Yellowhead Mining Inc. Reports Financial and Operating Results to October 31, 2011
26 January 2012 - 11:10AM
PR Newswire (Canada)
TSX-V:YMI VANCOUVER, Jan. 25, 2012 /CNW/ - Yellowhead Mining Inc.
("Yellowhead" or the "Company") is pleased to report its results of
operations for the year ended October 31, 2011. For the full annual
Financial Statements and Management Discussion and Analysis, please
visit SEDAR at www.sedar.com or the Company's web site,
www.yellowheadmining.com. Highlights and Outlook: -- Completed a
reverse takeover of Four Points Capital Corp. and became a Tier 1
listed company on the TSX Venture exchange; -- The Feasibility
Study for a 70,000 tpd copper mine is on target for completion by
the end of March 2012; -- In support of the Feasibility Study and
to expand the resource, the Company has completed a total of 15,148
metres of drilling for the year including: o Resource confirmation:
33 holes for a total of 8,191m o Condemnation: 8 holes for a total
of 1,791m o Resource expansion: 11 holes for a total of 4,725m o
Metallurgical sampling: 4 holes for a total of 441m; -- Completed a
comprehensive program of crushing and grinding test work as the
basis for a crusher and SAG/ball mill design; -- Completed
flotation test work on expected mill feed for the first 10 years of
mine operation. Variability testing is expected to be completed by
the end of January 2012; -- The Environmental Assessment study at
Harper Creek was significantly advanced with an ongoing
comprehensive baseline study program. The Environmental Assessment
application is scheduled for submission in early June 2012; -- The
Application Information Requirements (Terms of Reference) was
approved in October 2011. The Application Information Requirements
specify the information that must be contained in the application
for an Environmental Assessment Certificate; -- Completed a bought
deal private placement for gross proceeds of $24,888,716; -- In
order to finance the development of its 100%-owned Harper Creek
project, the Company is exploring financing options, including but
not limited to: strategic investors and/or partnerships, project
and equipment financing and off-take agreements. Summary of Key
Financial Highlights Yellowhead has no revenue from
operations. Results can fluctuate significantly from period
to period due to the level of engineering and environmental study
effort and resource drilling. Year ended October 31, 2011 2010
Resource Property Expenditures $9,708,247 $970,696 These sums, as
noted above, have been capitalized as Resource property interests.
The Company's operating costs increased significantly during the
year ended October 31, 2011 compared to the same periods a year
earlier. This increase is directly related to the increase in
the project development expenses of the Company. The Company was
able to resume the development of its Harper Creek project with the
completion of the Preliminary Economic Assessment in March,
followed by the initiation of the Feasibility Study in April, 2011
with a targeted completion date by March 31, 2012. As a consequence
of the significantly expanded project development programs, the
Company's expenditures for General & Administrative costs,
drilling, engineering, consulting fees and expenses, and investor
relations activities, have increased significantly. The funding of
the resource property interests and the expanded operating
expenditures was made possible by the success of two Private
Placements, one which concluded in November, 2010 (the "November
Private Placement") and the second which concluded in April, 2011
(the "April Private Placement"). These private placements, and the
amalgamation with the Capital Pool Company, Four Points Capital
Corporation, accounted for a significant increase in expenses for
professional fees. To attract and retain good people in management
and executive roles as well as on the board of directors and its
advisors, the granting of new stock options resulted in a
significant increase in the non-cash expense for stock based
compensation. Year ended October 31, 2011 2010 Comprehensive loss
for the year $4,643,798 $1,549,566 Non-Cash charges included Stock
based compensation $1,876,638 $1,087,330 Amortization $80,006
$74,508 Future income tax recovery $- $(403,051) Net operating cash
loss for the year $2,687,154 $790,779 Cash and Cash Equivalents The
Company had cash and cash equivalents of $15,668,987 as at October
31, 2011 compared to cash and cash equivalents of $4,734,825 as at
October 31, 2010. The Company's focus going forward is expediting
the development of the Harper Creek project. Major activities
include completion of the Feasibility Study, submittal of the
Environmental Assessment report, and project financing. The Company
believes that it has sufficient funds on hand to complete the
definitive Feasibility Study and to advance through the permitting
process. International Financial Reporting Standards ("IFRS") The
Company will complete its transition to IFRS with the fiscal
quarter beginning November 1, 2011. The Company's transition
will require restatement for comparative purposes of amounts
reported by the Company for interim periods and for the year ended
October 31, 2011. On transition to IFRS the Company intends
to change its accounting policy for the treatment of exploration
expenses to a policy of expensing all exploration expenses, so as
to align itself with policies applied by comparable companies at a
similar stage in the mining industry. This change will result
in a reduction of Resource property interest by approximately $19.7
million as at October 31, 2011 ($10.1 million as at October 31,
2010) and an increase in the net loss for the year ended October
31, 2011 of approximately $9.6 million. The Company is in the
process of quantifying other IFRS related adjustments. About
Yellowhead Mining Inc. and the Harper Creek Project The Harper
Creek Project is a copper-gold-silver volcanogenic sulphide deposit
with a measured and indicated resource of 563.2 million tonnes
grading 0.31% Cu (3.6 billion pounds of copper) plus 0.032 g/t gold
and 1.08 g/t silver, plus an inferred resource of 117 million
tonnes grading 0.29% Cu (0.7 billion pounds of copper). The Harper
Creek Project is located in south-central British Columbia,
approximately 150 kilometers by highway north of Kamloops.
