Selwyn Drilling on Don Deposit Continues to Confirm Continuity
#700 – 509 Richards Street Vancouver, British Columbia Canada V6B 2Z6 Telephone: (604) 801-7240 Toll-free: 1-888-989-9188 Fax: (604) 689-8355 Trading Symbol: SWN.TSX-V [email protected] News Release – 2011-33 www.selwynresources.com
News Release
Selwyn Drilling on Don Deposit Continues to Confirm Continuity
Vancouver, July 11, 2011 – Selwyn Resources Ltd. (SWN.TSX-V) (“Selwyn”) is pleased to announce additional drill results from the drilling of the 61 and 63 lenses of the Don deposit at Selwyn Project, Yukon Territory. These drill results are part of the definition drilling program in the Don deposit that is being conducted by Selwyn Chihong Mining Ltd. (“SCML”), the joint venture company equally owned by Selwyn and Chihong Mining Canada Ltd., a wholly owned subsidiary of Yunnan Chihong Zinc and Germanium Co. Ltd.
Drilling continues to confirm known mineral resources with one drill at the Don deposit and two drills at the XY West deposit.
Highlights: 61 and 63 Lenses of the Don Deposit
- DON-209 intersected 14.73 metres true thickness grading 7.63% zinc and 3.26% lead, including 2.16 metres grading 19.20% zinc and 12.03% lead; and
- DON-210 intersected 21.93 metres true thickness grading 8.90% zinc and 3.45% lead, including 2.69 metres grading 18.16% zinc and 8.65% lead.
61 and 63 Lenses Don Deposit Drill Results
The high-grade mineral resource for the Don deposit, undertaken to NI 43-101 standards, is composed of three lenses in the underground environment, each of which is structurally bounded by faults. The three main lenses are the 61-lens, 62-lens and 63-lens.
Drill hole DON-209 intersected two sections of high-grade zinc-lead mineralization, including the bottom of the 61 lens and upper end of the 63 lens. The two intercepts in DON-209 are the result of structural duplication caused by faulting. The upper intercept is from 386.00 to 401.00 metres for a true thickness of 11.16 metres grading 6.47% zinc and 2.30% lead. The lower intercept is from 489.00 to 503.60 metres for a true thickness of 14.73 metres grading 7.63% zinc and 3.26% lead, including 2.16 metres grading 19.20% zinc and 12.03% lead.
| Drill Hole | From (m) | To (m) | Thickness (m) | Zn (%) | Pb (%) | Zn+Pb (%) | True Thickness (m) |
|---|---|---|---|---|---|---|---|
| DON-209 | 386.00 | 401.00 | 15.00 | 6.47 | 2.30 | 8.77 | 11.16 |
| ** | 483.80 | 503.60 | 19.80 | 7.63 | 3.26 | 10.89 | 14.73 |
| Including** | 489.00 | 503.60 | 14.60 | 9.49 | 4.24 | 13.73 | 10.86 |
| Including** | 495.10 | 501.10 | 6.00 | 15.06 | 3.12 | 18.19 | 4.46 |
| Including** | 496.50 | 499.40 | 2.90 | 19.20 | 12.03 | 31.23 | 2.16 |
| ** Denotes intersection of the 63 lens. |
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The intercept in DON-210 is within the 61 lens and has a true thickness of 21.93 metres, from 40.00 to 84.00 metres grading 8.90% zinc and 3.45% lead. This includes a very high-grade intercept of 2.69 metres grading 18.16% zinc and 8.65% lead.
| Drill Hole | From (m) | To (m) | Thickness (m) | Zn (%) | Pb (%) | Zn+Pb (%) | True Thickness (m) |
|---|---|---|---|---|---|---|---|
| DON-210 | 40.00 | 84.00 | 44.00 | 8.90 | 3.45 | 12.35 | 21.93 |
| Including | 42.10 | 60.00 | 17.90 | 8.55 | 5.23 | 13.78 | 8.93 |
| Including | 64.20 | 84.00 | 19.80 | 11.14 | 5.06 | 16.20 | 9.87 |
| 73.40 | 78.80 | 5.40 | 18.16 | 8.65 | 26.81 | 2.69 |
Other intercepts from 2011 in the 61 and 63 lenses include drill holes DON-194, DON-204, DON-206, DON-208, DON-211, DON-212 and DON-216, all of which host zinc-lead mineralization.
