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The Jojay project is an advanced stage gold exploration property located within the greenstone belt of northern Saskatchewan. Jojay is located approximately 11 road kilometres from an existing mill and has an exploration access road into the property. As reported in press release of July 2005, previous exploration and surface drilling has outlined a mineral resource on the property.

Background: The project area is located in the west central portion of the La Ronge Domain. Consolidated Mining and Smelting Company of Canada Ltd, latterly Cominco, acquired the property and over the next twenty years conducted exploration which led to the discovery of the Jojay Gold Deposit.

By the late 1960s, Cominco had reportedly estimated 'reserves' of 110,000 tons grading 0.26 oz Au/ton ('indicated') and a further 90,000 tons grading 0.26 oz Au/ton ('inferred') for the Jojay deposit. The reliability of these figures is unknown and they are not in accordance with the categories set out in NI 43-101. The auriferous mineralisation was traced over a 300 metres strike length and drill tested to a depth of approximately 75 m. The deposit was considered to be open at depth.

Claude Resources (Claude) acquired 100% of the mineral rights and entered a joint venture with SMDC in April 1986 whereby Claude acquired a 34% working interest, while SMDC acted as operator with a 66% working interest. Shore Gold Fund Inc was entitled to earn a 15% interest in the property by funding certain expenditure commitments.

Limited geophysical surveys were completed and magnetic and Induced Polarisation anomalies were found to reflect the known gold-pyrrhotite mineralisation. Trenches were re-established, geological mapping and sampling was conducted and diamond drilling was completed. SMDC fully covered the property with additional geophysical surveys which assisted the mapping of the geological contacts. Diamond drill holes tested the known mineralisation along strike and at depth (120 to 160 metres vertical) and trenching exposed the mineralisation at surface.

In 1987 Kilborn prepared a preliminary economic analysis of the Jojay deposit. The analysis assumed inferred 'reserves' of 750,000 tons at a grade of 0.24 oz Au/ton. These 'reserves' do not meet the criteria of reserves required by NI 43-101. The reserve base was revised and amended later that year and a more precise geological model was established which indicated three main mineralised zones termed the Red, Blue and Orange Zones. A probable mineable reserve of 313,174 tons at a grade of 0.264 oz Au/ton was estimated which met the criteria of National Policy 2A. The estimate was based on a cross-sectional polygon method. As no economic criteria were applied, this does not meet the requirements of NI 43-101.

Following definition drilling, a computerised geostatistical resource estimate concluded that a geological 'reserve' of 294,500 tons grading 0.24 oz Au/ton was present to a depth of 150 metres. Utilising a cut-off grade of 0.15 oz Au/ton, minimum mining width of 1.2 metres, dilution of 10% and a maximum depth of 100 metres, probable mineable reserves of 129,100 tons grading 0.26 oz Au/ton were estimated for the Red and Blue Zones and possible mineable reserves of 16,500 tons at a grade of 0.30 oz Au/ton were estimated for the Orange Zone under National Policy 2A guidelines. These do not meet NI 43-101 criteria for reserves. A pre-feasibility study in November 1987, assumed custom milling at the nearby Star Lake mill, which has subsequently been decommissioned and concluded that a small operation to high-grade the deposit would be viable at the then current gold price of Cdn$600/oz, but recommended additional drilling to delineate a peripheral mineralised zone prior to proceeding to a full feasibility study. Further drilling was subsequently conducted, but the resources were not upgraded.

At the beginning of 1989, SMDC changed its name to Cameco. No further exploration work appears to have been conducted on the property until the Wescan/Claude JV carried out a confirmatory drill program July 2005. Seven holes were drilled for a total of 1218.7 meters. The purpose of the program was to test the strike extension and continuity of previously indicated mineralization where gaps in data existed both down dip and down plunge as well as to confirm the occurrence of multiple zones. The program was successful in adding to the confidence level of the previously indicated zones named the orange, blue, purple and red by previous operators as well as locating additional unnamed zones which warrant further investigation. ( Press release August 2, 2005.)

The Jojay Lake project area straddles the north-north-easterly trending contact between a sequence of interbedded mafic to felsic volcanic rocks and sedimentary rocks. These were intruded by subvolcanic gabbro/diorite intrusions, porphyry and mafic dykes.

