Post by Zoinkers on Sept 2, 2006 6:56:19 GMT -5
Press Release Source: Wescan Goldfields Inc.
Wescan Goldfields Inc. announces second quarter results
Wednesday August 30, 11:20 am ET
Stock Symbol: WGF: TSX-V
SASKATOON, Aug. 30 /CNW/ - Wescan Goldfields Inc. ("Wescan"or the "Company") reports the unaudited results of Wescan's operations for the quarter ended June 30, 2006 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 work on the Company's expanded uranium land holdings in the
Athabasca Basin region of northern Saskatchewan.
- Resumed drilling at Wescan's Fork Lake gold property in northern
Saskatchewan.
- Tier 1 graduation on the TSX Venture Exchange.
- Working capital of $4.7 million at June 30, 2006.
- Issued and outstanding shares of 49,620,338 at June 30, 2006.
Athabasca Basin Properties
The Wescan-Santoy Joint Venture completed a helicopter-borne time domain electromagnetic survey of the Black Lake block (Fir Island project) and an airborne magnetic and MEGATEM survey of the Hozempa Lake, Pattyson Lake-Umpherville Lake, Dowler Lake and Richards Lake blocks. Mr. R. Tykajlo, a contract geophysicist engaged by Santoy Resources Ltd. ("Santoy") (the operator) is supervising a geophysical interpretation. Santoy will design and manage a follow up surface exploration program based on Mr. R. Tykajlo's interpretations.
Fork Lake Gold Property
During the second quarter of 2006 Wescan drill-tested the continuation of the Deep Jasper (DJ) and Roxy zones to the north-east boundary of the property. Three holes were also drilled to test the continuation of the JN-Footwall and JN-East zones to a greater depth. The drill is now testing the continuation of the Boulder zone intersected earlier this year by drill hole DL-06-03 that produced encouraging results of 12.07 grams/tonne over 1 meter down hole.
Tier 1 Graduation
On May 18, 2006 the Company announced that its application to the TSX Venture Exchange (the "Exchange") for graduation from Tier 2 to Tier 1 had been accepted.
Quarter End Results
As at June 30, 2006, Wescan's cash balance, which included cash and short-term investments, totaled $4.7 million. The Company recorded a net loss of $272,672 ($0.01 per share) compared to a net loss of $179,834 ($0.01 per share) for the same period in 2005. The difference between the quarter ended June 30, 2006 and 2005 is predominately related to the additional professional fees incurred on the creation of a subsidiary company and certain due diligence expenditures on potential properties evaluated during the second quarter of 2006.
Selected financial highlights include:
<<
-------------------------------------------------------------------------
As at As at
June 30, December 31,
Consolidated Balance Sheets 2006 2005
-------------------------------------------------------------------------
Current assets $ 5,040,164 $ 6,369,236
-------------------------------------------------------------------------
Capital and other assets 3,480,056 1,479,705
-------------------------------------------------------------------------
Current liabilities 313,386 276,716
-------------------------------------------------------------------------
Future income tax liability 687,000 -
-------------------------------------------------------------------------
Share capital 7,809,922 7,749,253
-------------------------------------------------------------------------
Contributed surplus 258,412 245,016
-------------------------------------------------------------------------
Deficit (548,000) (422,044)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three months Three months Six months Six months
Consolidated Ended Ended Ended Ended
Statements of June 30, June 30, June 30, June 30,
Income (Loss) 2006 2005 2006 2005
-------------------------------------------------------------------------
Interest Income $ 53,417 $ 15,474 $ 105,892 $ 28,341
-------------------------------------------------------------------------
Operating Expenses 427,089 195,308 579,848 288,109
-------------------------------------------------------------------------
Income (loss) for
the period before
other items (373,672) (179,834) (473,956) (259,768)
-------------------------------------------------------------------------
Net income (loss)
for the period (272,672) (179,834) (125,956) 69,920
-------------------------------------------------------------------------
Income (loss) per
share (0.01) (0.01) (0.00) 0.00
