Yellowhead Mining Inc. - 2014 First Quarter Report

VANCOUVER, May 8, 2014 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the "Company") (TSX: YMI) reports its results of operations for the first quarter of the financial year ended March 31, 2014.

For the full condensed consolidated interim financial statements and management discussion & analysis for the first financial quarter ended March 31, 2014, please see SEDAR at www.sedar.com or the Company's website at www.yellowheadmining.com.

Highlights

Highlights for the first quarter ended March 31, 2014 include:

  • Initiating the update of the feasibility study for the Harper Creek Project ("Harper Creek Project"), including updating the resource and reserve estimates, updating estimates of initial capital costs, sustaining capital costs and operating costs, and the financial analysis of the Harper Creek Project

  • Initiating the revision of the application for an environmental assessment certificate ("EA Application") for the Harper Creek Project

Strategy for 2014

The Company's strategy for 2014 includes:

  • Updating the feasibility study for the Harper Creek Project, with a target date for completion by the end of the second quarter of 2014

  • The updated feasibility study will also incorporate a series of design changes that have been made to the Harper Creek Project over the past two years in order to further mitigate potential environmental impacts resulting from the development of the Harper Creek Project

  • Updating, revising and re-submitting the EA Application for the Harper Creek Project to the British Columbia Environmental Assessment Office by the end of the third quarter of 2014

  • Continuing public consultation with all stakeholders, including local communities and local First Nations, regarding any potential environmental and socio-economic impacts of the development of the Harper Creek Project and the Company's proposed mitigation strategies

  • Continuing negotiations with local First Nations with respect to an impact benefits agreement

Review of Quarterly Results
 (Amounts are expressed in thousands of Canadian dollars, except per-share amounts)


Q1
2014

Q1
2013

Administrative expenses

$    519

$    984

Exploration and evaluation expenses

918

1,956

Other income

(22)

(129)

Net loss and comprehensive loss for the period

1,415

2,811

Basic and diluted loss per share for the period

$   0.01

$   0.04

 

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.

The loss in Q1 2014 was $1.42M compared to $2.81M in Q1 2013.  This decrease in loss of $1.40M was primarily due to a decrease in administrative expenses of $465K and a decrease in exploration and evaluation expenses of $1.04M.  At the end of 2013, the Company undertook a reduction in general and administrative expenses, including staffing levels, and this resulted in lower consulting fees, lower investor relations activities, lower wages and benefits, and lower professional fees in Q1 2014 compared to Q1 2013.  The decrease in exploration and evaluation expenses was due to expenses related to an in-fill drilling program initiated in late 2012 and completed in early 2013, and there were no costs associated with this program in Q1 2014.  Exploration and evaluation expenses in Q1 2014 primarily related to the update of the feasibility study and the update and revision of the EA application.  Costs associated with activities related to the EA Application increased from $290K in Q1 2013 to $665K in Q1 2014.

Cash and Cash Equivalents

The Company had cash and cash equivalents of $8.38M as at March 31, 2014, as compared to cash and cash equivalents of $10.00M as at December 31, 2013.  As at March 31, 2014, the Company had working capital of $8.32M, as compared to working capital of $9.70M as at December 31, 2013.

The Company's focus going forward is continuing the development of the Harper Creek project. Major activities include completing the Environmental Assessment process, advancing the Mine Permitting process and pursuing funding activities to increase its working capital to fund the development of the Harper Creek project.  The Company believes its current working capital is sufficient for the next twelve months of general and administrative activities, however, additional funding will be required by the Company to complete its strategic objectives and to continue as a going concern.

About Yellowhead Mining Inc.

Yellowhead Mining Inc. is a development stage company with a 100% interest in the Harper Creek copper-gold-silver project located in the North Thompson region of British Columbia, Canada.  The proposed Harper Creek mine will be a large scale, long life, low cost open pit copper mine, has a NI 43-101 compliant feasibility study, and is currently in the environmental permitting phase of development.

For more information on Yellowhead and the Harper Creek Project, please visit Yellowhead's website at www.yellowheadmining.com.

Forward Looking Statements

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 projected results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Yellowhead.

SOURCE: Yellowhead Mining Inc.

For further information: Frank D. Wheatley, Chief Executive Officer, 604-681-1709 Ext. 212, Email: fwheatley@yellowheadmining.com, Website: www.yellowheadmining.com, Twitter: http://twitter.com/YMI_Mining

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