|December 12, 2011|
Rathdowney Announces Positive Drilling Results
Drilling at Project Olza - Poland ramps up and confirms continuity of zinc-lead-silver mineralization
December 12, 2011, Vancouver, BC - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSXV: RTH) announces assay results for 18 new diamond drill holes at the Olza Mississippi Valley Type (MVT) Project in Poland. Five drill rigs are currently working on the project to confirm historic lead-zinc-silver mineralization.
Assays from the first 20 holes drilled were reported by Rathdowney on September 22, 2011. Results have now been received for holes 21 to 35 and 37 to 39 with assays for significant zinc-lead-silver mineralized intersections presented in the table below. A table of the results for all holes released to date, and a drill hole location map are posted with the news release at www.rathdowneyresources.com.
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Results pending on hole OLZ-036; no significant intersections in holes 22, 23, 30, 37, 38.
Drilling has continued to concentrate on the Zawiercie concession. This work is initially designed to verify and increase the confidence level of the historical resources using a 50-metre spacing, which is higher-density and more systematic than historical drilling.
Over two thirds of the holes drilled have intersected robust grades of zinc-lead-silver mineralization, focused in two areas. In Area A, drilling has confirmed the continuity of the mineralization over 650 metres from hole OLZ-021 to OLZ-007, and along several cross lines. To the southeast in Area B, a cluster of holes have been drilled over an area of 300 metres by 200 metres, confirming the local continuity of the mineralization.
John Barry, CEO and President said "Drilling continues to verify the presence, and build confidence in the grade and continuity of historic mineralization on the Zawiercie concession. We are consistently cutting zinc-lead mineralization, which gives us growing confidence in our ability to define significant resources in this phase of the program. The objective of our fully-funded $21 million resource delineation program is to complete sufficient drilling for a NI43-101 compliant resource in the first half of 2012."
Rathdowney's Project Olza is located in the prolific Upper Silesian zinc-lead belt of Poland. The Upper Silesian district has, by far, the most important accumulation of metal in any of the world's Mississippi Valley Type districts, with an estimated endowment of some 40 million tonnes of zinc and lead (USGS, 2010; endnote 1). Zinc and lead has been mined in this area since the 12th century.
Project Olza is located in the heart of the zinc-lead district, in which there is major mining infrastructure, including a rail link to a nearby zinc smelter. The combination of the potential of Rathdowney's Project Olza and its excellent location for long-term development makes Rathdowney a compelling investment opportunity among a small peer-group of zinc-focused juniors.
As zinc demand continues to grow globally and key mine sites are due to be taken offline over the medium term, there are looming deficits in concentrate supply from the world's mines. Some of the major producers are already starting to acquire smaller suppliers in order to secure zinc concentrate. It is anticipated that the shift in focus over the medium term will surely move to those with strategic zinc resources.
In mid-April, Rathdowney commenced exploration drilling in the prolific zinc-lead-silver district of the Irish Midlands, south of the recent Pallas Green discovery. To date, 26 drill holes have been completed for a total of 6,422 metres: drilling has focused on the Mallow and Westmeath project areas, with some initial target testing in Galway and Laois also completed, with assays returned for 23 drill holes.
At Mallow, drill hole ML-004 intersected 0.32 metres averaging 1.76% Zn+Pb (0.036% Pb, 1.73% Zn) and ML-006 intersected 0.94 metres averaging 1.06% Zn+Pb (0.013% Pb, 1.05% Zn). This style of mineralization occurs above the "base of Waulsortian Reef" target horizon within an east-west trending structural and alteration corridor. The limestone units at the base of the Walsortian Reef are known to host important deposits such as Galmoy and Lisheen which support profitable mines.
John Barry CEO and President said "Exploration and discovery is a critical element of Rathdowney's value creation strategy. We have a superb exploration team and a select group of internationally renowned advisors. Exploration in Ireland requires persistence and grid drilling on the best targets where there is compelling structural evidence. Over the coming months we will integrate the data and knowledge obtained from the current drilling program and combine it with the historical information, with a view to the definition of further targets for drill testing."
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 Mark Rebagliati, P.Eng, a Qualified Person as defined by NI 43-101.
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.
President & CEO
Sample preparation and analysis for Project Olza and Rathdowney's Irish properties are 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 digestion, 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.
(1) Leach, D.L., Taylor, R.D., Fey, D.L., Diehl, S.F., and Saltus, R.W., 2010, A deposit model for Mississippi Valley-Type lead-zinc ores, chap. A of Mineral deposit models for resource assessment: U.S. Geological Survey Scientific Investigations Report 2010-5070-A, 52 p. - Appendix page 50