Update on Rathdowney Project Activities in Poland

Ongoing Success in Drilling at Project Olza

VANCOUVER, March 14, 2013 /CNW/ - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSXV: RTH) is pleased to provide an update on progress at Project Olza, located 70 km north west of Krakow in Southern Poland, and to announce new results from the drill program.  Project Olza hosts Mississippi Valley Type (MVT) Zinc-Lead deposits in Poland's historic Upper Silesian Mining District, an area with extensive infrastructure including power and rail, and a skilled workforce.  The Upper Silesian MVT district is the largest of its kind in the world and continues to support long-life zinc-lead mines.

In September 2012, Rathdowney achieved a major milestone with the release of a substantial zinc-lead mineral resource at Project Olza.  The initial estimate of the inferred mineral resources in a portion of the extensive zinc-lead deposit in the Olza project-area are 21.2 Mt of 7.42% Zn+Pb at a 2.0% zinc cutoff.1  President and CEO John Barry stated, "The resource base provided by the September 2012 estimate establishes a critical mass and we are now moving forward with data collecting and studies to support a permitting process as outlined for mining projects in Poland. Community engagement activities that were initiated in 2010 have now broadened and we are deepening our discussions with local stakeholders. We have also formalized a process to consider all financing and partnership options available to us as we move forward to develop this exciting scalable deposit."

Rathdowney has completed additional drilling, with the holes in a pattern designed to optimise the testing and verification of historical estimates for the mineral deposit at Olza. The new holes, OLZ-201 to OLZ-223 inclusive, are located in the northern, central and southern parts of the east mineralized corridor (see drill hole map at http://www.hdgold.com/i/rdr/pdf/RTH_NR_DDH_Mar2013.pdf).

Mineralization at significant grades and widths continues to be encountered. A table of assay results for the new holes is appended to this release. Highlights include:

Drill Hole
Number
  From
(m)
To
(m)
Intercept
(m)
Pb+Zn
%
Zn
%
Pb
%
Ag
g/t
OLZ-203   152.70 156.55 3.85 8.49 8.45 0.04 39.6
OLZ-205   92.85 94.00 1.15 10.83 2.46 8.38 14.4
OLZ-206   91.65 98.15 6.50 8.31 4.44 3.87 11.6
OLZ-206 Incl. 94.75 98.15 3.40 13.70 6.36 7.35 20.4
OLZ-206 Incl. 96.90 98.15 1.25 23.58 8.30 15.29 31.2
OLZ-207   95.15 100.80 5.65 8.97 4.33 4.64 16.6
OLZ-207   103.30 106.20 2.90 7.93 6.90 1.04 25.6
OLZ-209   88.15 89.15 1.00 11.97 7.13 4.84 16.4
OLZ-213   90.25 94.10 3.85 11.69 9.33 2.36 38.9
OLZ-220   66.45 68.15 1.70 7.75 2.62 5.13 15.9
OLZ-221   153.35 161.15 7.80 9.76 7.79 1.97 18.4
OLZ-221 Incl. 157.60 160.23 2.63 26.08 20.37 5.71 48.9
All of these core holes were drilled vertically through the sub-horizontal mineralized horizon, so intersections represent approximate true widths. Figures may not sum exactly due to rounding.


"Our Olza drilling has consistently returned very promising silver concentrations along with solid zinc-lead grades.  The potential for silver to enhance project economics is highlighted by the results from initial metallurgical testing that we announced earlier this week, showing excellent zinc and lead recoveries with a high silver grade reporting to the zinc concentrate," said Barry.  "This is another example of Rathdowney's ongoing work that is adding value to the project."

_______________________
1 Individual grades are 5.88% zinc and 1.54% lead.  For further details see Rathdowney News Release dated September 11, 2012 or the Company's technical report on the resource estimate that is filed at www.sedar.com.

Zinc demand continues to grow globally and key established mine operations are set to be taken offline over the medium term, resulting in looming deficits in concentrate supply from the world's mines. The Upper Silesian district has, by far, the most important accumulation of metal in any of the world's Mississippi Valley Type districts, with an estimated endowment of some 40 million tonnes of zinc and lead (USGS, 2010; endnote 1) and results from Project Olza show that it is an important part of this world class district.  Given its geological potential and excellent location, Rathdowney's Project Olza presents a compelling investment opportunity among a small peer-group of zinc-focused juniors.

About Rathdowney

Rathdowney Resources Ltd. is a mineral exploration company focused on finding and developing the next generation of zinc-lead-silver deposits in the ore fields of Poland and Ireland. Rathdowney is associated with Hunter Dickinson Inc. ("HDI") a diversified, global mine development company with a 25-year history of mineral development success. From its head office in Vancouver, Canada, HDI applies its unique strengths and capabilities to acquire, develop, operate and monetize mineral properties that provide consistently superior returns to shareholders.

The technical information in this release has been reviewed by Mark Rebagliati, P.Eng, a Qualified Person as defined by NI 43-101.

