VANCOUVER, Dec. 3, 2015 /CNW/ - Rathdowney Resources
Ltd. ("Rathdowney" or the "Company") (TSXV: RTH) announces
additional positive results from drilling, supporting mine planning
programs at its flagship Olza Zinc-Lead-Silver Project in southwest
Poland.
Proven zinc-lead district with excellent resource
potential
Project Olza is located in the Upper Silesian mining district, a
region of world-class Mississippi Valley type ("MVT") deposits as
recognized by the USGS1, and which includes long-life
mines such as Pomorzany and Olkusz. Significant zinc-lead
deposits in the area of Project Olza were identified, historically,
through 180,000 m of drilling conducted in the 1950s to 1980s by
the Polish State Survey. Rathdowney's drilling program in
2011-2013 began to test these extensive deposits, and to
December 2014 had outlined 24.4
million tonnes of inferred mineral resources grading 7.02%
Zn+Pb (at a 2% Zn cut-off)2 with excellent
additional resource potential. Information in the table below
provides a comparison with other Upper Silesian deposits and
well-known MVT districts.
District
|
Mine
|
Status
|
Production
+R/R
|
Grade
|
Upper Silesian,
Poland
|
Pomorzany
|
Producing
|
93.8
Mt3
|
4.08% Zn, 1.26%
Pb
|
Upper Silesian,
Poland
|
Olkusz
|
Past
Producer
|
19.5
Mt3
|
3.83% Zn, 2.08%
Pb
|
Pine Point,
Canada
|
|
Past
producer
|
76.11
Mt4
|
6.51% Zn, 2.91%
Pb
|
Viburnum Trend,
USA
|
|
Producing
|
215.91
Mt4
|
0.93% Zn, 6.47%
Pb
|
Rathdowney's drilling in 2014-2015 has been focused in the
vicinity of Zone 5, one of several zones that comprise the current
mineral resource. Todays' results are from 15 new holes
(OLZ-256 to OLZ-270), each of which was drilled outside of the
resource-area at Zone 5 as shown on the map at
http://www.rathdowneyresources.com/i/pdf/rdr/OLZA_MAP__NR_Dec_15.pdf
. Eleven of the 15 new holes include significant
mineralization, detailed in the Table of Assay Results attached to
this release. Highlights include:
- 7.0 m of 6.5% Zn+Pb and 30.6 g/t Ag, including 2.2 m of
17.4% Zn+Pb and 54.2 g/t Ag in hole OLZ-256
- 7.3 m of 6.4% Zn+Pb and 10.7 g/t Ag, including 4.9 m of 8.5%
Zn+Pb and 14.7 g/t Ag and 2.7 m of 13.1% Zn+Pb and 25.2 g/t
Ag in hole OLZ-261
This is the third tranche of holes from the 2014-2015 program
(also see Rathdowney News Releases dated September 22, 2015 and June 23, 2015) which, collectively, are
demonstrating good continuity in the mineralization to the
northwest and northeast of Zone 5. The results clearly
underline the potential for expansion of Zone 5 and highlight the
excellent prospects for further resource increases across the
Project Olza concessions with additional drilling.
Key geotechnical data was also collected from each drill hole
for engineering studies to assess the suitability of the Zone 5
area for development of site facilities. Concurrently,
hydrogeological studies and environmental data collection programs
are being conducted over an extensive area to fully assess and
consider the existing conditions in the broader region. In
combination with the geotechnical data from drilling, these studies
will provide the details to support site specifications for mine
development, water management and other important planning
activities to be used in project permitting for a modern, long-life
mine.
Prime location with existing low-cost
infrastructure
In addition to its geological potential, Project Olza has a
number of advantages when compared to many other emerging Zn-Pb
mine development projects. Mining has taken place in the
Upper Silesian district since the 12th century, and as a
result, there is extensive infrastructure, including power and rail
already in place as well as a skilled local workforce.
Situated in the heart of Europe, the existing rail infrastructure
provides Project Olza with direct, low-cost access to ports and
smelters.
These advantages are reflected in the results from the
Preliminary Economic Assessment ("PEA") announced earlier this
year. The Project Olza PEA shows strong potential financial
returns for a conventional 6,000 tonnes per day bulk room and
pillar mine with standard on-site processing yielding two
marketable low iron zinc and lead concentrates5.
Project Olza would be a low-cost producer of an average of 197
million pounds of zinc and 59 million pounds of lead, annually,
readily available to markets in Europe and throughout the world.
