Selwyn Resources’ sole focus is the development of its deposit at Howard’s Pass
The Selwyn Project, in south-central Yukon, contains a large, NI 43-101-
compliant mineral resource spread across several nearby deposits near
Howard’s Pass. The most advanced of these deposits are the Don and XY
deposits, which are integral to the company’s tentative development plan.
Several phases of drilling at Selwyn have significantly expanded the available resource
The company first prepared a mineral resource estimate for the Selwyn project
in 2006. Since then, the known resource has more than doubled, whilst
confidence in the estimates has improved dramatically. Selwyn Resources
currently estimates a NI 43-101-compliant, indicated resource of 154 million
tonnes, containing 18.2 billion pounds of zinc and 6.3 billion pounds of lead.
An additional inferred resource of 234 million tonnes contains an estimated
23.4 billion pounds of zinc and 7.3 billion pounds of lead.
In December, Selwyn announced a major joint venture agreement with
a Chinese company
The high cost of exploration and mine construction is a major sticking point for
all junior companies, but Selwyn Resources has an important partner available
to carry much of the financial burden. Yunnan Chihong Zinc and Germanium
Co Ltd has executed a binding framework agreement with Selwyn to form a
joint venture company that will finance development of the project. Selwyn
will transfer title to the project to the joint venture company whilst Yunnan will
contribute C$100m in cash. This should be sufficient to carry the project into
the early construction phase. Yunnan and Selwyn will each hold 50 percent
interests in the joint venture.
We envisage an underground mine at Selwyn operating from at least two deposits
Extensive drilling at Selwyn has outlined significant high-grade zones of
ore amenable to underground mining. Management believes it can control
operating costs at Selwyn, through development of a hydroelectric power plant
capable of supplying much of the required power, and through construction of
a concentrate pipeline from the mine to a suitable road access point.
Strong zinc and lead fundamentals strengthen Selwyn’s development plan
Although the recent global recession was a major hiccup, demand for zinc,
lead and most other commodities is rapidly improving. China and other
developing Asian economies are leading the recovery and annual growth rates
are expected to return to pre-recession levels. If so, prices for base metals
could increase beyond our conservative estimates, which assume long-term
growth rates tied to inflation.