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three months Three months Six months Six months
Consolidated Ended Ended Ended Ended
Statements of June 30, June 30, June 30, June 30,
Cash Flows 2006 2005 2006 2005
-------------------------------------------------------------------------
Cash flows from
operating
activities $ (265,814) $ (101,407) $ (399,338) $ (221,896)
-------------------------------------------------------------------------
Cash flows from
investing
activities (750,374) (225,077) (2,015,119) (243,314)
-------------------------------------------------------------------------
Cash flows from
financing
activities 199,415 55,421 1,024,643 904,373
-------------------------------------------------------------------------
Net increase
(decrease)
in cash (816,773) (271,063) (1,389,814) 439,163
-------------------------------------------------------------------------
Cash - beginning
of period 5,658,418 2,856,347 6,231,459 2,146,121
-------------------------------------------------------------------------
Cash - end of
period 4,841,645 2,585,284 4,841,645 2,585,284
-------------------------------------------------------------------------
>>
Outlook
As at August 30, 2006, the Company has $4.7 million in cash and cash equivalents that will partially be used to complete future drill programs on the Fork Lake gold property, fund its 50% share of future exploration programs on the Company's uranium interests and continue exploring potential mineral properties in Canada and internationally. The Company will spend a minimum of $2.5 million on exploration programs on the Company's gold and uranium properties during 2006 to fulfill its flow-through expenditure requirements. Surplus cash will be used for future drill programs, general corporate matters and other opportunities as they may arise.
Caution Regarding Forward-looking Information
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 news release, 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 venture 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. 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.
"The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release."
For further information
Mr. Kenneth E. MacNeill, Chief Executive Officer, 300 - 224 4th Avenue South, Saskatoon, SK, S7K 5M5, PH: (306) 664-2422, FAX: (306) 664-7181
OR Mr. Harvey Bay, Chief Financial Officer, 300 - 224 4th Avenue South, Saskatoon, SK, S7K 5M5, PH: (306) 664-2422, FAX: (306) 664-7181
--------------------------------------------------------------------------------
Source: Wescan Goldfields Inc.
Wescan Goldfields Inc. announces second quarter results
Wednesday August 30, 11:20 am ET
Stock Symbol: WGF: TSX-V
SASKATOON, Aug. 30 /CNW/ - Wescan Goldfields Inc. ("Wescan"or the "Company") reports the unaudited results of Wescan's operations for the quarter ended June 30, 2006 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 work on the Company's expanded uranium land holdings in the
Athabasca Basin region of northern Saskatchewan.
- Resumed drilling at Wescan's Fork Lake gold property in northern
Saskatchewan.
- Tier 1 graduation on the TSX Venture Exchange.
- Working capital of $4.7 million at June 30, 2006.
- Issued and outstanding shares of 49,620,338 at June 30, 2006.
Athabasca Basin Properties
The Wescan-Santoy Joint Venture completed a helicopter-borne time domain electromagnetic survey of the Black Lake block (Fir Island project) and an airborne magnetic and MEGATEM survey of the Hozempa Lake, Pattyson Lake-Umpherville Lake, Dowler Lake and Richards Lake blocks. Mr. R. Tykajlo, a contract geophysicist engaged by Santoy Resources Ltd. ("Santoy") (the operator) is supervising a geophysical interpretation. Santoy will design and manage a follow up surface exploration program based on Mr. R. Tykajlo's interpretations.
Fork Lake Gold Property
During the second quarter of 2006 Wescan drill-tested the continuation of the Deep Jasper (DJ) and Roxy zones to the north-east boundary of the property. Three holes were also drilled to test the continuation of the JN-Footwall and JN-East zones to a greater depth. The drill is now testing the continuation of the Boulder zone intersected earlier this year by drill hole DL-06-03 that produced encouraging results of 12.07 grams/tonne over 1 meter down hole.
Tier 1 Graduation
On May 18, 2006 the Company announced that its application to the TSX Venture Exchange (the "Exchange") for graduation from Tier 2 to Tier 1 had been accepted.
