Selwyn Resources (SWN.V) - good values of lead and zinc over appreciable intervals

Comment by Objective Capital , Sep 06, 2007
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Selwyn Resources is continuing its drill programme on the Selwyn zinc-lead deposit. The latest assays from holes probing a high-grade zone in the Don Valley portion of the project continue to yield good values of lead and zinc over appreciable intervals. The highlights of the latest holes include 8.09 percent zinc and 1.79 percent lead over a true thickness of 22.5 metres, obtained from a hole into the Don East region. A hole into the main Don Valley area yielded 8.46 per cent zinc and 3.57 percent lead over a true thickness of 14.1 metres.

Objective's view:

These intersections continue to expand the high-grade zone within the Don Valley and XY Central zones and the company is now reconsidering the tentative mine plan laid out in its preliminary assessment report, completed earlier this year. We believe continued drill success will prompt Selwyn to develop a plan combining its original open pit plan with an underground operation designed to recover ore from the deeper high-grade zones within the project.

We view this development as strongly supportive of both our central and best case valuations, although Selwyn will have to keep close to our assumed timelines and cost projections should it develop an alternate plan.