Shares of Vancouver-based Weststar Resources Corp. (TSX: V.WER, Stock Forum) climbed 31.4% to 23 cents Monday after the company announced on the weekend that it has received drilling permits for its Tobin Lake Coal prospect north east of Nipawin, Saskatchewan.
The drill permits allow for the drilling of 20 to 25 holes and expire on April 30, 2010.
Weststar says it plans to “initiate an abbreviated first phase of drilling to consist of 5 to 8 holes from 50 to 100 meters in depth,” designed to ‘twin' and validate the discovery hole drilled in 1994 identifying the 62 foot coal zone, and serving to locate direction and limits of the coal seam as a means to better optimize and finalize a design and drill plan for a second phase.
Drilling will start immediately following mobilization of the necessary equipment, says the company, which it expects in the next seven to fourteen days.
“Should the first phase of drilling prove positive, the Company would look to propose and carry out a second phase of exploration with the intent of outlining potential coal resources within the property,” says the company.
On the Weststar Bullboard on the weekend, ctniedermair said:
Yes Monday should be a great day. The bid is higher than the close on Friday even without the news. Remember GXS drill results are expected soon as well. Maybe even Monday. This should bring a lot of attention to the Sask coal companies in the surrounding area in general. With drilling commencing within the next fourteen days and results expexted within three weeks from that date we should see significant gains with this stock in the near future. The technical analysis looks very bullish and positive drill results will be almost certain since they are verifying the 18m hole which is known to exist. IMO[sic]…
grover11 added: “permits great...butwe need to have the drills in the ground before this one really moves. the market knows the permitts were basically in the bag, so i think we have time to accumulate.the question is money. do we have enough for an extensive drill plan?[sic]”
