Selwyn finds yet another zinc-lead zone

Vancouver – Results are rolling in from a summer exploration program at the Selwyn Resources‘ (SWN-V) namesake project in the east-central Yukon and the company has again succeeded in finding new zones in the zinc-lead-rich Don Valley.

At the Selwyn project the company has intersected the high-grade mineralized Active Member along a 22-km portion of the corridor called the Don Valley. The northwest-southeast trending Don Valley now hosts some eight distinct deposits, all of which Selwyn believes are connected.

Near the southeast end of the Don Valley sit the XY deposits. Drilling in 2007 defined a sizeable mineralized body at XY Central; work in 2008 focused on extending the zone to the northwest. The effort was successful drills tapped into a new zone called XY West, which vice president of exploration Jason Dunning called “strategically important” because it confirms the lateral continuity of mineralization over the 22-km Don Valley.

Half a dozen holes cut into the new zone. Hole 174 cut 35.8 metres grading 9.99% zinc and 3.34% lead from 105 metres depth, including 10.4 metres grading 16.08% zinc and 5.71% lead. Hole 179 returned 22.3 metres grading 6.77% zinc and 2% lead from 147 metres depth, including 4.7 metres averaging 12.87% zinc and 2.88% lead. And hole 172 hit 9.1 metres grading 2.88% zinc and 8.16% lead from 257 metres downhole.

The XY West zone has been defined over a 500-metre strike length. The Active Member averages 15 to 20 metres in true thickness and is open for expansion along strike and down dip.

At the northwest end of the Don Valley are the Don deposits, Don and Don East. Selwyn punched one hole to test the continuity of mineralization northeast and to depth; hole 142 returned 4.3 metres grading 2.07% zinc and 7.07% lead in the deepest intercept on the entire Selwyn project to date. The intercept is significant in that is it located in the fault panel adjacent to the rest of Don East that is interpreted to hold the nearby HC West deposit.

The hole followed up on hole 114, which last year intercepted 45 metres grading 4.55% zinc and 1.26% lead, and hole 131, which hit 52 metres of 4.62% zinc and 1.71% lead, both as part of the main Don East deposit.

After a 25,000-metre drill program in the summer of 2007 Selwyn defined a resource in the Don Valley totaling 154.35 million indicated tonnes grading 5.35% zinc and 1.86% lead, plus 231.5 million inferred tonnes grading 4.54% zinc and 1.42% lead.

The 2008 program concluded in late October and comprised 3,857 metres in 13 drill holes. As of mid-October Selwyn had working capital of $3.7 million and no debt, which led management to believe it has the ability to meet its financial obligations over the short to medium term.

The company is, however, looking for a strategic partner to aid in its exploration efforts at the mega project. While it has not yet found a partner the company is happy to have found two major institutional shareholders. Resource Capital Funds, based in Denver, holds a 15.5% interest in Selwyn and China Mining Resources Group, from Hong Kong, holds 16.5%.

Selwyn has been hit hard by the recent turmoil in global markets and by the plunging price of zinc. The company is currently trading at 6, near the low point of its 52-week trading range of 4 to 28.5. Selwyn has 201 million shares issued.