Selwyn Resources Limited announced a NI 43-101 compliant mineral resource estimate for the Scotia mine in Nova Scotia that includes both the Main and Northeast zones. The Scotia mine is part of the mineral assets included under the purchase agreement reached with Acadian Mining Corporation. Selwyn is acquiring all of the issued and outstanding shares of ScoZinc Limited, a wholly owned subsidiary of Acadian, and thereby will also acquire all of the mineral and other assets associated with the Scotia mine.
Highlights;
The Main zone has a base case;
1. Measured and Indicated mineral resources of 2,890,000 tonnes grading 4.20% zinc and 1.90% lead and
2. Inferred mineral resource of 1,570,000 tonnes grading 3.30% zinc and 1.30% lead.
The Northeast zone has a base case;
1. Indicated mineral resource of 1,580,000 tonnes grading 4.21% zinc and 2.22% lead and
2. Inferred mineral resource of 1,880,000 tonnes grading 2.70% zinc and 1.86% lead.
The Scotia mine is located approximately 50 kilometers northeast of Halifax, the capital of and largest city in Nova Scotia. The mine is contained within Mineral Lease 90-1 which consists of 615 hectares of mineral rights as well as 5 exploration licenses in the general vicinity of the Scotia mine totaling 91 claims covering 3,640 acres. These licenses are located along strike from the Scotia mine and include favorable host rocks similar to that at the mine site.
Zinc and lead mineralization at the Scotia mine consists of disseminated to locally semi-massive sphalerite and galena occurring within a dolomitized carbonate reef of the Lower Carboniferous age Gays River Formation. The Scotia mine is one of a series of related zinc and lead mineralized reefs including the Getty deposit situated 1,500 meters to the west of the Main deposit and mill facilities. Other mineralized reef structures include the Carroll's Farm and Carroll's Corner zinc-lead exploration targets located 1.5 kilometres and 2.5 kilometers west of the Getty deposit respectively. These exploration targets are also an integral part of this series of mineralized reefs and are considered highly prospective targets warranting follow-up drilling.
Dr Harlan Meade president and CEO of Selwyn Resources said that “The new estimate of mineral resources of the Main zone confirms prior estimates of tonnage and grade by former operators. Additional drilling within the Main zone will provide for the conversion of Inferred mineral resources to a higher confidence level for inclusion in future engineering studies on the restart of the mine. Similarly, mineral resources in the Northeast zone require additional drilling to upgrade the confidence of the sizeable Inferred mineral resources that could be amenable to open pit mining. Overall, the results form a strong basis for completing engineering studies for the resumption of mining and milling at the Scotia mine. The recently completed Getty deposit mineral inventory also indicates the potential for open pit mining in that area so with additional drilling and engineering studies, the mineral resources may have the potential to expand the longevity of the Scotia mine.”
