Selwyn Resources Ltd.

Selwyn Resources Ltd.

October 07, 2009 12:56 ET

Selwyn Resources Announces the Commencement of Drilling on Vinata Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2009) - Selwyn Resources Ltd. (TSX VENTURE:SWN) ("Selwyn") is pleased to announce that it has been informed by its Joint Venture Partner, Savant Explorations Ltd. ("Savant"), that diamond drilling is set to begin shortly on its Vinata Property located in North Central Mexico. Selwyn is acquiring an initial 50% interest in the Vinata Property that can be increased to 55% by making additional expenditures (see July 22, 2009 news release). A US$450,000 exploration program is currently underway to test several prime targets for high grade silver-zinc-lead mineralization.

Vinata Property

Vinata is a large property covering approximately 109 square kilometres and represents a rare opportunity to acquire a large property position associated with the surface expression of a potential new district scale discovery. The local geology and alteration show many similarities to the Santa Eulalia District, 55 kilometres to the north, which hosts numerous silver-zinc-lead deposits within Upper Cretaceous limestone units.

Recent geological mapping and trenching on Vinata Property by Savant and its contractors has confirmed the presence of numerous, well-defined, vein-breccia structures hosted within the Teritary Volcanic rocks that overlie the favourable Upper Cretaceous limestone units. The primary host rocks to the CRD mineralization are covered by strongly altered Tertiary volcanic rocks, and it is these strongly altered Tertiary volcanic rocks that are present at Vinata Property.

The vein-breccia structures are flanked by extensive hydrothermal clay alteration zones that host anomalous silver, zinc and lead in veinlets of carbonate and manganese. It is these occurrences of hydrothermal alteration and metal-rich manganese mineralization that are interpreted to be the high-level expression of a buried silver-lead-zinc mineralizing system similar in nature to the large silver-lead-zinc deposits at Santa Eulalia and Naica that have produced more than 750 million ounces of silver and significant zinc and lead. Manganese mineralization occurs intermittently over 3,000 metres along a north westerly trend with the initial drill hole targeting the down dip extension of vein-breccia structures and flanking clay altered volcanic rocks at the northern end of the zone.

This initial exploration program includes approximately 1,800 metres of diamond drilling that will test the continuity of the known mineralized structures, as well as for possible occurrence of manto and chimney type mineralization at depth. In most carbonate replacement deposits ("CRD") such as Santa Eulalia, the upper parts of the mineralized system are silver-rich with zinc-lead massive sulphide mineralization; which commonly occur in the upper part of the Cretaceous limestone strata as stratabound manto deposits.

In addition, Selwyn has agreed to participate as to $50,000 in an equity offering that Savant is planning for its shares. Selwyn currently owns 8,196,667 shares of Savant representing 32.9% of the issued shares and has warrants to acquire an additional 4,981,667 shares.

The Vinata Property is subject to a purchase agreement between Savant and Minera Cima, S.A. De C.V. (see Savant news release of June 11, 2009) which includes aggregate cash purchase payments of US$2,635,000 and granting of a royalty of 2% of Net Smelter Returns which can be reduced to 1% NSR upon making payments of US$1,000,000.

Selwyn is focused on the exploration and development of the Selwyn Project in the Yukon as a major new zinc-lead mine. The Selwyn Project is advancing towards feasibility and development as a large scale mine providing a secure supply of zinc and lead to meet the future needs in Asia and beyond. The Vianta Project provides another growth opportunity for Selwyn shareholders.

This news release contains forward-looking statements concerning the Vinata Property and the development of the Selwyn Project. These statements are based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of failure to obtain necessary regulatory approvals, the failure to reach agreement on final documentation, exploration results and other risk factors that are beyond Selwyn's control. There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release.

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
    (604) 801-7240 or Toll-free: 1-888-989-9188
    Selwyn Resources Ltd.
    Jasmin TamDoo
    Manager of Investor Communications
    (604) 801-7240 or Toll-free: 1-888-989-9188
    (604) 689-8355 (FAX)