Selwyn Resources Ltd.

Selwyn Resources Ltd.

June 09, 2008 08:58 ET

Selwyn Resources Commences Mobilization for 2008 Drilling Activities

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 9, 2008) - Selwyn Resources Ltd. (TSX VENTURE:SWN) ("Selwyn" or the "Company") is pleased to update shareholders on the start of the 2008 exploration work program for the Selwyn Project, Yukon. This week, the Exploration Department and its drilling contractors will mobilize to site and commence operations. All work will be based out of the Don Camp that was established at the beginning of the 2007 field season, and supported using the adjacent, newly constructed 1,100 metre long gravel airstrip. The exploration work program will primarily consist of diamond drilling activities commencing in mid-June 2008 with one diamond drill rig; noting that two other diamond drill rigs remain on the property and may be activated in the future.

An initial 2,500 metres of core drilling is planned, as well as the ground truthing of numerous geological and geochemical targets identified through compilation of existing data in conjunction with Selwyn's updated detailed, 3D geological model. Diamond drilling will focus on the identification of additional high-grade mineralization along the 24-kilometre corridor of well mineralized zinc-lead Active Member between the XY Central deposit in the southeast and the Anniv Central deposit in the northwest.

The diamond drilling will also provide for a further upgrading of the high-grade, mineral resource estimates for Don, Don East, and HC West deposits in the Don Valley (see Table 1); which are a subset of the global mineral resource estimate for the entire Selwyn Project.

The detailed drilling information acquired from the 2008 program on the high-grade targets will assist in the creation of an underground development strategy for proposed test mining of the high-grade zinc-lead mineralization in the next phase of development of the project. The new information will be used, to confirm assumptions for a feasibility study and define additional engineering requirements.

Table 1: Selwyn Project 2007 Underground Target Mineral Resource Estimate
Resource Million Zn Pb Zn Pb
Deposit Class Tonnes (%) (%) (Blbs) (Blbs)
XY Deposit Indicated 10,738,000 10.38 4.41 2.46 1.04
Inferred 2,849,000 10.86 4.41 0.68 0.28
Don East Zone Indicated
Inferred 11,976,000 8.59 2.30 2.27 0.61
Don Zone Indicated 5,325,000 9.98 3.86 1.17 0.45
Inferred 5,335,000 7.94 2.95 0.93 0.35
HC West Indicated
Inferred 2,996,000 9.73 3.00 0.64 0.20
Total Indicated 16,063,000 10.25 4.23 3.63 1.50
Total Inferred 23,156,000 8.86 2.80 4.52 1.43

Notes for Table 1:
1. Mineral Resources reported above have been calculated as of January 29,
2008 in accordance with the standards of the Canadian Institute of
Mining, Metallurgy and Petroleum and National Instrument 43-101.
2. A 2% zinc grade cut-off was applied to the new mineral resource
3. The Mineral Resource Estimate uses all 570 drill holes, totaling
123,542 metres, successfully completed on the Selwyn Project over two
separate periods: 1973 to 1981, 2000, and 2005 to 2007.

The global mineral resource estimate, is NI 43-101 compliant and consists of Indicated mineral resources totaling 154.35 million tonnes grading 5.35% zinc and 1.86% lead for a metal content of 18.19 billion pounds of zinc and 6.31 billion pounds of lead, and Inferred mineral resources totaling 231.54 million tonnes grading 4.54% zinc and 1.42% lead for a metal content of 23.19 billion pounds of zinc and 7.23 billion pounds of lead (see January 29, 2008 news release). The updated mineral resource estimate for the Selwyn Project was prepared by John J. O'Donnell, the onsite Qualified Person for Selwyn in conjunction with, and under audit by, Independent Qualified Person under NI 43-101, Cliff Pearson of Pearson Geological Ltd. of Victoria, BC.

In addition to the Indicated and Inferred mineral resources estimated from 2007 drilling results, a mineral potential was estimated which contains 245 to 255 million tonnes with an estimated grade of between 4.0-5.0% zinc and 1.0-2.0% lead. The mineral potential represents the down dip and strike extension of the Indicated and Inferred resources taken from a polygonal long-section model. The mineral potential represents a small portion of the interpreted extent of the Active Member that hosts all known zinc-lead mineralization in the Selwyn District (see January 29, 2008 news release).

The Active Member has now been defined over 37.5 kilometers of strike length with the drilling results from 2005 to 2007. Importantly, all drill holes which have intersected the Active Member have contained significant zinc and lead mineralization. The quantity and grade of this mineral potential is conceptual in nature, as there has been insufficient drilling to define a mineral resource and it is uncertain if additional exploration will result in any of this potential being realized as a mineral resource. The mineral potential has been estimated through extrapolating the Active Member in the detailed 3D geological model used to estimate the known compliant NI 43-101 mineral resources (see January 29, 2008 news release), and then interpolating between drill holes that are too wide spaced to allow the determination of NI 43-101 compliant mineral resources.

The expanded high-grade underground targets at XY and those newly discovered high-grade underground targets in the Don Valley appear to indicate a transition to higher grades in the core of the synclinal structure hosting the various deposits, signaling there is significant mineral potential for identifying additional tonnages of higher grade mineralization over the more than 15 kilometres separating the XY and Don deposits with additional diamond drilling.

Mr. Jason Dunning (P.Geo.), the Qualified Person pursuant to National Instrument 43-101, has reviewed and approved the contents of this press release.

Selwyn's focus is the exploration 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 provide a secure supply of zinc and lead to meet the future needs of the zinc market in Asia and beyond.

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 exploration 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 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: 1-800-8682-5474
    Selwyn Resources Ltd.
    Jasmin TamDoo, Manager of Investor Communications
    (604) 682-5474 or Toll Free: 1-877-682-5474
    International Toll Free: 1-800-8682-5474
    (604) 682-5404 (FAX)