Stock Symbol: WGF: TSX-V
SASKATOON, June 13 /CNW/ - Maurice (Moe) F. Lindsay, President of Wescan
Goldfields Inc. (Wescan), (WGF: TSX-V) is pleased to announce that Wescan has
entered into an option agreement with Alto Ventures Ltd. (Alto), (ATV: TSX-V).
Under the terms of the agreement, Wescan has an exclusive and irrevocable
option to acquire an undivided 50% interest in Alto's Mud Lake Project by
making $600,000 in exploration expenditures and issuing 150,000 Wescan shares
to Alto over a two year period. Upon exercising the option by Wescan at the
completion of the two year term, the parties will enter into a 50:50 joint
venture agreement to carry out on-going exploration and or development. Alto
will remain the project operator until the completion of a positive
pre-feasibility study, at which time Wescan will have the option to assume the
role of operator. The agreement is subject to the approval of the TSX Venture
The Mud Lake Project consists of 2,592 hectares (ha) and is located
25 kilometers (km's) northeast of Beardmore, Ontario, in the
Beardmore-Geraldton gold belt where historical production has exceeded 4.0
million ounces of gold. A major auriferous shear extends for over 6.0 km's on
the property but was never drilled prior to Alto's 2006/2007 winter drill
program. This drilling program tested three of twelve surface gold showings
and confirmed the existence of the strong shear system, the Mud Lake Shear,
which contains gold-bearing quartz veins at each of the three showings. Gold
values up to 13.9 grams/tones (g/t) across 1.0 meter (m) were intersected
within a wider zone of gold mineralization that assays 3.39 g/t across 6.1 m.
(See Alto news releases dated March 6 and March 20, 2007.)
Wescan is excited about this opportunity in a well known gold camp which
has recently seen a significant growth in the number of companies exploring in
the Beardmore-Geraldton area. Moe Lindsay, President of Wescan, stated that
"Alto's management is well known to Wescan and we have complete confidence in
their ability to carry out the exploration of the Mud Lake Project in a
professional and thorough manner. This opportunity is consistent with Wescan's
growth objectives and we look forward to working with Alto on the exploration
of the Mud Lake Project."
Wescan Goldfields Inc. is a growth oriented exploration company based in
Saskatchewan engaged in the acquisition, exploration and development of
mineral properties. Wescan has a portfolio of properties that include
prospects for gold, uranium and base metals located in northern Saskatchewan's
"Greenstone Belt" and "Athabasca Basin". Shares in the company trade on the
TSX Venture exchange under the trading symbol "WGF".
"The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release."
Caution Regarding Forward-looking Information
From time to time, Wescan makes written or oral forward-looking
statements within the meaning of certain securities laws, including the "safe
harbour" provisions of the Ontario Securities Act. Wescan may make such
statements in this news release, in other filings with Canadian regulators, in
reports to shareholders or in other communications. These forward-looking
statements include, among others, statements with respect to 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, 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
For further information:
For further information: please contact: Maurice (Moe) F. Lindsay,
President or Darren Anderson, Investor Relations at (306) 664-2422