Selwyn Resources (CVE:SWN) said Thursday it has inked an interim agreement with Ross River Dena Council and the Liard First Nation on behalf of all Kaska communities, in an effort to establish a relationship as it advances its flagship project in the Yukon.
The Kaska First Nation communities in the Yukon include Daylu Dena Council, Kwadacha, and Dease River First Nation.
The Selwyn project in the Yukon is being developed by Selwyn Chihong
Mining, the joint venture company formed by Selwyn and Chihong Canada
Mining in August 2010 to develop the property.
The project is located in eastern Yukon, straddling the border with the Northwest Territories.
"Selwyn Chihong is encouraged by this significant step forward in our
relationship with the Kaska," said Selwyn’s vice president of
environment and community affairs, Justin Himmelright.
"The Interim Measures Agreement establishes the framework for SCML
and the Kaska to work to advance the project through final feasibility,
permitting, and into construction.”
Selwyn said that it expects to begin negotiations of a socio-economic
participation agreement very soon, which will help guide their
relationship for the operations phase of the project - adressing
environmental and social concerns as well as Kaska involvement
"This Interim Measures Agreement is an important first step in terms
of the relationship," said the Liard First Nation Chief, Liard McMillan.
"It governs how the Kaska will be engaged during the exploration and feasibility discovery phase of the Project."
January 2007, Selwyn completed a preliminary economic assessment (PEA)
for the Yukon project, which considered an open pit plan of mining at
20,000 tonnes per day.
Since the initial PEA was prepared, however, there have been
significant movements in exchange rates, as well as in metal prices and
capital and operating cost assumptions, rendering the PEA no longer
Earlier in May, Selwyn announced an updated mineral resource estimate
for its XY West deposit at the project, highlighting the expansion of
its inferred category resources to 12.75 million tonnes grading 4.42%
zinc and 1.40% lead.
The updated NI 43-101 report included drill results from the 2010 and
2011 definition drilling and exploration work programs at the XY West
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.
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, with all of the deposits
remaining open for expansion.
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.
Selwyn also released additional drill results from the Don Connector
target at its Selwyn project in May, including hole DON-233, which
intersected 27.85 metres true thickness, grading 6.09% zinc and 1.87%
lead, including 10.87 metres grading 8.95% zinc and 2.62% lead.
Shares of Selwyn increased 5.88 per cent to 9 cents Thursday afternoon.