Saskatchewan Coal Permits Granted
The property was explored in 1994 by Consolidated Pine Channel Gold Corp., who drill tested a magnetic geophysical anomaly for kimberlite. During their drilling activities, Consolidated Pine Channel encountered a significant thickness of coal, beginning at a depth of 47.7 meters. The "18 Meter" hole contained 7.6 m of massive coal followed by 11.22 m of coal breccia, containing up to 60 per cent coal clasts. The historical drill log (TL02-2, assessment report 63E-0004) indicates:
- 47.70 meters to 55.32 meters (7.62 meters): coal, massive;
- 55.32 meters to 66.54 meters (11.22 meters): coal breccia, from 20 to 60 per cent angular coal clasts, mixed with varying amounts of clay, silt and sand.
The Company has also been advised that the National Instrument NI 43-101 report commissioned in late August through Mitchell Geological Services Inc. is due to be finalized within the next 10 days. Upon receipt of this report, it will be filed and available on SEDAR.
Weststar President, Mitchell Adam, states: "We are very encouraged to receive the permits on this property, allowing us to commence exploration and drilling activities this fall."
The Company has granted incentive stock options to its directors, officers, consultants and employees, under its Stock Option Plan, for the purchase of up to 750,000 common shares of the Company for a period of five years at a price of $0.15 per share.
Marvin Mitchell, P. Eng is the qualified person who has reviewed the technical material contained in this news release.
On Behalf of the Board
Mitchell Adam, President
Weststar Resources Corp.
For additional information please contact the Company at 1-604-669-9330 or email: info@weststarresources.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.
WARNING: The Company relies on litigation protection for "forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company.
Resource Calculation Recommended
Mr. Kerr has recommended the Company complete further drilling in the South Zone and engage an engineering firm to complete a Resource Calculation from all work to date.
The following table summarizes all drilling done by Weststar in 2006 and 2007.
2006/2007 DRILL RESULTS
Table, Summarizing 2006 and 2007 Drill Results
Hole Number From To Core Length Cu Content Au Content
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A06 - 01 anomalous - no significant values
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A06 - 02 15m 37.5m 22.5 meters 0.21% 0.14g/t
78m 87m 9 meters 0.27% 0.07g/t
91.5m 108m 17.5 meters 0.18% 0.10g/t
126m 171m 45 meters 0.53% 0.15g/t
177m 186m 9 meters 0.18% anomalous
202.5m 215m 12.5 meters 0.65% 0.22g/t
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A06 - 03 18m 124.5m 106.5 meters 0.20% 0.15g/t
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A06 - 04 no significant values
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A06 - 05 11m 25.5m 14.5 meters 0.36% 0.29g/t
25.5m 75m 49.5 meters anomalous 1.29g/t
including 61.5m 64.5m 3 meters 0.31% 9.64g/t
91.5m 102m 10.5 meters anomalous 0.27g/t
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A07 - 06 16.5m 304.5m 288 meters 0.27% 0.15g/t
including 45m 60m 15 meters 0.41% 0.24g/t
and 85.5m 97.5m 12 meters 0.53% 0.28g/t
and 190.5m 205.5m 15 meters 0.47% 0.19g/t
322.5m 334.5m 12 meters 0.21% 0.17g/t
358.5m 370.5m 12 meters 0.19% anomalous
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A07 - 07 94.5m 120m 25.5 meters -- 1.09g/t
including 114m 117m 3 meters -- 6.06g/t
144m 150m 6 meters -- 0.37g/t
205.5m 210m 4.5 meters -- 0.19g/t
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A07 - 08 42m 66m 24 meters 0.16% 0.20g/t
121.5m 246m 124.5 meters 0.38% 0.22g/t
including 234m 244.5m 10.5 meters 1.55% 0.94g/t
261m 307.5m 46.5 meters 0.18% 0.23g/t
331.5m 340.5m 9 meters anomalous 0.90g/t
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A07 - 09 48m 51m 3 meters -- 1.06g/t
129m 135m 6 meters -- 0.20g/t
148.5m 162m 13.5 meters anomalous 0.21g/t
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A07 - 10 45m 51m 6 meters 0.17% --
91.5m 106.5m 15 meters 0.24% 0.14g/t
141m 160.5m 19.5 meters 0.16% --
