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Re: News Release - Thursday, August 05, 2010
Almaden and Crane Creek Projects Update
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Western Standard Metals Ltd. (the "Company" or "WSM") wishes to provide
an exploration update on its wholly owned Almaden Gold Project and the
Crane Creek Project, both located in southwestern Idaho. An exploration
program consisting of ground geophysics and soil geochemistry was
started in December, 2009, and completed March, 2010. During this
period, 147 line kilometers of Induced Polarization (IP) were
completed, 121 line kilometers of ground magnetics and 4,337 soil
samples were collected for multi-element geochemical analysis.
Almaden Project
A control grid was established on the Almaden property at a line
spacing of 200 meters. The entire grid, 75 line kilometers was subject
to a magnetic survey and an IP survey with a dipole spacing of 100
meters. An addition, 6.5 kilometers of grid was surveyed with a dipole
spacing of 25 meters. A total of 3,212 soil geochemical samples were
collected at 25 meter stations along the established grid.
The IP survey identified the Main and North gold zones at Almaden as
distinct resistivity and chargeability anomalies, a function of the low
sulphide, high silica character of the mineralized zones. The gold
zones are relatively flat lying, stratabound, near surface,
disseminated gold zones hosted in arkosic sandstones and interpreted as
forming in a hot-spring environment. A new resistivity zone has been
identified adjacent and to the southwest of the Main zone. The
resistivity response measures 800 meters by 200 meters, trends
northerly, and has a sub-vertical orientation in section. This steeply
dipping resistivity feature may be indicative of a silicified feeder
zone to the shallower mineralization and has the potential to host high
grade bonanza mineralization. This newly discovered zone is coincident
with a gold in soil geochemical anomaly. This zone has not been drill
tested and is a prime target for further evaluation.
The Almaden Project is located in rural western Idaho with excellent
access and nearby hydro-electric power lines. The project is host to a
low-sulphidation, epithermal gold deposit drilled extensively from 1978
to 1992 by a number of companies including Homestake and Amax Gold.
Freegold Ventures Limited optioned the property in 1995 and
commissioned Watts, Griffis and McOuat ("WGM") to complete a
feasibility study based on additional drilling and metallurgical test
work completed by Freegold. The feasibility study, completed in 1997,
envisioned gold production of approximately 100,000 ounces/year over a
5-year mine life by open pit mining and heap leach extraction. The low
price for gold precluded a decision to develop the project.
In 2006 and 2007, Freegold completed an additional 16,500 meters of
reverse circulation and diamond core drilling and commissioned Mine
Development Associates (MDA) to write a National Instrument 43-101
Technical Report focused on the gold resource at Almaden. The MDA
report was completed in December, 2009 and identified a measured
resource of 239,000 ounces of gold (9,810,000 tonnes grading 0.754
grams/tonne), an indicated resource of 625,000 ounces of gold
(29,250,000 tonnes grading 0.651 grams/tonne) and an inferred resource
of 84,000 ounces of gold (4,780,000 tonnes grading 0.549 grams/tonne),
at the cut-off grades of 0.274 grams/tonne, 0.411 grams/tonne, and
0.789 grams/tonne for the oxide, mixed and sulphide mineralization
respectively.
Western Standard plans to conduct a reverse circulation drill program
to explore the extension of the near surface mineralization that is
open to the north and south of the main zone, as well as a diamond core
program to test for deeper high-grade structurally controlled gold
mineralization. In conjunction with the exploration program, Western
Standard will initiate base line environmental studies and also
undertake further metallurgical test-work that will form the basis of a
feasibility study that examines and optimizes various production
scenarios.
Crane Creek Project
The Crane Creek project is situated 10 kilometers north of the Almaden
property and is a low sulphidation epithermal gold system similar to
Almaden.
The 2010 exploration work completed to date includes 20 kilometers of
IP with 100m dipole separation and 45 kilometers of IP with 50 meter
dipoles. Ground magnetics were done over the entire grid and 1,125 soil
geochemical samples were also collected complementing the sampling that
had been previously done.
Preliminary geophysical results show distinct resistivity and
chargeability anomalies associated with the mineralized zone that had
been previously drill tested, further data processing is on going. Soil
geochemical results are pending.
The Crane Creek Property has been drill tested by Goldfields, Western
Epithermal, Cyprus Minerals, and Golconda from 1983 to 1996. A total of
95 drill holes have been drilled, geological mapping and soil
geochemical sampling surveys have been completed. Drilling has resulted
in significant intersections including holes drilled by Golconda in
1996 resulting in intersections of 3.3 grams over 18 meters in hole
96-24, and 1.4 grams over 24 meters in hole 96-25. Soil geochemical
sampling has resulted in a gold anomaly extending in a northwesterly
direction over 3.2 kilometers. Drilling has been concentrated in the
northern third of the extensive anomaly. The Company has not verified
the results of the previous drilling.
The Crane Creek Property geology consists of flat lying Late Tertiary
sediments, sandstones and arkoses of the Idaho Group overlying the
Miocene Columbia River Basalts. The Property is located within the
eastern fault boundary zone of the Western Snake River Valley. Gold and
mercury mineralization is related to northwesterly chalcedonic vein
zones. Broad zones of silicification and gold mineralization are
localized in the vicinity of veins, veinlet stockworks, and breccia
zones with most of the gold found in a 30 to 60 meter thick sedimentary
interval overlying the basalts.
The Company has the right to purchase all rights of the owners in the
property for the sum of $300,000 within two years of signing of the
agreement subject to a continuing over-riding NSR of 1% on future
production from the Property.
CFO and Corporate Secretary
The Company also announces that Mr. Amin Somani has replaced Ms.Tanuja
de Silva Skerlec as Chief Financial Officer and Corporate Secretary
effective July 31, 2010. The Board wishes her good luck in her future
endeavors.
Walter Melnyk, P.Eng., President and CEO of Western Standard is a
qualified person as defined by National Instrument 43-101, and has
reviewed the technical disclosure contained in the news release.
ON BEHALF OF THE BOARD OF DIRECTORS
WESTERN STANDARD METALS LTD.
Walter Melnyk, P.Eng.
President, CEO and Director
Neither the 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 this release.
Certain information presented in this release may constitute
"forward-looking statements" within the meaning of the US Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are based on numerous assumptions, and involve known and
unknown risks, uncertainties and other factors, including risks
inherent in mineral exploration and development, which may cause the
actual results, performance, or achievements of the Company to be
materially different from any projected future results, performance, or
achievements expressed or implied by such forward-looking statements.
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Copyright (c) 2010 WESTERN STANDARD METALS LTD. (WSM) All rights
reserved. For more information visit our website at
http://www.westernstandardmetals.com/ or send
mailto:info@westernstandardmetals.com
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