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Weststar Executes Letter of Intent to Acquire High Grade Past Producing Gold and Silver Mine in Jalisco, Mexico


March 29, 2011 - Vancouver, BC


Weststar Commences Regional Asset Consolidation of Near-term and ProducingGold and Silver Projects


Vancouver, BC - March 24, 2011: Weststar Resources Corp. (TSX-V: WER -FSE:HN3) (the "Company" or "Weststar")) is pleased to announce theCompany hasentered into a Letter of Intent with Lekona Minerals Incorporated("Lekona")under which Weststar has been granted an option to acquire up to an 80percentundivided interest in the La Paloma concessions (the "La Palomaconcessions" orthe "Property"). The La Paloma concessions are located in the State ofJalisco,Mexico and comprise 160 hectares. The Property lies at the very southernend ofthe Sierra Madre Occidental physiographic province.

La Paloma Property - Epithermal Gold and Silver Mineralization

Snowden Industry Mining Consultants Ltd. ("Snowden") was contracted to do asitevisit and take samples to support the opinion of mineral occurrence. Thisreportwas written to be compliant with the requirements of National Instrument43-101Standards of Disclosure for Mineral Projects ("NI 43-101") for thepurposes ofthis acquisition.

Snowden, during its site visit, collected 10 samples from outcropsandstructures found during their site visit. The samples were representativeof thearea being evaluated and channel samples were taken across structureswith aconscious effort made to include sample from the full width of thestructure ofinterest as shown below in Table 1. The Company was excited toreceive thesample assays which returned gold values of up to 49.20 grams / tonne("g/t")gold. Silver values were as high as 385 g/t. Eight (8) of the ten (10)samplesreturned very good to excellent grades. These eight (8) samples were takenfrominside the old mine workings. The other two (2) samples were taken at thetunnelentrances outside the old mine. As expected these two (2) samples takenfromoutside the mine in wall rock (chip sample numbers 1 & 7) at thetunnelentrances returned lower values of gold. The samples were sent to ALSChemexLaboratories in North Vancouver, B.C. and in the report Snowden hasconfirmedpresence of gold and silver mineralization. In addition it concludes thatthe LaPaloma concessions host epithermal style mineralization and is aproperty ofmerit.

Table 1: Gold and Silver Assays from Samples


+--------+-------+--------+--------+-----------------------+
| Sample | Gold | Silver | Sample | Notes |
| Number | g/t | g/t | Type | |
+--------+-------+--------+--------+-----------------------+
| 1 | 0.01 | 1.60 | Chip | Tunnel 3 Entrance |
+--------+-------+--------+--------+-----------------------+
| 2 | 8.77 | 222.00 | Chip | Outcrop near peak |
+--------+-------+--------+--------+-----------------------+
| 3 | 4.44 | 385.00 | Chip | Entrance of Tunnel 1 |
+--------+-------+--------+--------+-----------------------+
| 4 | 0.39 | 87.40 | Chip | Inside Tunnel 1 |
+--------+-------+--------+--------+-----------------------+
| 5 | 1.90 | 211.00 | Chip | Artisanal Workings |
+--------+-------+--------+--------+-----------------------+
| 6 | 1.41 | 131.00 | Chip | Artisanal Workings |
+--------+-------+--------+--------+-----------------------+
| 7 | 0.16 | 4.40 | Chip | Tunnel 5 Entrance |
+--------+-------+--------+--------+-----------------------+
| 8 | 10.10 | 26.60 | Chip | 5m inside Tunnel 5 |
+--------+-------+--------+--------+-----------------------+
| 9 | 49.20 | 119.00 | Chip | Extension of Tunnel 1 |
+--------+-------+--------+--------+-----------------------+
| 10 | 0.87 | 15.60 | Chip | Artisanal Workings |
+--------+-------+--------+--------+-----------------------+

Snowden recommends that Weststar undertake a phased explorationprogram ofmapping, geophysics and drilling and estimate the cost to be in theorder of$1.4 million.

