|February 27, 2014|
Rathdowney Project Olza Update:
Initial objectives achieved, next phase of work underway
February 27, 2014 Vancouver, BC -- Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSX-V: RTH) reports that all of the Company's initial objectives for its Olza Zinc-Lead-Silver Project in southwest Poland were successfully achieved, and the Company is progressing with its Phase II programs.
Significant Mineral Resources
Rathdowney began work at Project Olza in 2010, with a comprehensive program to assess the resource potential of the Olza zinc-lead-silver deposits. This work involved retrieval, compilation and review of the extensive historical database, including key information such as sampling and assay procedures and drill-hole recoveries as well as executing a 225-hole drilling program in the central part of the project-area. Rathdowney's drilling confirmed the consistency of historical analytical results, the continuity of the mineralization and the presence of important concentrations of zinc, lead and silver. An estimate of significant mineral resources (21.2 million tonnes in the inferred category grading 7.42% combined zinc and lead1) was announced in September 2012, based on National Instrument 43-101 standards. The Company's work also indicates excellent potential for expansion of the mineral resources.
Metallurgical testing indicates simple flotation process
In conjunction with the initial resource estimate, Melis Engineering of Saskatoon, Saskatchewan was engaged to oversee a preliminary metallurgical testwork program at SGS Laboratories near Truro, Cornwall, UK. Open-cycle batch flotation tests were undertaken on a bulk composite collected from Rathdowney's drilling, which is representative of the Olza mineralization. The testwork determined that optimum metallurgy could be obtained using standard zinc and lead flotation conditions (March 12, 2013 news release). Based on these results, a standard six-cycle lock-cycle test was completed to quantify recoveries and concentrate grades under conditions approaching steady state, with the following excellent results (June 18, 2013 news release): a projected zinc recovery of 92% to a 58% zinc concentrate that assayed 179 g/t silver (representing 83% recovery of silver), and a projected lead recovery of 90% or better to a 70% lead concentrate.
Local Infrastructure Opportunities
The 150-square kilometre Olza property is located in the Upper Silesian Mining District, an area of world-class Mississippi Valley zinc-lead-silver deposits where mining has taken place since the 12th century. As a result, the area has extensive existing mining infrastructure. The deposits at Olza are along strike from the long-life Pomorzany zinc-lead mine and past producing Olkusz and Boleslaw mines. Importantly, it is also located 30 kilometres from the ZGH zinc smelter at Boleslaw and a railway line to the smelter runs through the Olza project-area.
Rathdowney is looking to take best advantage of the project's excellent location, and is exploring potential synergies with local mining companies as well as energy, construction, mining and processing contractors that offer real opportunities to reduce project costs and timelines.
Active Community Engagement
Rathdowney established a local team and began an active engagement program with government and local landowners in 2010. These consultation activities have expanded as the Project Olza has advanced. In early 2013, the Company began a series of meetings to provide the broader public in the surrounding communities with information on the work carried out so far and the Company's plans moving forward. Some 34 local meetings involving more than 400 participants have been held, and more are planned.
Advancing Initial Stages of Permitting
Since successful completion of its resource assessment in mid-2013, the Rathdowney project team has planned and initiated Phase II. This work encompasses comprehensive engineering and environmental studies, expected to continue into 2015, and ongoing community engagement activities designed to advance the project and facilitate permitting, as outlined for projects in Poland.
Rathdowney Resources Ltd. is an exploration and development company focused on advancing the Olza zinc-lead-silver project in Poland through permitting and into production. Rathdowney is associated with Hunter Dickinson Inc. ("HDI") a diversified, global mine development company with a 25-year history of mineral development success. HDI applies its unique strengths and capabilities to acquire, develop, operate and monetize mineral properties that provide consistently superior returns to shareholders.
David Copeland, PEng, a qualified person as defined under NI43-101, has reviewed the technical information in this release.
For further details on Rathdowney and its projects, visit www.rathdowneyresources.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
On behalf of the Board of Directors
David J. Copeland
President, CEO and Chairman
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, potential environmental issues or liabilities associated with exploration, development and mining activities, exploitation and exploration successes, continuity of mineralization, 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.
1 Estimated at a 2.0% zinc cutoff; individual grades are 5.88% zinc and 1.54% lead (see Rathdowney News Release dated September 11, 2012). Silver was not analysed during historical drilling so was not included in the estimate.