Westcore Energy Ltd.
TSX VENTURE : WTR

April 07, 2010 12:57 ET

Westcore Announces Coal Analyses From the 2010 Winter Drilling Program at Black Diamond, Manitoba, and Hudson Bay North, Saskatchewan

CALGARY, ALBERTA--(Marketwire - April 7, 2010) - Westcore Energy Ltd. (TSX VENTURE:WTR) ("Westcore" or the "Corporation") is pleased to announce the proximate analysis results of 76 samples shipped to Birtley Labs in Calgary, Alberta, from the 2009/2010 winter drilling program on the Corporation's Black Diamond Property in Manitoba, and its Hudson Bay North Property in Saskatchewan (see Westcore news release dated March 22, 2010 for a description of the drilling program). 

Highlights of the proximate analyses are below (all as weighted averages, "air dried" values). Coal intervals in the highlights differ from the March 22, 2010 news release due to a reinterpretation of coal quality based on assay results, versus original interpretations based on visual and geophysical log methods in the field.

  • Black Diamond Property:
    • Ambit Target:
      •  - 41.60 metre continuous coal interval
         - Calorific Value = 21,978 kj/kg (9,449 BTU/lb)
         - Ash % = 19.28
    • Athena Target:
      •  - 55.12 metre coal interval, including minor partings
         - Calorific Value = 19,132 kj/kg (8,226 BTU/lb) 
         - Ash % = 30.88
      •  The 55.12 m interval includes:
         - 39.50 metre coal interval
         - Calorific Value = 22,039 kj/kg (9,475 BTU/lb)
         - Ash % = 20.83
    • Cyclops Target
      •  - 38.05 metre coal interval (composite)
         - Calorific Value = 18,196 kj/kg (7,823 BTU/lb)
         - Ash % = 32.81
  • Hudson Bay North Property:
    • Waskwei West Target:
      •  - 8.23 metre coal interval
         - Calorific Value = 17,264 kj/kg (7,422 BTU/lb)
         - Ash % = 35.02
  • Washability Tests: washability tests conducted in 2009 on high-ash coal from Black Diamond resulted in calorific values increasing by up to 24% (eg. 17,459 up to 21,722 kj/kg), and ash content decreasing by as much as 30% (eg. 32.7% down to 22.6%).

Black Diamond Property

A total of 60 samples were collected from three diamond drill holes that tested three different targets: Ambit (18 samples), Athena (23 samples) and Cyclops (19 samples). The coal from Black Diamond ranks in the Sub-bituminous C to Lignite A range. Table 1 details the proximate analysis results for each drill hole.

Table 1: Proximate Analysis (Weighted Averages), Black Diamond Property, Manitoba
Holes BD10-02, BD10-03, BD10-04, Winter 2010 Drilling Program

Target Area and Hole No. Hole Depth Interval (m) Coal Width (m) Moisture % Ash % Sulphur % Calorific Value BTU/lb
(ar) (ad) (ar) (ad) (ar) (ad) Kj/Kg (ar) Kj/Kg (ad) (ar) (ad)
  Ambit                        
BD10-03 34.25 - 75.85 41.60 31.34 3.37 13.75 19.28 1.84 2.61 15,595 21,978 6,705 9,449
Including 44.09 - 59.09 15.00 33.36 2.88 11.82 17.21 2.26 3.29 15,837 23,086 6,809 9,926
                         
  Athena                        
BD10-04 67.00 - 91.50 24.50 32.13 2.79 11.45 16.31 1.69 2.43 16,310 23,387 7,012 10,055
93.50 -108.50 15.00 30.40 1.91 20.09 28.21 1.85 2.61 14,055 19,838 6,043 8,529
108.50 - 122.12 13.62 25.02 1.25 42.82 56.07 1.16 1.53 8,934 11,858 3,841 5,098
Average 67.00 -122.12 (including parting) 55.12 29.50 2.13 22.82 30.88 1.59 2.23 13,610 19,132 5,852 8,226
                         
  Cyclops                        
BD10-02 43.50 - 57.17 13.67 26.25 2.28 21.74 28.56 1.71 2.28 14,471 19,249 6,222 8,276
  63.20 - 86.50 23.30 24.70 2.16 26.90 34.54 1.49 1.95 13,599 17,798 5,847 7,652
Including 63.20 - 75.61 12.41 26.58 2.58 22.46 29.67 1.62 2.15 14,555 19,354 6,258 8,321
and 79.80 - 85.50 5.70 25.19 2.16 21.50 28.02 1.61 2.10 14,858 19,458 6,388 8,366
Average (Composite) 42.07 - 86.50 38.05 (partings not included) 25.14 2.19 25.41 32.81 1.58 2.08 13,834 18,196 5,948 7,823

Ambit Target (Hole BD10-03): This hole contained one continuous coal unit with no partings for a total width of 41.6 metres. The calorific values and ash percentages are relatively consistent over the entire width: calorific values range between 19,635 to 24,068 kj/kg (avg. 21,978), and ash content between 14.76 to 24.20% (avg. 19.28%) (all "air dried"). 

