Post by Franko10 ™ on Jul 6, 2005 20:14:16 GMT -5
Wescan provides additional information on the historical resource estimate for the Jojay gold deposit
Stock Symbol: WGF: TSX-V
SASKATOON, July 6 /CNW/ - George Sanders, President of Wescan Goldfields
Inc. ("Wescan") announces that in a News Release dated June 24, 2005
disclosing the commencement of drilling activity on the Jojay property in the
La Ronge Greenstone Belt of Northern Saskatchewan, Wescan provided some
context for the property by briefly summarizing historical resource estimates.
A more detailed summary has been previously disclosed both in a Technical
Report by A.C.A. Howe International Ltd. dated July 15, 2003 and filed on
SEDAR on August 27, 2004 and in Wescan's IPO prospectus dated August 30, 2004
and filed on SEDAR on August 30, 2004 (the "IPO Prospectus"). Wescan views the
historical estimates as relevant and reliable within the context of the stated
definitions and comments provided below. As these historical estimates use
categories other than the ones stipulated in sections 1.3 and 1.4 of NI 43-
101, comments on the differences are provided.
Historical Estimates
--------------------
1. Kilborn (Saskatchewan) Ltd., October 1987
Classification Tons Grade, oz/T
-------------- ---- -----------
Probable 325,900 0.218
Kilborn uses 'Probable Ore' as defined in National Policy Statement
No. 2-A and based their estimate on a 1.2m mining width, 0.10 ounces per ton
cutoff grade, average composite intersections cut to 1.00 ounces of gold per
ton if over 1.00 ounces of gold per ton, 15 percent dilution at nil grade, a
minimum pillar width between veins of five meters and if less than this either
one vein was dropped or the pillar was included as waste. The reserves were
calculated using the cross sectional method.
It is Wescan's view that there is no material difference between
'Probable Ore' as described above and 'Indicated Resource' as defined in
NI 43-101. The reason for downgrading the level of confidence from a reserve
category to a resource category is because the historical estimate does not
apply economic parameters relevant at the time.
2. SMDC Internal Pre-feasibility Study, November 1987
Classification Tons Grade, oz/T
-------------- ---- -----------
Geological Reserves 313,200 0.26
Mineable Reserves 150,900 0.27
A 3-D geostatistical method, confirmed by a cross-sectional and
longitudinal polygon method was used to calculate the 'Geological Reserves' to
a depth of 150m and over a strike length of 250m, with a cut-off grade of
0.10 oz/T. 'Mineable Reserves' were derived by selecting blocks from
'Geological Reserves' to form continuous mining zones. These were then
modified according to a detailed mining plan. 'Mineable Reserves' were not
selected below the 400m level (i.e. 100m below surface). A cut-off grade of
0.15 oz/T was used with a minimum mining width of 1.2m. A dilution factor of
10 percent was added to all selected blocks. A density of 2.95 g/cm3, based on
the density measurements on sample rejects was used for all estimates.
It is Wescan's view that there is no material difference between the
'Geological Reserve' as described above and 'Indicated Resource' as defined in
NI 43-101. The reason for downgrading the level of confidence from a reserve
category to a resource category is because the historical estimate does not
apply economic parameters relevant at the time. It is Wescan's view that the
'Mineable Reserve' is not reliable because it applies economic parameters
relevant at the time and is based on a "stand-alone" operation.
Wescan does not have any more recent estimates or other data relating to
this property. Further information on these historical estimates can be found
in the IPO Prospectus.
Drilling continues on the Jojay property. Wescan has a 25% joint venture
interest in the property and is project operator. Claude Resources Inc. holds
a 75% interest. Frank Hrdy, P.Geo, Wescan's exploration manager, the qualified
person in accordance with National Instrument 43-101, has reviewed this news
release.
Wescan is a Canadian-based corporation engaged in the acquisition,
exploration and development of mineral properties.
"The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release."
