Friday, 17 February 2012

Selwyn Resources purchases surface rights for expansion at ScoZinc mine

Selwyn Resources (CVE:SWN) said Thursday it has purchased 273.43 acres of surface rights to the west of the current Main Pit at its ScoZinc mine in Nova Scotia.
These lands cover the proposed southwest expansion area of the Main Pit, for inclusion of the updated mineral resources announced in April last year.
With the purchase of the surface rights, the company can complete its application for the Industrial Authorization to expand the Main Pit, based upon the recent approval of Nova Scotia Environment.
Selwyn said it is currently advancing various financing alternatives for securing the $30 million required for restarting the past producing ScoZinc mine, which it acquired in June of last year for $10 million.
Currently, there are 27 employees on the site, undertaking refurbishment of the mill and surface facilities. Management is also continuing to plan the pre-stripping of waste materials and major mill improvements, for implementation once financing is secured.
Last week, Selwyn unveiled additional drill results from its 2011 drill program on the southwest extension of the Main Pit at the ScoZinc project, which confirmed lead-zinc mineralization.
The ScoZinc Mine has a measured and indicated resource of 2.8 million tonnes grading 4.2 percent zinc and 1.9 percent lead.
The latest results were from the Gays River deposit on the property, and included hole MNZ-009, which intersected 7.60 metres grading 8.22 percent lead and 0.79 percent zinc, including 2.60 metres grading 20.32 percent lead and 1.94 percent zinc.
Hole MNZ-018 intersected 9.00 metres true thickness grading 2.51 percent lead and 3.82 percent zinc, including 2.00 metres grading 11.06 percent lead and 4.50 percent zinc, while hole MNZ-029 returned 16.10 metres grading 2.20 percent lead and 3.90 percent zinc, including 1.00 metre grading 0.10 percent lead and 14.08 percent zinc.
Selwyn said it also completed three drill holes in an area between the Main Zone and the Northeast Zone of the Gays River deposit. Historical work on the property had focused on separating these two zones, though Selwyn has discovered that the mineralization is contiguous.
The company said hole MNZ-038 is of particular interest, due to its high-grade zinc mineralization. The hole intersected 2.9 metres grading 0.05 percent lead and 16.47 percent zinc, including 1.4 metres grading 0.08 percent lead and 27.32 percent zinc.
Selwyn said it continues to work toward the restart of the ScoZinc mine, which it expects will provide cash flow to fund development at its Selwyn project in the Yukon.
Earlier this month, the company said it commissioned a helicopter-borne electromagnetic (VTEM) geophysical survey to test its large mineral claim holdings in Nova Scotia.
The survey will cover key areas known to contain historic mine production of both zinc and lead, as well as gold, silver, copper and barite, the company said.
The survey will consist of around 1,551 flight-line kilometres spaced at approximately 200 metres covering approximately 205 square kilometres. It is expected that the survey will be completed by mid-February, Selwyn said, including initial interpretations.
Selwyn's main focus remains the exploration and development of the Selwyn zinc-lead project in the Yukon, by the joint venture comprised of Selwyn and Chihong Canada Mining.

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