Selwyn Resources LTD. - October 2010
Selwyn Resources Ltd (TSX.V: SWN) is a publicly traded, Canadian base metals exploration and development company. Selwyn is positioned as the premier giant of zinc-lead deposits in the World.
Selwyn has completed a 50:50 Joint Venture Agreement with Yunnan Chihong Zinc and Germanium Co. Ltd. Chihong, a fully integrated zinc-lead mining and smelting company based in Yunnan Province in southern China, to invest $100 Million to advance Selwyn Project to bankable feasibility and complete permitting. See news release.
Chihong and Selwyn have agreed to pool their interests for the purposes of securing senior debt financing from the Chinese banks. Access to the Asian markets for project financing is seen as a very positive development for Selwyn and Selwyn Project.
Selwyn Project has invested approximately $70M over the past 6 years to define Selwyn deposit as the larges undeveloped zinc-lead deposit in the world with estimated Mineral Resources of 154 Million tonnes of Indicated resources and 234 Million tonnes of Inferred resources, including 16.0 Million tonnes of Indicated and 26.7 Million tonnes of Inferred high-grade resources.
Selwyn and Yunnan Chihong have formed Selwyn Chihong Mining Ltd. to advance the project and have launched an approximate $85M exploration and development programs of definition drilling, engineering, permitting and initial underground development to complete bankable feasibility study, permitting and project financing by mid 2012.
Initial mine development will be focused on new high grade resources with proposed mining of 8000 tpd from the XY Central and Don zones to produce approximately 255,000 tpa of zinc and 65,000 tpa of lead and be one of the largest zinc-lead mines in the world. With probable expansions with development of other mineral zones, production will likely rival the largest producers.
Selwyn, with its partner Yunnan Chihong, will seek senior debt financing from the export banks in China providing a clear path forward for project financing and a timeline for completion of project financing and mine/mill construction and commissioning in early 2014 when zinc and lead prices are expected to be very strong.
Selwyn Project is well positioned to be the premier zinc-lead development project for investors.