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Friday, 3 May 2013
Rathdowney Resources shares climb on promise of Olza project
Rathdowney Resources (CVE:RTH) shares were rising Friday, up more than 21 per cent, after encouraging drill news this week from its Olza project in Poland and as an insider purchase of the company's stock prompted investors to buy into the zinc and lead explorer.
On Tuesday, the Canadian junior unveiled new results from core drilling on the Chechlo concession at its Project Olza in southern Poland, seeing zinc, lead and silver mineralization of "significant grades and thicknesses".
Results from Checlo included 41.4 metres at 7.67% combined zinc and lead, and 23.5 grams per tonne (g/t) silver in hole OLZ-224, including 19 metres at 12.41% zinc and lead, and 40.7 g/t silver. Hole OLZ-225 hit 6.40 metres of 14.24% combined zinc and lead and 11.9 g/t silver, including 3.5 metres of 22.09% zinc and lead and 18.2 g/t silver.
Rathdowney said that it drilled two holes in an area where widely-spaced drilling took place in the past. The results were found to be particularly "compelling", it said Tuesday, as a new style of mineralization was found.
"Our drilling shows that the Chechlo prospect hosts zinc, lead and silver mineralization of significant grades and thicknesses within underlying older dolomite units that we have not previously explored," said president and CEO John Barry in the statement.
"Importantly, the presence of this new style of mineralization in the Devonian strata at Chechlo indicates the opportunity for its discovery in other parts of Rathdowney's exploration concessions."
Last September, the company released an initial resource estimate for the project consisting of 21.2 million tonnes in the inferred category grading 7.42% combined zinc and lead, at a 2% zinc cutoff. But the resource covered just the Zawiercie and Rokitno exploration concessions, within a 9-square kilometre area of the large and prospective Olza property.
The Chechlo prospect sits about 15 km southeast of the initial resource-area.
Olza is a Mississippi Valley Type (MVT) zinc-lead-silver project situated in the historic Silesian mining district, a Brownfield historical mining district with access to mining and logistical infrastructure. Indeed, the deposit sits 10 kilometres north of the Pomorzany underground zinc mine and 15 kilometres north of its concentrator, refinery and smelter.
The prospects are quite promising, with director of the company, Scott D Cousens, showing his confidence in Rathdowney by buying up 32,000 shares at $1.00 apiece through a private acquisition. The filing of the purchase was also made on Tuesday.
Shares of Rathdowney were at last check trading up more than 21 per cent on Friday at 40 cents - up more than 27 per cent since the start of the week.