| Drill Hole | From (m) | To (m) | Thickness (m) | Zn (%) | Pb (%) | Zn+Pb (%) | True Thickness (m) |
|---|---|---|---|---|---|---|---|
| DON-194 | 503.30 | 510.10 | 6.80 | 5.96 | 1.97 | 7.93 | 5.58 |
| ** | 591.60 | 601.40 | 9.80 | 4.87 | 1.80 | 6.67 | 8.04 |
| DON-204 | 107.00 | 138.70 | 31.70 | 4.77 | 1.39 | 6.16 | 22.28 |
| Including | 123.65 | 138.70 | 15.05 | 6.26 | 2.00 | 8.26 | 10.58 |
| Including | 124.44 | 134.61 | 10.17 | 6.96 | 2.11 | 9.07 | 7.15 |
| DON-206 | 308.60 | 325.50 | 16.90 | 5.77 | 2.43 | 8.21 | 10.73 |
| 308.60 | 314.00 | 5.40 | 6.88 | 2.16 | 9.04 | 3.43 | |
| DON-208 | 449.30 | 464.30 | 15.00 | 4.12 | 1.38 | 5.51 | 9.52 |
| Including | 458.40 | 464.30 | 5.90 | 5.93 | 2.15 | 8.08 | 3.75 |
| Including | 458.40 | 460.60 | 2.20 | 7.63 | 2.48 | 10.11 | 1.40 |
| DON-211 | 43.00 | 85.20 | 42.20 | 3.38 | 1.20 | 4.58 | 29.11 |
| Including | 43.00 | 50.75 | 7.75 | 3.03 | 0.80 | 3.83 | 5.35 |
| Including | 57.00 | 68.85 | 11.85 | 6.02 | 2.59 | 8.61 | 8.17 |
| Including | 62.00 | 65.90 | 3.90 | 10.57 | 1.64 | 12.20 | 2.69 |
| Including | 81.20 | 85.20 | 4.00 | 6.27 | 1.79 | 8.06 | 2.76 |
| DON-212 ** | 537.20 | 575.00 | 37.80 | 3.99 | 1.21 | 5.20 | 20.11 |
| Including** | 537.20 | 548.00 | 10.80 | 3.80 | 1.03 | 4.83 | 5.75 |
| Including** | 555.80 | 575.00 | 19.20 | 5.29 | 1.66 | 6.95 | 10.21 |
| Including** | 557.30 | 559.70 | 2.40 | 6.96 | 1.33 | 8.29 | 1.28 |
| Including** | 565.10 | 571.50 | 6.40 | 8.77 | 2.96 | 11.73 | 3.41 |
| ** | 588.30 | 594.60 | 6.30 | 8.36 | 2.63 | 10.99 | 3.35 |
| DON-216 | 496.08 | 505.00 | 8.92 | 3.64 | 1.21 | 4.85 | 1.63 |
| Including | 501.30 | 505.00 | 3.70 | 4.99 | 1.70 | 6.70 | 0.67 |
| ** | 587.85 | 597.80 | 9.95 | 4.05 | 1.38 | 5.43 | 1.81 |
| ** Denotes intersection of the 63 lens. |
Upon receipt of all assay results from the definition drilling program and after passing quality assurance and quality control review, SCML will incorporate the data into a new mineral resource estimate for the bankable feasibility study that it 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
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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.
The 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. This 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).
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 has 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 Scotia 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 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’s 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, 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 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 Scotia mine will be developed into profitable mines. Readers should not place undue reliance on forward-looking statements.
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For more information contact:
Dr. Harlan Meade, President and CEO Catalin Chiloflischi, Manager of Investor Communications Telephone: (604) 801-7240 Toll-free: 1-888-989-9188 Facsimile: (604) 689-8355 [email protected] www.selwynresources.com
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