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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2012) - Selwyn Resources Ltd. (News - Market indicators) ("Selwyn") is pleased to announce the progress and plans for completion of a Feasibility Study for the Selwyn Project. The Feasibility Study is being advanced by Selwyn Chihong Mining Ltd. ("SCML"), the joint venture company, formed by Selwyn and Chihong Canada Mining Ltd., a wholly owned subsidiary of Yunnan Chihong Zinc & Germanium Co., Ltd., one of China's largest zinc and lead mining and smelting companies.
The SCML Management Committee has recently met and confirmed a plan and budget for the completion of a feasibility study based on the revised 3,500 tonne per day mining and milling plan communicated in the August 22, 2012 news release. It is contemplated that the feasibility study will be completed in late March 2013 utilizing the remaining funds within the Joint Venture bank account: $5.37 million as at October 1, 2012. Upon completion of the expenditures remaining in the Joint Venture bank account, Chihong Canada will have vested a 50% interest in the Joint Venture.
The August 22, 2012 news release provides investors with guidance on the main parameters of the planned mine, mill and infrastructure development. The key remaining activities are finalization of the mine design and production schedule which will be undertaken by SCML staff working with Tetra Tech mine group based in Denver; and secondly, completion of the final phase of metallurgical test work that is focused on evaluation of opportunities to reduce energy requirements in the fine grinding in the re-grind circuit and improvements in lead recovery. Independent Qualified Persons Jeff Austin and Ken Major will confirm processing plan and mill design, both in conjunction with Hatch in Vancouver. With completion of these sectors, surface facilities will be finalized and SCML can file its Project Report with the Yukon Environmental and Socioeconomic Assessment Board (YESAB) and commence the environmental assessment process for the project and project infrastructure.
A recent geotechnical report has been completed that indicates more favourable ground conditions than previously determined in the initial proposed mining areas. AMEC reviewed geotechnical drill hole data for the XY Central and Don deposits and evaluated ground conditions in recently re-opened underground development that was completed in 1981 (at XY Central deposit) by previous operators. With this new information, the increase in stope spans was confirmed, and the mining plan has been modified and production plan formalized.
Selwyn's primary focus remains the exploration and development of the properties that make up the Selwyn Project in the Yukon, by the joint venture comprised of Selwyn and Chihong Canada Mining Ltd. The Selwyn Project hosts large tonnages of zinc-lead mineralization which have the potential for large scale production, and could provide a secure supply of zinc and lead to meet the future needs of the markets in Asia and beyond.
Forward Looking Statements
This press release contains forward-looking statements concerning mineralization and the development of the Selwyn Project. 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 factors beyond Selwyn's control, including the results of exploration activities, economic evaluations and engineering studies, the availability of funds in the financial markets on terms acceptable to Selwyn and the public's view of the economic value of the Selwyn Project. Additionally, more drilling is required to confirm the potential of the new discovery areas, expansions of the current resource areas and the extension of the higher grade deep mineralization to depth at the Selwyn Project. There is no assurance that such additional drilling will expand mineral resources or that the resources being defined can be developed as an economically attractive mine. Uncertainties associated with permitting and other factors could delay development of the Selwyn Project. Although Selwyn has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other factors that cause results not to be as anticipated or intended. There is no assurance that such information will prove to be accurate, as future events could differ materially from those anticipated in such information and accordingly, there is no assurance that the Selwyn Project will be developed into a profitable mine. Readers should not place undue reliance on forward-looking statements.