Positive Results from on-going drilling at Project Olza, Poland
VANCOUVER, April 2, 2012 /CNW/ - Rathdowney Resources Ltd. ("Rathdowney" or the Company") (TSXV: RTH) is pleased to announce new diamond drilling results from the Olza zinc and lead project in southern Poland which continue to confirm the grade and thickness of the mineralization.
Project Olza is a Mississippi Valley Type (MVT) zinc-lead project located in the historic Silesian MVT mining district of Poland. This area has extensive mining infrastructure including power and rail, and is also near a zinc smelter which is expected to have additional smelting capacity when the Pomorzany mine closes in the next 3 to 5 years.
Zinc-lead deposits are known to occur at Olza as indicated by over 1,500 diamond drill holes, completed by the Polish State Geological Institute, as well as a number of historical resource estimates. Historical estimates for Zawiercie I and II are shown in the table on page 2, with a note confirming their non-conformance with National Instrument (NI) 43-101 requirements. Zawiercie I and II are potentially one continuous deposit, whereas historically they were estimated separately based on the geologic understanding and the drilling density at that time. The focus of the current work is on these deposits where new drilling is continuing to confirm the historical results. The drill hole pattern is designed to optimize the testing and verification of mineralization within the area of historic drilling. "A very encouraging picture is emerging from these results," stated John Barry, President and CEO. "Our goal is to deliver a NI 43-101 compliant resource by mid-year."
Results to date are demonstrating the continuity of mineralization at shallow depths over several kilometres of strike length. Assays from the first 39 holes drilled were reported by Rathdowney in previous news releases on September 22, 2011 and December 15, 2011. The new drilling results, tabulated below, are for holes OLZ-40 to 69. A map has been posted on the website at http://www.hdgold.com/i/pdf/rdr/RDR_NR_ZawiercieExploration_Mar2012.pdf showing the locations of new areas of drilling in relation to the historical resource footprints.
| Drill Hole
|All diamond drill holes were drilled vertically through the sub-horizontal mineralized horizon, so intersections represent approximate true widths.|
|Holes 40, 41, 46 and 69 had no significant intersection.|
|Ten holes had recovery problems or were abandoned and will be re-drilled.|
In addition to the Polish State Geological Institute (PSGI) drilling and resource estimates of the 1970's, subsequent estimates were completed in the 1990's and 2000's. As shown in the table below, the most recent estimates for the Zawiercie I and II deposits were completed in 2008 and published by the PSGI based on the Polish resource classification system, which is very similar to the Soviet classification system. No drill core was preserved from this drilling and there is no information to support the quality assurance of the assay results. This situation is routinely encountered in dealing with data generated by drill programs conducted by such State Institutes; hence a confirmatory drilling program is underway.
|Historical Estimates by PSGI for Zawiercie I and II Zn-Pb Deposits|
|Deposit||Year|| No. of
| Period of
|Category||Mt||% Zn||% Pb|
|Zawiercie I *||2008||510||Unknown|| Most pre-
|Zawiercie II **||2008||240||Unknown|| Most pre-
|* 115 holes totalling 16,000 metres were used in estimate|
|** 28 holes totalling 6,000 metres were used in estimate|
|C1 aligns approximately with a measured to indicated classification under CIM Standards and C2/D with an indicated to inferred classification.|
|References: 1975-1994 estimates: as described in Rathdowney 2010 technical report.|
|2008 estimates: Zawercie I: (2008) Przenioslo S. et al. - Dodatek nr 1 do dokumentacji geologicznej zŦ#130; oża rud cynku i oŦ#130; owiu "Zawiercie I" w kat.C1+C2 w miejsc. Zawiercie (Dokumentacja Zloza), Panstwowy Instytut Geologiczny, Warszawa, 6006/2008.|
|Zawercie II: (2008) Przenioslo S. et al. - Dodatek nr 4 do dokumentacji geologicznej zŦ#130; oża rud cynku i oŦ#130; owiu "Zawiercie" obszar "Zawiercie II" w kat.C1+C2 w miejsc. CiĦ#133; gowice, PorĦ#153; ba, Rokitno Szlacheckie. (Dokumentacja Zloza), Panstwowy Instytut Geologiczny, Warszawa, 6004/2008.|
It should be noted that the preceding resource estimates are historical in nature and are obtained from reports prepared by the PSGI. These estimates do not qualify as NI 43-101 defined resources as per CIM Definition standards and are to be taken solely as an indication of the exploration potential of the project. A qualified person has not done sufficient work to classify the estimates as current mineral resources and the Company is not treating them as current. The pre-2008 estimates were based on a standard polygonal method, with an area of influence mid-way to the nearest adjacent hole. Drill holes were generally spaced between 150 and 200 metres for a C1 classification and 200 and 300 metres for a C2 classification. The 2008 estimates used a more restricted area of influence of 37.5 metres around each hole for a C1 classification and 75 metres for a C2 classification. These ranges were based on geostatistical studies carried out at the nearby Pomorzany zinc-lead mine.
Mr. Barry commented "We are delighted with the drilling successes to date as we continue to test selected portions of this large mineralized system. We have increasing confidence in our ability to define significant resources which are a short rail-haulage distance from a third-party concentrator and smelter. Given its geological potential and excellent location, we believe that Rathdowney's Project Olza presents a compelling investment opportunity amongst a small peer-group of zinc-focused juniors.
Zinc demand continues to grow globally and key mines will exhaust ore supplies over the medium term creating significant deficits in concentrate supply. As a result, some of the major producers are already starting to acquire smaller suppliers in order to secure zinc concentrate. Rathdowney is well placed to benefit from this impending supply deficit."
The Irish technical team continues to integrate the data and knowledge obtained from the 2011 drill program with the historical information in order to define further targets for drill testing. Exploration in Ireland requires persistence and grid drilling on the best targets where there is compelling geologic evidence. Work has now been prioritized in three project areas: Galway, Laois and Westmeath South.
Mr. Barry commented "Exploration and discovery are critical elements of Rathdowney's value creation strategy and detailed geological compilation is required to achieve exploration success. The Company is assessing the results of its 2011 drilling program and planning accordingly."
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 David J. Copeland, PEng, a Qualified Person as defined by NI 43-101.
President & CEO
|Sample preparation and analysis for Project Olza is done at ISO 17025:20 05 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 digestions, 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, potential environmental issues or liabilities associated with exploration, development and mining activities, 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.
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