iShares 1-10 Year Laddered Government Bond Idx ETF T.CLG

2006-08-14 11:38 ET - News Release

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2006-08-14 11:38 ET - News Release Shares issued 56,478,274 CLG Close 2006-08-11 C$ 4.66 Mr. Kerry Curtis reports CUMBERLAND REPORTS SECOND QUARTER 2006 FINANCIAL RESULTS AND SUMMARY OF ACTIVITIES Cumberland Resources Ltd. has released its unaudited financial results and summary of activities for the three months ended June 30, 2006. In the quarter, the company: commenced a $3.9-million 2006 exploration program; discovered a new gold zone, Goose South, in phase I 2006 drilling; reported initial Cannu zone resource and advanced phase I 2006 drilling; commenced phase II 2006 drill program at Cannu zone and Ukalik prospect; submitted final information to the Nunavut Impact Review Board for environmental permitting; closed a $5-million flow-through private placement; and ended second quarter with $29.6-million in cash. Advancing Meadowbank towards mid-tier gold production The Meadowbank project is host to Canada's largest pure gold open pit reserves with gold reserves estimated at 2.9 million ounces and the 2006 exploration program is focused on increasing gold resources and reserves. Cumberland is advancing the Meadowbank project towards open pit production of 330,000 ounces of gold per year over an 8.1-year mine life with an estimated total cash cost of $201 (U.S.) per ounce based on a bankable feasibility study and subsequent bank due diligence completed in December, 2005. In March, 2006, the company arranged a gold loan facility for up to 420,000 ounces of gold (15 per cent of reserves) from Barclays Capital, Bayerische Hypo-und Vereinsbank and Societe Generale. Such facility is subject to the satisfaction of certain conditions including, among other things, Cumberland securing all requisite regulatory permits and licences and completion of final loan documentation. At a $600-per-ounce spot gold price, the monetized value of the gold loan would be approximately $250-million. Meadowbank has advanced to the final stages of the environmental review process and the company anticipates receipt of NIRB's recommendation by the end of August, 2006. Depending on receipt of permits and licences, operations from three, shallow open pits could commence in late 2008 or early 2009. MEADOWBANK GOLD PROJECT PRODUCTION PROFILE (DECEMBER, 2005) (Assuming long-term $400 (U.S.) per ounce gold and 75 U.S. cents per $1) Open pit mineral reserve (proven and probable) 2.89 million ounces Metallurgical recovery 93.2% Mine throughput 2.73 Mtpa Mine life 8.1 years Average annual production rate Years 1 to 4 400,000 ounces Life of mine 330,000 ounces Total cash cost per ounce Years 1 to 4 $175 (U.S.) Life of mine $201 (U.S.) Preproduction capital costs $235-million (U.S.) $313-million IMPACT OF VARYING GOLD PRICE AND EXCHANGE RATE ON ECONOMICS (Pretax) Spot IRR NPV @ 0% NPV @ 5% gold price (%) ($millions) ($millions) Fuel price $533 17.6 323.6 171.0 Base Case $600 22.8 443.5 254.9 Dec. 2005 $675 31.2 644.5 397.3 Dec. 2005 $750 39.1 845.3 539.6 Dec. 2005 Summary of recent activities 2006 exploration program The company commenced its $3.9-million 2006 exploration program at Meadowbank in April. The two-phased 2006 program, including approximately 9,000 metres of diamond drilling, is focused on increasing gold resources and reserves at the Cannu zone and other targets along the 25-kilometre Meadowbank gold trend. Goose South gold zone discovery Diamond drilling completed during the phase I 2006 program (approximately 2,270 metres in 12 holes) discovered a new zone of mineralization, the Goose South zone, located approximately 400 metres south of the Goose Island deposit. The 2006 program focused on mineralization intersected by a single drill hole in 1997, which indicated that the stratigraphy at the Goose South zone is the same as that at the Goose Island deposit. SELECTED HIGHLIGHTS FROM GOOSE SOUTH 2006 DRILL HOLES Depth Grade Width (m below Hole number Au (g/t) (m) surface) G06-622 5.12 3.50 77 G06-625 5.07 3.19 193 G06-633 12.63 0.96 81 G06-635 5.61 3.60 22 G06-638 110.52 1.74 100 The drill intersections in this steeply dipping zone have yielded encouraging gold grades over narrow to moderate widths within a similar structural and stratigraphic setting as the Goose Island deposit. Additional results are pending. Further