Selwyn Resources Ltd. (TSX VENTURE:SWN) is pleased to announce a new, upgraded
mineral resource estimate for the Selwyn Project in the Yukon that has been
completed to National Instrument ("NI") 43-101 standards. The 2010 and 2011
definition drilling within the XY Central and Don deposits achieved its goal of
converting Inferred mineral resources to the Indicated category.
The mineral resource update focused on the global mineral resource, but the
mineral resource inventory for the XY Central and Don deposits includes a
higher-grade tonnage that is the foundation for the bankable feasibility study
("BFS") in progress with Wardrop Engineering Inc. ("Wardrop"). The work program
associated with the mineral resource update was undertaken by Selwyn Chihong
Mining Ltd. ("SCML"), the joint venture company equally owned by Selwyn and
Chihong Mining Canada Ltd. Chihong Mining Canada Ltd. is a wholly owned
subsidiary of Yunnan Chihong Zinc and Germanium Co. Ltd. The location of the new
drill holes and lenses can be found on drill plan maps available at
www.selwynresources.com.
Global Mineral Resource Highlights
-- The XY Central deposit 93, 94, and 95 lenses have an Indicated mineral
resource of 29,936,000 tonnes grading 6.35% zinc and 2.69% lead at a
base case 2.0% zinc cut-off grade; and
-- The Don deposit has an Indicated mineral resource of 36,901,600 tonnes
grading 5.63% zinc and 2.11% lead at a base case 2.0% zinc cut-off
grade;
-- Global Indicated Mineral Resources increased by 17% through conversion
of existing Inferred mineral resources, which resulted in an additional
2.1 billion pounds of zinc and 1 billion pounds of lead in the Indicated
category.
-- A 34 percent increase in mineral resources in the Don deposit reflects
the success of step out drill holes that were part of the definition
drilling program. This drilling also identified high mineral potential
for significant tonnages of high grade mineralization at depth that is
interpreted to connect to the Don East deposit (see August 15, 2011 news
release).
Selwyn Project
The Selwyn Project is composed of 14 zinc-lead deposits and zones over a strike
length of 37.50 kilometres. These zinc-lead deposits represent the expression of
one continuous, large mineralized strata that are locally disrupted into
discrete deposits by faulting. The zinc-lead mineralized strata of the Active
Member remain largely open for expansion of their mineral potential.
The updated mineral resource estimate includes the results from an extensive
drilling program consisting of 195 drill holes in 2010 and 2011, totalling
68,155.0 metres which are distributed between definition, exploration, and
condemnation drilling. The global mineral resources include all 14 deposits and
zones, and have been updated to provide new global mineral resources.
XY Central Deposit
The XY Central deposit is comprised of six lenses: 91, 92, 93, 94, 95, and 96;
which in the January 2008 mineral resource to NI 43-101 standards included an
Indicated mineral resource of 44,450,000 tonnes grading 6.17% zinc and 2.64%
lead; and an Inferred mineral resource of 45,940,000 tonnes grading 4.20% zinc
and 1.32% lead (see January 29, 2008 news release). This study was completed by
Independent Qualified Person, Mr. Cliff Pearson, P.Geo. and Non-Independent
Qualified Person, Mr. John J. O'Donnell, P.Geo.
SCML undertook definition drilling of three lenses at XY Central deposit that
were the focus of mine planning and design engineering. The drilling program was
designed to raise the confidence in the zinc-lead mineralization from the
Inferred category to the Indicated category; which would allow their inclusion
in the BFS. A total of 47 drill holes were successfully completed totalling
13,944.8 metres in the 93, 94, and 95 lenses. These drill holes resulted in a
conversion of all Inferred category mineral resources into Indicated mineral
resources. No drilling was completed in the 91, 92, or 96 lenses; meaning there
are substantial mineral resources in those lenses that require additional
drilling to better define the contained mineral resources and their
classification. Using a 2% zinc cut-off, there are 29,936,000 tonnes in the
Indicated category grading 6.63% zinc and 2.45% lead. A summary for all cut-off
grades of zinc and lead for the XY Central deposit is presented below in Table
1.
The current overall global mineral resource for the XY Central deposit, is an
Indicated mineral resource 45,114,500 tonnes grading 5.70% zinc and 2.40% lead
and an Inferred mineral resource of 44,112,500 tonnes grading 4.10% zinc and
1.29% lead. The following table illustrates those mineral resources in the XY
Central 93, 94 and 95 lenses only.
Table 1: Updated XY Central Deposit Indicated Mineral Resource Estimate For 93,
94, 95 Lenses.
