Junior explorer Selwyn Resources (CVE:SWN) said Tuesday it has finished exploration drilling in the southwest at the proposed main pit expansion at its ScoZinc mine.
The ScoZinc Mine, a past producing zinc-lead mine in Nova Scotia, which the company recently acquired for $10 million, has roughly a measured and indicated resource of 2.8 million tonnes grading 4.2 percent zinc and 1.9 percent lead.
The company, which drilled 4,940 metres in 44 holes, said the impetus of the program was to better define the mineral resources in the area to upgrade the mineral resource estimate.
Expansion of the mineral resource model will allow for further optimization of the main pit and possible extension of the current proposed main pit mine plan, the company said in a statement.
With a crew of 25, refurbishment of the mill and surface facilities at the site continues. Selwyn said that its aim is to prepare the site to restart full scale mining at ScoZinc once financing is obtained. In the meantime, Selwyn said it will continue with the detailed project restart planning.
About $30 million of re-start capital is needed for the refurbishment and to resume mining and milling at the ScoZinc mine.
The company said an increase in zinc and lead metal prices from current metal prices will assist in the “timely” completion of the financing, for which it continues to explore and advance discussions on alternatives for the funds.
Last month, Selwyn said that First Securities was to initially act as the company’s agent in regards to a proposed $30 million offering of secure senior bonds, but this has since been terminated.
Selwyn’s primary focus remains the exploration and development of the properties that make up the Selwyn project in the Yukon, which is operated by the joint venture comprised of Selwyn and Chihong Canada Mining.