John Barry
President & CEO

Sample preparation and analysis for Project Olza is done at ISO 17025:2005 accredited Omac Laboratories Ltd. (Stewart Group/ALS Laboratory Group) in Loughrea, Ireland.  All samples are assayed for zinc, lead and silver by HNO3, KCLO4 and HBr and the final solution in dilute Aqua Regia is determined by Inductively Coupled Plasma-Optical Emission Spectroscopy (ICP‐OES) finish. These three elements and 42 additional elements are also determined for all samples by 4 acid digestion, followed by ICP‐OES finish. As part of a comprehensive QA/QC program, one standard and one replicate are inserted into the sample stream in each group of 20 samples, as well as one or more blanks in each analytical batch.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.

TABLE OF ASSAYS RESULTS

Drill Hole
Number
From
(m)
To
(m)
Interc
ept
(m)
Pb+Z
n
%
Zn
%
Pb
%
Ag
g/t
OLZ-201   150.95 152.50 1.55 2.58 0.59 1.98 5.3
OLZ-202   154.50 158.10 3.60 4.42 4.07 0.35 28.1
OLZ-203   145.55 146.85 1.30 4.46 4.32 0.14 11.5
OLZ-203   152.70 157.65 4.95 7.06 6.98 0.08 31.8
OLZ-203 Incl. 152.70 156.55 3.85 8.49 8.45 0.04 39.6
OLZ-205   73.15 78.40 5.25 3.37 3.23 0.14 10.5
OLZ-205   92.85 94.00 1.15 10.83 2.46 8.38 14.4
OLZ-206   78.60 81.60 3.00 2.41 1.90 0.51 11.4
OLZ-206   83.70 87.70 4.00 1.79 0.83 0.96 1.6
OLZ-206   91.65 98.15 6.50 8.31 4.44 3.87 11.6
OLZ-206 Incl. 94.75 98.15 3.40 13.70 6.36 7.35 20.4
OLZ-206 And 96.90 98.15 1.25 23.58 8.30 15.29 31.2
OLZ-206   101.40 105.85 4.45 4.13 2.61 1.51 5.0
OLZ-207   92.35 106.35 14.00 6.62 4.10 2.52 15.4
OLZ-207 Incl. 95.15 100.80 5.65 8.97 4.33 4.64 16.6
OLZ-207 Incl. 103.30 106.20 2.90 7.93 6.90 1.04 25.6
OLZ-209   82.90 84.30 1.40 4.06 3.38 0.68 3.9
OLZ-209   88.15 89.15 1.00 11.97 7.13 4.84 16.4
OLZ-210   89.75 90.75 1.00 4.93 4.87 0.06 5.2
OLZ-211   83.00 85.00 2.00 5.60 5.44 0.16 7.0
OLZ-211   92.10 94.20 2.10 3.28 3.05 0.23 4.6
OLZ-213   90.25 94.10 3.85 11.69 9.33 2.36 38.9
OLZ-213   104.55 106.30 1.75 5.22 5.21 0.01 1.5
OLZ-213   110.60 115.65 5.05 4.42 3.29 1.12 0.8
OLZ-213   120.35 123.70 3.35 2.06 2.03 0.03 1.9
OLZ-217   89.50 91.35 1.85 5.92 5.35 0.57 13.5
OLZ-220   66.10 73.30 7.20 2.68 1.10 1.58 5.0
OLZ-220 Incl. 66.45 68.15 1.70 7.75 2.62 5.13 15.9
OLZ-220   86.30 88.90 2.60 4.69 4.64 0.05 4.8
OLZ-220 Incl. 86.60 88.35 1.75 6.32 6.28 0.04 5.9
OLZ-221   132.95 134.85 1.90 3.45 2.11 1.34 0.9
OLZ-221   146.45 148.45 2.00 4.52 4.32 0.20 4.1
OLZ-221   153.35 161.15 7.80 9.76 7.79 1.97 18.4
OLZ-221 Incl. 157.60 160.23 2.63 26.08 20.37 5.71 48.9
OLZ-222   148.45 150.00 1.55 2.30 2.06 0.24 2.7
OLZ-222   153.15 156.40 3.25 1.67 1.59 0.08 3.9
OLZ-222   158.15 159.90 1.75 5.82 5.72 0.10 5.8
OLZ-223   140.15 142.70 2.55 3.28 3.18 0.10 2.7
OLZ-223   145.40 154.25 8.85 2.73 2.64 0.09 2.9
No significant intersection in holes 204, 208, 212, 214-216, 218 and 219.
All diamond core holes, drilled vertically through the sub-horizontal mineralized horizon, so intersections represent approximate true widths.
Figures may not sum exactly due to rounding.

__________________________

Endnote:
1Leach, D.L., Taylor, R.D., Fey, D.L., Diehl, S.F., and Saltus, R.W., 2010, A deposit model for Mississippi Valley-Type lead-zinc ores, chap. A of Mineral deposit models for resource assessment: U.S. Geological Survey Scientific Investigations Report 2010-5070-A, 52 p. - Appendix page 50

 

SOURCE: Rathdowney Resources Ltd.

For further information:

For further details on the Company and its projects, please visit www.rathdowneyresources.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.


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