Wescan-Alto joint venture exploration update
Wescan-Alto joint venture exploration update on the Mud Lake, Beardmore-Geraldton Gold Belt property
SASKATOON, Sep. 4, 2008 (Canada NewsWire via COMTEX News Network) --
Stock Symbol: WGF: TSX-V
Wescan Goldfields Inc. ("Wescan") is pleased to provide an update on the Mud Lake property exploration program, a joint venture between Wescan and Alto Ventures Ltd. ("Alto") in the Beardmore-Geraldton Gold Belt in northwestern Ontario. The prolific Beardmore-Geraldton Gold Belt has produced over four million ounces of gold in the past with grades comparable to the Red Lake mining camp in north western Ontario.
The 2008 program includes airborne high-resolution magnetometer and XDS/VLF electromagnetic surveys as well as surface work consisting of prospecting, mechanical stripping and sampling. The geophysical work has been completed and follow-up prospecting was carried out. Mechanical stripping and sampling are currently in progress and the targets generated from this program will be combined with those identified from previous work for a core drill program later in the year.
The property lies adjacent to Kodiak Exploration Ltd's ("Kodiak") Hercules Project and hosts the Mud Lake Shear (MLS), a major gold-bearing shear zone that extends for over six kilometres along strike. Several gold occurrences have been exposed in surface trenches along the MLS and sampling of these has returned gold assays as high as 50 grams per tonne (g/t) in grab samples. Drilling in 2007 and 2008 tested six of the surface occurrences and intersected gold at each one returning results up to 13.9 g/t gold over 1.0 metre; another seven surface gold occurrences remain to be drilled.
The 2008 program is part of a longer term strategy to evaluate each of the surface gold zones with core drilling as well as to delineate in greater detail those zones that display continuity of mineralization and show potential for hosting economic deposits at depth.
Under the terms of the Mud Lake Option Agreement, Wescan can earn 50% interest in the property by funding $600,000 in exploration and issuing a total of 150,000 Wescan shares to Alto over two years. Upon completion of the work, Wescan will have satisfied the work expenditures commitments to earn its interest in the project. Mike Koziol, P. Geo., P.Eng. and Alto's President, CEO and Director is the Qualified Person for the joint venture.
Wescan is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of Wescan trade on the TSX Venture Exchange under the trading symbol "WGF".
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Caution Regarding Forward-Looking Statements
From time to time, Wescan makes written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbor" provisions of Canadian securities legislation. Wescan may make such statements in this press release, in other filings with Canadian securities regulators in reports to shareholders or in other communications. These forward-looking statements include, among others, statements with respect to the receipt of dispositions and permits from Saskatchewan Energy and Resources, Wescan's objectives for the ensuing year, our medium and long-term goals, and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may," "could," "should," "would," "suspect," "outlook," "believe," "plan," "anticipate," "estimate," "expect," "intend," and words and expressions of similar import are intended to identify forward-looking statements. In particular, statements regarding Wescan's future operations, future exploration and development activities or other development plans contain forward-looking statements.
All forward-looking statements and information are based on Wescan's current beliefs as well as assumptions made by and information currently available to Wescan concerning anticipated financial performance, business prospects, strategies, regulatory developments, development plans, exploration, development and mining activities and commitments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, the receipt of dispositions and permits from Saskatchewan Energy and Resources, developments in world gold markets, risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of Wescan or its joint venture partners; the effects of competition in the markets in which Wescan operates; the impact of changes in the laws and regulations regulating mining exploration and development; judicial or regulatory judgments and legal proceedings; operational and infrastructure risks and the additional risks described in Wescan's most recently filed annual and interim MD&A and Wescan's anticipation of and success in managing the foregoing risks.
Wescan cautions that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Wescan, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Wescan does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Wescan or on our behalf.
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SOURCE: Wescan Goldfields Inc.
Darren Anderson, Investor Relations or Kirsten Marcia, Vice President of Exploration at (306) 664-2422.
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