Yellowhead has a 100% interest in the Harper Creek development
project*. A Preliminary Economic Assessment Report ("PEA"),
which demonstrated the technical and economic viability of the
Harper Creek Project, was completed at the end of March and filed
on SEDAR on April 1, 2011 and can be viewed on www.sedar.com.
The PEA demonstrated a 22 year project life at a milling rate of
70,000 tonnes per day, a planned production of 149 million lbs.
copper in concentrate per annum for years one to eight, a
life-of-mine stripping ratio 0.88:1, an IRR of 19.8% with a base
case copper price of US$2.66/lb., an NPV(8) of US$598 million and a
capital cost of C$759 million in Q4 2010 dollars, including
contingency with a 4 year payback. * (Subject to the payment of a
3% NSR royalty capped at $2.5 million, adjusted for inflation and
an additional 2.5% NSR royalty on an estimated 3.3 million tonnes
of ore which is expected to be mined beginning in year nine within
the NI 43-101 resource.) FORWARD-LOOKING STATEMENTS AND CAUTIONARY
DISCLAIMER Except for statements of historical fact, this news
release contains certain "forward-looking information" within the
meaning of applicable securities laws. Forward-looking information
is frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking
statements, including, among others, the accuracy of mineral grades
and related assumptions, inherent operating risks, planned
expenditures, proposed exploration and development at the Harper
Creek Project, operating and economic aspects of the Harper Creek
Project, as well as those risk factors identified in the Company's
Annual Information Form filed under the Company's SEDAR profile.
Yellowhead undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions
should change except as required by law. The reader is cautioned
not to place undue reliance on forward-looking statements. More
detailed information about potential factors that could affect
financial results is included in the documents filed from time to
time with the Canadian securities regulatory authorities by
Yellowhead. This news release includes disclosure of scientific and
technical information, as well as information in relation to the
calculation of re-sources, with respect to the Harper Creek
Project. Yellowhead's disclosure of mineral resource information is
governed by National Instrument 43-101 - Standards of Disclosure
for Mineral Projects ("NI 43-101") under the guidelines set out in
the Canadian Institute of Mining, Metallurgy and Petroleum (the
"CIM") Standards on Mineral Resources and Mineral Reserves, adopted
by the CIM Council, as may be amended from time to time by the CIM
("CIM Standards"). There can be no assurance that mineral resources
will ultimately be converted into mineral reserves. Mineral
resources are not mineral reserves and do not have demonstrated
economic viability. This news release uses the terms "measured",
"indicated" and "inferred" resources. U.S. persons are advised that
while such terms are recognized and required by Canadian
regulations, the U.S. Securities and Exchange Commission does not
recognize them. "Inferred Resources" have a great amount of
uncertainty as to their existence and as to their economic and
legal feasibility. It cannot be assumed that all or any part of an
inferred resources will ever be upgraded to a higher category.
Under Canadian rules, estimates of inferred resources may not form
the basis of feasibility or other economic studies. U.S. persons
are cautioned not to assume that all or any part of measured or
indicated resources will ever be converted into reserves. U.S.
persons are also cautioned not to assume that all or any part of an
inferred mineral resource exists, or is economically or legally
mineable. Neither the TSX Venture Exchange Inc. 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. Yellowhead Mining Inc. CONTACT: --
Ronald Handford, Executive Vice President,
CorporateDevelopment:rhandford@yellowheadmining.comTel.
604.681.1709 ext. 204Website: www.yellowheadmining.comTwitter:
http://twitter.com/YMI_Mining
Copyright
Yellowhead Mining (TSXV:YMI)
Historical Stock Chart
From May 2024 to Jun 2024
Yellowhead Mining (TSXV:YMI)
Historical Stock Chart
From Jun 2023 to Jun 2024