New High-Grade Zinc-Lead Zone Discovered at Selwyn Project

Tag : zinc

(i) Overall intercept includes up to 7-assay samples that arereported greater than 20% zinc and 5% lead (maximum for analyticaltechnique, and therefore calculated as 20% zinc and 5% lead);meaning intervals will be restated when overlimit assays completed.
Deep Drilling
The wide spaced drill holes in the 2008 drilling program at the XYWest target have defined what appears to be a significant new areaof high-grade mineralization along strike of high-grademineralization in the XY Central deposit that has the same twohigh-grade layers; one at the hanging wall, and a second at thefootwall; as seen in the geological strata of the XY Central, Don,Don East and HC West high-grade underground deposits. The drillinghas also confirmed Selwyn's detailed 3D geological model developedduring the 2008 mineral resource estimation. A total of 4 diamonddrill holes have now been completed in the XY West zone area and 3of 4 drill holes have intersected well mineralized, zinc-leadActive Member with one terminating in faulted ground conditions inthe upper part of the Active Member. A fifth drill hole iscurrently in progress. The first round of assay results fromXYC-172 is presented in Table 1; noting that 7-assay samples fromthis discovery intercept are capped at 20% zinc and 5% lead becausethese assay samples were at the maximum upper level of accuracy forthe analytical technique used. Overlimit assay protocols are beingapplied to these samples and additional assay results will beforthcoming shortly.
The XY West zone remains open for expansion of its mineralpotential and currently has been drilled over a 700 metre strikelength; noting that XY West has an approximate average thickness of30 metres for the zinc-lead mineralized portion of the ActiveMember, and the high-grade layers are a subset of these intercepts.A dip length for the XY West zone will be determined as additionaldrilling of this target defines structural continuity with thestructural panel. The current 3D interpretation from the geologicalmodel shows that the zone appears to be dipping to the northeast,and to be bounded by a fault structure to the southeast at depth.It should be noted that the mineral potential of this new targetarea requires additional drilling and it is unknown if drilling in2008 will be sufficient to define a NI 43-101 mineral resource forthis new discovery.
The XY West zone discovery drill hole, XYC-172, was successfullycompleted from the same collar location as historical drill hole,XYC-065, which was drilled by a former operator in the 1970's.XYC-172 intersected 9.10 metres approximate true thickness in theunderground target grading 7.49% zinc and 2.05% lead, including3.71 metres grading 13.18% zinc and 3.46% lead. There-interpretation of the favourable strata of the XY West targetarea revealed that XYC-065 contained significant, favourablehanging wall rocks, but that the drill hole passed through a faultstructure and terminated in footwall rocks without intersectingActive Member. Selwyn drilled a new drill hole from the same setupwith a new steeper dip which resulted in the intersection ofhigh-grade zinc-lead mineralization in the Active Member at a depththat conceptually has the potential to be amenable for open-pitmining methods.
Recent drilling in the vicinity of the XY Central deposit hasfocused on interpreted favourable stratigraphy outside of the knownMarch 2008 NI 43-101 compliant, high-grade mineral resources.Drilling from 2005 to 2007 on the XY Central high-grade undergroundtarget has defined a NI 43-101 compliant, Indicated mineralresource of 10,738,000 tonnes grading 10.38% zinc and 4.41% leadand an Inferred mineral resource of 2,849,000 tonnes grading 10.86%zinc and 4.41% lead. This mineral resource estimation was completedby Independent Qualified Person Mr. Cliff Pearson, P.Geo. andNon-independent Qualified Person, Mr. John O'Donnell (see January29, 2008 news release). A selected reference list of previouslyreleased intercepts from the adjacent XY Central high-grademineralization are presented in Table 2 for reference includingXYC-124 (see September 21, 2006 news release); XYC-141 (see October30, 2006 news release); XYC-150 (see November 24, 2006 newsrelease); and XYC-171 (see January 17, 2008 news release).
The Selwyn Project exploration program is being reviewed by VicePresident of Exploration, Jason Dunning, M.Sc., P.Geo. The onsiteactivities for the Selwyn Project are directed by ExplorationManager, John J. O'Donnell, P.Geo. Both Mr. Dunning and Mr.O'Donnell are Qualified Persons within the meaning of NationalInstrument 43-101. All assay data has been through internalvalidation of quality assurance and quality control. Selwyn hasestablished a sampling and assay control program with blindinsertion of assay blanks, standards and duplicates for the SelwynProject; however, it should be noted that there is also a qualitycontrol and quality assurance program in place at ACME AnalyticalLaboratories Ltd. ("ACME") that includes blanks, duplicates andstandards. At ACME, base metal analyses are conducted by a17-element, four-acid digestion, ore-grade ICP-AES technique.
Selwyn's focus is the exploration of its properties that make upthe Selwyn Project in the Yukon, which hosts large tonnages ofzinc-lead mineralization. The known deposits have the potential forthe large scale production, and the potential to provide a securesupply of zinc and lead to meet the future needs of the zinc andlead markets in Asia and beyond.
This press release contains forward-looking statements concerningmineralization at the Selwyn Project. These forward-lookingstatements are based on assumptions and judgments of managementregarding future events or results that may prove to be inaccurateas a result of exploration and other risk factors beyond Selwyn'scontrol. As a result, actual results may differ materially from theexpected results. Additional drilling is required to confirm thepotential of the new discovery areas and expansions of the currentresource areas and the extension of the higher grade deepmineralization to depth. There is no assurance that the resourcesbeing defined can be developed as an economically attractive mine,and there are many uncertainties associated with permitting andother factors that could delay such development.
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