30 September 2012

Rathdowney Expands Olza Zinc-Lead Property In Poland

Vancouver, BC - 27 September 2012 - Rathdowney Resources Ltd. announces that it has been granted a third exploration concession in Poland. The 50.8 square kilometre Chechlo concession, which is contiguous with the Company's Rokitno concession, was issued to the Company's wholly-owned Polish subsidiary by the Ministry for the Environment on September 20, 2012 for a period of five years. The Company's Project Olza now covers some 150 square kilometres in the prolific Upper Silesian Mineral District.

The Chechlo concession lies to the southwest of Project Olza along the same richly-mineralized zinc-lead trend. The concession has seen little exploration activity compared to other parts of the property. During the 1950-1970s, the Polish State conducted limited diamond drilling (125 holes, 36,787 metres) at a spacing of 200-400 metres over an area of approximately 18 square kilometres. The majority of the Chechlo concession is unexplored. 

At Chechlo, three stratiform zinc-lead mineralized zones -- Western, Northern and Central - are hosted by the Middle Triassic Dolomite unit known as the Ore-Bearing Dolomite, which hosts many mines in the Upper Silesian District and, importantly, mineralization at other parts of Project Olza. However, at Chechlo mineralization also occurs in Devonian carbonates underlying the Central Zone, localized in one or several subvertical breccia pipes. Geological evidence points to a high potential for locating additional mineralized breccia pipe systems that, based on other mines in the area such as Pomorzany, can be of significant size. 

Historical drilling indicates grades of 5 to 9% Zn+Pb in the stratiform zones of variable thickness within locally-stacked mineralized horizons at 130-300 metres in depth. Higher-grade mineralization (e.g. 10% Zn+Pb over 30 metres) was also intersected, and may represent the mineralized breccia pipes, making them compelling targets. 

Rathdowney is finalizing plans for a 5,000-metre drilling campaign using a relatively high-density pattern on selected targets at Chechlo and other parts of Project Olza. Building on experience gained in the Irish Midlands, the Company intends to use additional techniques such as geophysics to target shallow breccias and potential feeder-structures. This work is designed to test the lateral continuity of higher-grade breccia-style mineralization, along with other targets, to expand the overall mineral resources on the Olza property.

President and CEO John Barry said, "With a substantial positive initial resource under our belt, further value generation will occur by building both tonnage and grade. The acquisition of Chechlo gives us the opportunity to delineate significant high-grade zinc-lead resources that would positively impact the potential economics of the project." 

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.

Source: Rathdowney Resources Ltd.