-----------------------------------------------------------------
Zn Pb Zn Pb
Cut-off Tonnes (%) (%) (Blbs) (Blbs)
-----------------------------------------------------------------
0.5 30,190,800 6.31 2.67 4,197 1,775
-----------------------------------------------------------------
1 30,179,400 6.31 2.67 4,197 1,775
-----------------------------------------------------------------
1.5 30,105,500 6.32 2.67 4,195 1,774
-----------------------------------------------------------------
2 29,936,000 6.35 2.69 4,188 1,772
-----------------------------------------------------------------
2.5 29,505,700 6.41 2.71 4,166 1,765
-----------------------------------------------------------------
3 28,796,800 6.50 2.76 4,123 1,751
-----------------------------------------------------------------
3.5 27,686,600 6.63 2.83 4,044 1,725
-----------------------------------------------------------------
4 25,891,800 6.82 2.94 3,895 1,675
-----------------------------------------------------------------
4.5 23,287,600 7.11 3.10 3,650 1,594
-----------------------------------------------------------------
5 20,325,400 7.45 3.32 3,340 1,487
-----------------------------------------------------------------
5.5 17,468,800 7.82 3.56 3,010 1,371
-----------------------------------------------------------------
6 14,612,800 8.22 3.86 2,649 1,242
-----------------------------------------------------------------
6.5 12,079,300 8.64 4.18 2,300 1,113
-----------------------------------------------------------------
7 9,840,800 9.07 4.52 1,967 981
-----------------------------------------------------------------
8 6,510,500 9.89 5.15 1,420 739
-----------------------------------------------------------------
9 4,135,100 10.71 5.83 976 531
-----------------------------------------------------------------
10 2,514,800 11.52 6.54 639 362
-----------------------------------------------------------------
Notes for Table 1:
1. Mineral Resources reported above have been calculated as of September
12, 2011 in accordance with the CIM Best Practices and National
Instrument 43-101.
2. A 2% zinc grade cut-off was applied to the new mineral resource
estimate.
3. The Mineral Resource Estimate uses information from 786 drill holes,
totalling 197,968.50 metres, completed on the Selwyn Project over three
separate periods: 1973 to 1981, 2000, and 2005 to 2011
Don Deposit
The Don deposit was previously interpreted to be comprised of three lenses: 61,
62, and 63; which in the January 2008 mineral resource to NI 43-101 standards,
included an Indicated mineral resource of 11,230,000 tonnes grading 5.99% zinc
and 2.17% lead and an Inferred mineral resource of 16,290,000 tonnes grading
5.62% zinc and 1.99% lead (see January 29, 2008 news release). This study was
done by Independent Qualified Person, Mr. Cliff Pearson, P.Geo. and
Non-Independent Qualified Person, Mr. John J. O'Donnell, P.Geo.
In 2010 and 2011, SCML undertook definition drilling in order to raise the
confidence in the zinc-lead mineral resources from Inferred category to
Indicated category; however, SCML also undertook exploration drilling to expand
the Don deposit to maximize benefits to the ongoing BFS. A total of 69 drill
holes were successfully completed totalling 28,712.0 metres in the 61, 62, and
63 lenses. All remaining mineral resources in the Inferred category were
converted into Indicated mineral resources.
During the 3D modeling for the mineral resource update, new drilling data showed
a direct linkage between the 61 and 62 lenses; which led to a new interpretation
as a single lens, thereby resulting in an increase in tonnage. Another positive
development from the drill program at the Don deposit occurs at depth where
drilling results suggest that the previously interpreted, near vertical dip of
the 63 lens is actually shallowing. The shallow dipping 63 lens is at a similar
elevation as similar zinc-lead mineralization in the adjacent Don East deposit.
The shallowing of the 63 lens is the result of structural thickening that also
results in an increase in tonnage potential in the area that connects the two
deposits (see August 15, 2011 news release).
The current overall global mineral resource for the Don deposit, is an Indicated
mineral resource of 36,901,600 tonnes grading 5.63% zinc and 2.11% lead. The
mineral resources at Don deposit increased by 34% compared to those reported
February 2009. A summary for all cut-off grades of the Don deposit is presented
in Table 2.