The exploration history on the area and concession is described as datingbackmany hundreds of years. Natives of the area mined and worked silver priorto thearrival of the Spanish. The first known record of mining in thearea wasdescribed in 1543 by Juan Fernandez de Hijar who identified the minesin theGuachinango, Etzatlan and Guajacatlan districts (C. Rene de LeonMeza). TheProperty was, at one time, owned by Industrias Peñoles, S.A.B. deC.V. whorelinquished it in 1980. Mexican corporations are not required to filereportson their activities, so programs up to this date are unknown.

In 1983 and 1984 the Consejo de Recursos Minerales (CRM), a governmentagency,drained and entered the northern end of the main tunnel of the VetaAnchaworkings and sampled an exploration drift approximately 100 metresfrom the1928 planned mining to the northwest. Based on this work CRMreported a"potential reserve" of 750,000 tonnes grading 4.19 g/t Au and 123 g/t Agfromthe CRM. This estimate must be considered an historical resource as itdoes notmeet the NI 43-101 definitions for a resource or reserve as stated insections1.2 and 1.3. A qualified person has not done sufficient work toclassify thehistorical estimate as current mineral resources, the issuer is nottreating thehistorical estimate as current mineral resources and the historicalestimateshould not be relied upon.

In 2006, a small leach plant was constructed on the old foundations toprocessmaterial collected during the clean-up of tunnel #1. Sampling of thetunnels wasalso carried out. Further exploration was carried out in 2008 whichoutlinednew targets of interest and additional tunnels, not identified in the1928reports.

La Paloma Property - Production History

The Piedra Bola mine hosts gold and silver mineralization and was thetarget ofhistorical mining. On the La Paloma concessions, the mineralized zoneextendsapproximately 1,500m southeast to northwest and it was exploited until a1928workers strike terminated mining operations. Documentation from 1927 and1928offers detailed accounts of the mining operation. The 1927 Report ofProductionindicates that 41,090 tonnes were mined at an average grade of 5.87 gptgold and507 gpt silver. Plans for 1928 proposed that 44,300 tonnes were to beexcavatedat an estimated grade of 6.64 gpt gold and 500 gpt silver. A qualifiedpersonhas not done sufficient work to classify the historical estimate ascurrentmineral resources, the issuer is not treating the historical estimate ascurrentmineral resources and the historical estimate should not be reliedupon. Themain travel and communication tunnel at 1,563ms elevation runs 1500metersnorthwest to southeast with entrances to the northwest and a cross-cuttunnel140 metres to the northeast. Previous exploitation occurred above the 1563levelin the mine to the northwest along 300m of strike length. Plans for 1928were todevelop below the 1563 level. Exploration shafts and tunnels werebeingdeveloped as the mine shut down.

Weststar intends upon completion of financing to begin the first phase ofworkwhich will include the securing and rehabilitation of the undergroundshafts andadits and begin to define a mine plan based on reconfirming the historicblockof ore.

Mitch Adam, Weststar's President states, "We are excited to have enteredintothis agreement to acquire the La Paloma gold and silver mine inMexico. TheProperty is an advanced project and we expect to commence ourexplorationactivities as soon as we obtain TSX Venture Exchange approval oftheAcquisition. WestStar plans on working quickly to the eventual re-openingof themine."

La Paloma Property - Terms of Acquisition

Lekona currently holds an option to acquire an 80% interest in the LaPalomaconcessions from Minera Sierra de Oro S.A. de C.V. ("Minera") under anoptionagreement between Lekona and Minera dated September 15, 2010 (the"OptionAgreement"). Lekona has exercised a portion of the option grantedunder theOption Agreement and currently owns a 20% undivided interest in the LaPalomaconcessions.

