Weststar confirms thermal coal quality at Tobin Lake
2009-04-21 06:53 ET - News Release
Shares issued 34,916,191
WER Close 2009-04-20 C$ 0.115
Mr. Mitchell Adam reports
WESTSTAR RESOURCES CORP. CONFIRMS THERMAL COAL QUALITY AT TOBIN LAKE COAL PROPERTY SASKATCHEWAN
Weststar Resources Corp. has received results for 16 coal samples from drill hole A, where a total of 17.7 metres of coal is indicated, and potentially up to four metres of coal were left in the hole as suggested by gamma logs and drill core. Based on proximate analysis of the samples the coal samples vary in rank approximately from subbituminous C to lignite B coal. Calorific values range from 6,463 kilojoules per kilogram to 18,469 kilojoules per kilogram on a dry basis.
Mitchell Adam, president, stated: "We are encouraged by the overall results of this winter's program in that they demonstrate a near-surface coal deposit with good calorific values. The tested area is showing evidence that it may be at the edge of a sub basin, similar to that encountered by Goldsource Mines where coal thicknesses of up to 100 metres have been discovered."
Preparations for a spring EM survey are progressing and will focus on the development of additional drill targets near the discovery area, and other parts of the overall permit area.
Within the region, airborne EM surveys have demonstrated their usefulness in outlining the coal basins within the Manville formation. The company believes that this will be an extremely cost-effective method of quickly targeting locations with potential to host the thickest accumulations of coal near Tobin Lake.
Future drill activities will await the completion of a property-wide full-spectrum time-domain airborne electromagnetic (EM) survey. The survey will be used to delineate both the Manville coal seams within the property, and the elevations of the Devonian basement, thereby identifying locations with potential for the thickest accumulations of coal. The Tobin Lake property measures 20 kilometres by 30 kilometres. The area tested by the winter drill program represents only a small portion of the property, measuring less than one by one kilometres.
All analyses were carried out by Loring Laboratories Ltd. of Calgary, Alta. Loring is a certified laboratory and has extensive experience in the analysis and ranking of Canadian coals.
The company has also arranged a non-brokered private placement of up to seven million units at 10 cents per share. The private placement consists of units priced at 10 cents per unit. Each unit consists of one common share and one transferable share purchase warrant, with each warrant exercisable into one additional common share at a price of 15 cents per share for a period of two years from the date of closing. Proceeds of the placement will be used to finance the company's upcoming EM survey and phase 2 drill program and for general working capital. The company is paying the maximum allowable finders' fees under TSX Venture Exchange policy. |
