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Message: Westcore drills up to 75.2 m of coal at Athena target
2011-03-30 15:05 ET - News Release
Mr. Paul Conroy reports WESTCORE ANNOUNCES COMPLETION OF 2011 WINTER EXPLORATION PROGRAM ON WESTCORE AND 49 NORTH COAL PROPERTIES IN MANITOBA AND EXTENSION OF QUANTEX STANDSTILL AGREEMENT Westcore Energy Ltd. has released the results of the 2011 diamond drill program on its coal properties near The Pas, Man., and an update on the status of negotiations with Quantex Energy Ltd. Since Westcore's last news release (dated March 2, 2011), three additional targets (Cylcops, Athena and Calypso) have been drilled for a total of 13 more holes (see Figure 1 with this news release for location of all targets drilled in 2011). A summary of highlights of the most recent phase of drilling is set forth below. All drilling widths reported in this news release are true widths. Westcore is also pleased to announce that discussions with Quantex relating to the negotiation of an exclusive Saskatchewan and Manitoba license of the Quantex Coal-To-Liquids process are proceeding well. The bulk sample that was delivered to the Quantex laboratory in Morgantown, West Virginia in late February is currently under analysis and results are pending. Accordingly, the parties have agreed to extend their previously announced standstill agreement to May 31, 2011. Latest Drilling Highlights Details (Refer to Figures 2, 3 & 4, and Tables 1, 2 & 3 with this news release) Cyclops: This was the last target to be drilled during the 2011 program. Only 3 holes were drilled before camp and drilling equipment needed to be demobilized ahead of spring road restrictions being emplaced on Highway #10. Two holes (CY-11-02 & -03) were drilled due east of hole BD-10-02, and one hole (CY-11-01) was drilled to the southeast (Figure 2). Holes BD-10-01 & -02 were drilled in 2010. BD-10-02 intersected 42.0 metres of coal (composite thickness) and BD-10-01 did not intersect any coal units. Table 1 summarizes the coal intervals intersected in Holes CY-11-02 & -03. CY-11-02 was located more into the centre of the geophysical anomaly than BD-10-02 and intersected coal units totalling 53.4 metres in thickness (composite). Hole CY-11-03 was located near the eastern edge of the anomaly and intersected coal units totalling 12.8 metres in thickness (continuous). Hole CY-11-01, located approximately 450 metres southeast of BD-10-02 in a weakly anomalous geophysical area, intersected 6.1 metres of black to brown carbonaceous units laying directly underneath glacial till. Athena Main: 6 holes were drilled at Athena to expand the known coal units first discovered by hole BD-10-04 drilled in 2010 (Figure 3). 5 holes were located within the geophysical anomaly (AT-11-01, -02, -03, -04 & -07) and intersected coal, the intervals of which are summarized in Table 2. The thickest coal intercept came from Hole AT-11-02, with a composite coal thickness of 75.2 metres. Both holes AT-11-03 & 04 were located near the eastern edge of the anomaly and intersected 43.4 and 65.4 metres of coal, respectively (composite thicknesses). One hole (AT-11-05) was deliberately located outside the boundaries of the anomaly with no intention to intercept coal. The sole intention of this hole was to determine the geologic nature of the outer-basin areas. No Mannville units were intersected in the hole. Athena Satellite: One hole (AT-11-06) was drilled into the centre of the Athena Satellite, an isolated geophysical target located approximately 700 metres northeast of the Athena Main area (Figure 3). 34.8 metres of continuous coal was intersected (Table 2). Calypso: 2011 was the first year the Calypso target was drill-tested. 3 holes were designed to test the northwest-southeast trending geophysical anomaly (Figure 4). All three holes intersected coal units, ranging in thickness from 24.1 to 64.7 metres (composite), as summarized in Table 3. Summary of the 2011 Winter Exploration Program Altogether, 39 vertical diamond drill holes were drilled during the 2011 winter drilling program: 23 on Westcore's wholly owned Black Diamond Property and 16 on the FNR JV Coal Property, held jointly with 49 North Resources Inc.("49 North"). Figure 1 is a map showing all of the targets drilled this winter, of which four occur on the Black Diamond Property (Ambit, Cyclops, Athena and Calypso), and one occurs on the FNR JV Coal Property (Quasar). Drilling results of the Ambit target were reported in Westcore's news release dated February 10, 2011, and the Quasar results were reported in Westcore's news release dated March 2, 2011. The total amount of drilling conducted was 4,529 metres using HQ-sized core bits, and 516 coal core samples were sent to Birtley Labs of Calgary, Alberta, for Proximate Analysis. Highlights In addition to the foregoing, Westcore also confirms that it has entered into the previously announced formal joint venture agreement with Goldsource Mines Inc. ("Goldsource"), which formalizes the terms of the joint venture, as initially announced by Westcore via press release dated December 11, 2009. As noted in that news release, the