The Option Agreement provides for the following payments:

(a) a non-refundable deposit of $50,000.00 (paid);

(b) a payment of $300,000.00 (paid), together with atransfer of2,000,000 common shares in the capital stock of Lekona (transferred),whichobligations have been satisfied and in consideration for whichLekona hasacquired an undivided 20% interest in the Property;

(c) on or before April 30, 2011, a further payment of$300,000.00 theissuance of 1,000,000 common shares in the capital stock of Lekonaand theexpenditure of $200,000.00 on or in respect of the Property. Inconsiderationfor the foregoing, Lekona shall acquire a further 20% interest in the LaPalomaconcessions, for an aggregate 40% interest in the Property;

(d) on or before October 30, 2011, a further payment of$400,000.00 andthe issuance of 1,000,000 common shares in the capital stock ofLekona. Inaddition, a further $ 250,000.00 is to be expended on or in respectof theProperty and a National Instrument 43-101 Standards of Disclosure forMineralProjects ("NI 43-101") level report is to be generated. In considerationof theforegoing, Lekona shall acquire a further 20% interest in the Property,for anaggregate 60% interest in the Property;

(e) on or before October 30, 2012, a final payment of$2,000,000.00, theissuance of an additional 2,000,000 shares in the capital stock ofLekona andthe expenditure of a further $750,000.00 on or in respect of theProperty. Inconsideration of the foregoing, Lekona shall acquire a further 20%interest inthe Property, for an aggregate 80% interest in the Property.

In addition to the foregoing, in the event that Lekona receives a NI43-101compliant report, acceptable to both parties, drawn in accordancewith NI43-101, indicating that there are resources of gold and silver in thePropertyexceeding 4,000,000 ounces and 150,000,000 ounces, respectively, Lekonashalldeliver to or to the order of Minera 5,000,000 common shares in thecapitalstock of Lekona. The NI 43-101 shall be undertaken and paid for by Lekonaon orprior to October 31, 2014, or within 12 months following Lekonaacquiring the80% undivided interest in the Property, as contemplated by the OptionAgreement,which ever event occurs first.

The Option Agreement further provides that upon Lekona acquiring 80%of theProperty, Lekona and Minera will form an 80/20 joint venture andcontinuedevelopment of the Property with Lekona acting as operator.

La Paloma Property - Acquisition of Lekona's Interest

In consideration of an assignment by Lekona to Weststar of all ofLekona'sright, title and interest in and to the La Paloma concessions(the"Acquisition"), including the 20% undivided interest held by it thereinand itsrights under the Option Agreement, Weststar has agreed, subject tocompleting afinancing of not less than $5,000,000.00 to:

(a) pay, on Closing the sum of $3,000,000.00;

(b) to issue, on Closing, 5,850,000 common shares in thecapital ofWeststar to Lekona and 650,000 common shares in the capital ofWeststar toMinera; and

(c) to assume all of the unfulfilled obligations of Lekonaunder theOption Agreement, including the payments of cash and shares due toMinerathereunder.

All cash payments due to Minera under the Option Agreement shall be madeto orto the direction of Minera. All issuances of shares in the capitalstock ofLekona otherwise due to Minera under the Option Agreement shall be replacedwiththe issuance of common shares in the capital stock of Weststar and issuedto orto the order of Lekona.

La Paloma Property - Due Diligence

Weststar is entitled to conduct customary due diligence on theProperty,including environmental and/or geological performance reviews, a reviewof allstudies, analyses, reports and findings related to the Property, andstandardlegal due diligence examination, including review of all documentationrelatingto the title to assets of the Property and the Option. Weststarhassubstantially completed its due diligence investigations.

The technical information in this news release has been prepared inaccordancewith the Canadian regulatory requirements set out in NI 43-101 andreviewed onbehalf of the Company by Thomas Clarke, Pr.Sci.Nat, a qualified personand aDirector of the Company.

The Acquisition is subject to the acceptance of the TSX Venture Exchange.


On Behalf of the Board Mitchell Adam, PresidentWeststar Resources Corp.

"Neither the TSX Venture Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."


Suite 4006 - 1011 West Cordova Street,Vancouver, B.C. V6C 0B2Tel: (604) 678-5308Fax: (604) 678-5309Website: www.weststarresources.com

This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Weststar Resources Corp. via Thomson Reuters ONE

[HUG#1501112]

For further info on the Company:
www.weststarresources.com
Email Contact
Telephone: 604-678-5308
Toll Free: 1-855-678-5308

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