Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

September 29, 2011 08:00 ET

Selwyn Resources Ltd.: Additional High-Grade Drill Results Confirm Expansion of XY West Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 29, 2011) - Selwyn Resources Ltd. ("Selwyn") (TSX VENTURE:SWN) is pleased to announce additional drill results from the XY West deposit at Selwyn Project, Yukon. These results, together with those announced September 6, 2011 news release, complete the assay results from the expansion area of the XY West deposit. The drill results are part of the exploration and definition drilling program that was conducted by Selwyn Chihong Mining Ltd. ("SCML"), the joint venture company equally owned by Selwyn and Chihong Canada Mining Ltd. Chihong Canada Mining Ltd. is a wholly owned subsidiary of Yunnan Chihong Zinc and Germanium Co., Ltd.

Highlights

  • XYC-278 intersected 21.76 metres true thickness grading 8.90% zinc and 4.35% lead, including 2.47 metres grading 22.33% zinc and 12.40% lead;
  • XYC-279 intersected 12.67 metres true thickness grading 10.27% zinc and 3.15% lead, including 2.47 metres grading 21.85% zinc and 6.81% lead; and
  • New drill holes in XY West deposit extend the strike length of high grade mineralization in the XY area to more than 2500 metres.

Expansion Area Drill Results

Recent drilling on the XY West deposit has resulted in an expansion of the original discovery along the favourable trend of zinc-lead mineralization to the northwest. The new drill results will be used to update the 2009 mineral resource estimate done to NI 43-101 standards, which is directly adjacent to the southeast.

The intercept in XYC-278 displays excellent correlation to XYC-263 (see September 6, 2011 news release) and reinforces the detailed geological model being developed for the XY West deposit expansion area. It also confirms the overall continuity of the high-grade zinc-lead mineralization in this area. Mineralization was intersected in XYC-278 across a wide thickness from 350.90 to 376.50 metres for a true thickness of approximately 21.76 metres grading 8.90% zinc and 4.35% lead including 2.47 metres grading 22.33% zinc and 12.40% lead. This higher-grade intercept is contained within a broader zone of zinc-lead mineralization that extends down the drill hole to 435.30 metres. Although portions of this wider intercept do appear to be lower-grade, there are significant intersections such as 6.21 metres true thickness from 428.00 to 435.30 metres grading 7.29% zinc and 2.03% lead including 3.40 metres grading 9.66% zinc and 2.60% lead.

Drill Hole From
(m)
To
(m)
Thick-
ness
(m)
Zn
(%)
Pb
(%)
Zn+Pb
(%)
True
Thick-
ness
(m)
XYC-278 350.90 376.50 25.60 8.90 4.35 13.25 21.76
Including 350.90 361.50 10.60 13.49 5.00 18.50 9.01
Including 350.90 354.40 3.50 19.50 7.42 26.92 2.98
Including 357.80 360.70 2.90 22.33 12.40 34.73 2.47
Including 371.10 375.40 4.30 11.38 2.26 13.64 3.66
407.10 410.50 3.40 6.74 1.97 8.71 2.89
418.40 424.40 6.00 3.87 1.61 5.48 5.10
428.00 435.30 7.30 7.29 2.03 9.32 6.21
Including 431.30 435.30 4.00 9.66 2.60 12.26 3.40

The high-grade intercept in XYC-279 is also contained within a broader zone of zinc-lead mineralization. Mineralization is present from 287.80 to 315.90 metres, but the main intercept has a true thickness of 12.67 metres from 301.00 to 315.90 metres grading 10.27% zinc and 3.15% lead. This includes a high-grade intercept of 2.47 metres grading 21.85% zinc and 6.81% lead.

Drill Hole From
(m)
To
(m)
Thick-
ness
(m)
Zn
(%)
Pb
(%)
Zn+Pb
(%)
True
Thick-
ness
(m)
XYC-279 287.80 293.60 5.80 5.35 1.03 6.39 4.93
301.00 315.90 14.90 10.27 3.15 13.42 12.67
Including 301.00 305.30 4.30 10.58 2.98 13.56 3.66
Including 307.50 310.40 2.90 21.85 6.81 28.66 2.47

Drill hole XYC-273 intersected 19.04 metres true thickness from 279.40 to 301.80 metres grading 8.22% zinc and 2.30% lead including 4.25 metres grading 15.89% zinc and 4.12% lead. XYC-273 is located approximately 185 metres west of XYC-279 and 90 meters southwest of XYC-278.

Drill Hole From
(m)
To
(m)
Thick-
ness
(m)
Zn
(%)
Pb
(%)
Zn+Pb
(%)
True
Thick-
ness
(m)
XYC-273 279.40 301.80 22.40 8.22 2.30 10.52 19.04
Including 286.00 292.10 6.10 13.11 2.46 15.58 5.19
Including 295.10 301.80 6.70 12.98 3.37 16.35 5.70
Including 296.80 301.80 5.00 15.89 4.12 20.01 4.25

Other drill results from this area include XYC-251, XYC-255, XYC-259, XYC-261, XYC-262, XYC-276, and XYC-277; which all host zinc-lead mineralization.