For further information: George Sanders, President or Wade MacBain,
Corporate Development at (306) 664-2422
Stock Symbol: WGF: TSX-V
SASKATOON, July 6 /CNW/ - George Sanders, President of Wescan Goldfields
Inc. ("Wescan") announces that in a News Release dated June 24, 2005
disclosing the commencement of drilling activity on the Jojay property in the
La Ronge Greenstone Belt of Northern Saskatchewan, Wescan provided some
context for the property by briefly summarizing historical resource estimates.
A more detailed summary has been previously disclosed both in a Technical
Report by A.C.A. Howe International Ltd. dated July 15, 2003 and filed on
SEDAR on August 27, 2004 and in Wescan's IPO prospectus dated August 30, 2004
and filed on SEDAR on August 30, 2004 (the "IPO Prospectus"). Wescan views the
historical estimates as relevant and reliable within the context of the stated
definitions and comments provided below. As these historical estimates use
categories other than the ones stipulated in sections 1.3 and 1.4 of NI 43-
101, comments on the differences are provided.
Historical Estimates
--------------------
1. Kilborn (Saskatchewan) Ltd., October 1987
Classification Tons Grade, oz/T
-------------- ---- -----------
Probable 325,900 0.218
Kilborn uses 'Probable Ore' as defined in National Policy Statement
No. 2-A and based their estimate on a 1.2m mining width, 0.10 ounces per ton
cutoff grade, average composite intersections cut to 1.00 ounces of gold per
ton if over 1.00 ounces of gold per ton, 15 percent dilution at nil grade, a
minimum pillar width between veins of five meters and if less than this either
one vein was dropped or the pillar was included as waste. The reserves were
calculated using the cross sectional method.
It is Wescan's view that there is no material difference between
'Probable Ore' as described above and 'Indicated Resource' as defined in
NI 43-101. The reason for downgrading the level of confidence from a reserve
category to a resource category is because the historical estimate does not
apply economic parameters relevant at the time.
2. SMDC Internal Pre-feasibility Study, November 1987
Classification Tons Grade, oz/T
-------------- ---- -----------
Geological Reserves 313,200 0.26
Mineable Reserves 150,900 0.27
A 3-D geostatistical method, confirmed by a cross-sectional and
longitudinal polygon method was used to calculate the 'Geological Reserves' to
a depth of 150m and over a strike length of 250m, with a cut-off grade of
0.10 oz/T. 'Mineable Reserves' were derived by selecting blocks from
'Geological Reserves' to form continuous mining zones. These were then
modified according to a detailed mining plan. 'Mineable Reserves' were not
selected below the 400m level (i.e. 100m below surface). A cut-off grade of
0.15 oz/T was used with a minimum mining width of 1.2m. A dilution factor of
10 percent was added to all selected blocks. A density of 2.95 g/cm3, based on
the density measurements on sample rejects was used for all estimates.
It is Wescan's view that there is no material difference between the
'Geological Reserve' as described above and 'Indicated Resource' as defined in
NI 43-101. The reason for downgrading the level of confidence from a reserve
category to a resource category is because the historical estimate does not
apply economic parameters relevant at the time. It is Wescan's view that the
'Mineable Reserve' is not reliable because it applies economic parameters
relevant at the time and is based on a "stand-alone" operation.
Wescan does not have any more recent estimates or other data relating to
this property. Further information on these historical estimates can be found
in the IPO Prospectus.
Drilling continues on the Jojay property. Wescan has a 25% joint venture
interest in the property and is project operator. Claude Resources Inc. holds
a 75% interest. Frank Hrdy, P.Geo, Wescan's exploration manager, the qualified
person in accordance with National Instrument 43-101, has reviewed this news
release.
Wescan is a Canadian-based corporation engaged in the acquisition,
exploration and development of mineral properties.
"The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release."
For further information: George Sanders, President or Wade MacBain,
Corporate Development at (306) 664-2422