Westar Resources Acquires New Claims in Yukon

Weststar Resources Corp. has entered into an agreement to acquire a 100-per-cent interest in the McKinnon property, located in Yukon Territory. The property consists of 66 pending quartz claims encompassing approximately 3,400 acres (1,380 hectares), located about 60 kilometres northeast of Underworld Resources Ltd.’s White Gold property, and about 40 km due south of Dawson City, Yukon.

The McKinnon property encompasses two historic gold occurrences: the McKinnon prospect (Yukon Minfile 115O-054) and the Fothergill prospect (Yukon Minfile 115O-054).

Originally staked as the Britannia group of claims in 1900, the northerly showing has had significant historic exploration beginning in the early 1900s. This work has included the sinking of several adits and shafts; pitting and trenching; diamond drilling and bulk sampling.

The most significant results include the 1901 shipment of a 1.8-tonne sample, which assayed 3.4 grams per tonne (g/t) Au, to a government stamp mill. The original owners of the property reported a number of samples in the range from 3.4 to 10.3 g/t Au.

Within the area, gold mineralization appears spatially related to a Lower Cretaceous conglomerate, which consists of a lower lithic unit and an upper quartzose unit. To date, the known gold mineralization appears restricted to the upper quartzose unit, and is thought to represent a paleo-placer. Extensive silicification and clay alteration also suggest potential for an epithermal origin for the gold mineralization.

The McKinnon property has been acquired from an arm’s-length party. Acquisition costs are $134,100 and 2.5 million shares: 

  • $84,100 paid on signing of the agreement;
  • $50,000 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 acquisition is subject to TSX Venture Exchange approval.

Weststar will mobilize a field crew to the property, as soon as possible, to initiate a prospecting program and a geochemical survey of the claim block, which will be concurrent with the exploration planned for the Golden Fox property, located near Underworld Resources Black Fox property.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Jody Dahrouge, PGeol, of Dahrouge Geological, a qualified person.

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