Wesgold Minerals Inc. (TSX-V: WSG) has provided an update on exploration work at the Snowcap project in central Yukon Territory.
The Snowcap project covers at least two previously unexplored Tertiary volcaniclastic basins controlled by graben fault structures along a 15 kilometre-long structural trend. Three alteration zones have been identified in these basins. Radius Gold Inc. (TSX-V: RDU) staked 198 claims covering 45 square kilometers to cover the trend in 2009, and optioned the ground to Wesgold.
In 2009, Wesgold completed airborne geophysics and soil geochemistry, which resulted in the identification of anomalous gold and mercury values in two of the alteration zones coincident with aeromagnetic lows over the volcaniclastic basins. In late 2010, Wesgold completed four diamond drill holes totaling 420 meters at one of the alteration zones near the southern part of the Snowcap project to test for the source of the anomalous mercury and gold values in soil in an area of no outcrop. The drill holes intersected variably altered volcanic and epiclastic rocks with irregular quartz, carbonate, and pyrite veining.
While assay results did not return gold values of economic interest, cinnabar mineralization and anomalous concentrations of antimony, arsenic, and mercury were encountered. These pathfinder elements are considered a highly favourable indicator of epithermal precious metal mineralization in this geological environment. The source of the anomalous gold values in soil remains unexplained, and Wesgold is integrating the geological, geochemical and geophysical data to plan for more exploration work in 2011.
Wesgold has the right to earn a 60% interest in Snowcap by incurring an aggregate of $1,000,000 of exploration expenditures and issuing to Radius a total of 1,000,000 Wesgold shares in staged payments by October 30, 2013.
In addition to exploring the Snowcap project, Wesgold is currently reviewing several prospective gold projects for acquisition.
Harmen Keyser, P.Geol. (NWT), the President of Wesgold and a Qualified Person in accordance with NI 43-101, is responsible for the accuracy of this news release.
Source: Wesgold Minerals Inc.