Athena Target (Hole BD10-04): This hole contained a nearly continuous coal unit with only one 2.0 metre parting. The upper 39.50 metres of the coal unit returned a higher average calorific value and lower ash content than the lower 13.62 metres, as reflected in Table 1. This difference in the coal quality was also reflected in the down-hole geophysical log, which returned Density values of 1.25 – 1.40 g/cc for the upper 39.50 metres, and 1.45 – 1.65 g/cc for the lower 13.62 metres. The top 39.50 metre coal interval, excluding the 2.0 metre parting, had an average calorific value of 22,039 kj/kg, and 20.83% ash content.

Cyclops Target (Hole BD10-02): This hole contained two coal units separated by several narrow, high-ash coal units and carbonaceous sandstone/mudstone partings. The two coal units, with a combined thickness of 36.97 metres, returned an average calorific value of 18,334 kj/kg and 32.33% ash (all "air dried"). While the ash content is high in this hole, washability tests conducted on coal samples in 2009 demonstrated that Black Diamond coal is very amenable to upgrading through the process of cleaning. The 2009 test results showed that ash content decreased by as much as 30% (eg. 32.7% down to 22.6%), and calorific values increased by 24% (eg. 17,459 up to 21,722 kj/kg) (see Westcore news release dated June 16, 2009 for a full description of the washability test results). 

Hudson Bay North Property

16 samples were collected from Hole HBN10-12 on the Waskwei West target, as shown on Figure 3 from the Westcore news release dated March 22, 2010. Table 2 is a summary of the proximate analysis received for these samples.

Table 2: Proximate Analysis (Weighted Averages), Hudson Bay Property, Saskatchewan
Hole HBN10-12, Winter 2010 Drilling Program

Target Area and Hole No. Hole-Depth Interval (m) Width (m) Moisture % Ash % Sulphur % Calorific Value BTU/lb
(ar) (ad) (ar) (ad) (ar) (ad) Kj/Kg (ar) Kj/Kg (ad) (ar) (ad)
                         
Waskwei West                        
HBN10-12 51.80 - 54.14 2.34 22.67 1.82 40.31 51.18 1.85 2.35 9,969 12,657 4,286 5,442
112.02 - 117.83 5.81 23.00 1.65 43.52 55.58 2.70 3.45 8,181 10,450 3,517 4,493
117.83 - 126.06 8.23 32.30 2.90 24.43 35.02 2.88 4.12 12,031 17,264 5,173 7,422
126.06 - 133.94 7.88 24.51 2.35 36.29 46.92 3.17 4.10 10,825 14,009 4,654 6,023
Average 112.02 - 133.94 21.92 27.03 2.37 33.76 44.75 2.94 3.93 10,577 14,288 4,547 6,143

The carbonaceous zone in Hole HBN10-12 occurs over a 95.67 metre interval and contains a complex mixture of coal, silty coal, and carbonaceous sandstone/siltstone/mudstone units that are separated by partings of loose sand and sandstone. Table 2 details the results for the coal units only and indicates that the coal has a lower calorific value and higher ash content than the Black Diamond coal. As described in Westcore's March 22, 2010 news release, this hole was the only hole drilled on the Waskwei West target that hit a coal basin, while the other holes hit shallow Jurassic/Devonian units instead. It was also the last hole drilled before the drilling rig was moved on to other targets, to make way for a logging operation that was to begin in the area. The geologic picture formulated from the drilling data at Waskwei West suggests Hole HBN10-12 is located on the edge of a steep-walled basin. This may account for the lower grade of coal, where erosion and sloughing from units making up the basin walls may have been incorporated into the organic debris accumulating along the edges of the basin. Future drilling toward the center of the basin on this target may see an increase in coal grades and thicknesses.

Paul Conroy, President and CEO, states, "The current assay results continue to prove that good quality thermal coal exists at Black Diamond over very impressive widths. The three holes that intersected coal this winter on three different targets, together with the 5 holes drilled in 2009 on our Discovery target, show that each of the four coal basins discovered to date at Black Diamond has its own, unique coal geology. One basin might contain a continuous coal unit with no partings and return relatively high calorific values and low ash content, while the next basin over might contain multiple coal units separated by partings, with lower calorific values and higher ash content. With such variability among deposits, we are encouraged by the washability tests we conducted in 2009 that demonstrate lower grade coal may be upgraded with cleaning to nearly identical grades as the higher grade coal. On our Hudson Bay North Property, Westcore is currently investigating which geophysical method will best recognize the edges of potential coal basins, and when this level of detail is in hand, we are confident the Waskwei West basin, as well as the other targets on our property, including the top priority target at Niska 2, will be well delineated ahead of further drilling."

Ellen MacNeill, Professional Geoscientist in the Province of Saskatchewan and Qualified Person for this news release, has reviewed and approved its contents.

Forward Looking Statements

Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Except as required by applicable securities requirements, the Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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

Contact Information

  • Westcore Energy Ltd.
    Paul Conroy
    President and Chief Executive Officer
    (403) 697-4005
    (403) 263-0271 (FAX)