exploration will not take place at Goose South in 2006 since Goose South is an ice-based target. Cannu zone resource estimate and additional drilling The Cannu zone gold mineralization, discovered in the fall of 2005, represents a potential 350-metre northern extension to the proposed Portage open pit. Mineralization at Cannu is hosted in a shallow, bowl-shaped structure. The following initial inferred resource at the Cannu zone (based on 30 holes drilled in 2005 and for pre-2005 holes) was calculated by SRK Consulting (UK) Ltd. in early 2006. CANNU ZONE MINERAL RESOURCE (APRIL, 2006) Au Grade Contained Category Tonnes (g/t) Ounces Inferred 440,000 6.0 85,000 The 2006 exploration program includes both infill and step-out drilling to define the extent of the mineralization and enable a reserve estimate. Diamond drilling completed during the phase I 2006 program at Cannu included approximately 3,270 metres in 24 holes. SELECTED HIGHLIGHTS FROM CANNU 2006 DRILL HOLES Depth Grade Width (m below Hole number Au (g/t) (m) surface) NP06-607 7.12 11.77 44 NP06-609 7.09 3.04 58 NP06-614 3.30 3.28 44 NP06-615 8.15 4.42 133 NP06-623 13.51 3.11 30 NP06-628 15.00 1.27 5 NP06-634 5.61 20.80 117 Phase I drilling at Cannu has continued to yield high grades and improved definition in the zone. Additional results are pending. Phase II drilling, to fully delineate the zone, commenced in July, 2006. Financing activities In April, 2006, the company closed a non-brokered private placement of 833,333 flow-through common shares at a price of $6 per share for gross proceeds of $5-million. The gross proceeds from the private placement of flow-through shares will be used for continued exploration of the Meadowbank project and on other eligible properties. Permitting and development schedule Public hearings were held in late March, 2006, as part of the NIRB's environmental assessment for the development of the Meadowbank project. Additional information was requested by the NIRB and Cumberland submitted the final requested information on July 19 and its closing remarks on July 26. On July 28 the NIRB announced the closing of the hearing record and stated it will make its recommendation to the federal Minister of Indian and Northern Affairs by the end of August, 2006. The federal Minister must approve a positive recommendation before the issuance of a project certificate. Depending on receipt of permits and licenses, operations from three, shallow open pits could commence in late 2008 or early 2009. Financial highlights At June 30, 2006, the company had cash and cash equivalents of $29.6-million as compared with $27.9-million at Dec. 31, 2005. The company incurred a net loss of $5.8-million (10 cents per share) in the second quarter of 2006 compared with $3.9-million (seven cents per share) in the second quarter of 2005. This increase in net loss is primarily due to increased project development and environmental permitting costs for the Meadowbank project, an increase in stock-based compensation expense and an increase in project financing costs. The largest component of the company's net loss relates to exploration and project development costs at Meadowbank. In the second quarter of 2006 the company incurred exploration and development costs at Meadowbank of $3.2-million compared with $2.5-million in the second quarter of 2005. This increase primarily relates to environmental and permitting costs associated with the NIRB's review. The company had no operating revenues in the first six months of 2006 or 2005, as it had not commenced mining operations. This summary of financial highlights should be read in conjunction with the company's first quarter 2006 unaudited financial statements and the related management's discussion and analysis of financial condition and results of operations, both of which are available on SEDAR. MEADOWBANK GOLD PROJECT OPEN PIT MINERAL RESERVE (PROVEN AND PROBABLE) Open pit Category Ore (t) Grade (g/t) Ounces Portage Proven 3,020,000 4.8 470,000 Probable 7,990,000 4.4 1,120,000 Proven and probable 11,010,000 4.5 1,590,000 Vault Proven - - - Probable 8,010,000 3.4 870,000 Proven and probable 8,010,000 3.4 870,000 Goose Island Proven - - - probable 2,310,000 5.7 420,000 Proven and probable 2,310,000 5.7 420,000 Total Proven 3,020,000 4.8 470,000 Probable 18,300,000 4.1 2,420,000 Proven and probable 21,320,000 4.2 2,890,000 We seek Safe Harbor.