VANCOUVER, Sept. 27, 2012 /CNW/ - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSX-V: RTH) announces that it has been granted a third exploration concession in Poland. The 50.8 square kilometre Chechlo concession, which is contiguous with the Company's Rokitno concession, was issued to the Company's wholly-owned Polish subsidiary by the Ministry for the Environment on September 20, 2012 for a period of five years. The Company's Project Olza now covers some 150 square kilometres in the prolific Upper Silesian Mineral District.
The Chechlo concession lies to the southwest of Project Olza along the same richly-mineralized zinc-lead trend. The concession has seen little exploration activity compared to other parts of the property. During the 1950-1970s, the Polish State conducted limited diamond drilling (125 holes, 36,787 metres) at a spacing of 200-400 metres over an area of approximately 18 square kilometres. The majority of the Chechlo concession is unexplored.
At Chechlo, three stratiform zinc-lead mineralized zones - Western, Northern and Central - are hosted by the Middle Triassic Dolomite unit known as the Ore-Bearing Dolomite, which hosts many mines in the Upper Silesian District and, importantly, mineralization at other parts of Project Olza. However, at Chechlo mineralization also occurs in Devonian carbonates underlying the Central Zone, localized in one or several subvertical breccia pipes. Geological evidence points to a high potential for locating additional mineralized breccia pipe systems that, based on other mines in the area such as Pomorzany, can be of significant size.
Historical drilling indicates grades of 5 to 9% Zn+Pb in the stratiform zones of variable thickness within locally-stacked mineralized horizons at 130-300 metres in depth. Higher-grade mineralization (e.g. 10% Zn+Pb over 30 metres) was also intersected, and may represent the mineralized breccia pipes, making them compelling targets.
Rathdowney is finalizing plans for a 5,000-metre drilling campaign using a relatively high-density pattern on selected targets at Chechlo and other parts of Project Olza. Building on experience gained in the Irish Midlands, the Company intends to use additional techniques such as geophysics to target shallow breccias and potential feeder-structures. This work is designed to test the lateral continuity of higher-grade breccia-style mineralization, along with other targets, to expand the overall mineral resources on the Olza property.
President and CEO John Barry said, "With a substantial positive initial resource under our belt (see Rathdowney release dated September 11, 2012), further value generation will occur by building both tonnage and grade. The acquisition of Chechlo gives us the opportunity to delineate significant high-grade zinc-lead resources that would positively impact the potential economics of the project."
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 Europe. 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 David J. Copeland, PEng, a Qualified Person as defined by NI 43-101.
President & CEO
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, potential environmental issues or liabilities associated with exploration, development and mining activities, 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.
SOURCE: Rathdowney Resources Ltd.
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