Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

September 04, 2007 08:58 ET

Selwyn Resources Announces Significant Step-Out on High-Grade in Don Valley Results in New Underground Target

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 4, 2007) - Selwyn Resources Ltd. (TSX VENTURE:SWN) is pleased to provide an update on recent drilling activities in the wholly-owned Don Valley area of the Selwyn Project. The current drilling is focusing on the 8.0 kilometre length of Active Member between the Don and HC Deposits and is continuing to expand the high-grade zinc-lead mineral potential at depth in Don Valley. This year, 73 drill holes have been completed or are in progress in the Don Valley for a total of 20,141.2 metres. The location of the new drill holes can be found on drill plan maps available at www.selwynresources.com.

Highlights

- DON-106 intersecting 22.50 metres true thickness grading 8.09% zinc and 1.79% lead including 12.30 metres grading 11.13% zinc and 2.23% lead in the Don East deposit.

- DON-109 intersecting 14.10 metres true thickness grading 8.46% zinc and 3.57% lead including 4.50 metres grading 16.31% zinc and 8.15% lead in the Don deposit.

Don Valley

Until 2005, there had been no drilling in the Don Valley with prior operators having focused their exploration work on the XY and Anniv deposits that were discovered in the 1970's. Recent exploration over the last three years by Selwyn Resources has now continuously traced zinc-lead mineralized Active Member along the 14.6 kilometres length of the Don Valley and resulted in five new discoveries. In 2005, drilling was designed to test for shallow mineralization amenable to open pit mining. Following some success in defining higher-grade mineralization in deeper holes, geological modeling of the deposit indicated the potential for a laterally extensive, higher-grade core extending from Anniv Central to the XY deposit. Recently, the focus has shifted to defining the continuity of higher-grade mineralization at depth both in Don Valley and at XY Central deposit. Drilling these new targets is producing exceptional results and causing a rethinking of the current development plan in the Preliminary Assessment Report (see January 18, 2007 news release).

Don Deposit Drilling

The high-grade underground target of the Don deposit continues to be confirmed through infill drilling and has now been successfully tested by 18 drill holes since being discovered in 2005 with DON-004 (see October 25, 2005 news release). Both DON-097 and DON-109 support the higher-grade nature of the zinc-lead mineralized Active Member in the Don deposit at depth. The Don deposit remains open for expansion.

Recent deeper drilling has yielded the single highest assay of combined zinc-lead mineralized Active Member for the entire Selwyn Project in DON-074 that included a 1.30 metre sample from 271.80 to 273.10 metres grading 46.78% zinc and 17.94% lead; for an aggregate 64.72% combined zinc-lead (see July 10, 2007 news release).

Drilling in the Don deposit is targeting an area of 900 by 700 by 6 metres, predominantly below open-pit limits, to define known high-grade zinc lead mineralized Active Member. The target area is modeled to potentially contain 10 to 12 million tonnes with a range of grades varying from 7.4% to more than 20% combined lead and zinc. The potential grade and tonnage of the target outside of the known Indicated mineral resource of 2,360,000 tonnes grading 5.15% zinc and 1.15% lead and Inferred mineral resource of 14,680,000 grading 4.17% zinc and 1.70% lead (see April 2, 2007 news release) is conceptual in nature as there has been insufficient drilling to define a mineral resource and it is unknown if drilling will define a mineral resource.



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True
Drill Hole From To Thickness Pb Zn Pb+Zn Thickness
(m) (m) (m) (%) (%) (%) (m)
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DON-097 544.70 567.60 22.90 1.66 5.55 7.21 17.00
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Including 555.50 567.60 12.10 1.80 6.27 8.08 9.00
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Including 561.50 565.10 3.60 2.22 7.54 9.76 2.70
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DON-109 259.60 287.80 28.70 2.69 6.60 9.29 20.30
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Including 267.80 287.80 20.00 3.57 8.46 12.03 14.10
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Including 279.20 285.50 6.30 8.15 16.31 24.46 4.50
-----------------------------------------------------------------------


DON-097 intersected well mineralized Active Member 250 metres down-dip from DON-074 and DON-044, and 480 metres down-dip from DON-096. DON-109 is 280 metres along strike and the same elevation as DON-074. Drilling on the Don deposit is continuing with one drill to increase the confidence of the known mineral resources.

Don East- New Discovery of High Grade Mineralization

The discovery of high-grade mineralization in DON-106 at the Don East deposit defines a new high-grade underground target. This discovery is very significant for several reasons. DON-106 is a 1200 metre step-out on the high-grade, underground target of the Don deposit; it reinforces the contiguous nature of high-grade zinc-lead mineralization identified in the Don Valley; and lastly, it is a 465 metre down-dip step-out of continuous mineralization from DON-076 in the open-pit target of the Don East deposit.



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True
Drill Hole From To Thickness Pb Zn Pb+Zn Thickness
(m) (m) (m) (%) (%) (%) (m)
-----------------------------------------------------------------------
DON-106 510.20 543.80 33.60 1.76 8.09 9.85 22.50
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Including 524.00 542.30 18.30 2.23 11.13 13.35 12.30
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Including 524.00 527.00 3.00 2.36 17.48 19.84 2.00
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Including 532.50 542.30 9.80 2.37 12.50 14.87 6.60
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Including 540.70 542.30 1.60 2.64 25.07 27.71 1.10
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DON-114 (i) 611.70 674.52 62.82 Results Pending
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(i) denotes apparent thickness with true thickness reported upon receipt
and processing of assay results


DON-114, a follow-up drill hole to DON-106, intersected an apparent thickness of 62.82 metres of zinc-lead mineralized Active Member a further 200 metres down-dip of DON-106. Results are pending for DON-114. Drilling is continuing to follow-up on this new and exciting high-grade, underground target.

