 |
Project Overview
Important Consideration - Material Change
On March 4, 2013, Selwyn Resources Ltd. announces that it has entered into an asset and share purchase agreement with Chihong Canada Mining Ltd. and Selwyn Chihong Mining Ltd. to sell the company’s remaining 50 % joint venture interest in the Selwyn zinc and lead project in the Yukon Territory for $50 million in cash. Completion of the transaction is subject to certain conditions. After completion of the transaction, Selwyn Resources Ltd. will have no further interest in the Selwyn Project and the JV agreement will be terminated. (See more information in Recent News)
If all conditions to closing are satisfied, it is anticipated that the transaction will be completed by early June 2013. With the proceeds of the transaction, Selwyn Resources Ltd. will be fully financed to fund the re-start of mining and milling operation at ScoZinc Mine in Nova Scotia, which should be in full production Q2 2014.
This page will be updated as soon as the transaction will be completed. |
The Selwyn Project is located in eastern Yukon and straddles the border with the Northwest Territories (NWT). More than 90 percent of the district is in the Yukon, with only the southeast end extending across the border into the NWT.

The Selwyn Project is the consolidation of the Howard's Pass Joint Venture lands acquired from Placer Dome and Cygnus mines Ltd., and Selwyn's wholly owned lands in the Selwyn District. Selwyn has completed more than $70 million of exploration on them in the period 2005 through 2009. Subsequently the Selwyn Chihong joint venture has expended approximately $78 million in 2010 and 2011.
The property consists of 7,450 hectares of mineral claims in the Yukon and 2,162 hectares of Mining Lease lands in the Northwest Territories, referred to as the Howard's Pass Joint Venture. In addition, Selwyn has 19,294 hectares of mineral claims in the Yukon and 3,373 hectares of wholly owned claims in the Northwest Territories. These claims and mining leases provide Selwyn control over 66 kilometres of the favourable strata in this giant zinc-lead district.
Selwyn spent approximately $22.0 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. Placer Dome published a global mineral resource in January 1983. This mineral resource is not NI 43-101 compliant and in June 6, 2005, Selwyn published a NI 43-101 report qualifying the previous Placer Dome mineral resource estimate. Selwyn published a new NI 43-101 compliant mineral resource in March 2006 focusing on resources that were amenable to open pit mining. A total of 191 drill holes were completed in 2007 resulting in a significant expansion of mineral resources that were released in April 2007 (see May 2, 2007 NI 43-101 report, amended October 12, 2007 available on the SEDAR website). See also Resource Inventory herein for updated mineral resource inventory.
The summary table illustrates the growth in mineral resources and contained metals in the Indicated and Inferred mineral resource categories.
Table 1: NI 43-101 Global Mineral Resource Growth from 2006 to 2012
| Resource Date |
Classification |
Tonnes |
Contained Metal in Billion Pounds |
| (Million) |
Zn
(%) |
Pb
(%) |
Zn
(Blbs) |
Pb
(Blbs) |
| February 2006 |
Indicated |
33.50 |
5.52 |
2.10 |
4.08 |
1.55 |
| |
Inferred |
112.91 |
5.40 |
2.14 |
13.44 |
5.31 |
| April 2007 |
Indicated |
86.60 |
4.93 |
1.97 |
9.41 |
3.29 |
| |
Inferred |
215.40 |
4.71 |
1.48 |
22.38 |
7.03 |
| January 2008 |
Indicated |
154.35 |
5.35 |
1.86 |
18.19 |
6.31 |
| |
Inferred |
231.54 |
4.54 |
1.42 |
23.19 |
7.23 |
| February 2009 |
Indicated |
154.35 |
5.35 |
1.86 |
18.19 |
6.31 |
| |
Inferred |
234.15 |
4.54 |
1.41 |
23.43 |
7.28 |
| September 2011 |
Indicated |
180.69 |
5.25 |
1.83 |
20.91 |
7.33 |
| |
Inferred |
216.04 |
4.47 |
1.38 |
21.29 |
6.57 |
| May 2012 |
Indicated |
180.69 |
5.25 |
1.83 |
20.91 |
7.33 |
| |
Inferred |
226.88 |
4.44 |
1.37 |
22.23 |
6.84 |
| August 2012 |
Indicated |
185.57 |
5.20 |
1.79 |
21.26 |
7.30 |
| |
Inferred |
237.86 |
4.47 |
1.38 |
23.45 |
7.22 |
| |
Inferred |
226.88 |
4.44 |
1.37 |