Table 2: Updated Don Deposit Indicated Mineral Resource Estimate
-----------------------------------------------------------------
Zn Pb Zn Pb
Cut-off Tonnes (%) (%) (Blbs) (Blbs)
-----------------------------------------------------------------
0.5 37,844,300 5.53 2.07 4,614 1,728
-----------------------------------------------------------------
1 37,748,000 5.54 2.08 4,612 1,728
-----------------------------------------------------------------
1.5 37,500,700 5.57 2.09 4,605 1,725
-----------------------------------------------------------------
2 36,901,600 5.63 2.11 4,582 1,718
-----------------------------------------------------------------
2.5 35,494,500 5.77 2.17 4,512 1,696
-----------------------------------------------------------------
3 33,596,500 5.94 2.24 4,397 1,659
-----------------------------------------------------------------
3.5 30,818,100 6.18 2.34 4,197 1,592
-----------------------------------------------------------------
4 27,455,400 6.47 2.48 3,919 1,498
-----------------------------------------------------------------
4.5 23,759,200 6.82 2.63 3,572 1,378
-----------------------------------------------------------------
5 19,876,000 7.23 2.81 3,166 1,232
-----------------------------------------------------------------
5.5 16,086,600 7.69 3.03 2,728 1,075
-----------------------------------------------------------------
6 12,921,800 8.17 3.26 2,328 929
-----------------------------------------------------------------
6.5 10,202,500 8.69 3.51 1,954 790
-----------------------------------------------------------------
7 7,987,800 9.23 3.79 1,625 668
-----------------------------------------------------------------
8 4,932,500 10.32 4.35 1,122 473
-----------------------------------------------------------------
9 3,063,600 11.45 4.96 773 335
-----------------------------------------------------------------
10 1,862,100 12.73 5.63 522 231
-----------------------------------------------------------------
Notes for Table 2:
1. Mineral Resources reported above have been calculated as of September
12, 2011 in accordance with the CIM Best Practices and National
Instrument 43-101.
2. A 2% zinc grade cut-off was applied to the new mineral resource
estimate.
3. The Mineral Resource Estimate uses information from 786 drill holes,
totalling 197,968.50 metres, successfully completed on the Selwyn
Project over three separate periods: 1973 to 1981, 2000, and 2005 to
2011
Global Mineral Resource Inventory
Since acquiring the Selwyn Project in 2005, Selwyn has made 9 major deposit
discoveries; noting that the Selwyn Project now contains 14 drill defined
deposits and zones that include mineralization that are amenable to both open
pit and underground mining methods. Table 3 summarizes the significant growth in
metal content over the last five years. The global Indicated mineral resources
for 2011 are 180.69 million tonnes grading 5.25% zinc and 1.83% lead for a metal
content of 20.91 pounds of zinc and 7.33 billion pounds of lead (see Table 4).
The Inferred mineral resources for 2011 are 216.04 million tonnes grading 4.47%
zinc and 1.38% lead for a metal content of 21.29 billion pounds of zinc and 6.57
billion pounds of lead (see Table 4). The Inferred mineral resources are
generally adjacent to the main areas of drilling in the deeper part of the
mineralizing system. Areas of Inferred mineral resources require more closely
spaced drill holes to improve the confidence level for their inclusion as
Indicated mineral resources.
It should be noted that the updated global mineral resource inventory does not
contain any results from recent drilling in the XY West deposit area due to
assay sample results still pending from the laboratory. The mineral resources
from this deposit are not being used in the BFS; however, after future
evaluation, may be included at some point. A total of 58 drill holes were
completed in the 2010 and 2011 drilling program for a total of 22,791 metres.
Geological modeling and structural analysis of the XY West deposit is ongoing
and SCML anticipates undertaking a mineral resource update later this year after
all assay samples have been received, and have passed Selwyn's rigorous quality
assurance and quality control procedures.
Table 3: Global Mineral Resources and Contained Metal Growth from 2006 through 2011
---------------------------------------------------------------------------
Resource Million Zn Pb Zn Pb
Year Class Tonnes (%) (%) (Blbs) (Blbs)
---------------------------------------------------------------------------
February 2006 Indicated 33.50 5.52 2.10 4.08 1.55
---------------------------------------------------------------------------
Inferred 112.91 5.40 2.14 13.44 5.31
---------------------------------------------------------------------------
---------------------------------------------------------------------------
April 2007 Indicated 86.60 4.93 1.97 9.41 3.29
---------------------------------------------------------------------------
Inferred 215.40 4.71 1.48 22.38 7.03
---------------------------------------------------------------------------
---------------------------------------------------------------------------
January 2008 Indicated 154.35 5.35 1.86 18.19 6.31
---------------------------------------------------------------------------
Inferred 231.54 4.54 1.42 23.19 7.23
---------------------------------------------------------------------------
---------------------------------------------------------------------------
February 2009 Indicated 154.35 5.35 1.86 18.19 6.31
---------------------------------------------------------------------------
Inferred 234.15 4.54 1.41 23.43 7.28
---------------------------------------------------------------------------
---------------------------------------------------------------------------
August 2011 Indicated 180.69 5.25 1.83 20.91 7.33
---------------------------------------------------------------------------
Inferred 216.04 4.47 1.38 21.29 6.57
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Notes for Table 3:
1. 2006 to 2008 global mineral resources completed by Independent Qualified
Person, Mr. Cliff Pearson, P.Geo., and Non-Independent Qualified Person,
Mr. John J. O'Donnell. See the following news releases respectively:
February 9, 2006; April 2, 2007; January 29, 2008
2. 2009 global mineral resources completed by Non-Independent Qualified
Person, Mr. John J. O'Donnell, P.Geo. (see February 26, 2009 news
release).
