Chesbar, VenCan to join forces

Two Toronto-based juniors — Chesbar Resources (ME) and VenCan Gold (ME) — plan to combine their property interests in Venezuela.

Details of the proposed amalgamation will be released shortly. If all goes as planned, the merged entity, to be held equally by shareholders of Chesbar and VenCan, would proceed with a $10-15-million financing. Funds would be used to explore and develop gold properties in the South American country. The two companies are already participating equally in a joint venture in Bolivar state, with the most advanced project being the Anacoco area’s La Salle 1 concession.

A drilling program is planned for La Salle 1, to further test a 1-km-long gold zone where previous surface sampling and mechanical trenching returned ore-grade values over significant widths.

The most recent sampling results from the North zone anomaly includes uncut values averaging as high as 0.45 oz. per oz. (0.11 oz. cut) over a sample width of 59 ft., and 0.19 oz. (0.06 oz. cut) over a sample width of 157 ft. These results are from trenches about 3,000 ft. north of those covering the Central geochemical anomaly, where results were reported earlier this year. Averages of the assays for six trenches in this area were also positive, and include values of up to 0.12 oz. over a sample width of 75 ft., and 0.08 oz. over a sample width of 213 ft.

The trenches were dug to a depth of about 10 ft. in the saprolitic layer of weathered rock. Continuous, horizontal chip samples were taken at about 6 ft. below surface.

The partners optioned adjoining concessions (Guaiquinima II and Anacoco II) to cover the more recently tested North zone anomaly, which remains open to the north. Claims, by a third party, of a pre-existing exploration agreement are being investigated; however, Chesbar and VenCan note that this matter does not relate to La Salle I.

Chesbar and VenCan jointly hold concessions and options on other concessions in the Anacoco and Bochinche area and have applications pending for other properties.