President and CEO Robert Konski
said:
"Our drilling continues to demonstrate the excellent resource
potential at Project Olza, building on the PEA and providing a
strong foundation for comprehensive mine planning studies. Project
Olza's central location in a stable region with a long mining
history is a key advantage to our project, further enhancing its
technical merits. We look forward to continuing our work with
the communities and the government, and advancing toward a modern
long-life mining operation in Poland."
About Rathdowney and Project Olza
Rathdowney Resources Ltd. is focused on advancing Project Olza
through permitting and into production. Project Olza is located in
the Upper Silesian Mining District of southwestern Poland, a world-class region of Mississippi
Valley-type deposits with well-developed mining
infrastructure. Easily accessible by road, the Olza project
site is a one-hour drive from Krakow, a major city with full
services, including an international airport. The deposits at
Olza are 25 km from the ZGH zinc smelter at Boleslaw. A railway
line runs through the Olza project-area, linking it to smelters
throughout Europe and to ports on
the Baltic Sea.
Rathdowney is committed to responsible mineral exploration and
development with respectful, mutually beneficial discussions and
opportunities for local communities. Our Project Olza
community specialists discuss our programs with representatives of
local communities and government during all phases of work, and are
currently in discussions with community members and others
regarding the results of the PEA and other programs.
Dr. Keith Roberts, PGeo, is the
qualified person for the drilling program at Project Olza and has
reviewed the drilling information in this release. Other
technical information has been reviewed by David Copeland, PEng, a qualified person who is
also Chairman and a Director of Rathdowney.
On behalf of the Board of Directors
Robert Konski
President
& CEO
Notes:
1 Sangster, D.F., USGS, 1990, Mississippi Valley-Type
and Sedex lead-zinc deposits: A comparative examination:
Transactions of the Institution of Mining and Metallurgy, sec. B,
v. 99, p. B21–B42.
2 Individual grades are 5.53% Zn and 1.49% Pb. For
further information see Rathdowney's new release dated February 2, 2015. Mineral resources that are
not mineral reserves do not have demonstrated economic
viability.
3 Production + remaining reserves at 2010;
www.geoportal.pl
4 Leach, David L. et al, USGS, 2010, A Deposit Model for
Mississippi Valley Type Lead-Zinc Ores, Chapter A, Mineral Resource
Deposit Models; Production + remaining resources at 2005.
5 For additional details on the PEA, see Rathdowney's
news releases dated April 20, 2015
and May 14, 2015.
Notes 1, 3, and 4 are associated with deposits that are not on
the Olza property. They are mainly reported production and derived
from government sources. They are historical in nature (see
dates stated) and the work necessary to verify them has not been
undertaken by a qualified person.
Table of Assay Results
Drill
Hole
Number
|
|
From
(m)
|
To
(m)
|
Length
(m)
|
Pb+Zn
(%)
|
Zn
(%)
|
Pb
(%)
|
Ag
(g/t)
|
OLZ-256
|
|
104.20
|
111.15
|
6.95
|
6.54
|
6.33
|
0.21
|
30.6
|
|
Incl
|
107.05
|
109.28
|
2.23
|
17.39
|
17.02
|
0.37
|
54.2
|
OLZ-258
|
|
102.80
|
105.80
|
3.00
|
3.77
|
1.33
|
2.44
|
11.0
|
|
Incl
|
103.40
|
105.50
|
2.10
|
4.80
|
1.47
|
3.33
|
13.3
|
OLZ-259
|
|
99.50
|
100.50
|
1.00
|
3.34
|
3.29
|
0.05
|
6.8
|
OLZ-260
|
|
126.85
|
136.40
|
9.55
|
0.86
|
0.45
|
0.41
|
3.1
|
|
Incl
|
132.85
|
134.40
|
1.55
|
1.67
|
1.06
|
0.61
|
10.2
|
OLZ-261
|
|
147.00
|
154.26
|
7.26
|
6.41
|
6.01
|
0.40
|
10.7
|
|
Incl
|
149.35
|
154.26
|
4.91
|
8.52
|
8.00
|
0.52
|
14.7
|
|
And
|
151.61
|
154.26
|
2.65
|
13.05
|
13.04
|
0.01
|
25.2
|
OLZ-262
|
|
154.00
|
160.00
|
6.00
|
1.64
|
1.42
|
0.22
|
2.0
|
|
Incl
|
155.60
|
157.40
|
1.80
|
2.90
|
2.78
|
0.12
|
3.3
|
OLZ-265
|
|
119.90
|
120.70
|
0.80
|
6.51
|
6.50
|
0.01
|
60.1
|
OLZ-266
|
|
158.00
|
159.95
|
1.95
|
5.79
|
5.16
|
0.63
|
18.1
|
OLZ-267
|
|
147.00
|
152.60
|
5.60
|
1.57
|
1.24
|
0.33
|
0.9
|
|
|
158.40
|
162.20
|
3.80
|
1.80
|
1.78
|
0.02
|
2.4
|
|
Incl
|
161.00
