|September 11, 2012|
Significant Zinc-Lead Resources At Rathdowney's Olza Project
September 11, 2012, Vancouver, BC -- 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:
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.
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.