RATHDOWNEY PROJECT OLZA UPDATE: Increase in Mineral Resources; Baseline studies advancing
VANCOUVER, Feb. 2, 2015 /CNW/ - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSXV: RTH) announces further progress in Phase II activities at its flagship Olza zinc-lead-silver project in southwest Poland.
Deposit development planning:
- Mineral resource estimate completed based on full Phase 1 drilling on the Zawiercie and Rokitno concessions and historical information received
- At 2.0% zinc cut-off, inferred resources are 24.4 million tonnes grading 7.02% Zn+Pb
- Represents a 15% increase in resource tonnes and 9% increase in contained zinc and lead from the previous estimate in September 2012
- Provides expanded resource base for project evaluation studies at Project Olza
Project permitting:
- Baseline data studies to support environmental assessment well-advanced
- Extensive hydrogeological compilation nearing completion
- Flora and fauna data collection programs more than 50% complete
"There has been excellent recent progress at Project Olza. In November, we received key government approvals that extended and secured our property rights at Olza. This really set the stage to advance our project development and permitting efforts," stated Rathdowney President & CEO Robert Konski. "Moreover, our recent deposit modelling has provided a larger mineral resource and a more refined understanding of the geometry and grade of the Olza deposit. This understanding will significantly enhance engineering and mine planning activities that are currently underway."
"We expect to complete baseline data collection work in mid-2015, which in combination with the results from mine planning studies will set the foundation for the environmental assessment."
Resource Estimate and Additional Potential
Rathdowney announced an initial mineral resource estimated under modern (43-101) standards in September 2012. The 2012 estimate was based on information from the first year of the Company's Phase I program and historical drilling that was available at the time. Phase I drilling continued through early 2013. All but two of Rathdowney's 225 holes were completed along a mineralized trend on the Zawiercie and Rokitno concessions; this area is the focus of the current estimate.
Data from the full program has now been compiled with data from drilling completed by the State Survey in Poland from 1950-1990. Historical data received as recently as July 16, 2014 has also been incorporated into the database. The 2014 resource model uses 1,016 drill holes. The block model was constrained within a wireframe of the mineralized horizon, with values for bulk density, zinc and lead interpolated using an inverse distance squared ("ID2") method and Maptek VulcanTM software. Classification of the mineral resource is based on a geostatistical analysis.
Results of the current estimate at a range of cut-offs are tabulated below.
| Project Olza – Inferred Mineral Resources |
||||||
| Cutoff Zn% |
Tonnes (millions) |
Zn (%) |
Pb (%) |
Zn+Pb (%) |
Contained Zn (millions lb) |
Contained Pb (millions lb) |
| 2.0 |
24.4 |
5.53 |
1.49 |
7.02 |
2,975 |
802 |
| 3.0 |
18.8 |
6.43 |
1.59 |
8.02 |
2,660 |
658 |
| 4.0 |
14.1 |
7.42 |
1.70 |
9.12 |
2,304 |
528 |
| 5.0 |
10.4 |
8.44 |
1.81 |
10.25 |
1,944 |
417 |
Note: contained metal based on 100% recovery.
David Gaunt, P.Geo., Vice President Resource and Database for Hunter Dickinson Services Inc., a qualified person not independent of the Company is responsible for the estimate.
The overall Project Olza database consists of over 180,000 m of drilling. This extensive database documents widespread zinc-lead mineralization on the Olza property. The potential to increase resources is considered to be excellent.
Rathdowney's drilling also showed the presence of significant concentrations of silver in the Olza mineralization. Silver was not analysed during historical drilling so is not included in the current estimate. There is real opportunity for silver to provide additional value to the project.
About Project Olza
Project Olza is located in the Upper Silesian Mining District of southwestern Poland, a world-class region of Mississippi Valley-type deposits with well-developed mining infrastructure. Easily accessible by road, the Olza project site is a one-hour drive from Krakow, a major city with full services, including an international airport. The deposits at Olza are also approximately 30 kilometres along strike from the long-life Pomorzany zinc-lead mine and associated mining infrastructure at Boleslaw, which is accessible by rail.
Rathdowney completed an $8.6 million financing in 2014 to support its Phase II program; work is focused on environmental and engineering studies to advance project development planning and permitting.
With the currently looming market deficits, the outlook for zinc and lead prices is strong. Project Olza is well-suited in terms of location, project advancement and potential to provide new supply into this emerging market.
About Rathdowney
Rathdowney Resources Ltd. is an exploration and development company focused on advancing the Olza zinc-lead-silver project in Poland through permitting and into production. Rathdowney is associated with Hunter Dickinson Inc. ("HDI") a diversified, global mine development company with a 25-year history of mineral development success.
The technical information in this news release has been reviewed and approved by David Copeland, P.Eng., Chairman and Director of Rathdowney, who is a qualified person.
On behalf of the Board of Directors
Robert Konski
President & CEO
Sample preparation and analysis was completed at Omac Laboratories Ltd. (Stewart Group/ALS Laboratory Group), an ISO 17025:2005 accredited facility 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 (ICPOES) finish. These three elements and 42 additional elements are also determined for all samples by 4 acid digestion followed by ICPOES 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. Assumptions used by the Company to develop forward-looking statements include the following: the Olza project will obtain all required environmental and other permits and all land use and other licenses, studies and development of the Olza project will continue to be positive, and no geological or technical problems will occur. 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.
Information Concerning Estimates of Inferred Resources
This news release uses the term "inferred resource". Rathdowney advises investors that although this term is recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize it. Investors are cautioned not to assume that any part or all of the mineral deposits in this category will ever be converted into reserves. Inferred resources have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Economic Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
SOURCE Rathdowney Resources Ltd.
For further information: For further details on Rathdowney and Project Olza, please visit the company website www.rathdowneyresources.com or contact: Roger Blair, Investor Relations, Tel: 778-373-6725, Toll free (NA): 1-800-667-2114
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