|April 02, 2012|
Rathdowney On Track To Complete 43-101 Compliant Resource In 2012
April 2, 2012, Vancouver, BC -- 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 www.rathdowneyresources.com showing the locations of new areas of drilling in relation to the historical resource footprints.
<< Drag to view the table >>
All diamond drill holes were drilled vertically through the sub-horizontal mineralized horizon, so intersections represent approximate true widths.
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.
<< Drag to view the table >>
C1 aligns approximately with a measured to indicated classification under CIM Standards and C2/D with an indicated to inferred classification.
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.
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