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Wescan
Goldfields Inc. ("Wescan" or the
"Company") (TSXV:WGF.V) is pleased to announce
the commencement of their 2011 exploration plan. This announcement comes
following the recent successful financing of $1,553,764 (see Wescan Goldfields Inc. February 24, 2011 News Release)
which will be applied to fund exploration of the Company's Jojay, Jasper, and Munro Lake Gold Projects in the La Ronge Gold Belt in northern Saskatchewan, as well as to
the Company's coal projects near Hudson Bay, Saskatchewan.
Jojay
Gold Project - Northern Saskatchewan
Wescan
plans to continue exploration on its 100 percent owned Jojay
Gold Project for which an historical independent geological model and
resource estimate exist. Wescan will be conducting
a 2,500 metre drill program based on
recommendations from a review of historical drilling data, completed in February
2011 by our internal technical team and external consultants. This program
follows on from the NI 43-101 compliant resource estimate and recommendations
by ACA Howe International Limited ("ACA Howe") for future work (see
Wescan News Release February 4, 2010).
The report prepared by ACA Howe included Indicated and Inferred
Mineral Resources from the Red Zone and six minor zones at the Jojay Gold Deposit. 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. The mineral resources identified herein are preliminary in
nature, and include inferred mineral resources that are considered too
speculative to have economic considerations applied to them that would enable
them to be categorized as mineral resources. There is no guarantee that all
or any part of the mineral resource will be converted into a mineral reserve,
and it is uncertain if further exploration will result in the property being
delineated as a mineral reserve.
The deposit remains open both down plunge and along strike. The
current program is scheduled to begin in early June as soon as drilling is
permitted in the area and will concentrate on confirming previous archival
drilling and expand and further delineate the known and potentially
mineralized areas.
Jasper Gold Project - Northern Saskatchewan - 100% owned by Wescan
ACA Howe has also been engaged to conduct a desktop review of the Jasper
Gold Project. Based on the recommendations of this review it is anticipated
that a drilling program will be conducted to further assess the
future potential of this past producing mine. The Company's plan is to
reinvigorate the Jasper Gold Project which was mined out to its economic
potential when gold prices slipped below $250 per ounce. The aim of this
program will be to expand and further delineate the known mineralized areas
which are still open at depth and along strike, as determined from Wescan's most recent drill programs. Drilling will also
focus on mineralized areas around the old mine workings that may contain
minable resources.
Munro Lake Gold Project - Northern Saskatchewan
A thorough review of historical exploration data is currently being
undertaken by Wescan's technical team and
consultants to identify targets for a summer field exploration program which
is likely to consist primarily of geochemical sampling and geological mapping
on areas of known mineralization and areas of potential interest. This
exploration program may also consist of ground and or airborne geophysical
surveys.
Hudson Bay and Pinehouse Lake Coal Projects
- North eastern Saskatchewan
Currently, a review is being conducted of all regional geophysical and
geological data on the Company's coal exploration properties for the purpose
of identifying the most prospective areas following the 2009 drill program. Dependant on the recommendations of this review Wescan will explore the highest priority targets, which
may include drill testing and or further delineation using airborne
geophysical surveys.
Mr. Darren Anderson, President of Wescan
stated, "With the significant escalation in the price of gold, the
Company believes the timing is right to focus exploration on our properties
of known gold mineralization. We remain committed to our coal holdings and
will determine if more immediate work is warranted based on the review
currently underway and will continue to monitor activities in this region to
ensure our most prospective coal properties are protected but believe we need
to take advantage of the current unprecedented price of gold in establishing
our 2011 exploration plan".
The technical information pertaining to the Jojay
Gold Deposit in this document has been reviewed and approved by Ian Trinder, P.Geo., Senior
Geologist with A.C.A. Howe International Limited, a
qualified person as defined by NI 43-101.
Wescan is
a Canadian-based corporation engaged in the acquisition, exploration and
development of mineral properties. Common Shares of Wescan
trade on the TSX Venture Exchange under the trading symbol "WGF".
Caution Regarding Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of certain securities laws, including the "safe harbour" provisions of Canadian securities
legislation and the United States Private Securities Litigation Reform Act of
1995. Forward-looking information is often, but not always, identified by the
use of words such as "anticipate", "believe",
"expect", "plan", "intend",
"forecast", "target", project",
"guidance", "may", "will", "should",
"could", "estimate", "predict" or similar words
suggesting future outcomes or language suggesting an outlook. In particular,
statements regarding Wescan's future operations,
future exploration and development activities or other development plans
constitute forward-looking statements. Forward-looking statements in this
press release include, but are not limited to, statements related to anticipated exploration plans, statements related to the
Company's ability to expand and delineate mineralized zones, identification
of future drilling targets, and assumptions made regarding the impacts of
increases in the price of gold on the Company's exploration programs. These
forward-looking statements are based on Wescan's
current beliefs as well as assumptions made by and information currently
available to Wescan. Although management considers
these assumptions to be reasonable based on information currently available
to it, they may prove to be incorrect. 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 and coal markets, changes in
exploration plans due to exploration results and changing budget priorities
of Wescan, 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 the additional risks described in Wescan's
most recently filed Annual Information Form, 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. Unless required by applicable securities
legislation, Wescan does not undertake to update
any forward-looking statement that may be contained herein.
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