Quarter End Results
As at June 30, 2006, Wescan's cash balance, which included cash and short-term investments, totaled $4.7 million. The Company recorded a net loss of $272,672 ($0.01 per share) compared to a net loss of $179,834 ($0.01 per share) for the same period in 2005. The difference between the quarter ended June 30, 2006 and 2005 is predominately related to the additional professional fees incurred on the creation of a subsidiary company and certain due diligence expenditures on potential properties evaluated during the second quarter of 2006.
Selected financial highlights include:
<<
-------------------------------------------------------------------------
As at As at
June 30, December 31,
Consolidated Balance Sheets 2006 2005
-------------------------------------------------------------------------
Current assets $ 5,040,164 $ 6,369,236
-------------------------------------------------------------------------
Capital and other assets 3,480,056 1,479,705
-------------------------------------------------------------------------
Current liabilities 313,386 276,716
-------------------------------------------------------------------------
Future income tax liability 687,000 -
-------------------------------------------------------------------------
Share capital 7,809,922 7,749,253
-------------------------------------------------------------------------
Contributed surplus 258,412 245,016
-------------------------------------------------------------------------
Deficit (548,000) (422,044)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three months Three months Six months Six months
Consolidated Ended Ended Ended Ended
Statements of June 30, June 30, June 30, June 30,
Income (Loss) 2006 2005 2006 2005
-------------------------------------------------------------------------
Interest Income $ 53,417 $ 15,474 $ 105,892 $ 28,341
-------------------------------------------------------------------------
Operating Expenses 427,089 195,308 579,848 288,109
-------------------------------------------------------------------------
Income (loss) for
the period before
other items (373,672) (179,834) (473,956) (259,768)
-------------------------------------------------------------------------
Net income (loss)
for the period (272,672) (179,834) (125,956) 69,920
-------------------------------------------------------------------------
Income (loss) per
share (0.01) (0.01) (0.00) 0.00
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three months Three months Six months Six months
Consolidated Ended Ended Ended Ended
Statements of June 30, June 30, June 30, June 30,
Cash Flows 2006 2005 2006 2005
-------------------------------------------------------------------------
Cash flows from
operating
activities $ (265,814) $ (101,407) $ (399,338) $ (221,896)
-------------------------------------------------------------------------
Cash flows from
investing
activities (750,374) (225,077) (2,015,119) (243,314)
-------------------------------------------------------------------------
Cash flows from
financing
activities 199,415 55,421 1,024,643 904,373
-------------------------------------------------------------------------
Net increase
(decrease)
in cash (816,773) (271,063) (1,389,814) 439,163
-------------------------------------------------------------------------
Cash - beginning
of period 5,658,418 2,856,347 6,231,459 2,146,121
-------------------------------------------------------------------------
Cash - end of
period 4,841,645 2,585,284 4,841,645 2,585,284
-------------------------------------------------------------------------
>>
Outlook
As at August 30, 2006, the Company has $4.7 million in cash and cash equivalents that will partially be used to complete future drill programs on the Fork Lake gold property, fund its 50% share of future exploration programs on the Company's uranium interests and continue exploring potential mineral properties in Canada and internationally. The Company will spend a minimum of $2.5 million on exploration programs on the Company's gold and uranium properties during 2006 to fulfill its flow-through expenditure requirements. Surplus cash will be used for future drill programs, general corporate matters and other opportunities as they may arise.
Caution Regarding Forward-looking Information
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 news release, 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 venture 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. 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.
"The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release."
For further information
Mr. Kenneth E. MacNeill, Chief Executive Officer, 300 - 224 4th Avenue South, Saskatoon, SK, S7K 5M5, PH: (306) 664-2422, FAX: (306) 664-7181
OR Mr. Harvey Bay, Chief Financial Officer, 300 - 224 4th Avenue South, Saskatoon, SK, S7K 5M5, PH: (306) 664-2422, FAX: (306) 664-7181
--------------------------------------------------------------------------------
Source: Wescan Goldfields Inc.