|December 03, 2015|
Rathdowney Drilling Highlights Excellent Resource Potential, Builds on Positive Results from Project Olza Preliminary Economic Assessment
|December 3, 2015, Vancouver, BC - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSXV: RTH) announces additional positive results from drilling, supporting mine planning programs at its flagship Olza Zinc-Lead-Silver Project in southwest Poland. |
Proven zinc-lead district with excellent resource potential
Project Olza is located in the Upper Silesian mining district, a region of world-class Mississippi Valley type ("MVT") deposits as recognized by the USGS1, and which includes long-life mines such as Pomorzany and Olkusz. Significant zinc-lead deposits in the area of Project Olza were identified, historically, through 180,000 m of drilling conducted in the 1950s to 1980s by the Polish State Survey. Rathdowney's drilling program in 2011-2013 began to test these extensive deposits, and to December 2014 had outlined 24.4 million tonnes of inferred mineral resources grading 7.02% Zn+Pb (at a 2% Zn cut-off)2 with excellent additional resource potential. Information in the table below provides a comparison with other Upper Silesian deposits and well-known MVT districts.
Rathdowney's drilling in 2014-2015 has been focused in the vicinity of Zone 5, one of several zones that comprise the current mineral resource. Todays' results are from 15 new holes (OLZ-256 to OLZ-270), each of which was drilled outside of the resource-area at Zone 5 as shown on the map at http://www.rathdowneyresources.com/i/pdf/rdr/OLZA_MAP__NR_Dec_15.pdf. Eleven of the 15 new holes include significant mineralization, detailed in the Table of Assay Results attached to this release. Highlights include:
Key geotechnical data was also collected from each drill hole for engineering studies to assess the suitability of the Zone 5 area for development of site facilities. Concurrently, hydrogeological studies and environmental data collection programs are being conducted over an extensive area to fully assess and consider the existing conditions in the broader region. In combination with the geotechnical data from drilling, these studies will provide the details to support site specifications for mine development, water management and other important planning activities to be used in project permitting for a modern, long-life mine.
Prime location with existing low-cost infrastructure
In addition to its geological potential, Project Olza has a number of advantages when compared to many other emerging Zn-Pb mine development projects. Mining has taken place in the Upper Silesian district since the 12th century, and as a result, there is extensive infrastructure, including power and rail already in place as well as a skilled local workforce. Situated in the heart of Europe, the existing rail infrastructure provides Project Olza with direct, low-cost access to ports and smelters.
These advantages are reflected in the results from the Preliminary Economic Assessment ("PEA") announced earlier this year. The Project Olza PEA shows strong potential financial returns for a conventional 6,000 tonnes per day bulk room and pillar mine with standard on-site processing yielding two marketable low iron zinc and lead concentrates5. Project Olza would be a low-cost producer of an average of 197 million pounds of zinc and 59 million pounds of lead, annually, readily available to markets in Europe and throughout the world.
President and CEO Robert Konski said:
"Our drilling continues to demonstrate the excellent resource potential at Project Olza, building on the PEA and providing a strong foundation for comprehensive mine planning studies. Project Olza's central location in a stable region with a long mining history is a key advantage to our project, further enhancing its technical merits. We look forward to continuing our work with the communities and the government, and advancing toward a modern long-life mining operation in Poland."
About Rathdowney and Project Olza
Rathdowney Resources Ltd. is focused on advancing Project Olza through permitting and into production. Project Olza is located in the Upper Silesian Mining District of southwestern Poland, a world-class region of Mississippi Valley-type deposits with well-developed mining infrastructure. Easily accessible by road, the Olza project site is a one-hour drive from Krakow, a major city with full services, including an international airport. The deposits at Olza are 25 km from the ZGH zinc smelter at Boleslaw. A railway line runs through the Olza project-area, linking it to smelters throughout Europe and to ports on the Baltic Sea.
Rathdowney is committed to responsible mineral exploration and development with respectful, mutually beneficial discussions and opportunities for local communities. Our Project Olza community specialists discuss our programs with representatives of local communities and government during all phases of work, and are currently in discussions with community members and others regarding the results of the PEA and other programs.
For further details, visit the Company website www.rathdowneyresources.com or contact Susie Bell, Investor Relations Tel 604-684-6365 or Toll free (NA): 1-800-667-2114.
Dr. Keith Roberts, PGeo, is the qualified person for the drilling program at Project Olza and has reviewed the drilling information in this release. Other technical information has been reviewed by David Copeland, PEng, a qualified person who is also Chairman and a Director of Rathdowney.
On behalf of the Board of Directors
President & CEO
1 Sangster, D.F., USGS, 1990, Mississippi Valley-Type and Sedex lead-zinc deposits: A comparative examination: Transactions of the Institution of Mining and Metallurgy, sec. B, v. 99, p. B21-B42.
2 Individual grades are 5.53% Zn and 1.49% Pb. For further information see Rathdowney's new release dated February 2, 2015.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
3 Production + remaining reserves at 2010; www.geoportal.pl
4 Leach, David L. et al, USGS, 2010, A Deposit Model for Mississippi Valley Type Lead-Zinc Ores, Chapter A, Mineral Resource Deposit Models; Production + remaining resources at 2005.
5 For additional details on the PEA, see Rathdowney's news releases dated April 20, 2015 and May 14, 2015.
Notes 3 and 4 are associated with deposits that are not on the Olza property. They are mainly reported production and derived from government sources. They are historical in nature (see dates stated) and the work necessary to verify them has not been undertaken by a qualified person.
Table of Assay Results
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. Assumptions used by the Company to develop forward-looking statements include the following: the Olza project will obtain all required environmental and other permits and all land use and other licenses, studies and development of the Olza project will continue to be positive, and no geological or technical problems will occur. 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 and 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.
Information Concerning Estimates of Inferred Resources
This news release uses the term "inferred mineral resources". Rathdowney Resources Ltd. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Economic Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
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