3. 2011 global mineral resources completed by Independent Qualified Persons
Mr. Garth Kirkham, P.Geo. and Mr. Cliff Pearson, P.Geo.
Mineral Potential
In addition to the Indicated and Inferred mineral resources estimated in this
report, the mineral potential remains unchanged from those stated in the 2009
mineral resource estimate (see February 26, 2009 news release); which contains
between 245 and 255 million tonnes with an estimated grade of between 4.0 - 5.0%
zinc and 1.0 - 2.0% lead. The mineral potential represents the down dip and
strike extension of the Indicated and Inferred mineral resources taken from a
polygonal long-section model. The mineral potential appears to represent a small
portion of the interpreted extent of the rock units that host all known
zinc-lead mineralization at Selwyn Project. Zinc-lead sulphide mineralization
has now been defined over 37.5 kilometers of strike length with the drilling
results from the 2005 through 2011 drilling campaigns. Importantly, all drill
holes that have intersected the favourable host rocks have contained zinc and
lead sulphide mineralization. The possible quantity and grade of this mineral
potential is conceptual in nature, as there has been insufficient drilling to
define a mineral resource and it is uncertain if additional exploration will
result in any of this potential being realized as a mineral resource.
Mineral Resource Evaluation
The updated mineral resource estimate was prepared by Independent Qualified
Persons, Mr. Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd., Burnaby, British
Columbia, who undertook the 3D modeling and resource estimation; and Mr. Cliff
Pearson, P.Geo., Pearson Geological Inc, Victoria, British Columbia, who
undertook the detailed field evaluation of data collection protocols at the
project worksite. Mr. Jason Dunning, P.Geo., a Non-Independent Qualified Person,
has reviewed the updated mineral resource estimates and approved the contents of
this news release. In accordance with NI 43-101, the Technical Report will be
filed on SEDAR within 45 days.
The geologic continuity of the Selwyn Project mineralization is well established
through diamond drilling and historical underground development. The NI 43-101
resource estimate created was completed using a combination of relative
elevation modelling and ordinary kriging in a 3D block model using Minesight(TM)
software. The database was updated and verified followed by compositing at 1.5
meter intervals within mineralized zones. Classical statistical evaluation
methods were applied to the database; accompanied by similar, and the high-grade
outliers were addressed using limited search radii. Bulk densities were assigned
on a block-by- block basis thereby allowing for the mineral resources to be
classified and reported following a thorough 3D block model validation process.
Note that all discussion of previous mineral resource estimates to NI-43-101
standards are referenced in the February 2009 NI 43-101 report for the Selwyn
Project that was prepared by Non-Independent Qualified Person, John J.
O'Donnell, P.Geo. In reviewing historical resources, all discussion of Indicated
mineral resources that predate introduction of NI 43-101 should be considered as
Inferred mineral resources. All historical Inferred mineral resources that
predate NI 43-101 should be considered as areas of mineral potential requiring
further definition through drilling. Historical mineral resources are referenced
in the June 2005 NI 43-101 report for Selwyn Project that was prepared by
Independent Qualified Person, Mr. Al Burgoyne, P.Eng. These reports can be
viewed at www.sedar.com.
Mineral resources that are not mineral reserves do not have demonstrated
economic viability. Mineral resource estimates do not account for mineability,
selectivity, mining loss and dilution. These mineral resource estimates include
inferred mineral resources that are normally considered too speculative
geologically to have economic considerations applied to them that would enable
them to be categorized as mineral reserves. There is also no certainty that
these inferred mineral resources will be converted to the measured and indicated
categories through further drilling, or into mineral reserves, once economic
considerations are applied.