A shear zone, known as the Jojay Structural Zone, extends the entire length of the property and continues beyond the boundaries, along the sediment-volcanic contact. A second shear, termed the Parallel Structural Zone, occurs some 250 metres east of the Jojay Zone. Steeply dipping faults occur including the major Gnat Lake fault zone, which displaces the Jojay deposit. The mineralisation consists of a group of steeply dipping, gold, polymetallic sulphide-bearing quartz vein stock work/silica flooded zones, located adjacent and parallel to the Jojay Structural Zone.

At least five separate zones have been recognised, including:

  • The Red Zone, traced over a strike length of 300 metres to a depth of approximately 320 metres. The zone remains open down-plunge.
  • The Blue Zone, traced over 250 metres along strike to a vertical depth of approximately 130 metres. It is essentially closed, though narrow intercepts at a depth of 200 metres some 100 metres north of the main Blue Zone lens indicate that an additional lens may be developing in this area.
  • The Orange Zone was intersected in two drill holes at relatively shallow depth (~25 metres), though subsequent drilling indicated little tonnage potential.
  • The Purple zone was traced over a strike length of greater than 100 metres and to a depth of approximately 100 metres vertical. This zone is open at depth and along strike to the north and south.

 

The Footwall zone was encountered in the (1988) drilling campaign. However, a hole drilled to test the zone 50 metres beneath the initial intersection encountered the Gnat Lake fault and intersected significant but unusual gold mineralisation hosted within the fault, which did not resemble typical Jojay style mineralisation but consisted of a series of white pyritiferous quartz veins.

Diamond drill testing completed to the south along strike of the Red Zone also intersected appreciable gold mineralisation 100 metres to the south of the previously known extent of the zone.

A survey systematically tested for gold-in-till dispersion trains throughout the property and indicated two principal anomalies separated by 300 to 400 metres of till and swamp. Minor anomalies were also detected proximal to the cross-cutting Gnat Lake Fault along strike from the Jojay deposit, and close to the Park Lake fault, proximal to the Parallel Structural Zone.

In September 1987, limited metallurgical test-work was conducted on a representative sample of the mineralisation. This demonstrated that recoveries in excess of 96% were achievable using a combination of gravity and cyanide leaching with carbon adsorption.

The deposit is still open in a number of areas

Wescan Goldfields Inc. Work on Jojay was recommenced in June of 2007. Most significantly, Wescan awarded a contract to AMEC's Saskatoon office to carry out a scoping study of the Jojay project to evaluate the economics of the project in anticipation of moving to an underground bulk sample phase. As well, it is intended as part of the next phase of the contract to complete a NI 43-101 compliant technical report and resource estimate. Wescan also awarded a contract to Can North of Saskatoon to carry out the necessary environmental baseline work required to permit an underground exploration program.

A surface drilling program took place on Jojay in the fall of 2007. An initial drill program of approximately 3,500 meters for the first phase with possible extension to a phase II and phase III. The first phase of drilling was designed to supplement the existing data base to confirm and update the resource. The additional phases were designed to extend the known mineralization to depth and to test for new sub-parallel zones that may occur along the main shear zone (the Jojay Structural Zone). The gold mineralization in the project area is associated with mafic-felsic volcanics. Approximately $700,000 to $800,000 in expedatures was spent in the foregoing program during the year.

The Jojay Lake property covers an area of 198 hectares and is located approximately 150 km northeast of La Ronge, Saskatchewan. In June of 2006, Wescan staked additional claims to include ground of interest along the western boundary of the original holdings. The Jojay project is one of the portfolio of properties acquired from Shore Gold Inc. at the company's initial formation in 2004. Wescan initially held the property in a Joint Venture with Claude Resources Inc. with a 25% interest and acted as operator. Wescan purchased Claude's 75% interest to now hold 100% in October, 2006 in exchange for an issue of treasury shares. (Press release November 1, 2006).