Drill Hole From
(m)
To
(m)
Thick-
ness
(m)
Zn
(%)
Pb
(%)
Zn+Pb
(%)
True
Thick-
ness
(m)
XYC-251 368.20 397.50 29.30 6.26 1.72 7.99 24.91
Including 369.60 379.60 10.00 6.86 2.71 9.57 8.50
Including 385.20 397.50 12.30 8.29 1.71 10.00 10.46
XYC-255 309.00 312.20 3.20 11.59 1.95 13.53 2.72
XYC-259 268.20 296.10 27.90 8.04 2.96 11.00 23.72
Including 280.20 296.10 15.90 10.58 4.22 14.80 13.51
Including 286.50 296.10 9.60 13.31 5.96 19.27 8.16
XYC-261 255.00 261.00 6.00 8.00 2.53 10.53 5.10
302.80 306.70 3.90 5.21 1.23 6.43 3.32
323.00 326.10 3.10 6.16 1.24 7.40 2.64
XYC-262 289.00 293.60 4.60 5.39 1.80 7.19 3.91
XYC-276 240.50 241.50 1.00 9.46 3.32 12.77 0.85
325.00 352.40 27.40 6.92 1.61 8.53 23.29
Including 326.10 329.10 3.00 14.73 2.74 17.47 2.55
Including 331.40 333.10 1.70 10.32 1.39 11.70 1.45
Including 346.00 352.40 6.40 9.69 2.08 11.78 5.44
XYC-277 240.30 241.10 0.80 8.32 1.60 9.92 0.68
285.30 303.60 18.30 7.73 2.64 10.37 15.56
Including 285.30 289.00 3.70 9.87 2.75 12.63 3.14
Including 298.20 303.60 5.40 14.26 5.87 20.14 4.59

The recent drill results high grade mineralization in the XY West and XY Central deposits now has a lateral length at least 2,500 metres. The high-grade zinc-lead mineralization is open along strike to the northwest. The recent drill intercepts of thick high grade zinc-lead mineralization in the expansion area for the XY West deposit continues to support the potential for expanding mineral resources in the XY West deposit. Drilling has defined the expansion area as having dimensions of approximately 350 by 250 metres that has an average thickness of approximately 15 metres.

Investors are cautioned that there has not been sufficient drilling to define a mineral resource to NI 43-101 standards, and it is unclear whether additional drilling will define a mineral resource in the expansion area of the XY West deposit. However, given that the XY West deposit remains open for expansion and the apparent lateral continuity of thick zones of zinc-lead mineralization containing substantial thicknesses of high grade mineralization, as confirmed by drill holes XYC-249 and XYC-263 (see September 6, 2011 news release), there is an excellent probability of growth of mineral resources in the expansion area at XY West deposit. Additional drill results for the XY West deposit are pending.

Exploration History

The XY West deposit was discovered in 2008 during an exploration program in a fault panel immediately to the northwest of the XY Central deposit (see September 3, 2008 news release). Initial drilling at XY West followed up on the favourable geology identified in a historical drill hole that cored the hanging wall rocks known to overlie the horizon of zinc-lead mineralization. The 2008 program discovery drill hole, XYC-172, was a 1,100 metre step out to the northwest from the XY Central deposit. The ensuing results from 2008 and 2009 drill programs led to an initial Inferred mineral resource to NI 43-101 standards of 1,917,600 tonnes grading 7.70% zinc and 2.45% lead. This mineral resource estimate was prepared by Non-Independent Qualified Person, Mr. John J. O'Donnell, P.Geo. (see February 26, 2009 news release).

All assay results from the exploration and definition drilling program are undergoing quality assurance and quality control review. Upon completion of this review, the data will form the basis for a new mineral resource estimate. 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 the mine plan. Results from the definition drilling program continue to confirm the 3D geological and structural models for XY West deposit. The location of the new drill holes and lenses can be found on drill plan maps available at www.selwynresources.com.

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 have undergone 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") and 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 primary focus remains the exploration and development of the properties that make up the Selwyn Project in the Yukon, by the joint venture comprised of Selwyn and Chihong Canada Mining Ltd. The Selwyn Project hosts large tonnages of zinc-lead mineralization which have the potential for large scale production, and could 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 ScoZinc Limited, which owns the ScoZinc Mine, 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 and the development of the Selwyn Project and of the future prospects for the ScoZinc Mine. 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 factors beyond Selwyn's control, including the results of exploration activities, economic evaluations and engineering studies, the availability of funds in the financial markets on terms acceptable to Selwyn and the public's view of the economic value of the Selwyn Project and the ScoZinc Mine. Additionally, more 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 at the Selwyn Project. 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 development of the Selwyn Project and of the ScoZinc Mine. Although Selwyn has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other factors that cause results not to be as anticipated or intended. There is no assurance that such information will prove to be accurate, as future events could differ materially from those anticipated in such information and accordingly, there is no assurance that the Selwyn Project or the ScoZinc Mine will be developed into profitable mines. Readers should not place undue reliance on forward-looking statements.

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