Westridge Signs Letter of Intent to Option Charay Project
May 19 2011 - 11:48AM
Marketwired
Westridge Resources Inc. (TSX VENTURE: WST) (the "Company") is
pleased to announce that it has entered into a letter of intent
with Musgrove Minerals Corp. ("Musgrove") (TSX VENTURE: MGS)
whereby the Company has been granted an option to acquire an 80%
interest in and to certain mineral concessions in the United
Mexican States known as the Charay Project (the "Charay Project").
The Option
Under the terms of the letter of intent, the Company has the
exclusive right and option (the "Option") to earn an 80% interest
in the Charay Project by: (i) paying to Musgrove an aggregate of
$708,000, with $258,000 payable upon the date that the TSX Venture
Exchange approves a definitive agreement with respect to the Option
(the "Effective Date"), with $225,000 payable on or before the date
which is 12 months from the Effective Date, and with $225,000
payable on or before the date which is 24 months from the Effective
Date; and (ii) issuing to Musgrove an aggregate of 1,200,000 common
shares in the capital of the Company, with 400,000 shares to be
issued on the Effective Date, 400,000 common shares to be issued
within 12 months of the Effective Date and 400,000 common shares to
be issued within 24 months of the Effective Date.
After earning this 80% interest in the Charay Project,
Musgrove's 20% interest will be carried to the earlier of
commercial production, or the exercise by the Company of an option
to acquire the remaining 20% interest. The Company will have the
right at any time up to 60 months from the Effective Date, to
purchase the remaining 20% interest from Musgrove for a single
$5,000,000 lump sum payment.
Under the terms of the letter of intent, the Company has also
agreed to complete a work program of not less than USD$500,000
before December 31, 2011, and to assume all property payments to
September 1, 2013. The Company retains the right to terminate the
Option on 30 days notice at any time following completion of the
USD$500,000 work program. At all times, the Company will be the
operator for all exploration and development activities on the
Charay Project.
The Charay Project
The Charay property (pronounced "cha-rye"), also known as "La
Mina El Padre", is comprised of three mineral concessions covering
approximately 11,000 hectares, and is located at the north end of
the State of Sinaloa, Mexico, approximately 36 km northeast of the
city of Los Mochis.
The qualified person for the Charay Project, Phil Van Angeren,
P.Geol, has prepared a 43-101 compliant report for Musgrove.
Geologically, the Charay property is classified as a low
sulphidation, epithermal, gold-silver quartz vein with low base
metal content. The pertinent points regarding this property are as
follows:
-- High-grade, near-vertical, epithermal gold/silver vein system within an
andesitic volcanic complex (El Padre vein): oxidized, hematitic, low-
sulphide, banded quartz-vein and silicified breccia with a prominent
silica cap (typical low-sulphidation epithermal features),
-- Vein width in the order of 1.0 to 2.0m; length in excess of 400m,
extending to 50m depths, and open in all directions (indicated by
drilling),
-- Existence of several mineralized and/or silicified structures indicated
by workings and geology,
-- Potential for buried bonanza mineralization (indicated by drilling) as
well as additional mineralization on strike,
-- Little or no comprehensive historical exploration. Surprisingly under-
explored given the high gold grades. No workings reach deeper than 35m,
no drill intercepts below approx.50m depths,
-- A 27-hole drill program in 2005 intersected a 250 m long mineralized
section within 50m of surface on the El Padre vein, at a weighted
average of 18.75 gm/T Au and 120.2 gm/T Ag over a true width of 1.14m,
recalculated in 2010 at 20.3 gm/T Au and 123.7 gm/T Ag across 1.29m, and
-- Location in an area with established mining logistics (eg, access to
local mills, mining expertise, railway, powerline, and tidewater port).
Completion of the Option is subject to conditions
The completion of the Option is subject to a number of
conditions, including but not limited to the execution of a
definitive agreement, satisfactory due diligence, the approval of
the definitive agreement by the Board of Directors of the Company
and the approval by the TSX Venture Exchange. There can be no
assurance that the Option will be completed as proposed or at
all.
About Westridge Resources
Westridge Resources Inc. is a Canadian-based mineral exploration
company focused on the acquisition, evaluation and exploration of
mineral resource properties. To date, the Company has focused its
exploration activities in the Province of British Columbia, with
its primary property being the Fortuna Property located in the
Mount Sicker area of southeastern Vancouver Island, B.C. Detailed
geological mapping has been carried on the Northeast Copper Zone
and Jane Prospect areas of the Fortuna Property and preparation for
a diamond drilling program in the Northeast Copper Zone has been
initiated.
ON BEHALF OF THE BOARD
Chris Cooper, President, Chief Executive Officer and a
Director
Certain information regarding the Company including management's
assessment of future plans and operations may constitute
forward-looking statements under applicable securities laws. As a
consequence, actual results may differ materially from those
anticipated in the forward-looking statements.
Neither TSX Venture Exchange nor its Regulations Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Westridge Resources Inc. Ron Cooper Investor Relations
877-692-8288
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