Selwyn Resources (CVE:SWN) said Wednesday that it received last week approval for the expansion of its ScoZinc mine in Nova Scotia.
On May 18, the Nova Scotia Department of Environment issued an
amended industrial approval, allowing the company to expand its existing
mine to include the Southwest Expansion of the previously mined Main
"We are very pleased the Nova Scotia government has approved the
Southwest Expansion at the ScoZinc Mine," said president Stephen Rea.
"With this approval in hand, Selwyn can continue its efforts for financing the restart of operations at ScoZinc."
The ScoZinc mine is a past producing zinc-lead mine in Nova Scotia,
which the company acquired for $10 million. The mine has a measured and
indicated resource of 2.8 million tonnes grading 4.2 percent zinc and
1.9 percent lead.
As it has now received the amended approval, Selwyn can access the
balance of the $10 million debt facility established with Waterton
Global Value, L.P., in April.
The proceeds will be used for general corporate purposes, including restart activities at the ScoZinc mine.
Selwyn primarily focuses on the exploration and development of its
properties that make up the Selwyn project in the Yukon, which hosts
large tonnages of zinc-lead mineralization.
The known deposits at the Selwyn project have the potential for large
scale production, and to provide a "secure supply of zinc and lead to
meet the future needs of the zinc and lead markets in Asia," the company
The acquisition of ScoZinc, once restarted, was meant to help provide cash flow to aid in the advancement of the Yukon project.
The company recently announced an updated mineral resource estimate
for its XY West deposit at the Yukon project, highlighting the expansion
of its inferred category resources to 12.75 million tonnes grading
4.42% zinc and 1.40% lead.
Selwyn noted that the XY West deposit is a key component due to its
close proximity to the adjacent XY Central deposit, which has an
inferred mineral resource of 44.11 million tonnes grading 4.10% zinc and
The updated 12.75 million tonne inferred estimate for XY West used a
base case 2.0% zinc cut-off grade, and includes 3.27 million tonnes of
higher grade zinc-lead mineralization grading 7.71% zinc and 2.23% lead
at a 5% zinc cut-off grade.
The company said the global mineral inventory in the inferred
category increased 4.4% as a result, corresponding to an increase of
0.94 billion pounds of zinc and 0.24 billion pounds of lead at a 2%
Since acquiring the Selwyn project in 2005, the company said it has
made nine major deposit discoveries that are potentially amenable to
open pit and/or underground mining methods, all of which remain open for
Zinc-lead sulphide mineralization has now been defined over 37.5
kilometres of strike length with the drilling results from the 2005
through 2012 drilling campaigns, said the company.
The total indicated mineral resources at the Selwyn project are
180.69 million tonnes grading 5.25% zinc and 1.83% lead for a metal
content of 20.91 billion pounds of zinc and 7.30 billion pounds of lead.
The inferred mineral resources have increased to 226.88 million
tonnes grading 4.44% zinc and 1.37% lead for a metal content of 22.23
billion pounds of zinc and 6.84 billion pounds of lead.
The work program at the Yukon project is being undertaken by Selwyn
Chihong Mining Ltd., the joint venture company equally owned by Selwyn
and Chihong Canada Mining Ltd.
Shares were trading at 12 cents Wednesday morning.