Zephyr completes initial NI 43-101 Resource estimate for the Dawson Gold Property in Colorado

Trading Symbol:  TSX-V: ZFR
Shares Outstanding: 19,347,595

HALIFAX, July 23, 2013 /CNW/ - Zephyr Minerals Ltd. ("Zephyr" or the "Company") (TSXV: ZFR) is pleased to announce the first independent Resource estimate undertaken at its 400 hectare, 100% owned Dawson Property located in Fremont County, Colorado, USA. The gold (Au) deposit is comprised of three mineralized areas, the Dawson segment, the Windy Gulch segment and the Windy Point segment. The National Instrument 43-101 ("NI 43-101") Resource estimate was completed on the Dawson and Windy Gulch segments only.

The Resource estimate was prepared by Mercator Geological Services Limited ("Mercator") of Dartmouth Nova Scotia, who examined the Resource from an underground Resource potential. The Resource estimate was prepared under the supervision of Mr. Andrew Hilchey, P.Geo., of Mercator. Mr. Hilchey, is an independent Qualified Person in accordance with NI 43-101 and has reviewed and approved the information regarding the Resource estimate in this News Release. A NI 43-101 Technical Report supporting the Resource estimate will be filed on SEDAR within 45 days of this News Release.

Table 1: Dawson Property Mineral Resource Estimate Effective July 19th, 2013

Total Dawson Property Mineral Resource Estimate (Dawson Segment & Windy Gulch Segment)
Resource Category	Gold (g/t) Cut-Off	Tonnes (Rounded)	Gold (g/t) Capped at 40 g/t	Gold (g/t) Uncapped	Ounces** (Capped)	Ounces** (Uncapped)
Inferred	4.00	423,000	10.07	11.42	136,900	155,300
Inferred	5.00*	392,000	10.50	11.97	132,300	150,800
Inferred	6.00	350,000	11.09	12.73	124,800	143,200
Dawson Segment Mineral Resource Estimate Component
Resource Category	Gold (g/t) Cut-Off	Tonnes (Rounded)	Gold (g/t) Capped at 40 g/t	Gold (g/t) Uncapped	Ounces** (Capped)	Ounces** (Uncapped)
Inferred	4.00	371,000	10.09	11.53	120,400	137,500
Inferred	5.00*	343,000	10.55	12.11	116,300	133,500
Inferred	6.00	310,000	11.08	12.80	110,400	127,600
Windy Gulch Segment Mineral Resource Estimate Component
Resource Category	Gold (g/t) Cut-Off	Tonnes (Rounded)	Gold (g/t) Capped at 40 g/t	Gold (g/t) Uncapped	Ounces** (Capped)	Ounces** (Uncapped)
Inferred	4.00	52,000	9.89	10.63	16,500	17,800
Inferred	5.00*	49,000	10.17	10.95	16,000	17,300
Inferred	6.00	40,000	11.20	12.15	14,400	15,600

*Resource statement cut-off value of 5.0 g/t is highlighted by bolding 
**Ounces may not sum due to rounding

Notes:

1)	Tonnages have been rounded to the nearest 1,000 tonnes.
2)	Ounces have been rounded to the nearest 100 ounces
3)	Contributing assay composites were capped at 40 g/t Au for both the Dawson Segment and Windy Gulch Segment deposits.
4)	Uncapped values are provided for general information but are not part of the statement of mineral resources.
5)	The resource statement cut-off grade of 5.00 g/t Au is highlighted in Table 1 above through bolding and reflects underground development potential based on a Au price of $US1,200/ounce.
6)	A density value of 2.63 g/cm^3 was used for the Dawson Segment and 2.64 g/cm^3 for the Windy Gulch Segment.
7)	Mineral resources were estimated in conformance with the Canadian Institute of Mining, Metallurgy and  Petroleum - Standards on Mineral Resources and Reserves - Definitions and Guidelines, as referenced in NI 43-101.
8)	The rounding of tonnes as required by NI 43-101 reporting guidelines may result in apparent differences between tonnes, grade and contained ounces.
9)	Mineral resources are not mineral reserves and do not have demonstrated economic viability. This estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
10)	The quantities and grades of reported Inferred Mineral Resources are uncertain in nature and further exploration may not result in their upgrading to Indicated or Measured status.

