.28 metres true thickness grading 6.30% zinc and 3.08% lead including 1.55 metres grading 10.95% zinc and 9.76% lead.

62-Lens Drill Results

The high-grade mineral resource for the Don deposit undertaken to NI 43-101 standards is composed of three lenses in the underground environment, each of which is structurally bounded by faults. The three main lenses are the 61-lens, 62-lens, and the 63-lens.

Drill hole DON-163 intersected high-grade, zinc-lead mineralization in the near-surface environment from 67.80 to 79.50 metres for a true thickness of 6.83 metres grading 6.71% zinc and 3.71% lead including 2.45 metres grading 10.08% zinc and 2.72% lead.

Drill Hole From
(m)
To
(m)
Thickness
(m)
Zn
(%)
Pb
(%)
Zn+Pb
(%)
True
Thickness (m)
DON-163 59.20 79.50 20.30 5.28 1.48 6.76 11.84
Including 59.20 62.50 3.30 8.07 1.40 9.48 1.92
Including 67.80 79.50 11.70 6.71 3.71 10.42 6.83
Including 67.80 72.00 4.20 10.08 2.72 12.81 2.45

The intercept in DON-167 intersected a true thickness of 8.15 metres from 168.20 to 183.90 metres grading 7.41% zinc and 3.24% lead. This includes a very high-grade intercept of 0.93 metres grading 21.54% zinc and 13.62% lead.

Drill Hole From
(m)
To
(m)
Thickness
(m)
Zn
(%)
Pb
(%)
Zn+Pb
(%)
True
Thickness (m)
DON-167 168.20 183.90 15.70 7.41 3.24 10.65 8.15
Including 168.20 169.70 1.50 16.81 6.27 23.08 0.78
Including 173.30 176.20 2.90 8.62 2.62 11.24 1.50
Including 182.10 183.90 1.80 21.54 13.62 35.16 0.93

The intercept in DON-174 intersected a true thickness of 10.28 metres from 232.70 to 250.60 metres grading 6.30% zinc and 3.08% lead including a high-grade intercept of 1.55metres grading 10.95% zinc and 9.76% lead.

Drill Hole From
(m)
To
(m)
Thickness
(m)
Zn
(%)
Pb
(%)
Zn+Pb
(%)
True
Thickness (m)
DON-174 232.70 250.60 17.90 6.30 3.08 9.38 10.28
Including 241.50 243.60 2.10 11.24 3.37 14.60 1.21
Including 247.90 250.60 2.70 10.95 9.76 20.71 1.55

Other intercepts from 2011 in the 62 lens include drill holes DON-158, DON-161, DON-164, DON-165, DON-189, DON-204, DON-206, DON-215, and DON-216; which all host zinc-lead mineralization.

Drill Hole From
(m)
To
(m)
Thickness
(m)
Zn
(%)
Pb
(%)
Zn+Pb
(%)
True
Thickness (m)
DON-158 146.00 159.30 13.30 4.83 1.59 6.42 7.96
Including 146.00 153.90 7.90 5.16 1.79 6.95 4.73
Including 151.70 153.90 2.20 6.76 2.61 9.36 1.32
DON-161 10.00 10.90 0.90 10.13 1.32 11.46 0.57
17.70 18.60 0.90 18.16 2.88 21.04 0.57
38.10 43.40 5.30 5.35 2.56 7.91 3.36
DON-164 38.60 56.00 17.40 2.13 0.43 2.56 8.33
DON-165 84.10 103.60 19.50 4.69 1.71 6.40 11.69
Including 94.00 103.60 9.60 5.52 2.17 7.69 5.75
DON-189 259.70 296.50 36.80 3.50 1.22 4.72 27.46
Including 259.70 262.60 2.90 5.23 2.03 7.26 2.16
Including 272.30 278.40 6.10 3.84 1.24 5.08 4.55
Including 281.60 296.50 14.90 5.12 1.66 6.77 11.11
Including 281.60 290.50 8.90 6.11 1.88 7.99 6.64
Including 285.60 290.50 4.90 7.22 2.11 9.33 3.66
DON-204 107.00 138.70 31.70 4.77 1.39 6.16 22.28
Including 123.65 138.70 15.05 6.26 2.00 8.26 10.58
Including 124.44 134.61 10.17 6.96 2.11 9.07 7.15
DON-206 308.60 325.50 16.90 5.77 2.43 8.21 10.73
Including 308.60 314.00 5.40 6.88 2.16 9.04 3.43
DON-215 6.50 45.70 39.20 3.06 1.41 4.47 24.54
DON-217 354.10 382.20 28.10 3.00 1.13 4.13 21.11
Including 354.10 355.60 1.50 5.77 1.39 7.16 1.13
Including 364.70 382.20 17.50 4.19 1.53 5.72 13.15
Including 369.83 375.00 5.17 7.70 2.33 10.04 3.88
Including 403.95 411.20 7.25 4.15 1.37 5.52 5.44
Including 409.20 411.20 2.00 9.33 2.28 11.61 1.50

