Selwyn Resources Ltd.: Drilling Confirms Near Surface High-Grade Mineralization at XY Central Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2011) - Selwyn Resources Ltd. ("Selwyn") (TSX VENTURE:SWN) is pleased to update investors with the release of assay results from the drilling of the 98/99-lenses of the XY Central deposit at Selwyn Project, Yukon Territory that is being done by Selwyn Chihong Mining Ltd., the joint venture company equally owned by Selwyn and Chihong Canada Ltd. These new results continue to confirm the continuity of high-grade zinc-lead mineralization and will provide the necessary data to upgrade Inferred resources within the XY Central deposit deposit. 

Highlights: 98/99-lenses of the XY Central deposit

• XYC-230 intersected 16.17 metres true thickness grading 9.51% zinc and 3.25% lead, including 3.42 metres grading 18.48% zinc and 8.29% lead; and

• XYC-239 intersected 15.38 metres true thickness grading 10.79% zinc and 3.35% lead, including 4.87 metres grading 22.86% zinc and 7.19% lead.

The XY Central deposit is composed of three high-grade, main lenses in the underground environment that are structurally bound by faults. The three main lenses are the 93-lens, 98-lens, and the 99-lens. Drill holes XYC-211, XYC-230, XYC-234, XYC-235, XYC-236, XYC-239, XYC-240, XYC-243, and XYC-244 are infill holes within the near-surface extension of the existing 98/99-lenses that comprise the majority of the high-grade, zinc-lead mineralization at the XY Central deposit. A map of the location of the lenses is available at www.selwynresources.com.

The continuing success in intersecting high-grade mineralization in these near-surface infill drill holes confirms the continuity of high-grade mineralization in the 98/99-lenses (see news releases December 17 & 22, 2010). Drill hole XYC-230 is another excellent example of the high-grade mineralization at XY Central deposit that is hosted within a much broader envelope of lower-grade mineralization. Mineralization in XYC-230 is two, structurally repeated intercepts from 69.50 to 87.90 metres and from 122.50 to 157.80 metres. The high-grade mineralization was intercepted from 124.00 to 141.50 metres for a true thickness of 16.17 metres grading 9.51% zinc and 3.25% lead, including 3.42 metres grading 18.48% zinc and 8.29% lead. This compares very favourably with previously released, nearby intercepts from the 98/99-lenses in XYC-125 (see September 21, 2006 news release) and XYC-140 (see October 30, 2006 news release).

Drill Hole		From (m)	To (m)	Thickness (m)	Zn (%)	Pb (%)	Zn+Pb (%)	True Thickness (m)
XYC-230		70.40	81.10	10.70	6.77	2.13	8.90	9.88
	Including	79.20	81.10	1.90	17.61	8.05	25.66	1.76
		124.00	141.50	17.50	9.51	3.25	12.76	16.17
	Including	126.50	130.20	3.70	18.48	8.29	26.77	3.42
	Including	137.70	141.50	3.80	14.57	2.89	17.46	3.51
	Including	137.70	138.50	0.80	21.46	2.89	24.35	0.74
	Including	140.30	141.50	1.20	26.21	5.56	31.77	1.11

Drill hole XYC-235 intersected a very wide intersection of mineralization from 67.6 to 148.0 metres that also appears to be structurally thickened due to faulting. As a result, there are two main intervals of mineralization, one from 69.20 to 98.30 metres for a true thickness of 29.10 metres grading 5.43% zinc and 1.67% lead including 6.10 metres true thickness grading 10.89% zinc and 3.26% lead. The second intercept is from 121.60 to 139.80 metres for a true thickness of 18.20 metres grading 5.54% zinc and 1.12% lead including 3.40 metres grading 14.07% zinc and 2.55% lead. Results in XYC-135 are comparable in grade and thickness to previously released assay results in nearby drill holes such as XYC-125 (see September 21, 2006 news release), XYC-126 (see October 10, 2006 news release).

