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Tuesday, 20 November 2012
Rathdowney Resources says drilling intersects high grades at Project Olza
Vancouver-based Rathdowney Resources (CVE:RTH) revealed Tuesday the results for 24 holes from its ongoing drilling program in Poland, which the company says further show the "strength and persistance" of the zinc-lead mineralization at its Project Olza.
Notable drill results announced today include 27.3 metres of 7.2% zinc+lead in hole 147, 5.3 metres of 9.2% zinc+lead in hole 189, and 2.2 metres of 36.1% zinc+lead in hole 194.
The holes released are located at drill centres in the northern, central and southern parts of the mineralized corridor at Project Olza.
In September, Rathdowney announced an inferred mineral resource estimate of 21.2 million tonnes of 7.42% zinc+lead, at a 2% cutoff.
"The quality and continuity of the MVT zinc-lead mineralization at Project Olza continues to be demonstrated by our drilling program," said president and CEO John Barry.
"These new holes tested the deposit both within and outside of the recent resource-areas, showing its robustness and the excellent potential to build additional resources."
Project Olza is situated in Poland's prolific Upper Silesian mining district, an area of southwestern Poland that has extensive Mississippi Valley-type deposits and in which zinc-lead mining has taken place since the 12th century.
Because of the district's long mining history, extensive infrastructure is readily available to new projects, including power and smelter facilities.
The Olza project is near a state-owned zinc smelter complex that is expected to have additional smelting capacity when the Pomorzany mine in the region closes in the next three to five years.
Rathdowney's ground is also linked by rail to these facilities. The surrounding infrastructure at Olza, as well as the expected increase in zinc prices as supply wanes over the medium term, bodes well for Rathdowney Resources and the development of its Polish property.
Earlier this month, the zinc and lead miner closed a C$350,000 non-brokered private placement financing with Teck Resources(TSE:TCK.B) announced in October. The offering consisted of 700,000 common shares at 50 cents each, and the company said the new funds would be used for general working capital.
In October, Vancouver-based Rathdowney said it optioned out 31 of its prospecting licenses in the Irish Midlands zinc-lead district toTeck Resources' Irish subsidiary. The private placement was part of the option deal, and took place once approval from the deal was received from the Ministry in Ireland.