|
162.20
|
1.20
|
3.23
|
3.23
|
0.003
|
4.9
|
OLZ-268
|
|
158.60
|
160.10
|
1.50
|
2.20
|
2.08
|
0.12
|
4.3
|
OLZ-270
|
|
157.00
|
160.20
|
3.20
|
1.90
|
1.27
|
0.63
|
2.3
|
|
Incl
|
158.80
|
159.25
|
0.45
|
8.32
|
4.08
|
4.24
|
13.9
|
All diamond core
holes were drilled vertically through the sub-horizontal
mineralized horizons so
intersections
represent approximate true widths. No significant results in holes
257, 263, 264
and 269. *Figures may
not add due to rounding.
|
Sample preparation
for the current drilling program is performed at the Bureau Veritas
(BV) laboratory in Krakow, Poland. Core samples are weighed, dried
and crushed to >70% passing 10 mesh (2 mm), then 500 g
sub-samples are riffle split and pulverized to >85% passing 200
mesh (75 µm). Samples are shipped by air freight to the
Vancouver laboratory of Bureau Veritas Commodities Canada Ltd., an
ISO 9001 accredited laboratory, for analysis. All samples are
assayed for Pb, Zn, Ag and 38 additional elements by 4 acid
(HF-HNO3-HClO4, HCl) digestion of an 0.5 g
sample with an ICP-AES/ICP-MS (inductively coupled atomic emission
spectrometry/mass spectrometry) finish (BV Code: MA270). Samples
with Zn values >40% or Pb values >10%, the upper limits for
the MA270 method, are re-analyzed by BV method MA371; 4 acid
digestion of 0.1 g sample with ICP-AES finish. As part of a
comprehensive QAQC program, one standard and one replicate are
inserted into the sample stream in each group of 20 samples, as
well as one or more blanks in each analytical batch.
|
Neither the 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.
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address exploration
drilling, exploitation activities and events or developments that
the Company expects, are forward looking statements. Although the
Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in the
forward-looking statements. Assumptions used by the Company to
develop forward-looking statements include the following: the Olza
project will obtain all required environmental and other permits
and all land use and other licenses, studies and development of the
Olza project will continue to be positive, and no geological or
technical problems will occur. Factors that could cause actual
results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration
successes, continuity of mineralization, potential environmental
issues and liabilities associated with exploration, development and
mining activities, uncertainties related to the ability to obtain
necessary permits, licenses and title and delays due to third party
opposition, changes in government policies regarding mining and
natural resource exploration and exploitation, continued
availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and actual
results or developments may differ materially from those projected
in the forward-looking statements. For more information on the
Company, investors should review the Company's continuous
disclosure filings that are available at www.sedar.com.
Information Concerning Estimates of Inferred
Resources
This news release uses the term "inferred mineral resources".
Rathdowney Resources Ltd. advises investors that although these
terms are recognized and required by Canadian regulations (under
National Instrument 43-101 Standards of Disclosure for Mineral
Projects), the U.S. Securities and Exchange Commission does not
recognize them. Investors are cautioned not to assume that any part
or all of the mineral deposits in these categories will ever be
converted into reserves. In addition, "inferred resources"
have a great amount of uncertainty as to their existence, and
economic and legal feasibility. It cannot be assumed that all or
any part of an Inferred Mineral Resource will ever be upgraded to a
higher category. Under Canadian rules, estimates of Inferred
Mineral Resources may not form the basis of feasibility or
pre-feasibility studies, or economic studies except for Preliminary
Economic Assessment as defined under 43-101. Investors are
cautioned not to assume that part or all of an inferred resource
exists, or is economically or legally mineable.
SOURCE Rathdowney Resources Ltd.