Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

August 15, 2011 09:27 ET

Selwyn Resources Ltd.: Deep Drilling at Don Deposit Defines New Mineral Potential in Don Valley

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 15, 2011) - Selwyn Resources Ltd. ("Selwyn") (TSX VENTURE:SWN) is pleased to announce the final drill results from the Don deposit area at Selwyn Project, Yukon. The exploration drill results expand upon the recently-released definition drilling results of the mineral resources comprising the Don deposit. The exploration drilling targeted an area between the Don and Don East deposits and was conducted by Selwyn Chihong Mining Ltd. ("SCML"), the joint venture company equally owned by Selwyn and Chihong Mining Canada Ltd. Chihong Mining Canada Ltd. is a wholly owned subsidiary of Yunnan Chihong Zinc and Germanium Co., Ltd.

Highlights

  • DON-219 intersected 28.06 metres true thickness grading 7.46% zinc and 2.05% lead, including 12.42 metres grading 10.67% zinc and 2.68% lead; and
  • conceptual target of high grade mineralization defined at depth joining the Don and Don East deposits with dimensions of 900 metres by 250 metres and average thickness of 25 metres.

Don-Don East Mineral Potential Extension

Recent deep drilling at the Don deposit yielded intercepts of thick high-grade zinc-lead mineralization below the previously known mineral resource for the Don deposit (see June 7, 2011 news release). A detailed review of the thick intercepts of zinc-lead mineralization at depth in the Don deposit has defined an attractive conceptual target between the Don and Don East deposits. This new target is based upon the linking of the shallow dipping zinc-lead mineralization at a similar elevation in each of the Don and Don East deposits.

Drill hole DON-219 intersected a thick section of high-grade zinc-lead mineralization within a broader zone of zinc-lead mineralization off the edge of the known Don East deposit mineral resource. The zinc-lead mineralization in this step-out drill hole is very similar to DON-106 (see September 4, 2007 news release) and DON-114 (see November 14, 2007 news release), which are respectively located 310 and 186 metres to the southeast.

The zinc-lead mineralization in DON-219 is present from 615.70 to 694.50 metres for a true thickness of 70.42 metres grading 4.08% zinc and 1.07% lead. This includes a higher-grade intercept of 31.40 metres true thickness grading 7.46% zinc and 2.05% lead, including 12.42 metres grading 10.67% zinc and 2.68% lead. The results in DON-219 further strengthen SCML's confidence in the correlation with similar mineralization in the Don East deposit.

True
From To Thickness Zn Pb Zn+Pb Thickness
Drill Hole (m) (m) (m) (%) (%) (%) (m)
DON-219 615.70 694.50 78.80 4.08 1.07 5.15 70.42
Including 616.30 620.90 4.60 6.41 1.17 7.58 4.11
Including 629.30 660.70 31.40 7.46 2.05 9.51 28.06
Including 629.30 631.20 1.90 14.22 3.48 17.70 1.70
Including 634.00 647.90 13.90 10.67 2.68 13.35 12.42
Including 640.10 646.30 6.20 14.65 3.50 18.15 5.54
Including 654.20 655.90 1.70 12.14 3.50 15.64 1.52
Including 688.30 691.90 3.60 9.90 2.01 11.91 3.22

Further evidence to support the feasibility of this new target includes the results from deep drilling at Don deposit drill hole DON-180, which intersected a thick section of high-grade from 642.50.40 to 673.60 metres for a true thickness of 29.85 metres grading 9.27% zinc and 3.48% lead, including 4.70 metres grading 24.56% zinc and 13.10% lead. Drill hole DON-192 also intersected thick high-grade mineralization, providing findings that correlate well with the intercepts in DON-180. The mineralization in DON-192 was intersected from 586.90 to 642.80 metres, with a higher-grade section from 598.90 to 642.80 metres grading 8.94% zinc and 3.16% lead over a true thickness of 43.15 metres. This includes 12.58 metres of 12.86% zinc and 4.91% lead (see June 7, 2011 news release).

The multiple recent drill intercepts of thick high grade zinc-lead mineralization continue to support the potential for defining a new zone of high grade mineralization between Don and Don East deposits. This target is interpreted to have a minimum area of 900 by 250 metres with an average thickness of 25 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 between Don and Don East deposits. However, the potential for expansion in both the Don and Don East deposits and the apparent lateral continuity of thick zones of zinc-lead mineralization containing substantial thicknesses of high grade mineralization (as confirmed by drill hole DON-219) suggest an excellent opportunity for the growth of mineral resources in the target area. Additional definition drilling will be required prior to defining the mineral potential as a mineral resource to NI 43-101 standards (see website www.selwynresources.com for plan illustrating drill hole locations).

The January 2008 mineral resource for the Don deposit, conducted to NI 43-101 standards, includes an Indicated mineral resource for high-grade mineralization of 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. The Don East deposit mineral resource, conducted to NI 43-101 standards, includes an Inferred mineral resource for high-grade mineralization of 11,975,460 tonnes grading 8.95% zinc and 2.30% lead. The January 2008 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).

Updated mineral resource estimates for both Don and XY Central deposits are in their final stages of completion, based on new information from the Fall 2010 and Spring 2011 definition drilling program. The results will be available once they have passed audit and all quality control and quality assurance validations.

The Selwyn Project exploration program is being reviewed by Vice President of 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.

All assay results from the 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 for inclusion in the bankable feasibility study that SCML is advancing 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 the mine plan. 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.

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 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 Scotia 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 view of the economic value of the Selwyn Project and the Scotia Mine. Additionally, more drilling is required to confirm the potential of the new discovery areas, the 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 Scotia 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 to differ from those 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 Scotia 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