North of 60 Mining News - The mining newspaper for Alaska and Canada's North

SWN: TSX-V

President and CEO: Harlan D. Meade

Chairman: Wade Nesmith

Vice President, Exploration: Jason Dunning

Selwyn Resources Ltd. primary focus remains the exploration and development of the properties that make up the Selwyn Project in Yukon Territory, which it owns 50-50 with Chinese-owned Chihong Canada Mining Ltd. The Selwyn Project located primarily in eastern Yukon Territory hosts large tonnages of zinc-lead mineralization that extends across the border into Northwest Territories.

The project has the potential for large-scale production, and could provide a secure supply of zinc and lead to meet the future needs of markets in Asia and beyond.

Known mineralization on the Selwyn property exceeds 154.35 million metric tons grading 5.35 percent zinc and 1.86 percent lead of indicated resources, and 234.15 million metric tons grading 4.54 percent zinc and 1.41 percent lead of inferred resources.

High-grade underground mineralization, which could be initially targeted in development, exceeds 16 million metric tons grading 10.25 percent zinc and 4.23 percent lead in indicated resources, and 26.7 million metric tons grading 8.81 percent zinc and 2.81 percent inferred resources.

In August 2010, Selwyn and Chihong finalized the joint venture agreement and formed Selwyn Chihong Mining Ltd. to manage the project.

Chihong's C$100 million investment in the Selwyn project is aimed at financing completion of a bankable feasibility study for the project and obtaining initial licenses required to mine the XY and Don deposits.

By June 30, exploration and definition drilling in the 2010/2011 program at the Selwyn project was complete with a total of 66,756 meters drilled in 176 drill holes using six diamond drill rigs.

The companies Sept. 6 said drill results of part exploration and part definition drilling that continue to support the potential for extend the XY West deposit, which has a 350-meter-by-250-meter central core block with an average thickness of 15 meters.

Recent drilling in the most northwest fault block could extend the new mineralization to 600 meters beyond the initial XY West mineral resources.

The JV also started a metallurgical drilling program with two drills in June to acquire samples for bench-scale testing.

This program was expected to be completed in September.

Although the primary goal of this work is to collect metallurgical samples, each drill hole will include detailed geological and rock mechanics information.

The JV also started an advanced underground exploration program this year with the aim of getting a 30-metric ton bulk sample for further metallurgical testing.

The main components of exploration costs for the Selwyn Project, including actual spending incurred by the joint venture during the first six months of 2011 totaled about C$22.1 million.

In early 2011, Selwyn also reported its acquisition of ScoZinc Ltd., which owns the Scotia zinc-lead mine in Nova Scotia, providing the company with a second opportunity for growth and the potential for production revenues in 2012.

Cash and short-term deposits: C$9.84 million (at June 30, 2011)

Working capital: C$10.17million (at June 30, 2011)

Market capitalization: C$77.57 million (Sept. 9, 2011)

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