Selwyn Resources (SWN.V) - releases further encouraging assays

Comment by Objective Capital , Nov 07, 2007
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Selwyn Resources continues to produce encouraging assays from its Selwyn deposit in Yukon, Canada. The latest intersections, released today, show combined lead and zinc values of between 5.5 percent and 6.15 per cent over true widths ranging from ten to twenty metres. These results come from the south-eastern margin of the Don deposit, where no previous drilling occurred and thus represent an expansion of the mineral potential of the area.

Late in October, the company produced assays averaging between 6.7 percent and 9.0 percent of combined lead and zinc, over comparable widths in the HC West deposit, while a hole at Don East produced 14.37 percent lead and zinc over a 15.76-metre width.

Objective's view:

We continue to view the higher-grade lead and zinc intersections as a positive development for Selwyn Resources. Drilling will continue using four rigs to prove the continuity of the higher-grade material and the company expects to have an updated resource calculation by the end of January. Work will continue thereafter, which could allow the company to upgrade the resource from an inferred category.

We expect that the company will actively re-examine its mining options at Selwyn. The existing plan commences with an open pit at the XY deposit, but the high-grade zones allow the company the option of moving forward plans for underground mining. If such a decision were taken it could lead to an increase in operating costs, but lower capital costs. Combined with the higher grades, the net effect could be a faster payback.