181.5m 187.5m 6 meters 0.17% 0.14g/t
256.5m 264m 7.5 meters 0.29% 0.15g/t
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A07 - 11 96m 109.5m 13.5 meters 0.17% 0.27g/t
121.5m 124.5m 3 meters 0.56% 0.57g/t
199.5m 273m 73.5 meters 0.12% --
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A07 - 12 No significant assays
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A07 - 13 4.5m 102m 97.5 meters 0.17%(i) --
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A07 - 14 94.5m 109.5m 15 meters 0.17% 0.16g/t
151.5m 162m 10.5 meters 0.16% 0.15g/t
175.5m 181.5m 6 meters 0.41% 0.14g/t
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(i) Composite based on 65 samples (each 1.5 meters),
30 assays reported as % copper and 35 multi-spectrometer
analysis reported as ppm copper.
Westar President, Mitchell Adam, states: "We are delighted to see the advancement of the Axe property and in particular we are very encouraged to see the gold results across sizeable intersections which we feel could greatly increase the potential economics of the project."
John R. Kerr P. Eng is the qualified person who has reviewed the technical material contained in this news release.
On Behalf of the Board
Mitchell Adam, President
Weststar Resources Corp.
For additional information please contact the Company at 1-604-669-9330 or email: mitch@weststarresources.com .
WARNING: The Company relies on litigation protection for "forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company.
Corporate Update
On June 23, 2008, the Company announced it had entered into an agreement to acquire 72 coal permit applications, known as the "18 Meter" property, near the community of Hudson Bay, Saskatchewan. The coal lease applications encompass approximately 138,240 acres or 55,944 ha.
The Company has received comfort letters from the Saskatchewan Ministry of Energy and Resources on coal disposition numbers CPP 1,301 -- through CPP 1,372 confirming that once the proposed work programs and budget are accepted, the applications will meet the Branch's requirements. The vendors have filed the necessary work expenditure submission with the Branch and accordingly the Company expects that the approvals are imminent, although it has received no assurances in respect of the exact timing.
The Company has retained Mitchell Geological Services Inc. ("MGSI") to author a National Instrument 43-101 compliant report on the property. MGSI has commenced the work and intends on making a site visit and reviewing the core stored in Regina, Saskatchewan and providing a recommendation.
The Company has granted incentive stock options to its directors, officers, consultants and employees, under its Stock Option Plan, for the purchase of up to 850,000 common shares of the Company for a period of five years at a price of $0.20 per share.
On Behalf of the Board
Mitchell Adam, President
Weststar Resources Corp.
For additional information please contact the Company at 1-604-669-9330 or email: .
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.
WARNING: The Company relies on litigation protection for "forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company.
Weststar Appoints New President And Director
The Company is also pleased to announce the appointment of Christopher Verrico as a director of the Company. Mr. Verrico is currently a director of Raytec Metals Corp., is President and CEO of Lateegra Gold Corp. is the former CEO of West Hawk Development Corp., and is an independent director for a number of other public companies. He has raised over $40 million for junior resource energy and mining companies working throughout the Americas since 2000 (initially serving as a consultant and promoter for Candente Resources Corp. and its IPO in July of 2000). Apart from public company experience, Mr. Verrico also has an extensive industrial construction background due to his involvement with a number of western Canadian pulp mill, natural gas, thermal & micro hydro power and mine & mill plant construction companies.
Christopher Dyakowski has resigned as President and director of the Company. The Company would like to thank Mr. Dyakowski for his service over the years.
