News Release
Technical Report Received on Nunavut Coal Property
May 24, 2007 - Vancouver, B.C.: West Hawk Development Corp. (the "Company") (TSX.v - WHD, Frankfurt - H5N) is pleased to announce that it has received an independent National Instrument 43-101 ("NI 43-101") Technical Report (the "Nunavut Report") for its 100% interest in the Nunavut Coal Prospect (the "Nunavut Prospect").
A complete copy of the Nunavut Report has been filed on SEDAR and may be reviewed in its entirety at www.sedar.com and on the Company's website.
NUNAVUT COAL PROSPECT
Report Summary
The Nunavut Report is entitled "Technical Report Nunavut Coal Prospect". It is dated March 16, 2007 and was prepared by Weir International, Inc. ("WEIR"). Tom A. Tveten, Chief Geologist of WEIR is an Independent Qualified Person (the "Qualified Person") as defined in NI 43-101 Standards of Disclosure for Mineral Projects.
Study Highlights
The project area for the Nunavut Prospect lies within the Canadian Arctic Islands and is located approximately 410 kilometres north of Resolute, Nunavut Territory. Eureka, the nearest community is located along Slidre Fiord, eight kilometers northwest of the coal prospect. The Nunavut Prospect consists of two properties, the North Fosheim Peninsula Property located on the east side of Eureka Sound on Ellesmere Island and the May Point Property located on the west side of Eureka Sound on Axel Heiberg Island.
The Company holds seven coal exploration licenses for areas located southeast of Eureka, Nunavut Territory. The licenses contain a total of 99,518.26 hectares (245,915 acres). The Company acquired 100% of the right, title and interest in the exploration licenses on April 3, 2006.
Future Plans
Management of the Company is currently assessing the alternatives available to optimize shareholder value with respect to the Nunavut Prospect. The Company does not intend to conduct an exploration program for the 2007 field season.
Deposit Type
The Nunavut Prospect is underlain by coal seams of the Eureka Sound Formation in the Sverdrup Basin. The Eureka Sound Formation is composed of clastic sediments, with cyclic deposition of marine and non-marine sediments in the Sverdrup Basin. The lithologies are composed of rhythmically bedded sandstones, siltstones, shales, mudstones, coals and underclays. The ligthologies are arranged in fining upward sequences.
The major coal seams occur within the Late Crataceous/Eocene age Eureka Sound Formation. Investigations by Gulf, Utah and Petro-Canada of the coal exploration seams indicated a depositional environment that was conducive to stable coal forming swamps. It was reported that the coal seams were laterally persistent and have been traced up to 15 kilometres along strike. Judging by the lateral continuity, thickness and absence of partings in most of the coal seams, it is apparent that coal-forming swamp conditions prevailed over large areas of the flood plain.
Mineralization
Coal seams contained in the Eureka Sound Formation within the Company's Nunavut Prospect range in rank from lignite to subbituminous B. Reflectance studies were used to determine the rank of the coals from lignite (0.15 percent) to high volatile bituminous (0.57 percent). It is noted that when studying the analyses from surface trenches extensive frost action and exposure to the air has oxidized the coal.
Property Geology
North Fosheim Peninsula Property
The North Fosheim Peninsula Property is underlain by strata ranging in age from the Lower Triassic to early Tertiary. Historical exploration work was restricted to the coal bearing Tertiary Eureka Sound Formation. Exposures within the Eureka Sound Formation are limited to stream banks and, to a lesser extent, ridge outcrops.
May Point Property
In the area of the May Point Property, the Eureka Sound Formation can be divided into three units. Each unit has its own distinct color, reflecting a different depositional environment. The lower unit appears dark brown by virtue of a predominant shale-sand-rare coal sequence. The middle unit is a pale yellow-brown sand sequence, and the shale and coal rich upper unit displays a medium brown color. The establishment and recognition of these units are essential to a regional reconnaissance program.
Estimate of Coal Potential
Gulf's Arctic Coal Exploration Geological Report completed in 1981 estimated a potential exploration target tonnage for their coal exploration licenses in the North Fosheim Peninsula Property. The Qualified Person estimated the Company's coal exploration licenses encompass approximately 55 percent of the potential exploration target area within the Gulf coal exploration licenses, such that the Company's Nunavut Prospect contains a potential exploration target of approximately 3.025 to 3.162 billion in-place tons, based on the previous estimate by Gulf of 5.5 to 5.750 billion in-place within the larger area covered by the previous Gulf coal exploration licenses. Due to limited surface exposure of the coal deposit within the license areas, a detailed evaluation of the potential exploration target estimates cannot be justified.
