Wescan-Alto joint venture exploration update on the Mud Lake, Beardmore-Geraldton Gold Belt property
Wescan Goldfields Inc. provide an update on the Mud Lake property exploration program, a joint venture between Wescan and Alto Ventures Ltd. in the Beardmore-Geraldton Gold Belt in northwestern Ontario. The prolific Beardmore-Geraldton Gold Belt has produced over four million ounces of gold in the past with grades comparable to the Red Lake mining camp in north western Ontario.
The 2008 program includes airborne high-resolution magnetometer and XDS/VLF electromagnetic surveys as well as surface work consisting of prospecting, mechanical stripping and sampling. The geophysical work has been completed and follow-up prospecting was carried out. Mechanical stripping and sampling are currently in progress and the targets generated from this program will be combined with those identified from previous work for a core drill program later in the year.
The property lies adjacent to Kodiak Exploration Ltd’s (“Kodiak”) Hercules Project and hosts the Mud Lake Shear (MLS), a major gold-bearing shear zone that extends for over six kilometres along strike. Several gold occurrences have been exposed in surface trenches along the MLS and sampling of these has returned gold assays as high as 50 grams per tonne (g/t) in grab samples. Drilling in 2007 and 2008 tested six of the surface occurrences and intersected gold at each one returning results up to 13.9 g/t gold over 1.0 metre; another seven surface gold occurrences remain to be drilled.
The 2008 program is part of a longer term strategy to evaluate each of the surface gold zones with core drilling as well as to delineate in greater detail those zones that display continuity of mineralization and show potential for hosting economic deposits at depth.
Under the terms of the Mud Lake Option Agreement, Wescan can earn 50% interest in the property by funding $600,000 in exploration and issuing a total of 150,000 Wescan shares to Alto over two years. Upon completion of the work, Wescan will have satisfied the work expenditures commitments to earn its interest in the project. Mike Koziol, P. Geo., P.Eng. and Alto’s President, CEO and Director is the Qualified Person for the joint venture.
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”.