Selwyn Resources
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 raises C$1 million for qualifying exploration expense on Selwyn lead-zinc project
Selwyn Resources Ltd. (TSX-V: SWN) has announced a non-brokered offering of C$1 million in flow-through common shares with one place at a price of C$0.275 per share for qualifying Canadian exploration expense (CEE) on the Selwyn lead-zinc project.
The offering is expected to close before 31 December 2009.
Selwyn announced a C$100 million investment by Yunnan Chihong Zinc and Germanium to acquire a 50% JV (joint venture) interest earlier this month, expecting it to close by May 2010 following receipt of regulatory approvals.
Meanwhile, the company will advance the Selwyn project towards bankable feasibility and the securing of the licenses required for mine development.
Selwyn’s focus is the exploration of its properties that make up the Selwyn Project in the Yukon, which hosts large tonnages of zinc-lead mineralization.
The property consists of 7,450 ha (hectares) of mineral claims in the Yukon and 2,162 ha of Mining Lease lands in the Northwest Territories. Selwyn has 19,294 ha of mineral claims in the Yukon and 3,373 hectares of wholly owned claims in the Northwest Territories, which provide Selwyn with more than 66 km (kilometres) of the favourable strata in the district.
Selwyn spent approximately C$22 million on exploration on the Selwyn Project in 2005 and 2006 resulting in discovery of seven new mineralized zones that confirm that the deposit is one continuous mineralized deposit having a length of at least 38 kilometres.
The latest mineral resource report put the project’s reserves at 154.35 Mt (million tonnes) grading 5.35% zinc, 1.86% lead for a total 18.19 Blbs (billion pounds) of zinc and 6.31 Blbs of lead in the indicated category, while the inferred resource amounts to 234.15 Mt grading 4.54% zinc, 1.41% lead for 23.43 Blbs of zinc and 7.28 Blbs of lead.
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