joint venture agreement provides Goldsource with a 25% working interest in all Westcore lands as of that time, with an option to opt in on after acquired lands. It should be noted that Goldsource did not elect to participate on the FNR JV Coal Property and therefore holds no interest in that property. Once Westcore has expended $3 million on its properties that are subject to this joint venture, Goldsource will be obliged to contribute its 25% of costs in order to maintain its proportionate interest. Paul Conroy, President and CEO, states; "We are very pleased with our latest results and of our winter exploration program as a whole. Each deposit, without exception, has surpassed our expectations in terms of both size and thickness. In almost every case, the coal units extended beyond the geophysical signatures, making it clear that defining the edges of the basins will require further drilling. In addition to this, results from the three satellite targets have helped us to identify new targets worthy of exploration in the near future. We look forward to continued work in the area by conducting airborne geophysics and investigating the geology of these unique coal basins in the months to come. We would like to thank all of the subcontractors who worked professionally and diligently to make this winter program a great success. We are also very pleased to report positive progress in our discussions and negotiations with Quantex. The extension of the standstill agreement with Quantex is a further indication of the good faith discussions that are ongoing and both parties' enthusiasm regarding the development of our properties and the opportunity that this represents for the Quantex CTL process. We expect that once the bulk sample results are finalized, we will be in a position to finalize our negotiations with Quantex and will have further updates at that time." Ellen MacNeill, Professional Geoscientist in the Province of Saskatchewan and Qualified Person for this news release, has reviewed and approved its contents. We seek Safe Harbor.-- Cyclops
-- 3 new holes were drilled at Cyclops in 2011. (2 holes drilled in
2010).
-- 2 holes intersected coal units with thicknesses of: 53.4m, 12.8m,
(composite).
-- Athena Main
-- 6 new holes were drilled at Athena Main in 2011. (1 hole drilled in
2010).
-- 5 holes intersected coal units with thicknesses of: 75.2m, 65.4m,
43.4m, 22.1m, 17.9m (composite)
-- Athena Satellite
-- An isolated geophysical anomaly occurring approximately 700 metres
northeast of Athena Main was tested with one hole.
-- A coal unit was intersected that measured 34.8 metres in thickness
(continuous).
-- Calypso
-- 3 holes were drilled into this previously untested target.
-- 3 holes intersected coal units with thicknesses of: 67.7m, 41.5m,
24.1m (composite).
Table 1: Cyclops Coal Intercepts
----------------------------------------------------------------------------
Hole Description From (i) To(i) Width
----------------------------------------------------------------------------
CY-11-02 Coal + minor silt 60.0 65.8 5.8
-----------------------------------------------------------
Coal + minor silt 66.7 102.2 35.5
-----------------------------------------------------------
Coal 104.4 105.7 1.3
-----------------------------------------------------------
Coal 107.4 113.4 6.0
-----------------------------------------------------------
Coal + minor silt 115.4 117.1 1.7
-----------------------------------------------------------
Coal + minor silt 120.4 123.5 3.1
-----------------------------------------------------------
Total (Composite) 53.4
----------------------------------------------------------------------------
CY-11-03 Coal + minor silt 51.6 64.4 12.8
-----------------------------------------------------------
Total (Composite) 12.8
----------------------------------------------------------------------------
(i) Depths determined by visual inspection of drill core and down-hole elog
density of 1.6 g/cc or less
Table 2: Athena Coal Intercepts
----------------------------------------------------------------------------
Hole Description From (i) To(i) Width
----------------------------------------------------------------------------
AT-11-01 Coal 27.4 45.3 17.9
-----------------------------------------------------------
Total 17.9
----------------------------------------------------------------------------
AT-11-02 Coal + minor silt 59.7 83.8 24.1
-----------------------------------------------------------
Coal + minor silt 85.1 123.8 38.7
-----------------------------------------------------------
Silty Coal 124.6 126.0 1.4
-----------------------------------------------------------
Coal + minor silt 126.6 137.6 11.0
-----------------------------------------------------------
Total (Composite) 75.2
----------------------------------------------------------------------------
AT-11-03 Coal + minor silt 34.8 60.4 25.6
-----------------------------------------------------------
Coal + minor silt 64.5 82.3 17.8
-----------------------------------------------------------
Total (Composite) 43.4
----------------------------------------------------------------------------