Recent shallow drilling continues to expand the mineral potential of the Don East deposit well beyond the March 2007 Inferred mineral resource area that contains 24,710,000 tonnes grading 5.15% zinc and 1.15% lead. The northwesterly bounds of the continuously mineralized zinc-lead Active Member in the Don East deposit has been increased 900 metres from 900 to 1,800 metres and successfully tested a continuous northeasterly down dip length of 1,050 metres; which includes the recent 465 metre step-out in DON-106.

DON-084, DON-089, DON-093, and DON-095 are infill and deposit margin drill holes that were all successful in confirming the continuity of zinc-lead mineralized Active Member through the near surface expression of the Don East deposit. The Don East deposit remains open for expansion along strike and to depth.



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True
Drill Hole From To Thickness Pb Zn Pb+Zn Thickness
(m) (m) (m) (%) (%) (%) (m)
-----------------------------------------------------------------------
DON-084 112.50 130.00 17.50 1.61 5.12 6.73 15.70
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Including 112.50 115.50 3.00 2.08 8.04 10.12 2.70
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Including 122.00 130.00 8.00 2.38 6.96 9.33 7.20
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DON-089 111.80 126.20 14.40 1.14 4.02 5.16 12.90
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Including 111.80 125.20 13.40 1.07 4.10 5.18 12.00
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Including 111.80 119.50 7.70 1.28 5.46 6.74 6.90
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DON-093 66.90 82.90 16.00 0.93 3.55 4.48 14.40
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Including 66.90 70.50 3.60 1.00 5.67 6.66 3.20
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Including 75.80 81.40 5.60 1.17 4.30 5.47 5.00
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DON-095 75.40 77.50 2.10 1.11 3.43 4.54 1.90
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The drilling has now successfully intersected zinc-lead mineralized Active Member between the Don and Don East deposits, closing much of the gap following 2006 drilling; however, 850 metres of trend remains to be tested by drilling. Zinc-lead mineralization of the Active Member in the Don East deposit is modeled to contain 35 to 55 million tonnes within an area of approximately 1,800 by 450 metres and having an average thickness of 15 metres with grades ranging from 4.8 to more than 12.0% combined lead and zinc. Similar as to above, the potential grade and tonnage of the target outside of the known Inferred mineral resource of 24,710,000 grading 5.54% zinc and 1.43% lead (see April 2, 2007 news release) is conceptual in nature and additional drilling is required to define the mineral resource and it is unknown if drilling will define a mineral resource.

Other Drilling

Two drills continue to target the high-grade underground target at XY Central deposit and one drill is completing the upgrading of mineral resource categories in the open-pit target. To date, the XY Central deposit has seen 4,311.6 metres of drilling in 11 drill holes with an additional 3 drill holes in-progress. Results from these drill holes will be discussed in a future news release when assay data has passed through Selwyn's rigorous quality assurance and quality control program.

The Selwyn Project exploration program is being reviewed by Vice President Exploration, Mr. Jason Dunning, M.Sc., P.Geo. The onsite activities for the Selwyn Project are 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 at ACME Analytical Laboratories Ltd. ("ACME") that includes blanks, duplicates and standards. At ACME, silver and base metal analyses are conducted by a 17-element, four-acid digestion, ore-grade ICP-AES technique.

Note that all discussion of previous NI-43-101 compliant Indicated and Inferred mineral resources are referenced in the April 2007 NI 43-101 report for the Selwyn Project. Any areas discussed as possessing mineral potential are not defined through drilling and are conceptual based upon a detailed geological model. Further definition drilling is required prior to discussing potential mineral resources as an accepted NI 43-101 mineral resource classification and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Selwyn's focus is the exploration of its properties that make up the Selwyn Project in the Yukon. The known deposits have the potential for the large scale production of zinc and lead, at a time when major new mines are needed to ensure adequate future zinc mine supply. As follow-up to the highly successful 2006 exploration program, Selwyn Resources Ltd. is undertaking a $25 million exploration program in 2007 to continue definition drilling of the XY, Anniv, and Don Valley (HC, HC West, Don East, and Don) deposits. Recent drilling has been focused on defining the continuity of higher grade mineralization in XY and Don Valley areas and evaluating the potential for significant tonnages of higher grade resources to support addition of underground mining to the development plan.

This press release may contain forward-looking statements 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 its control and 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. Furthermore, 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) 682-5474 or Toll Free: 1-877-682-5474
    International Toll Free: 800-8682-5474
    (604) 682-5404 (FAX)
    or
    Selwyn Resources Ltd.
    Jasmin TamDoo, Manager of Investor Communications
    (604) 682-5474 or Toll Free: 1-877-682-5474
    International Toll Free: 800-8682-5474
    (604) 682-5404 (FAX)
    Email: info@selwynresources.com
    Website: www.selwynresources.com