All assay results from the definition drilling program are undergoing quality assurance and quality control review. Upon completion of this review, the data will form the basis for a new mineral resource estimate for inclusion in the bankable feasibility study that SCML is advancing with Wardrop Engineering. Several drill holes were positioned to define limits of bounding fault structures and/or areas of lower-grade zinc-lead mineralization in order to refine limits of the high-grade mineralization for the mine plan. Results from the definition drilling program continue to confirm the 3D geological and structural models for Don deposit. The location of the new drill holes and lenses can be found on drill plan maps available at www.selwynresources.com.

The January 2008 mineral resource for the Don deposit conducted to NI 43-101 standards includes an Indicated mineral resource for high-grade mineralization of 5,325,000 tonnes grading 9.98% zinc and 3.86% lead and an Inferred mineral resource of 5,335,000 tonnes grading 7.94% zinc and 2.95% lead. This mineral resource estimate was conducted by Independent Qualified Person, Cliff Pearson, P.Geo. and Non-Independent Qualified Person, John J. O'Donnell, P.Geo. (see January 29, 2008 news release).

XY West Exploration

Shortly, SCML will commence the release of drill results from the 57 drill holes completed in the XY West deposit This new drilling of XY West deposit includes a combination of definition drilling of previously reported mineral resources (see February 26, 2009 news release) and exploration drilling along strike to the northwest, following the mineralization and favourable stratigraphy. The February 2009 mineral resource for the XY West deposit conducted to NI 43-101 standards includes an Inferred mineral resource of 1,910,000 tonnes grading 7.70% zinc and 2.45% lead. This mineral resource estimate was conducted by Non-Independent Qualified Person, John J. O'Donnell, P.Geo. (see February 26, 2009 news release).

The Selwyn Project exploration program is being reviewed by Vice President Exploration, Mr. Jason Dunning, M.Sc., P.Geo., and Mr. Wolfgang Schleiss, P.Geo., Manager of Exploration, who is responsible for on-site activities. Mr. Dunning and Mr. Schleiss are both Qualified Persons within the meaning of National Instrument 43-101. All assay data have undergone 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. A quality control and quality assurance program is in place at ACME Analytical Laboratories Ltd. ("ACME") and includes blanks, standards and duplicates. At ACME, silver and base metal analyses are conducted by a 23-element, four-acid digestion, ore-grade ICP-AES technique.

Selwyn's primary focus remains the exploration and development of the 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 hosts large tonnages of zinc-lead mineralization which have the potential for large scale production, and could provide a secure supply of zinc and lead to meet the future needs of these markets in Asia and beyond. The recently announced acquisition of ScoZinc Limited, which owns the Scotia Mine, provides Selwyn with a second opportunity for growth and the potential for production revenues in 2012.

This press release contains forward-looking statements concerning mineralization at and the development of the Selwyn Project and of the future prospects for the Scotia Mine. 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 factors beyond Selwyn's control, including the results of exploration activities, economic evaluations and engineering studies, the availability of funds in the financial markets on terms acceptable to Selwyn and the public's view of the economic value of the Selwyn Project and the Scotia Mine. Additionally, more drilling is required to confirm the potential of the new discovery areas, expansions of the current resource areas, and the extension of the higher grade deep mineralization to depth at the Selwyn Project. There is no assurance that such additional drilling will expand mineral resources or that the resources being defined can be developed as an economically attractive mine. Uncertainties associated with permitting and other factors could delay development of the Selwyn Project and of the Scotia Mine. Although Selwyn has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other factors that cause results not to be as anticipated or intended. There is no assurance that such information will prove to be accurate, as future events could differ materially from those anticipated in such information and accordingly, there is no assurance that the Selwyn Project or the Scotia Mine will be developed into profitable mines. Readers should not place undue reliance on forward-looking statements.

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

    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