Selwyn Resources (SWN.V) - recent drilling reports suggest rising expectations

Comment by Objective Capital , Jan 24, 2008
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Selwyn continues to generate high-grade assays of lead and zinc through deep drilling at its Selwyn project in eastern Yukon. Drill hole XYC-171 averaged 9.89 percent zinc and 5.30 percent lead over a true width of 23.4 metres, commencing at a down-hole depth of 406.4 metres. The interval included a 10.8-metre interval that averaged 17.38 percent zinc and 10.08 percent lead.

Based on a 2007 revision, the Selwyn project contains an indicated resource of 86.6 million tonnes, grading 4.93 percent zinc and 1.73 percent lead, and an inferred resource of 215.4 million tonnes, grading 4.71 percent zinc and 1.48 percent lead. At the time, Selwyn believed the deposit held additional exploration potential of about 23 million tonnes in the area surrounding the defined resource.

Objective's view:

The assays from both the high-grade zone and the open pit zones at Selwyn continue to be encouraging. They suggest to us the potential to revise upwards the resource estimate and to include the delineation of additional high-grade material.

In addition, the scope of the 2007 drill programme suggests to us that the open pit resource estimates could increase, with grades comparable to the earlier values and with no drop in the potential exploration tonnage available.

We expect to be able to test these suggestions when Selwyn releases a revised NI 43-101 technical report, possibly by the end of March. The company remains on track to start a prefeasibility study early this year and to commence the environmental assessment process before the end of the year.