Westar Resources Acquires Claims in White Gold District, Near Underworld Resources


Weststar Resources Corp. has entered into an agreement to acquire an undivided 100-per-cent interest in the Golden Fox claims, located in the Yukon, Canada. The Golden Fox claims, consisting of 50 claim units totalling approximately 2,500 hectares, are located on the eastern border of Underworld Resources Inc.’s Black Fox property, near the headwaters of Thistle Creek.

GSC mapping by Gordey and Ryan suggest the claims host similar metasedimentary stratigraphy as found on nearby properties currently being explored, including the White Gold property located approximately 20 kilometres to the northwest, owned by Underworld, where numerous encouraging drill results have been reported. The Thistle Creek area has seen placer gold production over the past 30 years, producing in excess of 63,000 ounces of gold (Yukon Geological Survey Records, 2008). The source of this placer gold is unknown at this time.

The Golden Fox claims have been acquired from an arm’s-length party. Acquisition costs are as follows:

$75,000 due on signing of the agreement;
$75,000 cash and 2.5 million shares of the company due within five days of TSX Venture Exchange approval of the acquisition;
The vendor will retain a 3-per-cent net smelter royalty, of which one-third (1 per cent) can be purchased by the company for $1-million;
The company is also required to spend $250,000 over the next 12 months as a work commitment.

The acquisition is subject to TSX Venture Exchange approval.

Weststar is planning to mobilize a field crew to the property as soon as possible to begin a systematic geological and geochemical survey of the claim block.

“We are very excited to obtain these strategically located claims in an area that has created a substantial amount of news lately, and which looks to contain a significant new gold discovery,” states Weststar president Mitchell Adam. “We’re looking forward to quickly establishing the merits of this gold property, enhancing and diversifying our asset base alongside our coal holdings.”

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