Sunday, December 9, 2018Canada's Leading Online Business Magazine

Selwyn Resources

Selwyn_Resources_884030316
Defining the World's New Zinc Supply

Selwyn Resources Ltd. is a publicly traded, Canadian base metals exploration and development company with head offices in Vancouver, B.C. The company’s core project is Selwyn Project, located in eastern Yukon.

Selwyn is the successor to Pacifica Resources Ltd., which underwent a reorganization of its assets in June 2007. Pacifica’s acquisition of the Howard’s Pass Joint Venture lands in April 2005 consolidated ownership in the Howard’s Pass District and the formation of the Selwyn Project.

The restructuring established Selwyn Resources Ltd. as a single purpose company focused on the development of the Selwyn Project as a world class zinc-lead project.

The Selwyn Project

The Selwyn Project is located in eastern Yukon and sits on the border with the Northwest Territories (NWT). Almost the entire district is in the Yukon, only the southeast end extends into the NWT.
Dr. Harlan D. Meade is President, CEO and Director of the Selwyn Resources. He’s been in the resource industry for 20 years, and explains what makes the Selwyn Project world class on the development scale: “Just in terms of size and economic viability, the Project is world class. The Selwyn deposit is a single deposit, second only in size to Red Dog mine in northwest Alaska. In terms of potential, it’s the world’s biggest zinc and lead deposit.”

Meade goes so far as to label the deposit as “Canada’s national treasure in zinc”, and rightly so. The potential for security of supply in the region is unprecedented in Canada.

“You don’t mine out world class depo-sits in five or 10 or 15 years. World class deposits are being mined for 30 or 40 years. Those are scarce resources to find, so Selwyn is incredibly valuable. The Project has 30 or 40 years of reserves, and there is only one other resource that has that type of reserve, and it’s a silver deposit.”

In January 2007, Selwyn Resources completed a Preliminary Assessment for the Selwyn Project which indicated excellent potential for a long life mine, having large-scale, low cost zinc and lead production.

Long-term investment potential

On the world scale, Selwyn most certainly sets itself apart because of its tremendous value potential for investors. “Major investments in smelting and refining require secured resource feed to justify a significant capital investment – you look around the world and you don’t have much to choose from. A lot of those places investors look at are areas with high political risk. Selwyn being in the Yukon Territory means less risk, and more potential for interested investors.”

This low-risk, long-term potential means that Selwyn has a fantastic position in the market, despite the unruly state of the North American economy. That doesn’t mean that Selwyn is spending frivolously. The company is currently focused on minimizing the issuance of shares, and the dilution of shareholders equity, and keeping spending to a minimum. They are well positioned to grow in the next five years, simply due to a supply and demand situation.
“We’ve seen major losses in production in recent years, in the resource sector. However, if you look at the zinc market in particular, there was an expectation in the market 6-8 months ago that we would build up a significant metals inventory this year and next year. Globally, we would then have to burn through the resources before we went into a period of under-supply. That under-supply environment is precisely the time when you need to develop a new mine. Does the world need a major new zinc mine? The answer is unequivocally yes. By 2011 we’re going to go through a sustained shortfall period of zinc development, and the market will have to readjust its usage of zinc. So any new resource that is available, will be necessary, and will undoubtedly do very well.” Meade is confident that although investors are being shrewd with their capital, the more strategic players will find Selwyn.

“Even in this ugly market, we know we can attract that savvy, strategic investor. In the next few years, many companies won’t be able to attract investment, because you have to have a good asset that is extremely valuable, and the timing has to be right. We have a supply shortage now, and the struggle for zinc is going to be very intense.”
Commitment to responsibility

In accordance with the Mining Association of Canada ("MAC"), Selwyn Resources takes a responsible approach to social, economic, and environmental performance. They do this with evolving priorities of their communities of interest in mind.
Meade believes that a commitment to social responsibility will also help the company’s position in the market, especially because of the scrutiny on mining operations today. He says that “the social license to mine comes from the local communities. We take addressing the environmental, sociological, and economic impact on local communities very seriously”.

Meade adds: “We have implemented several programs that will ensure the enhanced social responsibility in order to sustain our development and involve the local community as much as possible. We have gone to our local communities, and said to them – look, when these mines are built, we are going to need people. Because of the shortage of skills in the Yukon, we’re going to implement training programs supported by the Yukon Training Association.”

Meade says that it is specifically important for the company to form positive relationships with First Nations peoples who are in the development area. He states that Selwyn’s primary goal is to build trust partnerships with groups who ultimately will determine Selwyn’s license to mine.

“Specific groups want to know what’s going on in their backyard. We need to be open and accountable to all parties affected by our presence.”

The Selwyn Policy on Environment states that the company will:

• Respect the cultures, customs and values of people with whom our operations interact.

• Recognize and respect the unique role, contribution and concerns of aboriginal peoples in our project areas.

• Provide benefits to local communities through programs that will enhance the economic, social, educational, health and environmental standards that they enjoy.

• Obtain and maintain business through ethical conduct.

• Respect human rights and treat those with whom we deal fairly and with dignity.

• Support the capability of communities to participate in opportunities provided by new mining projects and existing operations.
• Be responsive to community priorities, needs and interests through all stages of mineral exploration.

Outlook for base metals

Meade maintains that the outlook for base metals over the next several years remains very positive, with the supply-demand fundamentals for zinc and lead looking particularly strong over the next five to 10 years. In that regard, the company looks forward to a sustainable and profitable future.

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