Weststar Resources Corporation has returned favorable drilling results on the advanced stage porphyry copper Axe project in British Columbia. In addition to the results update, the junior explorer revealed it has acquired the adjoining Rita copper oroperty in a deal worth CAD 15,000 and 2.5 million shares.
The company announced that it has arranged a private placing to raise CAD 350,000 through the issue of seven million units each comprising one common share and one warrant. The proceeds will be used as general working capital and for further development of the company's properties.
Within the West Zone of the Axe property, 3 drill holes were drilled to test a gold anomaly. The target was located in 2006, when drill hole A06-05 returned 49.5 meters grading 1.29 grams per tonne gold, including higher grading of 9.64 grams per tonne across 3 meters.
This year’s drilling program was completed last month after a total of 503.3 meters was drilled. Among the result highlights hole A09-03 was drilled 50 meters and intersected significant gold mineralization associated with pyrite. The 2009 drill results based mainly on drill hole A09-03 suggest a steeply dipping, westerly structure with gold and associated pyrite.
According to Weststar, the present results warrant additional exploration. The Canadian explorer believes trenching should be an effective method to evaluate the gold bearing target, as surface drilling has proven to be difficult with poor historical recoveries. A permit for trenching within the West Zone will be applied for in early 2010 for fieldwork expected in early May.
Following the analysis of previously gathered geophysical data, Weststar has also acquired the contiguous Rita copper property. The property comprises 4 claims totalling 1,610.76 hectares adjacent to both the company’s Axe and Swan claims. The acquisition cost a total of CAD 15,000 and 2.5 million shares, from an unnamed arms length vendor and the property is subject to 2% net smelter royalty, of which one percentage point can be acquired by the company for CAD 1 million.
(Sourced from Proactive Investors)
