Wescan Goldfields Inc. was the first public company after Goldsource Mines Inc. to be involved in the recent staking rush following the discovery of significant coal in drill core near Hudson Bay, Saskatchewan. During the later part of April 2008, Wescan applied for an extensive package of coal dispositions covering over 250,000 hectares adjacent to and partially surrounding the coal discovery made by Goldsource Mines. Wescan received a "Letter of Comfort" from Saskatchewan Energy and Resources on May 27th, 2008 stating that the majority of all coal permit applications made on behalf of the company are 'first in line' and will be given priority sequence.
Drilling commenced on the Company's Hudson Bay, Saskatchewan coal exploration project in August 2009. Drilling locations were targeted using Fugro Airborne Surveys ("Fugro") specialized geophysical processing and interpretation on GEOTEM Electromagnetic Magnetic data. This data enabled Wescan to identify all potential coal bearing sub-basins on all of the Company's coal permits. Wescan initially explored a large block of coal permits, approximately 86 kilometres wide lying north of the Pasquia Hills in an area where potential depth to coal may be shallow. Within this northern block, Fugro has identified a number of priority geophysical anomalies that may be related to laterally extensive coal deposits. These geophysical anomalies are interpreted to be very large, some in excess of 15 kilometres in diameter. Wescan also explored for coal on two of its southern coal permit blocks, which lie south of the massive coal discovery by Goldsource Mines Inc. These southern blocks have also been identified by Fugro to potentially host numerous coal bearing sub-basins.
Results from the 2009 Phase I Drill Program intersected in 21 out of 40 drill holes, with a maximum coal zone thickness of 12.90 metres. These initial coal discoveries will direct the drilling locations in the upcoming 2011 Phase 2 Drill Program, aimed at targeting thicker intersections of coal. Coal zones ranged from continuous coal seams to coal zones with interbedded sand and carbonaceous material, with coal ranging from bright to dull. Eight holes contained coal zones greater than 5 metres thick. Several drill holes also contained more than one intersection of coal, suggesting the presence of multiple coal horizons (see Table 1in our January 18, 2010 News Release).
During 2011, a review was conducted of all regional geophysical and geological data relating to the Company’s coal exploration properties. Wescan management; together with consultants North Rim Exploration have been assessing which of our coal permits we should drop and which permits we should keep prior to the lapse of the original 3 year rental. These original permits had no cost attached to them other than the permit application cost of $1 per hectare in 2008. In 2009, Wescan had expenditures of approximately $3,000,000 in a Phase I drill program where we drilled 40 holes at Hudson Bay with no significant results. Now by regulation, each disposition can be extended for 2 additional consecutive 6 month periods for a cost of $1 per hectare. Following the completion of these extensions these dispositions could then be carried forward into what the government has called an annual “lease” at a cost of $5.50 per hectare. Based on this review, and also factoring in the additional expenses that would be necessary to convert the coal permits to more expensive leases (as would have been required in the near term), the Company determined that its financial resources would be better served pursuing its gold properties. As a result, the Company has allowed the majority of its coal permits to lapse, with the remainder to lapse in early 2012.
Wescan initiated a coal exploration program on its 100 percent owned property near Pinehouse Lake, Saskatchewan in 2009. The Company has 50 coal dispositions; covering 38,304 hectares in an area where Mannville aged coal (Cretaceous) is known to exist. Historical drilling in this region intersected 1 to 3 metre thick coal seams at approximately 50 metres below surface in a region where overburden is limited.
During 2011, a review was conducted of all regional geophysical and geological data relating to the Company’s coal exploration properties. Wescan management; together with consultants North Rim Exploration have been assessing which of our coal permits we could drop and which permits we could keep prior to the lapse of the original 3 year rental. These original permits had no cost attached to them other than the permit application cost of $1 per hectare in 2008. In 2009, Wescan completed an 8 hole program at Pinehouse Lake to confirm historical drill hole data. Now by regulation, each disposition can be extended for 2 additional consecutive 6 month periods for a cost of $1 per hectare. Following the completion of these extensions these dispositions could then be carried forward into what the government has called an annual “lease” at a cost of $5.50 per hectare. Based on this review, and also factoring in the additional expenses that would be necessary to convert the coal permits to more expensive leases (as would have been required in the near term), the Company determined that its financial resources would be better served pursuing its gold properties. As a result, the Company has allowed the majority of its coal permits to lapse, with the remainder to lapse in early 2012.
