Stock Symbol: WGF: TSX-V
SASKATOON, Nov. 27, 2013 /CNW/ - Wescan Goldfields Inc. ("Wescan" or the
"Company") reports that the unaudited results of Wescan's operations
for the quarter ended September 30, 2013 will be filed today on SEDAR
and may be viewed at www.sedar.com once posted. A summary of key financial and operating results for the
quarter is as follows:
Overview of activities
Wescan continues to explore its portfolio of gold properties in the La
Ronge Gold Belt in northern Saskatchewan, with the primary focus in
2013 being the Munro Lake property and the Jasper property. During the
second quarter of 2013, the Company announced the results of the winter
drill program on the Munro Lake property (see Wescan News Release dated
June 17, 2013). This winter drill program consisted of 1,052.34 metres
of diamond drilling over 4 holes. Drilling results included an interval
of 67.1 g/t Au over 1.00 metres in a vein with associated visible gold
as well as 7.1 g/t Au over 1.00 m.
The Company recently initiated a drill program to further evaluate the
Jasper property, the results of which will be announced when available.
The Company has performed drilling of certain deeper zones on the
Jasper property in 2005, 2006, and 2007 and during 2011 the Company
completed a drill program to assess the future potential of this past
gold producing property.
Quarterly Results
For the quarter ended September 30, 2013 the Company recorded a net loss
of $37,128 ($0.00 per share) compared to a net loss of $144,920 ($0.01
per share) for the same period in 2012. The difference in losses
between these quarters is primarily due to the Company incurring lower
exploration and evaluation expenditures and administration expenses
during the quarter ended September 30, 2013. During the third quarter
of 2013, the Company incurred $12,463 (2012 - $66,915) exploration and
evaluation expenditures and $28,002 (2012 - $95,176) administration
expenses. Exploration and evaluation expenditures during the quarter
were offset by recoveries of flow-through share premiums of $4,947
(2012 - $18,956), as the Company partially satisfied some of its
obligations to spend certain amounts on qualifying exploration
expenditures during that period.
Year to Date Results
For the nine months ended September 30, 2013, the Company recorded a net
loss of $300,198 ($0.02 per share) compared to a net loss of $940,934
($0.07 per share) for the same period in 2012. This difference was
primarily the result of lower exploration and evaluation expenditures
incurred during the nine months ended September 30, 2013 compared to
the same period in 2012. Also contributing to this decrease were lower
administrative costs as a result of the Company's efforts to reduce
expenses.
Selected financial highlights include:
Consolidated Statement of Financial Position
|
As at
September 30,
2013
|
As at
December 31,
2012
|
Current assets
|
$ 47,936
|
$ 433,374
|
Property and equipment
|
12,734
|
60,180
|
Current liabilities
|
509,433
|
614,933
|
Other liabilities
|
107,659
|
159,520
|
Share capital, warrants and broker warrants
|
19,868,864
|
19,868,864
|
Contributed surplus
|
2,164,516
|
2,139,841
|
Deficit
|
22,589,802
|
22,289,604
|
|
Consolidated Statements of Loss and
Comprehensive Loss
|
Three Months
Ended
September 30,
2013
|
Three Months
Ended
September 30,
2012
|
Nine Months
Ended
September 30,
2013
|
Nine Months
Ended
September 30,
2012
|
Interest and other income
|
$ -
|
$ 58
|
$ 345
|
$ 721
|
Operating expenses
|
42,075
|
163,934
|
312,099
|
1,110,428
|
Loss for the period before other items
|
42,075
|
163,876
|
311,754
|
1,109,707
|
Loss on disposal of property and equipment
|
-
|
-
|
40,305
|
394
|
Flow-through share premium recovery
|
(4,947)
|
(18,956)
|
(51,861)
|
(169,167)
|
Net and comprehensive loss for the period
|
37,128
|
144,920
|
300,198
|
940,934
|
Loss per share
|
0.00
|
0.01
|
0.02
|
0.07
|
|
Consolidated Statements of Cash Flows
|
Nine Months
Ended
September 30,
2013
|
Nine Months
Ended
September 30,
2012
|
Cash used in operations
|
$ (298,402)
|
$ (984,588)
|
Cash provided (used) in investing activities
|
2,577
|
-
|
Increase (decrease) in cash and cash equivalents
|
(295,825)
|
(984,588)
|
Cash and cash equivalents - beginning of period
|
333,352
|
1,094,924
|
Cash and cash equivalents - end of period
|
37,527
|
110,336
|
Outlook
The Company has focused exploration efforts on its northern Saskatchewan
properties with known gold mineralization located in the La Ronge Gold
Belt. The Company's success in raising flow-through financing during
2011 and 2012 allowed it to perform further exploration work on the
Company's Jojay, Munro Lake and Jasper gold properties. Management will
also continue to evaluate the potential for the acquisition of other
mineral properties that fit the Company's strategic direction. The
Company will be required to raise additional funds to meet its current
commitments as well as for ongoing working capital requirements.
Caution Regarding Forward-looking Information
This press release contains forward-looking statements within the
meaning of certain securities laws, including the "safe harbour"
provisions of Canadian Securities legislation and the United States
Private Securities Litigation Reform Act of 1995. 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,
and, in particular, statements regarding Wescan's future operations,
future exploration and development activities or other development
plans contain forward-looking statements. Forward-looking statements in
this press release include, but are not limited to, the ability to
raise funds to meet commitments and pursue exploration activities, the
use of such funds, future plans for the Jojay, Jasper and Munro Lake
properties and the acquisition and exploration of additional
properties.
These forward-looking statements are based on Wescan's current beliefs
as well as assumptions made by and information currently available to
it and involve inherent risks and uncertainties, both general and
specific. Risks exist that forward-looking statements will not be
achieved due to a number of factors including, but not limited to,
developments in world coal and 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, 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 and operational risks and the additional risks described in
Wescan's most recently filed annual and interim MD&A, news releases and
technical reports. Wescan's anticipation of and success in managing the
foregoing risks could cause actual results to differ materially from
what is anticipated in such forward-looking statements.
Although management considers the assumptions contained in
forward-looking statements to be reasonable based on information
currently available to it, those assumptions may prove to be incorrect.
When making decisions with respect to Wescan, investors and others
should not place undue reliance on these statements and should
carefully consider the foregoing factors and other uncertainties and
potential events. Unless required by applicable securities law, Wescan
does not undertake to update any forward-looking statement that may be
made.
"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."
SOURCE Wescan Goldfields Inc.