Wescan Goldfields Inc. press release
Wescan Goldfields Inc. announces first quarter results
TSXV - TSX Venture Exchange · Gold · Canada
Stock Symbol: WGF: TSX-V
SASKATOON, May 29 /CNW/ - Wescan Goldfields Inc. ("Wescan" or the "Company") reports the unaudited results of Wescan's operations for the quarter ended March 31, 2009 have been filed and may be viewed at www.sedar.com. A summary of key financial and operating results for the quarter follows:
Highlights
Continued review of regional geophysics and detailed topographic data to define drill targets in the Hudson Bay, Saskatchewan area. Additional coal permits received near Pinehouse Lake, Saskatchewan. Working capital of $2.2 million at March 31, 2009. Issued and outstanding shares of 75,121,390 at March 31, 2009.
Coal Projects
In the first quarter of 2009, Wescan continued an extensive review of regional geophysics and detailed topographic data to define drill targets in the Hudson Bay, Saskatchewan area. Upon the completion of defining drill targets the Company plans to test several anomalies within the permit areas through a multi-hole core drilling program during the summer of 2009.
Also in the quarter, the Company received 7 additional coal permit certificates near Pinehouse Lake, Saskatchewan that comprised an area of 5,280 hectares. These additional permits will allow the Company to actively explore the area for coal. Historical drilling in this region intersected Mannville (Cretaceous) coal seams approximately 50 metres from surface in a region where glacial till cover is limited.
Subsequent to the end of the quarter, Wescan announced that it had entered into an agreement with Fugro Airborne Surveys of Ottawa, Ontario to conduct a 2,000 line-kilometre airborne geophysical survey over its Hudson Bay, Saskatchewan coal dispositions (see Wescan News Release dated April 28, 2009).
The survey will provide extensive magnetic and electromagnetic geophysical data over areas believed to be highly prospective for coal. The contract includes a Broadband GEOTEM Electromagnetic Magnetic survey as well as specialized geophysical processing and interpretation to identify coal bearing sub-basins. The successful drilling of GEOTEM targets on adjacent properties has resulted in the discovery of coal intersections up to 100 metres in vertical thickness. The GEOTEM survey aims to delineate all potential sub-basins in the Devonian basement which are favorable for the development of coal in the overlying Cretaceous sediments.
A total of 331 coal permits have now been issued to the Company encompassing a total area of 190,992 hectares (1,910 square kilometres) in the Hudson Bay, Saskatchewan region and 38,288 hectares (383 square kilometres) in the Pinehouse Lake, Saskatchewan area. These permits cover a period of one year with two possible six-month extensions which are convertible to a 15-year lease thereafter.
Selected financial highlights include: March 31, December 31, Balance Sheets 2009 2008 Current assets $ 2,494,935 $ 2,724,519 Capital and other assets 9,435,175 9,453,030 Current liabilities 338,480 381,548 Future income tax liability 579,000 - Share capital and warrants 14,161,829 14,799,329 Contributed surplus 1,453,563 1,444,117 Deficit 4,602,762 4,447,445
March 31, March 31, Statements of Income 2009 2008 Interest Income $ 2,535 $ 31,120 Operating Expenses 229,833 316,332 Loss for the period before income taxes 227,298 285,212 Net loss for the period 155,317 259,712 Loss per share 0.00 0.00
March 31, March 31, Statements of Cash Flows 2009 2008 Cash flows from operating activities $ (208,725) $ (25,705) Cash flows from investing activities 7,819 (1,768,722) Decrease in cash and cash equivalents (200,906) (1,794,427) Cash and cash equivalents - beginning of period 2,549,435 3,413,275 Cash and cash equivalents - end of period 2,348,529 1,618,848
Outlook
As at May 28, 2009, the Company has $2.05 million in cash and cash equivalents that will be used to establish a drill program on the coal permit properties as well as continue exploration programs on the Jojay, Fork Lake, Hanson Lake and Munro properties. In addition, the Company will continue to evaluate the potential for acquisition of more mineral properties in Canada and internationally. Management has determined that the Company will continue to require additional financing and believes it will have sufficient access to financial markets to continue its planned activities.
Caution regarding Forward-looking Statements
From time to time, Wescan makes written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Ontario Securities Act. Wescan may make such statements in this MD&A, in other filings with Canadian regulators, in reports to shareholders or in other communications. These forward-looking statements include, among others, statements with respect to Wescan's objectives for the ensuing year, our medium and long-term goals, and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may," "could," "should," "would," "suspect," "outlook," "believe," "plan," "anticipate," "estimate," "expect," "intend," and words and expressions of similar import are intended to identify forward-looking statements. In particular, statements regarding Wescan's future operations, future exploration and development activities or other development plans contain forward-looking statements.
All forward-looking statements and information are based on Wescan's current beliefs as well as assumptions made by and information currently available to Wescan concerning anticipated financial performance, business prospects, strategies, regulatory developments, development plans, exploration, development and mining activities and commitments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, developments in world gold markets, risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of Wescan or its joint operation partners; the effects of competition in the markets in which Wescan operates; the impact of changes in the laws and regulations regulating mining exploration and development; judicial or regulatory judgments and legal proceedings; operational and infrastructure risks and the additional risks described in Wescan's most recently filed annual and interim MD&A and Wescan's anticipation of and success in managing the foregoing risks.
Wescan cautions that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Wescan, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise required by applicable securities laws, Wescan does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Wescan or on our behalf.
"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 this release."