Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

October 25, 2010 08:58 ET

Update on Drilling Activities at Selwyn Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2010) - Selwyn Resources Ltd. (TSX VENTURE:SWN) is pleased to update investors on the status of the exploration program at Selwyn Project being undertaken in support of the bankable feasibility study set for completion in mid-2011. To date, 48 drill holes have been completed with 5 in progress for a total of 13,685.54 metres. The majority of the drilling is designed to upgrade the confidence of the NI 43-101 compliant, Inferred mineral resources in the XY Central, XY West and Don deposits into the Indicated category for use in the ongoing bankable feasibility study. A minor portion of the drilling was allocated to condemnation drilling in the vicinity of infrastructure to determine mineral potential, prior to the commencement of engineering assessment. The location of the new drill holes can be found on drill plan maps available at www.selwynresources.com.

XY Central Drilling

The 2010 definition drilling of the high-grade mineral resource of the XY Central deposit began in early June with one drill rig and has been the focus of exploration work to this point with up to five drill rigs working in August. Work on the XY Central deposit is nearly complete with three drill rigs still active; noting that work should be complete by end of October. A total of 14,500 metres are planned for the conversion of Inferred mineral resources, as stated in the February 2009 NI 43-101 compliant underground high-grade mineral resource estimate. The February 2009 mineral resource estimate was supervised by Non-Independent Qualified Person, John J. O'Donnell, P.Geo. and yielded an Indicated mineral resource in the high-grade underground XY Central deposit of 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 (see February 26, 2009 news release).

To date, 37 diamond drill holes have been completed in the high-grade underground mineral resource of the XY Central deposit for a total of 11,495.2 metres, with three drill holes in progress for an additional 252.0 metres. This drilling has confirmed Selwyn's 3D geological and mineral resource models. The drill holes have been marked up for sampling and the collection of samples bound for the laboratories; however, it should be noted that the drill holes were being held pending completion of a detailed geotechnical data collection process for rock mechanics at a commercial laboratory. This portion of the rock mechanics work program is now completed and mineralized intervals are being prepared for submittal to the laboratory for assaying. Results of this drilling will be reported when assays have been received and reviewed under Selwyn's internal QAQC procedures and protocols.

XY West Drilling

The XY West deposit was discovered in 2008 (see September 9, 2008 news release). Following drill testing of the newly discovered mineralization, a NI 43-101 compliant mineral resource estimated to contain an Inferred mineral resource of 1,910,000 tonnes grading 7.70% zinc and 2.45% (see February 26, 2009 news release) was determined. The NI-43-101 compliant Inferred mineral resource was reported by Non-Independent Qualified Person John. J. O'Donnell, P.Geo, for the Selwyn Project.

In recent drilling, 4 diamond drill holes have been completed in the high-grade underground mineral resource of the XY West deposit for a total of 1,609.3 metres with two drill holes in progress for an additional 866.8 metres. A third drill rig will be added next week to advance definition drilling. The detailed, 3D model is being updated as drill holes are being completed. Although drilling is providing very positive results, it has indicated some minor changes to the deposit and its orientation that may require additional drilling to firm up the geological and structural framework and the possible structural repetition of mineralized lenses. This stacking of mineralized lenses can be extremely beneficial as it can increase the potential for more available tonnes of mineralization per vertical foot in any future mine plan.

There still remains a largely untested gap of 650 metres between the high-grade underground NI 43-101 compliant mineral resource of XY West and the adjacent, and much larger, XY Central deposit to the southeast. This project opportunity is not part of the current definition drilling program; however, can be easily assessed when Selwyn Project expands drilling in the future.

Other

Condemnation drilling was done in the vicinity of the proposed options for tailings impoundment facilities and mill sites to ensure that their positioning would not sterilize any exploration opportunities for future discoveries. In advance of the drilling, both resistivity and seismic geophysical techniques were employed to gain a better understanding of the glacial overburden depths and interface with the bedrock. This information was extremely useful in targeting drill holes. Geotechnical work at these locations resulted in 9 drill holes totalling 900.0 metres at three sites. In all cases, drilling results identified footwall rocks of the known deposits at Selwyn Project that are deemed to be unfavourable to host zinc-lead mineralization.

The Selwyn Project exploration program is being reviewed by Vice President Exploration, Mr. Jason Dunning, M.Sc., P.Geo., who is also managing the onsite activities for the Selwyn Project. Mr. Dunning is a Qualified Person within the meaning of National Instrument 43-101. Selwyn has established a sampling and assay quality control and quality assurance program with blind insertion of assay blanks, standards and duplicates. ACME Analytical Laboratories Ltd. ("ACME") also has a quality control and assurance program that includes blanks, duplicates and standards. At ACME, base metal analyzes 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.

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
    or
    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