Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

March 31, 2011 10:11 ET

Selwyn Intercepts High-Grade Mineralization in Don Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 31, 2011) - Selwyn Resources Ltd. ("Selwyn") (TSX VENTURE:SWN) is pleased to announce the initial drill results from the drilling of the 61-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., the joint venture company equally owned by Selwyn and Chihong Mining Canada Ltd.

Dr. Harlan Meade, Selwyn's President and CEO, said "This release is the first in the definition drilling results from the Don deposit. Management is very pleased with the demonstrated continuity of high-grade mineralization that has been encountered in this program. The high-grades and good thicknesses in 61-lens are very attractive for early mine development in the bankable feasibility in progress."

Drilling continues with four drill rigs at the Don deposit and two drill rigs at the XY West deposit, all of which are targeted to confirm known mineral resources.

Highlights: 61-lens of the Don deposit

  • DON-157 intersected 43.82 metres true thickness grading 13.63% zinc and 7.35% lead, including 14.89 metres grading 30.64% zinc and 18.34% lead; and

  • DON-179 intersected 26.09 metres true thickness grading 8.00% zinc and 3.60% lead, including 3.82 metres grading 20.54% zinc and 10.64% lead.

The high-grade NI 43-101 compliant mineral resource of the Don deposit 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 holes DON-150, DON-152, DON-154, DON-157, DON-159, DON-169, DON-179 are the infill drill holes within the high-grade, 61-lens of the Don deposit.

Drill hole DON-157 intersected very high-grade mineralization from 79.60 to 145.80 metres for a true thickness of 43.82 metres grading 13.63% zinc and 7.35% lead including 6.35 metres grading 32.86% zinc and 19.59% lead. This intersection is approximately 75 metres away from DON-074 (see July 9, 2007 news release) that intersected 31.63 metres true thickness of the Active Member at a depth of 241.70 metres with a grade 10.20% zinc and 3.91% lead including 4.30 metres grading 35.97% zinc and 16.01% lead.

Drill Hole From
(m
) To
(m
) Thickness
(m
) Zn
(%
) Pb
(%
) Zn+Pb
(%
) True Thickness (m )
DON-157 79.60   145.80   66.20   13.63   7.35   20.98   43.82  
Including 92.70   96.70   4.00   10.85   3.89   14.74   2.65  
Including 92.70   145.80   53.10   15.85   8.86   24.71   35.15  
Including 99.40   121.90   22.50   30.64   18.34   48.97   14.89  
Including 105.10   114.70   9.60   32.86   19.59   52.45   6.35  
Including 124.20   145.80   21.60   6.22   2.99   9.21   14.30  
Including 127.30   136.90   9.60   8.38   3.62   12.00   6.35  

Drill hole DON-179 intersected a thick section of high-grade mineralization that is hosted within a much broader envelope of zinc-lead mineralization. The high-grade mineralization was intersected from 168.70 to 209.70 metres for a true thickness of 26.09 metres grading 8.00% zinc and 3.60% lead including 3.82 metres grading 20.54% zinc and 10.64% lead. This correlates very well with adjacent high-grade intercepts, thereby reinforcing the confidence in the detailed 3D modeling.

Drill Hole From
(m
) To
(m
) Thickness
(m
) Zn
(%
) Pb
(%
) Zn+Pb
(%
) True Thickness (m )
DON-179 168.70   209.70   41.00   8.00   3.60   11.60   26.09  
Including 178.30   190.70   12.40   14.68   6.52   21.20   7.89  
Including 184.70   190.70   6.00   20.54   10.64   31.18   3.82  
Including 195.40   209.70   14.30   8.22   4.06   12.29   9.10  
Including 201.30   206.00   4.70   11.41   5.57   16.98   2.99  

Other intercepts from 2011 include drill holes DON-150, DON-152, DON-154, DON-159 and DON-169, which also host high grade mineralization.

Drill Hole From
(m
) To
(m
) Thickness
(m
) Zn
(%
) Pb
(%
) Zn+Pb
(%
) True Thickness (m )
DON-150 533.50   543.00   9.50   3.30   1.04   4.34   9.12  
including 539.90   543.00   3.10   5.37   1.24   6.61   2.98  
DON-152 433.00   437.90   4.90   8.97   3.15   12.12   4.90  
DON-154 100.40   105.80   5.40   8.75   1.47   10.23   1.99  
  120.00   131.00   11.00   4.17   3.65   7.82   4.06  
DON-159 147.70   165.10   17.40   4.93   1.65   6.58   12.60  
including 158.40   165.10   6.70   7.04   2.30   9.34   4.85  
DON-169 343.60   373.20   29.60   4.45   1.96   6.40   21.65  
Including 344.10   347.40   3.30   7.40   1.76   9.16   2.41  
Including 353.60   372.80   19.20   5.34   2.56   7.90   14.04  
Including 353.60   354.80   1.20   9.37   2.52   11.89   0.88  
Including 357.50   361.20   3.70   8.31   2.83   11.13   2.71  
Including 366.70   370.90   4.20   7.09   5.96   13.05   3.07  
Including 367.20   369.00   1.80   12.01   11.32   23.34   1.32  

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.

Upon receipt of all assay results from the definition drilling program and passing of quality assurance and quality control, the data will form the basis for revising a mineral resource estimate for the bankable feasibility study in progress 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 revising the mine plan that is an integral part of bankable feasibility study.

The previous NI 43-101 compliant Indicated mineral resource for high-grade mineralization within the Don deposit is 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, is responsible for onsite activities Selwyn Project. Mr. Dunning and Mr. Schleiss are both 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. A quality control and quality assurance program is in place at ACME Analytical Laboratories Ltd. ("ACME") that includes blanks, duplicates and standards. 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 the zinc and lead markets in Asia and beyond. The recently announced acquisition of the assets of ScoZinc Limited provide 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 and 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, and there are many uncertainties associated with permitting and other factors that 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
    +1 (604) 689-8355 (FAX)
    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