The Company has also granted incentive stock options to it's directors, officers, consultants and employees, under its Stock Option Plan, for the purchase of up to 390,000 common shares of the Company for a period of 2 years at a price of $0.80 per share, subject to Exchange and shareholder approval at the Company's Annual General Meeting.
On Behalf of the Board
Jerry A. Minni, CFO
Weststar Resources Corp.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release. WARNING: The Company relies on litigation protection for "forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company.
Weststar Acquires "18 Meter" Coal Property, Announces Private Placement And Appoints New Director
the Company has been informed that processing of these permits should be completed within the next 2 - 3 weeks.
The coal permits are underlain by sandstones and shales of the Cretaceous-aged Mannville group. During a 1994 exploration program conducted by Consolidated Pine Channel Gold Corporation, an approximately 18.84 m thick coal interval between 47.70 m and 66.54 m depth was identified, at the property. The discovery was made while testing a magnetic geophysical anomaly for kimberlite. The historical drill log (TL02-2, assessment report 63E-0004) indicates:
- 47.70 m to 55.32 m (7.62 m): Coal, massive;
- 55.32 m to 66.54 m (11.22 m): Coal Breccia, from 20 to 60% angular coal clasts, mixed with varying amounts of clay, silt and sand
Readers should note that the above information on historic work performed on the property was done prior to implementation of NI43-101, therefore the results spoken of do not comply with modern reporting standards and should not be relied upon until such time as additional work is completed on the property, including preparation of an NI43-101 report.
Although the coal was not analyzed at the time, the magnitude of coal reported within the aforementioned interval is similar to the Goldsource Discovery (26 m and 32.5 m in thickness) and confirms the regional potential for significant thicknesses of coal within Mannville-aged rocks of eastcentral Saskatchewan.
Cost of the acquisition includes the payment of $1,150,000 and the issuance of 3,300,000 shares of the Company on the following schedule:
- $150,000 on the signing of a Mineral Property Option Agreement (the "Agreement");
- $500,000 and 1,300,000 shares of the Company on TSX Venture Exchange approval of the Agreement;
- $500,000 and 2,000,000 shares of the Company six months after the date of TSX Venture Exchange approval of the Agreement
- The Vendors will retain a 2% Net Smelter Royalty ("NSR"), one half of which the Company may purchase for the sum of $2,000,000;
- The Vendors will retain a Flat Rate Unit of Production Royalty ("FRUP") equal to $2.00 per tonne of coal produced or sold from the Property. The Company may reduce the FRUP to $1.00 per tonne by paying the Vendors the sum of $2,000,000.
Gordon J. Allen, P.Geo., is the qualified person who has reviewed the technical material contained in this news release.
The Company also wishes to announce that, subject to regulatory approval, it has arranged a private placement of up to 2,500,000 units at price of $0.25 per unit for gross proceeds of $625,000. Each unit will consist of one flow-through common share and one-half of one transferable share purchase warrant. Each whole warrant shall be exercisable into one non flow-through common share for a period of two years at a price of $0.40 per share. Proceeds of the placement will be used for work on the Company's mineral properties.
Finder's fees will be payable in accordance with the policies of the TSX Venture Exchange.
The Company has also granted incentive stock options to it's directors, officers, consultants and employees, under its Stock Option Plan, for the purchase of up to 900,000 common shares of the Company for a period of 2 years at a price of $0.30 per share, subject to Exchange approval, and shareholder approval at the Company's Annual General Meeting.
The Company also announces that Mitchell Adam has been appointed a director of the Company. Mr. Adam has 19 years experience in securities, holding the positions of officer and director of several public companies. The Company has accepted the resignation of Raj Chowdhry as director of the Company, in order to pursue other interests. The Company would like to thank Mr. Chowdhry for his service over the years.
On Behalf of the Board
"Jerry A. Minni"
Jerry A. Minni, CFO
Weststar Resources Corp.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.
WARNING: The Company relies on litigation protection for "forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company.