VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/01/11 -- Selwyn Resources Ltd. (TSX VENTURE: SWN) ('Selwyn') announced today that it has now completed exploration drilling in the southwest of the proposed Main Pit expansion with a total of 4,940 metres in 44 drill holes. The drilling was undertaken to better define the mineral resources in that area and to upgrade the mineral resource re-estimate. Expansion of the mineral resource model will allow for further optimization of the Main Pit and possible extension of the current proposed Main Pit mine plan.
Refurbishment of the mill and surface facilities at the site continues with a crew of 25 (consisting of management and staff). The Company's objective is to prepare the site for the commencement of full scale restart activities when satisfactory financing is available, while continuing with the detailed project restart planning.
ScoZinc continues to explore and advance discussions on alternatives for financing the approximately $30M of re-start capital required for the refurbishment and resumption of mining and milling at the ScoZinc Mine. An increase in zinc and lead metal prices from current metal prices will assist in the timely completion of this financing.
About Selwyn Resources Ltd.
Selwyn's main focus remains the exploration and development of the Selwyn Project in the Yukon, by the joint venture comprised of Selwyn and Chihong Canada Mining Ltd. The Selwyn Project has the potential for large-scale production and to provide a secure supply of zinc and lead to meet the future needs of these markets in Asia and beyond. The revitalization of the ScoZinc Mine provides Selwyn with a near-term opportunity for growth and cash flow from operations, for use in advancing the Selwyn Project.
Forward looking Statements
This press release contains forward-looking statements concerning the expansion of the Main Pit mine plan for the ScoZinc Mine. These forward-looking statements are based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of market conditions for commodities, exploration activities and engineering studies, the availability of capital on terms acceptable to Selwyn, and other risk factors beyond Selwyn's control. As a result, there is no assurance that the Main Pit mine plan for the ScoZinc Mine will eventually be expanded.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Selwyn Resources Ltd.
Dr. Harlan Meade
President and CEO
+1 (604) 801-7240 or Toll-free: +1 (888) 989-9188
+1 (604) 689-8355 (FAX)
Selwyn Resources Ltd.
Catalin Chiloflischi
Manager of Investor Communications
+1 (604) 801-7240 or Toll-free: +1 (888) 989-9188
+1 (604) 689-8355 (FAX)
info@selwynresources.com
www.selwynresources.com
