Wescan Goldfields Inc. - NI 43-101 gold resource at Jojay
Indicated Resource of 420,000 tonnes grading 3.7 g/tonne and
Inferred Resource of 630,000 tonnes grading 4.3 g/tonne
Stock Symbol: WGF: TSX-V
SASKATOON, SK,
The Mineral Resource Estimate ("Mineral Resource") was completed by A.C.A. Howe International Limited ("Howe") in accordance with Canadian Securities Administrators National Instrument 43-101 ("NI 43-101") and CIM Standards on Mineral Resources and Reserves. Indicated and Inferred Mineral Resources have been determined in the Red Zone (also referred to as the Main Zone) and six minor zones at the Jojay Gold Deposit. The Mineral Resources include 21 Wescan diamond drill holes completed in 2005 and 2007-2008 and 79 historic drill holes. At a block cut-off grade of 2 g/tonne Au, non-diluted Indicated mineral resources, located entirely in the Red Zone, amounted to 420,000 tonnes with an average grade of 3.7 g/tonne Au, for 50,000 ounces gold. Non-diluted Inferred mineral resources, approximately half of which were located in the Red Zone amounted to 630,000 tonnes with an average grade of 4.3 g/tonne Au, for 87,000 ounces gold. No Measured Resources or Reserves of any category were identified. Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserve.
This NI 43-101 compliant resource estimate is a major milestone for the Jojay Gold Project. Wescan's exploration to date has confirmed and expanded a significant gold resource on the Jojay zone hosted by a continuous shear structure (i.e. Jojay structural zone) at a volcanic-sedimentary contact. The mineral resource estimate outlines the Red Zone and six minor mineralized zones. The zones are vertically dipping with a north-south strike. The Red Zone is modeled over a strike length of approximately 500 metres to a depth of 400 metres, and averages 4-5 metres wide. The Red Zone remains open down-plunge at depth.
The Jojay Deposit, as defined by the newly completed Howe mineral resource estimate, represents only a small portion of the (greater than)2.5 kilometre long prospective volcanic-sedimentary contact and coincident Jojay structural zone in the Jojay Property area. The Jojay structural zone is highly prospective and the model completed by Howe indicates that the Red Zone mineralization is open down plunge to the north-northeast and the potential for additional mineralization along strike may be present. Wescan believes that there is a strong potential to define additional mineral resources at the Jojay Deposit. Additional drilling is warranted to follow-up both the Jojay Deposit along strike and the Red Zone mineralized shoot down plunge.
Wescan is currently planning further drilling and an exploration program to expand the gold resource at the Jojay Deposit and assess other areas along the Jojay structural zone.
The Mineral Resource is summarized with various cut-off sensitivities in Table 1 below.
Table 1: Cut-off sensitivities of Jojay Deposit mineral resources
(non-diluted)
-------------------------------------------------------------------------
Cut-off Grade Average Grade Ounces
Zone (g/tonne Au) Tonnes (g/tonne Au) Au
-------------------------------------------------------------------------
Indicated Mineral Resources
---------------------------
Red Zone ("R") 5 60,000 6.2 12,000
4 130,000 5.2 22,000
3 290,000 4.2 39,000
2* 420,000 3.7 50,000
-------------------------------------------------------------------------
Inferred Mineral Resources
--------------------------
Red Zone ("R") 5 20,000 5.5 4,000
4 60,000 4.8 9,000
3 160,000 3.9 20,000
2* 350,000 3.1 35,000
Blue Zone 1 ("B1") 5 61,000 8.5 17,000
4 83,000 7.5 20,000
3 104,000 6.7 22,000
2* 135,000 5.7 25,000
Blue Zone 2 ("B2") 5 7,000 7.5 1,700
4 9,000 6.9 2,000
3 11,000 6.3 2,200
2* 14,000 5.5 2,500
Orange ("O") 5 13,000 7.7 3,200
4 17,000 6.9 3,800
3 24,000 5.9 4,600
2* 42,000 4.4 5,900
"X" 5 9,000 8.3 2,400
4 10,000 7.9 2,500
3 14,000 6.7 3,000
2* 20,000 5.4 3,500
Footwall ("F") 5 43,000 8.8 12,200
4 52,000 8.1 13,500
3 53,000 8.0 13,600
2* 55,000 7.9 14,000
Flat ("Fl") 5 - - -
4 3,000 4.4 400
3 6,000 3.9 800
2* 15,000 2.9 1,400
-------------------------------------------------------------------------
Subtotal, Inferred 5 150,000 8.5 41,000
4 230,000 6.9 51,000
3 370,000 5.5 66,000
2* 630,000 4.3 87,000
-------------------------------------------------------------------------
* A block cut-off grade of 2 g/tonne was used to define the total
non-diluted indicated and inferred mineral resources in the technical
report
Mineral resources are not mineral reserves and by definition do not
demonstrate economic viability. All figures have been rounded to reflect
the relative accuracy of the mineral resource estimate. There is no
certainty that all or any part of the mineral resource will be converted
into mineral reserve.
