Selwyn Resources Ltd. (TSX VENTURE:SWN) (“Selwyn”) is pleased to inform investors that it has commenced exploration activities at the ScoZinc mine (formerly the Scotia mine) to provide infill definition drilling and to conduct near-mine exploration in support of the mine restart activities. Restart activities were initiated shortly after closing of the acquisition of ScoZinc Limited (see June 1, 2011 news release). ScoZinc Limited has entered into a drilling contract with Logan Drilling Group of Stewiacke, Nova Scotia. Two drill rigs are being mobilized to the ScoZinc mine for the commencement of diamond drilling.
Exploration drilling will focus on the expansion of mineral resources based on targets identified from a compilation of approximately 1,400 historical drill holes in and around the ScoZinc mine. Zinc-lead mineralization at the ScoZinc mine consists of two principle zones: the Main zone, the site of open pit operations, and the contiguous Northeast zone (see April 6, 2011 news release). A third mineralized centre, the Getty deposit (see March 30, 2011 news release), is situated 1,400 metres northwest of the Main zone. The ScoZinc mine and Getty deposit are part of a mineralized carbonate structure that occurs over approximately 6 kilometres of the reef structure.
The initial drilling will focus on an area immediately southwest of the existing open pit that covers the Main zone. Approximately 4,500 metres of infill and exploratory drill holes will be completed over the next two months. This area is referred to as the SW Extension and is part of the current mineral resource inventory for ScoZinc mine. The objective of the drilling in the SW Extension area is the first step in identifying additional mineral resources near the current open pit and to determine if there are opportunities for expansion of the open pit in this area. Additional drilling is also planned for the Northeast zone after completion of the current program. The drilling on the Northeast zone will help define and expand known mineral resources, as well as provide information for ongoing engineering studies as to possible mining methods for this zone’s future development.
Selwyn also owns approximately 42,080 hectares of mineral claims in Nova Scotia, including coverage of numerous known reef structures with similarities to those that host the ScoZinc mine and Getty deposit. These exploration lands have high potential for additional mineralization and will form the focus of future exploration.
The April 2011 mineral resources to National Instrument (“NI”) 43-101 standards for the Main zone at a 1.50% zinc equivalent cut-off value include Measured and Indicated mineral resources of 2,890,000 tonnes grading 4.20% zinc and 1.90% lead, and Inferred mineral resource of 1,570,000 tonnes grading 3.30% zinc and 1.30% lead. The Northeast zone at a 2.0% zinc equivalent cut-off value include Indicated mineral resource of 1,580,000 tonnes grading 4.21% zinc and 2.22% lead, and Inferred mineral resource of 1,880,000 tonnes grading 2.70% zinc and 1.86% lead. The mineral resource estimate for the Main zone was supervised and prepared by Independent Qualified Persons Mr. Doug Roy, P.Eng. and Mr. Tim Carew, P.Geo., as defined by National Instrument (NI) 43-101. Mr. Roy works for MineTech International Limited (“MineTech”) of Halifax, Nova Scotia, and Mr. Carew, P.Geo., provided services under contract with MineTech. The mineral resource estimate for the Northeast zone was supervised and prepared by Independent Qualified Person Mr. Doug Roy, P.Eng. (see April 6, 2011 news release). For the purposes of this study and news release, Mr. Jason Dunning, P.Geo., Selwyn’s Vice President of Exploration has reviewed the contents and is Selwyn’s designated, Non-Independent Qualified Person in accordance with NI 43-101 standards. An updated mineral resource report to NI 43-101 standards was filed on July 8, 2011 and is available on SEDAR (www.sedar.com).
Selwyn’s primary focus remains the exploration and development of the properties that make up the Selwyn Project in the Yukon that are operated 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 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 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 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 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.
