Canadian Selwyn Resources evaluating smaller plan for zinc leading project
Canadian miner Selwyn Resources (CVE:SWN) stocks were falling almost 17% this morning as the company said it was evaluating a smaller tonnage mine plan for its flagship zinc and lead project in Yukon, northern Canada.
In a statement, the company said the 8,000 tonne per day underground mine operation would not be economic in the current market conditions, leading it to start a new study on a scaled-back 3,500 tonne per day operation that would focus on mining high grade sections.
The company said its joint venture with Chihong Canada Mining Ltd., Selwyn Chihong Mining Ltd., is expected to present a detailed implementation plan and budget for the preparation of an updated economic evaluation of the new development plan later this quarter.
"The development plan under consideration utilizes selective mining methods, and has relied on detailed mine development and costing information from the feasibility-level work completed to date," the company said.
"This recent analysis suggests that the new development plan has a good probability of providing a satisfactory economic return."