To carry out the mineral resource estimate, Howe conducted database verification; mineralized zones grade shell geometry, variography, and ordinary kriging grade interpolation exercises.
Mineralized zones were outlined on 25 metre spaced cross-sections and were used to create mineralized zone grade shell wireframes. When outlining mineralized zones, a cut-off grade of 1 g/tonne of gold was generally used with a minimum horizontal width of 1.5 metres.
The sample intervals were composited or regularized at 0.5 metres for the purpose of statistical analysis. The true width values were calculated using drill hole dip and azimuth values and average deposit strike and dip values. Sample values were capped at 41 g/tonne - the logarithmic mean of the samples plus two standard deviations. The top-cut was applied to regularized samples prior to calculating the intercept grade. This `cut' intercept grade was used for block grade estimation. A mean specific gravity value of 2.80 was used for the deposit based on measurements taken from 108 core samples.
A block model was created utilizing 5 metre by 10 metre by 10 metre blocks and constrained by the mineralized zone wireframes. A separate block model file was created for each zone and the grade estimation process was carried out separately for each of the zones. Ordinary block kriging was used to estimate block grades.
Based on the geological continuity, grade continuity and variography, Indicated and Inferred mineral resources were defined. All blocks within the outlined mineralized zones were included in the Inferred mineral resource category except those defined as Indicated. Blocks in the Indicated category were identified manually by outlining on cross-section, areas of the Red Zone where there was clear geological and grade continuity between intercepts. The Indicated mineral resource outline was then refined using a longitudinal section. A solid wireframe was created from the Indicated outline and was used to identify and categorize the appropriate Red Zone blocks as Indicated mineral resource. No Measured mineral resources or mineral reserves of any category were defined.
The NI 43-101 Technical Report on the Mineral Resource estimate will be filed on SEDAR within 45 days of this press release.
Quality Assurance
-----------------
This mineral resource estimate incorporates all drilling completed by Wescan to date and historic drilling from the period of 1986 to 1988. In the opinion of Howe, the block model resource estimates reported herein are a reasonable representation of the global gold mineral resources found in the various zones that comprise the Jojay Deposit at the current level of sampling. Mineral resources for the Jojay Deposit are reported in accordance with the guidelines of the Canadian Securities Administrators National Instrument 43-101, and have been estimated in conformity with generally accepted CIM "Estimation and Mineral Resource and Mineral Reserve Best Practices" guidelines. The Jojay Deposit mineral resource estimate was completed by Howe's Mining Engineer,
Wescan has initiated a QA/QC program at the Jojay Property using best industry practice. The program includes insertion of standard and blank samples, and check assays. Drill core was halved and shipped in sealed bags to TSL Laboratories in Saskatoon, Saskatchewan.
The Company's exploration program is being directed by
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".
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Caution Regarding Forward-looking Information
This press release contains forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of Canadian securities legislation and the
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; 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. Unless otherwise required by applicable securities laws, Wescan does not undertake to update any forward-looking statement that may be made from time to time by Wescan or on our behalf.
For further information: Kirsten Marcia, Vice President of Exploration or Darren Anderson, President at (306) 664-2422
Share this article