With clear potential to add substantial resources and make new discoveries
VANCOUVER, Sept. 11, 2012 /CNW/ - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSXV: RTH) announces an estimate of significant zinc-lead mineral resources for its Project Olza in Poland. These results, based on 780 core holes drilled historically by the Polish State as well as confirmatory drilling in 175 core holes carried out by Rathdowney since June 2011, represent the first estimate carried out under modern standards, in compliance with Canadian regulations under National Instrument 43-101. The 100-square kilometre Project Olza property is located in the Upper Silesian Mining District of southwestern Poland, an area of extensive Mississippi Valley-type deposits in which zinc-lead mining has taken place since the 12th century.
Rathdowney has undertaken a comprehensive program over the past 1½ years to assess the Olza zinc-lead deposits. This work has involved retrieval, compilation and detailed review of the historical database, including an assessment of key information such as sampling and assay procedures and drill-hole recoveries, planning and executing a 175-hole drilling program in the central part of the area that comprises Project Olza.
A total of 955 diamond drill holes from historical and recent drilling were used to establish the current resource model. Mineralization occurs along a mineralized corridor which, in plan, follows a broadly curvilinear pattern with a total strike length of approximately 10 kilometres and width up to 1 kilometre. Within this mineralized corridor, stratabound mineralized zones; ranging in thickness from less than 1 metre to 20 metres, and averaging 1.5 metres are mainly hosted within a flat-lying dolomitic unit lying 100 to 250 metres below surface. Mineral resource areas are shown on the map at the Rathdowney website at http://rathdowneyresources.com/i/rdr/pdf/RTH_2012_Sept11_Drawing.pdf.
The results of the estimate at a range of cutoffs are tabulated below:
| Rathdowney Project Olza
Inferred Mineral Resources
|Zn %||Pb %||Zn+Pb %|| Contained Zn
| Contained Pb
Results may not add exactly due to reporting precision and rounding.
President and CEO John Barry said "This is an outstanding initial result for Project Olza and Rathdowney. These mineral resources occur in what is effectively a brownfield setting linked by rail to nearby third-party mine infrastructure, which provides a solid platform to move forward and consider scoping studies. In addition, this resource, although substantial, covers only a relatively minor part of the major mineralizing system on the Olza property. The prospects offered by now applying new exploration technology and concepts to the rest of the large property that has been explored by much lower drilling density are compelling. Large prospective areas outside the new resource footprint have either not been drilled or were drilled at inadequate densities for such deposits. The Rathdowney team is engaged in plans to further advance the project."
The current estimate was completed under the direction of Robert L. Sandefur, P.E. of Chlumsky Armbrust & Meyer, LLC, an international mineral resources and engineering group. Mr. Sandefur is a geostatistician who is an independent Qualified Person as defined under National Instrument 43-101. A technical report will be filed on the Rathdowney profile at www.sedar.com within 45 days.
The effective date of the estimate is May 2012, the date of the latest drilling used in estimation. Drilling, sample preparation, and analysis for Project Olza were undertaken in accordance with current CIM standards. Assaying was done at ISO 17025:2005 accredited Omac Laboratories Ltd. (Stewart Group/ALS Laboratory Group) in Loughrea, Ireland.
Geostatistical analysis and an inverse distance squared method were used for the estimate. Grade was estimated using an isotropic search ellipse with a radius of 150 metres and a minimum of three samples and two drill holes for each block estimate. Blocks estimated from samples with an average distance of 130 metres or less meet the criteria for an inferred classification. Based on the number of historical holes used, an inferred classification was assigned to the entire estimate. The range of cutoffs selected is based on a review of recent estimates of similar zinc-lead deposits as well as underground operations world-wide.
Excellent Exploration Potential on the Extensive Olza Property
Holes used for the current estimate were drilled over a 9-square kilometre area in the central part of the Olza property. Much of the historical drilling was concentrated in this area and, in particular, on what was known as the Zawiercie I deposit. Other mineralized areas to the north (Marciszow deposit), to the west (Zawiercie II deposit) and to the southeast (Rodaki-Rokitno deposit) were historically drilled on irregular and sparse grids, and the portions of the property in between and adjacent to the areas have seen very little drilling. Hence, there are excellent opportunities to substantially increase the mineral resources.
About Project Olza
Situated between the major population centers of Krakow and Katowice, the project site is easily accessible by road. It is about a one-hour drive from Krakow, a major city with full services, including an international airport. The region also has well-developed mining infrastructure, including smelting facilities. The southern limit of Rathdowney's ground is approximately 10 kilometres north of the large operating Pomorzany underground zinc-lead mine and about 15 kilometres from the zinc-lead concentrator, refinery and smelter complex.
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.
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.
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 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.
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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.