Rathdowney Resources Ltd.

News Releases

 July 31, 2012
Rathdowney Provides Further Results From 2012 Drilling At Poland's Project Olza

  July 31, 2012, Vancouver, BC - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSXV: RTH) announces more results from its 2012 resource delineation drilling program at Project Olza, located 70 km northwest of Krakow, Poland.

Rathdowney has now drilled 200 holes, concentrated within a mineralized corridor shown on the drill location map at http://rathdowneyresources.com/i/rdr/pdf/RTH_2012_July31_Drawing.pdf.

Results from twenty-six new holes (OLZ-083 and OLZ-110 to OLZ-134) are appended to this release. Highlights include:

  • 19.35 m of 4.81% Zn+Pb and 7.3 g/t Ag in hole OLZ-110
  • 4.00 m of 6.48% Zn+Pb and 18.6 g/t Ag and 17.8 m of 3.73% Zn+Pb and 4.9 g/t Ag in hole OLZ-125
  • 6.10 m of 4.31% Zn+Pb and 21.7 g/t Ag and 10.55 m of 3.33% Zn+Pb and 14.8 g/t Ag in hole OLZ-126
  • 4.30 m of 10.67% Zn+Pb and 14.9 g/t Ag in hole OLZ-130
In plan, the total strike length of the mineralized corridor at Project Olza is approximately 10 kilometres and it is up to one kilometre wide as it follows a broadly curvilinear pattern oriented along a northwest trend, then trending east to west in its central section, and north-south at it southeastern end. Within this mineralized corridor, zinc and lead values are generally hosted by a flat-lying dolomitic unit located at depths ranging from 100 to 250 metres below surface. Mineralized zones are also flat lying, with thicknesses ranging from less than a metre up to 20 metres. Drill patterns were defined to confirm existing zinc and lead intercepts, expand their extent, and allow for development of an estimate of the mineral resource compliant with NI 43-101. The program has been successful in meeting these objectives and a mineral resource, estimated in compliance with National Instrument 43-101, is scheduled for early September.

Rathdowney President and CEO said: "These drilling results continue to confirm the quality and scale of the zinc-lead mineralization at Project Olza. Release of the assay results from the final holes which will be included in the resource estimate is expected in the next two weeks."

Rathdowney's Project Olza is a Mississippi Valley Type (MVT) zinc-lead prospect situated in Poland's prolific Upper Silesian mining district. The Upper Silesian has been a centre of exploration and mining activity from the 12th century to the present day, hosting the most important metal accumulation in any of the world's MVT districts, with an estimated endowment of some 40 million tonnes of zinc and lead (USGS, 2010; endnote 1). Because of the district's long mining history, extensive infrastructure is readily available to new projects, including power and smelter facilities. Rathdowney's ground is linked by rail to these facilities. Given its geological potential and excellent location, Rathdowney's Project Olza presents a compelling investment opportunity among a small peer-group of zinc-focused juniors.

Extensive zinc-lead deposits are known to occur at Project Olza as evidenced by widespread drilling by the Polish State during the period of 1950-1990, including a number of historical resource estimates. Rathdowney's drill program is designed to optimize the testing and verification of the historical resources in this highly prospective area.

About Rathdowney

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.

John Barry
President & CEO

Sample preparation and analysis for Project Olza is done at ISO 17025:2005 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.

1Leach, 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

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.

Table of Assay Results

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Drill Hole
OLZ-083   124.30 125.40 1.10 9.21 5.60 3.61 47.8
OLZ-083   130.00 134.10 4.10 3.41 2.51 0.90 4.0
OLZ-110   116.25 135.60 19.35 4.81 4.22 0.59 7.3
OLZ-110 Incl. 128.55 135.60 7.05 9.64 9.19 0.45 12.4
OLZ-111   74.40 75.15 0.75 11.74 11.69 0.05 1.8
OLZ-116   84.30 88.00 3.70 3.08 2.13 0.94 5.3
OLZ-118   86.45 87.70 1.25 20.74 3.35 17.39 25.1
OLZ-119   107.70 112.20 4.50 4.26 4.17 0.09 3.1
OLZ-119 Incl. 110.00 112.20 2.20 6.76 6.70 0.06 5.2
OLZ-120   69.85 71.60 1.75 4.83 3.89 0.94 6.1
OLZ-122   89.50 95.30 5.80 3.78 3.75 0.03 3.7
OLZ-123   94.40 95.30 0.90 6.61 1.11 5.50 4.5
OLZ-124   80.30 81.10 0.80 4.57 3.34 1.23 12.5
OLZ-125   78.20 82.20 4.00 6.48 5.62 0.86 18.6
OLZ-125   89.60 107.40 17.80 3.73 3.26 0.48 4.9
OLZ-125  Incl. 106.20 107.40 1.20 3.34 3.26 0.08 12.9
OLZ-126   72.50 83.05 10.55 3.33 3.11 0.22 14.8
OLZ-126  Incl. 72.50 78.60 6.10 4.31 3.93 0.37 21.7
OLZ-126  Incl. 81.50 83.05 1.55 4.97 4.94 0.03 12.2
OLZ-127   72.83 75.90 3.07 7.04 6.36 0.68 8.3
OLZ-128   83.15 86.60 3.45 1.72 1.60 0.12 7.1
OLZ-129   63.30 66.00 2.70 3.61 1.70 1.91 5.9
OLZ-130   79.80 80.70 0.90 2.72 2.50 0.22 12.4
OLZ-130   95.20 99.50 4.30 10.67 9.99 0.68 14.9
OLZ-132   78.20 81.50 3.30 1.78 0.68 1.10 1.9
OLZ-134   60.80 62.00 1.20 7.15 6.94 0.21 37.2
All diamond core holes, drilled vertically through the sub-horizontal mineralized horizon, so intersections represent approximate true widths.

No significant intersection in holes: 112-115, 117, 121, 131, 133.