Since there was insufficient exploration to define a potential exploration target, Utah did not estimate the potential exploration target tonnage for the May Point Property in their 1981 Report of Exploration Activities on the Strathoona Fiord and May Point Properties. It is uncertain if further exploration will result in the May Point potential exploration target being delineated as a mineral resource.
This historical potential exploration target estimates were determined by Gulf prior to the implementation of NI 43-101 and are not in compliance with CSA NI 43-101 or the United States Securities and Exchange Commission ("SEC") guidelines. All tonnage reported in the Nunavut Report are historical potential exploration target estimates.
The potential quantity and characteristics of the coal identified as potential exploration target estimates is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Tom A. Tveten, Chief Geologist of Weir International, Inc. is the Qualified Person who prepared or supervised the preparation of the Nunavut Report, and has reviewed and verified the technical information in this news release.
GROUNDHOG COAL PROSPECT UPDATE Weir International, Inc. is close to completing an independent NI 43-101 technical report on the Company's Groundhog prospect in northern British Columbia on behalf of the Company. The Company expects to file the report on SEDAR in the near future.
On behalf of the Board of Directors,
"Dr. Wm. Mark Hart"
Dr. Wm. Mark Hart, President and CEO
THE TSX VENTURE EXCHANGE HAS NOT YET REVIEWED AND DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement; the Tulita coal property in the Northwest Territories; the Groundhog coal property located in northwest British Columbia; and the Ellesmere Island, Nunavut Territory coal property.
Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has filed a National Instrument 51-101 Report on the Figure Four property. The company has filed a National Instrument 43-101 Report on the Tulita coal property in the Northwest Territories. The company has also filed a National Instrument 43-101 Report on the Nunavut coal property. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
A complete copy of the Nunavut Report has been filed on SEDAR and may be reviewed in its entirety at www.sedar.com and on the Company's website.
NUNAVUT COAL PROSPECT
Report Summary
The Nunavut Report is entitled "Technical Report Nunavut Coal Prospect". It is dated March 16, 2007 and was prepared by Weir International, Inc. ("WEIR"). Tom A. Tveten, Chief Geologist of WEIR is an Independent Qualified Person (the "Qualified Person") as defined in NI 43-101 Standards of Disclosure for Mineral Projects.
Study Highlights
- Based on the Company's exploration licenses encompassing approximately 55 percent of Gulf's exploration licenses, the Nunavut Report reveals that the Nunavut Prospect contains a potential exploration target of approximately 3.025 to 3.162 billion in-place tons. Gulf Canada Resources Inc. ("Gulf") estimated a potential exploration target of 5.5 to 5.75 billion in-place tons in their exploration licenses.
- The historical potential exploration target estimates were determined by Gulf prior to the implementation of NI 43-101 and are not in compliance with CSA NI 43-101 or the United States Securities and Exchange Commission ("SEC") guidelines. All tonnage reported in the Nunavut Report are historical potential exploration target estimates.
- The potential quantity and characteristics of the coal identified as potential exploration target estimates is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
The project area for the Nunavut Prospect lies within the Canadian Arctic Islands and is located approximately 410 kilometres north of Resolute, Nunavut Territory. Eureka, the nearest community is located along Slidre Fiord, eight kilometers northwest of the coal prospect. The Nunavut Prospect consists of two properties, the North Fosheim Peninsula Property located on the east side of Eureka Sound on Ellesmere Island and the May Point Property located on the west side of Eureka Sound on Axel Heiberg Island.
The Company holds seven coal exploration licenses for areas located southeast of Eureka, Nunavut Territory. The licenses contain a total of 99,518.26 hectares (245,915 acres). The Company acquired 100% of the right, title and interest in the exploration licenses on April 3, 2006.
Future Plans
Management of the Company is currently assessing the alternatives available to optimize shareholder value with respect to the Nunavut Prospect. The Company does not intend to conduct an exploration program for the 2007 field season.