Geological Potential

Loren Komperdo, President and CEO of Zephyr stated "In addition to the above referenced inferred resource estimate, the Dawson segment is open at depth and to the west, the Windy Gulch segment is open to the east and at depth and the Windy Point segment, which is not included in this resource estimate, is open along strike and at depth.  Importantly, the capped  deposit gold grade of 10.50 g/t (and uncapped grade of 11.97g/t) gold is high compared to most gold deposits around the world and is key advantage at a time of challenging gold prices. Our objective now is to demonstrate the economic viability of the project and move towards development."

Zephyr has posted a photo on its website www.zephyrminerals.com that shows the location of the existing NI 43-101 Resource Estimate and the peripheral targets.

Mineral Resource Estimate Methodology

The Dawson Segment and Windy Gulch Segment gold deposits were assessed as part of a sedimentary-exhalative style setting. The mineralization is stratabound, hosted by a sequence of amphibolite-grade Proterozoic felsic gneisses and lesser sulphide-rich zones, and occurs in multiple horizons. The gold can be nuggety and has been identified as grains up to 3 millimeters in size. The gold mineralization is usually accompanied by 1 - 5% disseminated pyrite +/- chalcopyrite.

The mineral resource estimate is based on 2 three-dimensional block models developed using Gemcom Surpac® 6.1.4 modeling software and validated results of 23,923 metres (78,487.6 ft) of diamond drilling from 131 drill holes, and 58.6 metres (192.31 ft) of trench sampling in 3 road-cuts and 3 small pits carried-out between 1981 and 2013 on the Dawson Segment and Windy Gulch Segment deposits.  Block model grades were interpolated using inverse distance squared (ID2) methodology. ID2 interpolations used 5 ft downhole gold assay composites that were capped at 40 g/t gold. Block size for both models was 5 feet (y) by 16.5 feet * by 16.5 feet (z) with no sub-blocking.

All 2013 Zephyr drill core and channel samples from the Windy Gulch Segment were analyzed by ALS Chemex and included both (1) screen metallics (SM) analyses with atomic absorption finish (FA-AA) and (2) regular fire assay analyses with an atomic absorption finish (FA-AA). The average of 59 SM gold determinations from Zephyr samples falling within the confines of the Windy Gulch Segment resource estimate is approximately 9.4% higher than the average of corresponding  regular FA-AA values.  Historic core samples from Dawson and Windy Gulch were commonly analyzed by regular fire assay with a gravimetric finish (FA-GRAV), and to a lesser extent FA-AA, although the reports to not always specify which finish was used. A total of 10 historic SM gold results were also used for the Dawson Segment resource estimate when regular FA results were not available. The current Windy Gulch Segment resource estimate incorporated the recent 2013 SM gold results.

The resource statement cut-off grade of 5.00 g/t gold reflects reasonable potential for underground development based on a gold price of  $US 1,200/ounce.

A National Instrument 43-101 compliant technical report on the Dawson Property that details, among other things, the resource estimate, QA/QC results, database validation and geologic model will be forthcoming to meet disclosure and SEDAR filing requirements.

CAUTIONARY STATEMENT:

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release contains forward-looking statements. More particularly, this press release contains statements concerning the use of funds from the private placement.

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by the Company, including, with respect to the use of funds from the private placement, expectations and assumptions concerning timing of receipt of required regulatory approvals and third party consents and the satisfaction of other conditions to the completion of the exploration work on the Dawson Gold Property.

The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE: ZEPHYR MINERALS LTD.

For further information:

Loren Komperdo, President & CEO
or
David H. Felderhof, Executive Vice President
Zephyr Minerals Ltd.
T: 902 446-4189
F: 866 941-4715

Email: [e-mail]
Or visit: www.zephyrminerals.com