22.23 |
6.84 |
Notes for Table 1:
-
A 2% zinc grade cut-off was applied to the all above referenced mineral resource estimates.
-
2006 global mineral resources completed by Independent Qualified Person, Mr. John Nilsson, P.Eng. and Non-Independent Qualified Person, Mr. John J. O’Donnell, P.Geo. (see February 9, 2006 news release).
-
2007 to 2008 global mineral resources completed by Independent Qualified Person, Mr. Cliff Pearson, P.Geo., and Non-Independent Qualified Person, Mr. John J. O’Donnell, P.Geo.. See the following news releases respectively: April 2, 2007; January 29, 2008.
-
2009 global mineral resources completed by Non-Independent Qualified Person, Mr. John J. O’Donnell, P.Geo. (see February 26, 2009 news release).
-
2011 mineral resources completed by Independent Qualified Persons, Mr. Garth Kirkham, P.Geo. and Mr. Cliff Pearson, P.Geo. (see September 12, 2011 news release).
-
2012 mineral resources completed by Independent Qualified Person, Mr. Garth Kirkham, P.Geo. and Non-Independent Qualified Person Mr. Jason K. Dunning, P.Geo. (see May 12, 2012 news release) and this current study.
Table 2: Selwyn Project May 2012 Global Mineral Resource Estimate
| Deposit |
Resource Class |
Tonnes |
Zn
(%) |
Pb
(%) |
Zn
(Blbs) |
Pb
(Blbs) |
| XY Central |
Indicated |
45,114,500 |
5.70 |
2.40 |
5.67 |
2.39 |
| |
Inferred |
44,112,500 |
4.10 |
1.29 |
3.99 |
1.25 |
| XY Nose Zone |
Indicated |
|
|
|
|
|
| |
Inferred |
7,320,000 |
4.08 |
2.20 |
0.66 |
0.36 |
| XY West |
Indicated |
|
|
|
|
|
| |
Inferred |
12,754,400 |
4.42 |
1.40 |
1.24 |
0.39 |
| Brodel |
Indicated |
|
|
|
|
|
| |
Inferred |
12,100,000 |
4.31 |
1.16 |
1.15 |
0.31 |
| HC |
Indicated |
8,600,000 |
4.01 |
1.04 |
0.76 |
0.20 |
| |
Inferred |
19,370,000 |
3.83 |
1.09 |
1.63 |
0.46 |
| HC West |
Indicated |
19,680,000 |
5.46 |
1.56 |
2.37 |
0.68 |
| |
Inferred |
10,220,000 |
5.42 |
1.50 |
1.22 |
0.34 |
| Don East |
Indicated |
35,490,000 |
5.37 |
1.63 |
4.20 |
1.27 |
| |
Inferred |
41,770,000 |
5.22 |
1.59 |
4.8 |
1.46 |
| Don |
Indicated |
38,152,700 |
5.34 |
1.88 |
4.49 |
1.58 |
| |
Inferred |
14,749,000 |
5.13 |
1.59 |
1.67 |
0.52 |
| Anniv East |
Indicated |
16,920,000 |
4.15 |
1.20 |
1.55 |
0.45 |
| |
Inferred |
16,050,000 |
4.04 |
1.08 |
1.43 |
0.38 |
| Anniv Central |
Indicated |
17,980,000 |
4.52 |
1.51 |
1.79 |
0.60 |
| |
Inferred |
40,120,000 |
4.63 |
1.48 |
4.09 |
1.31 |
| Anniv West |
Inferred |
6,880,000 |
4.30 |
1.25 |
0.65 |
0.19 |
| HP |
Indicated |
|
|
|
|
|
| |
Inferred |
6,180,000 |
4.55 |
1.23 |
0.62 |
0.17 |
| OP |
Indicated |
|
|
|
|
|
| |
Inferred |
1,770,000 |
4.18 |
1.29 |
0.16 |
0.05 |
| OP West |
Indicated |
|
|
|
|
|
| |
Inferred |
1,380,000 |
2.67 |
0.86 |
0.08 |
0.03 |
| Pelly North |
Indicated |
|
|
|
|
|
| |
Inferred |
6,850,000 |
3.20 |
0.90 |
0.48 |
0.14 |
| Total |
Indicated |
185,573,200 |
5.20 |
1.79 |
21.26 |
7.30 |
| Total |
Inferred |
237,856,900 |
4.47 |
1.38 |
23.45 |
7.22 |
Notes for Table 2:
- Mineral Resources reported above have been calculated as of August 7, 2012 in accordance with the CIM Best Practices and National Instrument 43-101.
- A 2% zinc grade cut-off was applied to the new mineral resource estimate.
- The Global Mineral Inventory uses information from 812 drill holes, totalling 208,944.1 metres, completed on the Selwyn Project over three separate periods: 1973 to 1981, 2000, and 2005 to 2012.
In addition to the Indicated and Inferred mineral resources there is significant Mineral Potential that with additional drilling could increase Indicated and Inferred mineral resources. The aggregate of Selwyn mineral resources in all categories clearly puts Selwyn Project in the class of the giant zinc deposits. The table below illustrates the size of the World's SEDEX (Sedimentary Exhalative) deposits to which class the Selwyn Project belongs. SEDEX comprise most of the world's largest zinc deposits with a few notable exceptions: Antamina (skarn), Mehbiadad (replacement) and Brunswick and Kidd Creek (VMS).

World's Largest Undeveloped Zinc Deposits (Brook Hunt)

World's Largest Undeveloped Lead Deposits (Brook Hunt 2010)
|
 |