YUKON – Vancouver-based Selwyn Resources has closed the $100-million joint venture transaction with a subsidiary of Chihong Zinc & Germanium Co. of China. Selwyn Chihong Mining has been created to carry out work on Selwyn’s zinc properties in the Howards’s Pass area. Chihong will earn a 1% interest in the project for every $2 million disbursed.
The cash infusion is undoubtedly welcome. Selwyn will accept an initial payment of $5.1 million as reimbursement for money it has already spent on the project. The balance of the funds will support pre-development programs. The 2010 program has a budget of $33 million that will cover drilling, environmental study, permitting activates, engineering, property payments and more. Underground exploration is planned for early 2011.
Selwyn has estimated the indicated resource at 154.35 million tonnes grading 5.35% Zn and 1.86% Pb. The inferred resource is 234.15 million tonnes at 4.57% Zn and 1.42% Pb.
Additional information about the multiple deposits included in the Selwyn project is available at www.SelwynResources.com.