Selwyn Resources (CVE:SWN) said Monday that drilling in the Don Connector target between its Don and Don East deposits at its Selwyn project in the Yukon Territory has confirmed thick zinc-lead mineralized intercepts.
The company said all 14 exploration holes on the target were focused on confirming the direct link between the two adjacent deposits, which would provide opportunities for future engineering studies as Selwyn advances the feasibility study for the project.
The project is owned by Selwyn Chihong Mining, the joint venture equally split by Selwyn and Chihong Canada Mining.
Drilling started on the target last November after reviewing drilling on the Don deposit.
"The confirmation of thick intercepts of zinc-lead mineralization in the Don Connector target adjacent to the Don deposit demonstrates the strong continuity of high-grade mineralization in the Don Valley and opens up opportunities for the joint venture," said Selwyn president and CEO, Dr. Harlan Meade.
A total of 10,638.50 metres were drilled across the 14 holes, resulting in the identification of zinc-lead mineralization over an area of 600 by 225 metres, with a range in thickness from approximately 15 to more than 70 metres.
Once assay results from the program have been received, the data will form the basis for a revised mineral resource estimate of the Don deposit, Selwyn said.
The company said the new drilling data confirms the direct linkage between the 63 lens of the Don deposit and the Don Connector target.
Geological interpretation from the drilling also supports the shallowing of the dip of the 63 lens at an elevation similar to zinc-lead mineralization in the adjacent Don East deposit.
This shallowing of the 63 lens is thought to be the apparent cause of the thickening of zinc-lead mineralization that makes the Don Connector target "attractive for exploration and development".
Selwyn's focus is the exploration and development of its properties that make up the Selwyn project in the Yukon, which hosts large tonnages of zinc-lead mineralization.
The known deposits have the potential for large scale production.
Last week, the zinc and lead explorer Selwyn said it reached agreement with Waterton Global Value, L.P. for a $10 million principal amount, non-revolving secured debt facility for its wholly-owned subsidiary, ScoZinc Ltd.
The company said the money will be used by ScoZinc and Selwyn for general corporate purposes, including activities at the ScoZinc mine in Nova Scotia.
Selwyn continues to work toward the restart of the ScoZinc mine, which it expects will provide cash flow to fund development at its Selwyn project in the Yukon.