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Selwyn with its 50% joint venture partner, Yunnan Chihong Zinc & Germanium Co. Ltd., is advancing the Selwyn Project in Yukon and Northwest territories to bankable feasibility and development. Chihong is funding the next $100M of exploration and development activities. Chihong is a fully integrated mining and smelting company based in southern China. Together the partners will seek project financing from Chinese banks.
Selwyn Project hosts perhaps the largest undeveloped zinc-lead deposit in the World. Initial mine development will focus on 16.06M tonnes of high grade Indicated mineral resources grading 10.06 % zinc and 4.23% lead and 26.70M tonnes grading 8.81% zinc and 2.81% lead. Initial mine production is forecast at 255,000 tpa of zinc and 65,000 tpa of lead in concentrate; commencing as early as late 2013, coinciding with forecast shortfalls in mine supply.
Selwyn Resources establishes mineral resources at Scotia Mine
Selwyn Resources (CVE:SWN) announced Wednesday a mineral resource estimate for its newly acquired Scotia zinc-lead mine in Nova Scotia, confirming both tonnage and grade of prior estimates by former operators.
The new estimate covers both the Main Zone and the Northeast Zone. At a base case 1.5% zinc equivalent cut-off value, the Main Zone is now projected to have measured and indicated resources of 2.89 million tonnes, grading 4.2% zinc and 1.9% lead, plus an inferred resource of 1.57 million tonnes, grading 3.3% zinc and 1.3% lead.
Meanwhile, the Northeast Zone is estimated to have an indicated mineral resource of 1.58 million tonnes grading 4.21% zinc and 2.22% lead, plus an inferred resource of 1.88 million tonnes grading 2.7% zinc and 1.86% lead, at a 2% zinc equivalent cutoff value.
"Overall, the results form a strong basis for completing engineering studies for the resumption of mining and milling at the Scotia mine," said president and CEO Dr. Harlan Meade.
"The recently completed Getty deposit mineral inventory also indicates the potential for open pit mining in that area, so with additional drilling and engineering studies, the mineral resources may have the potential to expand the longevity of the Scotia mine."
In addition, the company said that additional drilling in the Main Zone is expected to convert inferred resources to a higher confidence level, for inclusion in future studies.
The Scotia mine is located approximately 50 kilometres northeast of Halifax, within a lease that consists of 615 hectares of mineral rights, as well as five exploration licences for a total of 1,473 hectares.
In early February, Selwyn acquired ScoZinc, a subsidiary of Acadian Mining, which owned the Scotia Mine and other surrounding properties, for C$10 million. In addition to this new project, Selwyn owns the Selwyn project in the Yukon, together with joint venture partner Chihong Canada Mining, a subsidiary of Yunnan Chihong Zinc & Germanium Co.