2008 Drill Program Update: Drilling commenced on December 10, 2007 and 778.7 meters were drilled in three holes prior to shutting down for Christmas break; samples from drilling were submitted for analysis with results listed further in 2008 report. Drilling recommenced on January 8, 2008 and at the time of writing work is continuing on hole number six with a total of 1,464 m drilled in the current program to date. The program called for drilling an initial phase of 3,500 m with a possible extension for additional drilling based on results. Wescan previously announced (see Wescan news release June 12, 2007) the award of the contract to a Saskatoon based consulting engineering firm to carry out a Scoping Study of the Jojay Project to evaluate the economics of the project in anticipation of moving to an underground bulk sample phase, and with the intension of completing a NI 43-101 compliant technical report and resource estimate. Below were the first set of significant gold intercepts;

  • 22.95 grams per tonne (g/t ) over 1.70 metres (m), including 52.47 g/t over 0.70 m in drill JJ07-02
  • 49.07 g/t over 0.50 m in drill hole JJ08-09
  • 41.36 g/t over 0.80 m in drill hole JJ08-04
  • 6.48 g/t over 5.50 m, including 36.8 g/t over 0.60 m in drill hole JJ08-06
  • 9.37 g/t over 2.60 m, including 37.52 g/t over 0.40 in drill hole JJ08-09

 

(See Wescan news release February 29, 2008 for all results )

Drilling down plunge of the known mineralized zone resulted in a significant overall deepening of the deposit. In the north, the mineralized zones were extended from 200 metres to 300 metres from surface and the southern mineralization was extended from 150 metres to 250 metres from surface. These drill results clearly demonstrate the significant increase of resource potential at Jojay.

The 2007-2008 Jojay drill program included a total of 6,336 metres of diamond drilling in 22 holes and was completed in late February, 2008. This drill program focused on infill drilling required for a resources estimate. In addition, step out drilling tested deeper areas of mineralization.

Significant uncut gold intercepts for the first 10 holes (JJ07-01 to JJ08-10) are reported on the table in the Wescan February 29th 200 news release as well as the results for the remaining 12 holes.

In early 2010 Wescan completed a 43-101 Mineral Resource Estimate on Jojay (see February 4th, 2010 News Release). The Mineral Resource Estimate was completed by A.C.A. Howe International Limited in accordance with Canadian Securities Administrators National Instrument 43-101 ("NI 43-101") and CIM Standards on Mineral Resources and Reserves. Indicated and Inferred Mineral Resources have been determined in the Red Zone (also referred to as the Main Zone) and six minor zones at the Jojay Gold Deposit. The Mineral Resources include 21 Wescan diamond drill holes completed in 2005 and 2007-2008 and 79 historic drill holes. At a block cut-off grade of 2 g/tonne Au, non-diluted Indicated mineral resources, located entirely in the Red Zone, amounted to 420,000 tonnes with an average grade of 3.7 g/tonne Au, for 50,000 ounces gold. Non-diluted Inferred mineral resources, approximately half of which were located in the Red Zone amounted to 630,000 tonnes with an average grade of 4.3 g/tonne Au, for 87,000 ounces gold. No Measured Resources or Reserves of any category were identified. Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserve.

This NI 43-101 compliant resource estimate is a major milestone for the Jojay Gold Project. Wescan's exploration to date has confirmed and expanded a significant gold resource on the Jojay zone hosted by a continuous shear structure (i.e. Jojay structural zone) at a volcanicsedimentary contact. The mineral resource estimate outlines the Red Zone and six minor mineralized zones. The zones are vertically dipping with a north-south strike. The Red Zone is modeled over a strike length of approximately 500 metres to a depth of 400 metres, and averages 4-5 metres wide. The Red Zone remains open down-plunge at depth.

2011 will entail based on recommendations by our technical team and consultants an initial 2500 metre program with strategically plotted drill targets. Then based on successful results a larger scale Phase II program will be proposed to extend the zone and increase the mineral resource.

(See November 18, 2011 News Release for complete results)

Further exploration of the Corporation's Jojay Gold Project in northern Saskatchewan located in the LaRonge Gold Belt with a Phase II drill program has commenced on areas which could not be accessed due to wet ground conditions. (See February 22, 2012 News Release).

Then following the program Wescan will be engaging ACA Howe International Limited to conduct a Preliminary Economic Assessment for Jojay Gold Project and updated Resource Estimate.

 
 
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