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.