Deposit Type
The Nunavut Prospect is underlain by coal seams of the Eureka Sound Formation in the Sverdrup Basin. The Eureka Sound Formation is composed of clastic sediments, with cyclic deposition of marine and non-marine sediments in the Sverdrup Basin. The lithologies are composed of rhythmically bedded sandstones, siltstones, shales, mudstones, coals and underclays. The ligthologies are arranged in fining upward sequences.
The major coal seams occur within the Late Crataceous/Eocene age Eureka Sound Formation. Investigations by Gulf, Utah and Petro-Canada of the coal exploration seams indicated a depositional environment that was conducive to stable coal forming swamps. It was reported that the coal seams were laterally persistent and have been traced up to 15 kilometres along strike. Judging by the lateral continuity, thickness and absence of partings in most of the coal seams, it is apparent that coal-forming swamp conditions prevailed over large areas of the flood plain.
Mineralization
Coal seams contained in the Eureka Sound Formation within the Company's Nunavut Prospect range in rank from lignite to subbituminous B. Reflectance studies were used to determine the rank of the coals from lignite (0.15 percent) to high volatile bituminous (0.57 percent). It is noted that when studying the analyses from surface trenches extensive frost action and exposure to the air has oxidized the coal.
Property Geology
North Fosheim Peninsula Property
The North Fosheim Peninsula Property is underlain by strata ranging in age from the Lower Triassic to early Tertiary. Historical exploration work was restricted to the coal bearing Tertiary Eureka Sound Formation. Exposures within the Eureka Sound Formation are limited to stream banks and, to a lesser extent, ridge outcrops.
May Point Property
In the area of the May Point Property, the Eureka Sound Formation can be divided into three units. Each unit has its own distinct color, reflecting a different depositional environment. The lower unit appears dark brown by virtue of a predominant shale-sand-rare coal sequence. The middle unit is a pale yellow-brown sand sequence, and the shale and coal rich upper unit displays a medium brown color. The establishment and recognition of these units are essential to a regional reconnaissance program.
Estimate of Coal Potential
Gulf's Arctic Coal Exploration Geological Report completed in 1981 estimated a potential exploration target tonnage for their coal exploration licenses in the North Fosheim Peninsula Property. The Qualified Person estimated the Company's coal exploration licenses encompass approximately 55 percent of the potential exploration target area within the Gulf coal exploration licenses, such that the Company's Nunavut Prospect contains a potential exploration target of approximately 3.025 to 3.162 billion in-place tons, based on the previous estimate by Gulf of 5.5 to 5.750 billion in-place within the larger area covered by the previous Gulf coal exploration licenses. Due to limited surface exposure of the coal deposit within the license areas, a detailed evaluation of the potential exploration target estimates cannot be justified.
Since there was insufficient exploration to define a potential exploration target, Utah did not estimate the potential exploration target tonnage for the May Point Property in their 1981 Report of Exploration Activities on the Strathoona Fiord and May Point Properties. It is uncertain if further exploration will result in the May Point potential exploration target being delineated as a mineral resource.
This historical potential exploration target estimates were determined by Gulf prior to the implementation of NI 43-101 and are not in compliance with CSA NI 43-101 or the United States Securities and Exchange Commission ("SEC") guidelines. All tonnage reported in the Nunavut Report are historical potential exploration target estimates.
The potential quantity and characteristics of the coal identified as potential exploration target estimates is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Tom A. Tveten, Chief Geologist of Weir International, Inc. is the Qualified Person who prepared or supervised the preparation of the Nunavut Report, and has reviewed and verified the technical information in this news release.
GROUNDHOG COAL PROSPECT UPDATE Weir International, Inc. is close to completing an independent NI 43-101 technical report on the Company's Groundhog prospect in northern British Columbia on behalf of the Company. The Company expects to file the report on SEDAR in the near future.
On behalf of the Board of Directors,
"Dr. Wm. Mark Hart"
Dr. Wm. Mark Hart, President and CEO
THE TSX VENTURE EXCHANGE HAS NOT YET REVIEWED AND DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement; the Tulita coal property in the Northwest Territories; the Groundhog coal property located in northwest British Columbia; and the Ellesmere Island, Nunavut Territory coal property.
Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has filed a National Instrument 51-101 Report on the Figure Four property. The company has filed a National Instrument 43-101 Report on the Tulita coal property in the Northwest Territories. The company has also filed a National Instrument 43-101 Report on the Nunavut coal property. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
Contacts
North America
West Hawk Development, 303-524-1424
Email: news@westhawkdevelopment.com