Wescan-Santoy Joint Venture Reports Uranium Exploration Results- Athabasca Basin, Saskatchewan
March 14, 2007
Wescan Goldfields Inc. (TSX Venture Exchange – WGF) and its 50:50 joint venture partner, Santoy Resources Ltd. (TSX Venture Exchange – SAN) are pleased to report the progress of their uranium exploration on six joint venture project areas in Saskatchewan. Santoy is the operator of this joint venture.
Five of the areas are within the Athabasca Basin and have been flown with high resolution electromagnetic and magnetic surveys. Final interpretive results are in hand for four of these project areas. The interpretations have been prepared by Roman Tykajlo, P.Geo., a qualified person as defined under NI 43-101. All the prospecting permits have come to their two year term and the favorable areas based on geophysical surveys and historical exploration results have been protected by staking of claims. The total property package has been reduced by a net 24,746 ha. Selected maps illustrating the geophysical results will be posted on the respective websites for each of the companies.
FIR ISLAND PROJECT
Prospecting Permit 1213 has been converted to claims S-110434 to S-110346 contiguous with a prior existing claim, S-108622. Two additional claims (S-110453 and S-110454) have been staked to the north. The property is situated in the Black Lake area on the northeast edge of the Athabasca Basin. The western boundary of the property covers the Black Lake fault zone, a major northeast-trending tectonic element. The historic Nisto Uranium mine, an unconformity style deposit, is situated immediately west of the property. The property was investigated using a helicopter-borne time-domain Versatile Electromagnetic (VTEM) and magnetic system operated by Geotech Ltd.
Two zones of potential graphitic meta-pelites in basement are outlined from magnetic data along with two northwest-trending faults cross-cutting basement stratigraphy as well as one northeast-trending fault parallel with basement stratigraphy.
Modeling of pronounced magnetic features supports an interpretation of a significant down drop to the east side of the Black Bay fault with potentially 200 metres or more of movement resulting in the preservation of significant thickness of Athabasca Formation and the unconformity.
These favorable settings are the focus of exploration by JNR Resources and UEX Corp. to the south. On this basis, the northern extension of this favorable setting was recently acquired by the joint venture.
DOWLER LAKE PROJECT
The geologically favorable portions of Prospecting Permit 1217 have been converted to claims S-110447 to S-110449 totaling 16,597 ha. The property is situated on the south shore of Lake Athabasca immediately east of the Alberta–Saskatchewan boundary. The property was covered by a MEGATEM electromagnetic and magnetic survey system operated by Fugro Airborne Surveys Corp. Depth to basement appears to be in the order of 500 to 900 metres based on magnetic interpretations and drilling on the Alberta side. Aeromagnetic responses over the property are broad and generally unsuitable for detailed depth calculations.
The interpretation by Fugro highlighted a potentially significant, structurally controlled trend in the decay-constant (Tau) data. These features may result from clay alteration that could in turn be related to a mineralizing event.
Further processing of geophysical data and a surface sampling program to establish the presence of clay alteration has been recommended.
HAZEMPA LAKE PROJECT
The geologically favorable portions of Prospecting Permits 1210 and 1211 have been converted to claims S-110431 to S-110433 and are contiguous with claims S-108600, S-108601 and S-108621. The project is situated in the north central portion of the Athabasca Basin, immediately south of Engler Lake.
The project was covered by a MEGATEM electromagnetic and magnetic survey operated by Fugro. Modeling suggests a depth to basement over the project area in the 700 to 900 metre range. However, no drill holes to basement are available in the immediate area to confirm this interpretation. The geophysical surveys identified two sub-parallel north to northeast-trending structures passing through the eastern portion of the project area. These structures are also evident on Landsat images and from the Extech IV research program information. No associated anomalous electromagnetic response was evident.
Follow-up programs are recommended focusing on structural mapping and clay alteration studies on any outcrops or boulders near or at structural intersections.
PATTYSON LAKE PROJECT
The Pattyson Lake property of Prospecting Permits 1214 and 1215, have been converted to claims S-110437 to S-110446. The property is situated within the northeast sector of the Basin where the Athabasca Fm. is underlain by basement rocks of the Mudjatic Domain, locally comprised of Aphebian age meta-pelites and Archaen age granitoids. Public records indicate two historic drill holes in the eastern sector of the project area. The property was covered by a MEGATEM electromagnetic and magnetic survey.
Interpretation by Fugro includes the following comments: i) the area was noted to be highly resistive, showing almost no conductive response from surface material; and ii) a few weak conductive trends were noted in the OFF-time signal. Further processing alternatives for the data have been recommended by Fugro. A final interpretation by Roman Tykajlo is pending.
The aero-magnetic data suggests the presence of a number of splays of the Tabbernor fault system as well as cross-cutting east-west structures.
RICHARDS LAKE PROJECT
This property consists of one claim, S-108623, situated immediately west of Richards Lake. It was flown with a MEGATEM electromagnetic and magnetic survey. Radioactive phosphatic boulders are reported to the east of Richards Lake. These may have been derived from the Wolverine Formation.
This survey defined a wide, complex, east-northeast/west-southwest structural corridor transecting the center of the project. It separates a magnetic-high to the north from potentially graphitic lithology to the south and forms a favourable target for uranium exploration. Depth to basement based on magnetic processing supports a 600 to 700 metre interpretation.
Recommendations for follow-up include further processing of the geophysical data and lithogeochemical sampling to investigate clay alteration patterns, especially those associated with the geophysical features. A summer field program of sampling and mapping structural features is planned. Contingent upon obtained geochemical results, ground geophysical surveys will also be considered.
KARPINKA LAKE PROFECT
Prospecting Permit 1218 has been converted to claims S-110428 to S-110430 covering the most favorable geological trends. The property is situated approximately 30 km. south of the Athabasca unconformity and covers the boundary between the Wollaston and Mudjatic Domains.
Historical exploration by Getty Minerals, Scurry Rainbow Oil and Gas and Brascan located numerous uranium occurrences in bedrock and as mineralized boulders. Many of these are associated with key indicator elements including cobalt, nickel and molybdenum.
Recent exploration to the south by Forum Resources has been successful in locating new uranium occurrences of significance on trend. Exploration further to the north by Denison Mines is being directed at the same graphitic conductor trends.
The joint venture is planning a drill investigation of the better historical targets and on trends identified by our neighbors.
2007 EXPLORATION PROGRAM
An exploration budget in the order of $2,000,000 is anticipated by the joint venture for the coming year. Diamond drilling is anticipated on the Fir Island and Karpinka Lake projects during the current season. The Athabasca Basin properties will all be subjected to surface sampling programs that will focus on geophysical targets and structural features. Lithogeochemical samples (outcrop and angular boulders) will be collected and processed for clay alteration studies. A review of the available deep penetrating ground geophysical procedures will be reviewed for suitability to these projects. Line cutting and ground geophysics will be undertaken at the earliest convenience to assist in prioritizing drill targets.
This news release has been reviewed by Mr. J. R. Allan, P.Geol., a Qualified Person as defined by National Instrument 43-101.
Caution Regarding Forward-Looking Statements
From time to time, Wescan makes written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbor" provisions of the Ontario Securities Act and the United States Private Securities Litigation Reform Act of 1995. Wescan may make such statements in this press release, in other filings with Canadian regulators or the United States Securities and Exchange Commission, 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.
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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 behalf.
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