AT-11-04 Coal + minor silt 47.0 90.8 43.8
-----------------------------------------------------------
Coal + minor silt 94.4 116.0 21.6
-----------------------------------------------------------
Total (Composite) 65.4
----------------------------------------------------------------------------
AT-11-07 Coal 18.3 40.4 22.1
-----------------------------------------------------------
Total 22.1
----------------------------------------------------------------------------
Athena Satellite Coal Intercepts
----------------------------------------------------------------------------
Hole Description From (i) To(i) Width
----------------------------------------------------------------------------
AT-11-06 Coal + minor silt 40.4 42.6 2.2
-----------------------------------------------------------
Coal 42.6 75.2 32.6
-----------------------------------------------------------
Total (Composite) 34.8
----------------------------------------------------------------------------
(i) Depths determined by visual inspection of drill core and down-hole elog
density of 1.6 g/cc or less
Table 3: Calypso Coal Intercepts
----------------------------------------------------------------------------
Hole Description From (i) To(i) Width
----------------------------------------------------------------------------
CP-11-01 Coal 57.7 81.8 24.1
-----------------------------------------------------------
Total 24.1
----------------------------------------------------------------------------
CP-11-02 Coal + minor silt 95.3 158.9 63.6
-----------------------------------------------------------
Coal + minor silt 179.8 180.8 1.0
-----------------------------------------------------------
Coal + minor silt 182.6 185.7 3.1
-----------------------------------------------------------
Total (Composite) 67.7
----------------------------------------------------------------------------
CP-11-03 Coal 70.0 90.5 20.5
-----------------------------------------------------------
Coal + minor silt 91.3 109.2 17.9
-----------------------------------------------------------
Coal + minor silt 116.1 119.2 3.1
-----------------------------------------------------------
Total (Composite) 41.5
----------------------------------------------------------------------------
(i) Depths determined by visual inspection of drill core and down-hole elog
density of 1.6 g/cc or less
-- Five separate geophysical targets were drilled and all five targets
contained significant coal thicknesses (Ambit, Cyclops, Athena, Calypso
and Quasar).
-- Three Satellite targets were drilled with one hole each and all three
targets returned substantial coal thicknesses (Ambit, Athena and
Quasar).
-- A bulk sample of coal was collected and shipped to the Quantex lab in
West Virginia for coal liquefaction analysis. Results are pending.
-- Ambit Main and Ambit Satellite:
-- 9 new holes drilled at Ambit Main this year.
-- 6 holes intersected coal units with thicknesses of: 87.6m, 82.6m,
49.7m, 48.9m, 35.2m, 29.4m (composite).
-- Preliminary understanding of basin morphology established.
-- Detailed drilling of this one target will aid in further exploration
of all targets.
-- The Ambit Satellite returned 35.3 metres of coal thickness
(composite) in one hole from a geophysical anomaly whose areal
extent is similar to Ambit Main.
-- Quasar Main and Quasar Satellite:
-- 15 holes drilled into the main target area.
-- 15 holes intersected coal units with thicknesses of: 99.0m, 87.2m,
48.8m, 45.1m, 42.5m, 34.6m, 33.4m, 26.9m, 26.6m, 25.3m, 22.7m,
20.9m, 20.7m, 2.1m, 1.9m (composite).
-- Coal layers are flat-lying and continuous across the entire
geophysical anomaly.
-- Two deep 'basins-within-basins' were discovered with coal intercepts
87.2 and 99.0 metres in thickness (composite).
-- Quasar's areal extent is triangular in shape and measures at least
500 metres in one direction and 650 metres in another direction and
is open in three directions.
-- The Quasar Satellite returned 48.6 metres of coal thickness
(composite) in one hole from a geophysical anomaly similar in size
to the Ambit Main target.
1. Athena Main and Athena Satellite:
-- 6 holes drilled at Athena Main this year.
-- 5 holes intersected coal units with thicknesses of: 75.2m, 65.4m,
43.4m, 22.1m, 17.9m (composite).
-- Very thick coal intercepts (greater than 40 metres, composite)
intersected along the eastern edge of the geophysical anomaly
suggest the deposit continues beyond the anomaly to the east.
-- The Athena Satellite returned 34.8 metres of coal thickness
(composite) from a geophysical anomaly approximately half the size
of Athena Main.
2. Cyclops:
-- 3 holes drilled at Cyclops this year.
-- 2 holes intersected coal units with thicknesses of: 53.4m, 12.8m,
(composite).
-- Cyclops target is an irregularly shaped anomaly requiring many more
drill holes to adequately define basin morphology in all directions.
3. Calypso:
-- 3 holes drilled this year into a previously untested target.
-- 3 holes intersected coal units with thicknesses of: 67.7m, 41.5m,
24.1m (composite).
-- The anomaly extends out in several different directions from the
area drilled.
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