Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

July 05, 2011 10:42 ET

Selwyn-Drilling on Don Deposit Continues to Confirm Continuity

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 5, 2011) - Selwyn Resources Ltd. (TSX VENTURE:SWN) ("Selwyn") is pleased to announce additional drill results from the drilling of the 61-lens of the Don deposit at Selwyn Project, Yukon. These 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., a wholly-owned subsidiary of Yunnan Chihong Zinc and Germanium Co. Ltd.

Drilling continues to confirm known mineral resources with one drill at the Don deposit and two drills at the XY West deposit.

Highlights: 61-lens of the Don Deposit

  • DON-155 intersected 22.99 metres true thickness grading 8.56% zinc and 3.42% lead, including 5.63 metres grading 24.17% zinc and 4.00% lead; and
  • DON-201 intersected 18.99 metres true thickness grading 9.13% zinc and 3.47% lead, including 3.65 metres grading 20.41% zinc and 8.35% lead.

61-lens Don Zone 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 63-lens.

Drill hole DON-155 intersected a thick section of high-grade mineralization hosted within a broad envelope of zinc-lead mineralization. The high-grade mineralization was intersected from 31.00 to 66.50 metres for a true thickness of 22.99 metres grading 8.56% zinc and 3.42% lead, including 5.63 metres grading 24.17% zinc and 4.00% lead.

Drill Hole From
(m)
To
(m)
Thickness
(m)
Zn
(%)
Pb
(%)
Zn+Pb
(%)
True Thickness (m)
DON-155 31.00 66.50 35.50 8.56 3.42 11.98 22.99
Including 44.70 64.80 20.10 12.79 5.45 18.24 13.02
Including 56.10 64.80 8.70 24.17 4.00 28.17 5.63

The intercept in DON-201 is located near the base of the lens and shows strong correlation with the nearby high-grade intercepts in DON-195, DON-196, and DON-205 (see June 7, 2011 news release). These results reinforce the confidence in the detailed 3D modeling of the 61-lens. The mineralization was intersected from 479.80 to 502.20 metres grading 9.13% zinc and 3.47% lead over a true thickness of 18.99 metres. This includes 3.65 metres of 20.41% zinc and 8.35% lead.

Drill Hole From
(m)
To
(m)
Thickness
(m)
Zn
(%)
Pb
(%)
Zn+Pb
(%)
True Thickness (m)
DON-201 479.80 502.20 22.40 9.13 3.47 12.60 18.99
Including 492.60 502.20 9.60 16.81 6.82 23.63 8.14
Including 492.60 496.90 4.30 20.41 8.35 28.75 3.65

Other intercepts from 2011 in the 61-lens include drill holes DON-156, DON-197, DON-198, DON-200, DON-202, and DON-203, all of which host high grade mineralization.

Drill Hole From
(m)
To
(m)
Thickness
(m)
Zn
(%)
Pb
(%)
Zn+Pb
(%)
True Thickness (m)
DON-156 301.20 338.70 37.50 4.23 1.59 5.83 28.48
Including 320.30 337.90 17.60 5.30 2.28 7.58 13.37
Including 320.30 325.80 5.50 7.38 1.90 9.28 4.18
Including 330.30 334.00 3.70 6.95 2.20 9.15 2.81
DON-197 439.30 461.90 22.60 3.94 1.25 5.19 17.53
Including 445.90 461.90 16.00 4.84 1.53 6.37 12.41
DON-198 525.00 535.50 10.50 4.51 1.56 6.07 8.55
Including 529.70 535.50 5.80 5.10 2.08 7.18 4.72
DON-200 375.70 399.50 23.80 6.74 2.48 9.23 17.03
Including 383.30 398.60 15.30 8.75 5.87 14.62 10.95
Including 389.30 398.60 9.30 9.25 4.14 13.39 6.65
Including 390.20 395.30 5.10 9.57 5.10 14.67 3.65
DON-202 436.80 451.40 14.60 6.50 2.04 8.55 10.40
Including 442.50 446.70 4.20 11.35 3.20 14.55 2.99
DON-203 467.40 484.80 17.40 4.61 1.29 5.89 12.50
Including 475.40 484.80 9.40 5.83 2.83 8.66 6.75

Upon receipt of all assay results from the definition drilling program and after passing quality assurance and quality control review, SCML will incorporate the data into a new mineral resource estimate for the bankable feasibility study that it 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 borders 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 plans 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).

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 has undergone internal validation of quality assurance and quality control. SCML 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") that 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 focus is the exploration and development 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 large scale production, and the potential to 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 the assets of ScoZinc Limited 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 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 geological variability 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, expansions of the current resource areas, and the extension of the higher grade deep mineralization to depth. 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 such development.

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