Development

In early 2007, Selwyn developed a preliminary development plan with an assumed mining rate of 20,000 tonnes per day with ores sourced from the XY Central, Brodel and Anniv Central and Anniv East pits. The model (see NI 43-101 technical report filed March 2, 2007 on www.sedar.com) was premised on mineral resources included in the March 2006 mineral resource inventory and therefore did not include the new mineral resources defined by the large 2006 and 2007 drilling programs.

With the discovery of significant high grade mineral resources at Selwyn Project, the approach to mine development changed to initial development of the high grade mineralization by underground mining methods. Development of near surface mineralization as open pit operations could provide a second expansion phase of development.

Recent evaluation has focused on internal scoping work and pre-feasibility level studies for the development of the Selwyn Project as a high grade underground mine followed by later expansion with addition of open pit operations.

On May 28, 2012 Selwyn Chihong announced that it is now focussed on a smaller 3,500 tpd mine and mill operation with a feasibility study to be completed in Q1 2013. The JV company has deferred any further work on the 8,000 tpd underground mine development plan in favour of the new plan which indicates that it can provide favourable economic return; however it requires considerable additional study to confirm the preliminary findings.

Pre Development Work at The Selwyn Project