Drill Hole		From (m)	To (m)	Thickness (m)	Zn (%)	Pb (%)	Zn+Pb (%)	True Thickness (m)
XYC-235		69.20	98.30	29.10	5.43	1.67	7.10	29.10
	Including	78.30	89.40	11.10	7.73	2.43	10.16	11.10
	Including	81.80	87.90	6.10	10.89	3.26	14.15	6.10
	Including	86.00	87.90	1.90	21.27	6.73	28.00	1.90
		121.60	139.80	18.20	5.54	1.12	6.66	18.20
	Including	121.60	124.40	2.80	8.41	1.66	10.07	2.80
	Including	129.00	137.00	8.00	8.03	1.50	9.53	8.00
	Including	133.60	137.00	3.40	14.07	2.55	16.62	3.40

Drill hole XYC-239 intersected a thick section of high-grade mineralization from 125.30 to 141.00 metres for a true thickness of 15.38 metres grading 10.79% zinc and 3.35% lead including 4.87 metres true thickness grading 22.86% zinc and 7.19% lead. These results are comparable in grade and thickness to previously released assay results in nearby drill holes such as XYC-216 (see December 22, 2010 news release), XYC-126 (see October 10, 2006 news release).

Drill Hole		From (m)	To (m)	Thickness (m)	Zn (%)	Pb (%)	Zn+Pb (%)	True Thickness (m)
XYC-239		125.30	141.10	15.80	10.79	3.35	14.14	15.38
	Including	133.40	141.10	7.70	17.17	5.30	22.47	7.50
	Including	136.10	141.10	5.00	22.86	7.19	30.05	4.87

Other intercepts from 2010 include drill holes XYC-211, XYC-234, XYC-236, XYC-240, XYC-243 and XYC-244; which also host high grade mineralization.

Drill Hole		From (m)	To (m)	Thickness (m)	Zn (%)	Pb (%)	Zn+Pb (%)	True Thickness (m)
XYC-211		33.80	34.80	1.00	8.66	1.61	10.27	0.93
		135.60	140.70	5.10	6.65	1.79	8.44	4.75
XYC-234		127.40	144.80	17.40	5.18	1.59	6.77	16.19
	Including	127.40	129.70	2.30	11.30	2.85	14.15	2.14
	Including	134.30	134.80	0.50	22.30	3.57	25.87	0.47
	Including	138.30	144.80	6.50	6.14	1.75	7.89	6.05
XYC-236		73.50	77.40	3.90	5.62	1.31	6.93	3.84
		80.60	82.20	1.60	5.16	0.62	5.78	1.57
		92.90	96.10	3.20	6.66	1.74	8.40	3.14
XYC-240		15.60	16.20	0.60	7.94	1.00	8.94	0.60
		62.40	63.70	1.30	10.66	2.49	13.15	1.30
		72.10	77.20	5.10	6.39	2.25	8.64	5.10
		116.00	134.00	18.00	5.55	1.20	6.75	17.59
	Including	116.00	120.90	4.90	10.98	2.13	13.11	4.79
	Including	116.90	118.40	1.50	23.49	3.06	26.55	1.46
	Including	131.30	132.90	1.60	9.25	1.24	10.49	1.56
XYC-243		90.90	93.80	2.90	16.26	8.55	24.81	2.77
		98.80	104.70	5.90	6.68	1.58	8.26	5.64
	Including	103.90	104.70	0.80	25.74	6.03	31.77	0.77
XYC-244		81.50	84.80	3.30	7.84	1.92	9.76	1.88
		87.60	93.70	6.10	5.00	1.12	6.12	3.47
	Including	90.90	92.40	1.50	9.46	1.97	11.43	0.85

Results from the definition drilling program continue to confirm the 3D geological and structural models for the XY Central deposit. The definition drilling includes 47 diamond drill holes totalling 13,994.80 metres in the three main lenses in XY Central deposit. The NI 43-101 compliant Indicated mineral resource for the XY Central deposit is 10,738,000 tonnes grading 10.38% zinc and 4.41% lead and an Inferred mineral resource of 2,849,000 tonnes grading 10.86% zinc and 4.41% lead. This study was done 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). 

Work resumed at Selwyn Project on January 5, 2011 with drill crews being mobilized over the next two to three weeks in order to continue the upgrading of mineral resources at the Don deposit using five drill rigs. In addition, one drill rig will continue work on the XY West deposit where exploration drilling is further defining distribution of the mineralized strata and further identifying exploration potential.

The Selwyn Project exploration program is being reviewed by Vice President Exploration, Mr. Jason Dunning, M.Sc., P.Geo, who is also responsible for the onsite activities for the Selwyn Project. Mr. Dunning is a Qualified Person 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 place at ACME Analytical Laboratories Ltd. ("ACME") that includes blanks, duplicates and standards. At ACME, silver and base metal analyses are conducted by a 23-element, four-acid digestion, ore-grade ICP-AES technique.

Selwyn's focus is the exploration and development 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 the potential to provide a secure supply of zinc and lead to meet the future needs of the zinc and lead markets 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 geological variability 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 such additional drilling will expand mineral resources or 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.