The Selwyn Project exploration program is being reviewed by Vice President
Exploration, Mr. Jason Dunning, M.Sc., P.Geo, and Mr. Wolfgang Schleiss, P.Geo.,
Manager of Exploration, who are responsible for on-site activities. Mr. Dunning
and Mr. Schleiss are both Qualified Persons within the meaning of NI 43-101. All
assay data have 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 also in place at ACME
Analytical Laboratories Ltd. ("ACME") and includes laboratory 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 also 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 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.
Table 4: Selwyn Project 2011 Mineral Resource Estimate
----------------------------------------------------------------------------
Deposit or Resource Zn Pb Zn Pb
Zone Class Tonnes (%) (%) (Blbs) (Blbs)
----------------------------------------------------------------------------
XY Central
deposit Indicated 45,114,500 5.70 2.40 5.67 2.39
----------------------------------------------------------------------------
Inferred 44,112,500 4.10 1.29 3.99 1.25
----------------------------------------------------------------------------
XY Nose
deposit Indicated
----------------------------------------------------------------------------
Inferred 7,320,000 4.08 2.20 0.66 0.35
----------------------------------------------------------------------------
XY West
deposit Indicated
----------------------------------------------------------------------------
Inferred 1,917,600 7.70 2.45 0.33 0.10
----------------------------------------------------------------------------
Brodel deposit Indicated
----------------------------------------------------------------------------
Inferred 12,100,000 4.31 1.16 1.15 0.31
----------------------------------------------------------------------------
HC deposit Indicated 8,600,000 4.01 1.04 0.76 0.20
----------------------------------------------------------------------------
Inferred 19,370,000 3.83 1.09 1.63 0.46
----------------------------------------------------------------------------
HC West
deposit Indicated 19,680,000 5.46 1.56 2.37 0.68
----------------------------------------------------------------------------
Inferred 10,220,000 5.42 1.50 1.22 0.34
----------------------------------------------------------------------------
Don East
deposit Indicated 35,490,000 5.37 1.63 4.20 1.27
----------------------------------------------------------------------------
Inferred 41,770,000 5.22 1.59 4.81 1.46
----------------------------------------------------------------------------
Don deposit Indicated 36,901,600 5.63 2.11 4.58 1.72
----------------------------------------------------------------------------
Inferred
----------------------------------------------------------------------------
Anniv East
deposit Indicated 16,920,000 4.15 1.20 1.55 0.45
----------------------------------------------------------------------------
Inferred 16,050,000 4.04 1.08 1.43 0.38
----------------------------------------------------------------------------
Anniv Central
deposit Indicated 17,980,000 4.52 1.51 1.79 0.60
----------------------------------------------------------------------------
Inferred 40,120,000 4.63 1.48 4.09 1.31
----------------------------------------------------------------------------
West Extension Inferred 6,880,000 4.30 1.25 0.65 0.19
----------------------------------------------------------------------------
HP zone Indicated
----------------------------------------------------------------------------
Inferred 6,180,000 4.55 1.23 0.62 0.17
----------------------------------------------------------------------------
OP zone Indicated
----------------------------------------------------------------------------
Inferred 1,770,000 4.18 1.29 0.16 0.05
----------------------------------------------------------------------------
OP West zone Indicated
----------------------------------------------------------------------------
Inferred 1,380,000 2.67 0.86 0.08 0.03
----------------------------------------------------------------------------
Pelly North
zone Indicated
----------------------------------------------------------------------------
Inferred 6,850,000 3.20 0.90 0.48 0.14
----------------------------------------------------------------------------
Total Indicated 180,686,100 5.25 1.83 20.91 7.33
----------------------------------------------------------------------------
Total Inferred 216,040,100 4.47 1.38 21.29 6.57
----------------------------------------------------------------------------
Notes for Table 4:
1. Mineral Resources reported above have been calculated as of September
12, 2011 in accordance with the CIM Best Practices and National
Instrument 43-101.
2. A 2% zinc grade cut-off was applied to the new mineral resource
estimate.
3. The Mineral Resource Estimate uses information from 786 drill holes,
totalling 197,968.50 metres, successfully completed on the Selwyn
Project over three separate periods: 1973 to 1981, 2000, and 2005 to
2011
BFS Entertainment & Multimedia (TSXV:BFS)
Historical Stock Chart
From Jul 2024 to Aug 2024
BFS Entertainment & Multimedia (TSXV:BFS)
Historical Stock Chart
From Aug 2023 to Aug 2024
