Wescan Goldfields Inc. Announces Third Quarter Results



    Stock Symbol: WGF: TSX-V

    SASKATOON, SK, Nov. 29 /CNW/ - Wescan Goldfields Inc. ("Wescan" or the
"Company") reports the unaudited results of Wescan's operations for the
quarter ended September 30, 2007 have been filed and may be viewed at
www.sedar.com. A summary of key financial and operating results for the
quarter follows:

    
    Highlights

    -   Continued uranium exploration in Athabasca Basin region.
    -   Announced commencement of drilling programs on its 100% owned Jojay
        and Fork Lake Projects in Northern Saskatchewan's Greenstone Belt.
    -   Approval of a $300,000 surface exploration program and budget for the
        Mud Lake property in the Beardmore-Geraldton Gold Belt.
    -   Successful completion of a non-brokered private placement of
        3,888,750 flow-through shares resulting in a total of 62,983,916
        issued and outstanding shares at September 30, 2007.
    -   Working capital of $4.4 million at September 30, 2007.
    

    Athabasca Basin Properties

    During the quarter, Wescan and its 50:50 joint venture partner and
operator, Santoy Resources Ltd. reported on their uranium exploration joint
venture in the Athabasca Basin in Northern Saskatchewan. The joint venture is
comprised of six projects totaling 134,217 hectares (ha). A significant
exploration plan and budget was approved by the joint venture for the current
year, to ensure that the current land package was maintained in good standing.
The planned field work program was initiated during the quarter including
boulder, soil and lake sediment sampling on the properties and additional
analysis of previous geophysics airborne surveys; the results of these surveys
are still pending.

    Fork Lake and Jojay Projects

    The Company announced the commencement of drilling programs on its 100%
owned Jojay and Fork Lake gold projects in Northern Saskatchewan's Greenstone
Belt. Wescan awarded contracts to carry out drill programs valued at $900,000
for the two projects with possible extensions to the contract based on the
results of the initial phases of the drilling programs.
    Drilling on the Fork Lake project will include the follow-up of targets
identified from soil sampling and prospecting programs carried out during the
summer of 2006 and 2007. An initial drill program of an estimated 2,500 meters
will be carried out and additional holes may be added depending on the results
of the initial program.
    Drilling on Wescan's advanced stage Jojay project is planned for the
fourth quarter of 2007, following completion of the drill program on the
Company's Fork Lake project. An initial drill program of approximately 3,500
meters is planned for phase I with a possible extension to a phase II and
phase III; it is anticipated that the drill program will extend into the first
quarter of 2008. Wescan previously announced (Wescan News Release June 13,
2007) the award of a contract to a Saskatoon based consulting engineering firm
(AMEC) to carry out a scoping study of the Jojay project to evaluate the
economics of the project in anticipation of moving to an underground bulk
sample phase and with the intention of completing a NI 43-101 compliant
technical report and resource estimate. The initial drill program will be
targeted as an infill program to assist in the completion of the resource
estimate. The additional phases of the program will be focused on extending
the resource to depth and testing for new areas of parallel zones of
mineralization.

    Mud Lake Option Agreement

    Wescan and Alto, announced the approval of a $300,000 surface gold
exploration program and budget for the Mud Lake property in the
Beardmore-Geraldton Gold Belt. The program included mechanical stripping and
trenching which was scheduled to start in mid-September followed by diamond
drilling in October or early November.
    In addition to the surface exploration program, Wescan and Alto also
announced that a contract had been executed for diamond drilling on the
Wescan-Alto Mud Lake property. The drill contract stipulates a minimum of
1,200 meters of drilling in 18 to 20 holes and the drilling is scheduled to
start in November 2007. The Mud Lake property lies adjacent to the Hercules
property where Kodiak Exploration Ltd. recently reported drilling results
confirming significant gold mineralization, including 38.47 g/t gold across
1.6 m in drill core and 32.96 g/t gold across 11.6 m in surface channel
samples (see Kodiak Exploration news release dated October 1, 2007).
    Surface trenching, washing and sampling programs were completed in
September in two areas along the main Mud Lake Shear (MLS) to fill gaps along
strike between previously discovered gold showings. Samples from the trenched
areas were delivered for analyses and results are expected within the next
four to six weeks.
    The November 2007 drilling will, in part follow-up on gold mineralization
intersected at two of the three occurrences drilled previously and test for
the first time, another three occurrences along the MLS which have yet to be
drill tested. This work is part of a longer term strategy to evaluate each of
the surface occurrences with diamond drilling and start to delineate in detail
those that display continuity of mineralization and grade and show potential
for the concentration of economic mineralization.
    Wescan and Alto entered into an Option Agreement on the above Mud Lake
property late in the second quarter of 2007. Under the terms of the Option
Agreement, Wescan can earn 50% in the property by funding $600,000 in
exploration and issuing a total of 150,000 Wescan shares to Alto over two
years. The surface trenching, washing and sampling and upcoming diamond
drilling programs are funded by Wescan in accordance with the terms of the
Option Agreement.

    Financing

    On July 18, 2007, the Company completed a non-brokered private placement
of 3,888,750 flow-through shares at a price of $0.40 per share for gross
proceeds of $1,555,500. The Company paid finders fees equal to 5% of the gross
proceeds raised by the finder under the offering and issued finder warrants
equal to 5% of the gross proceeds sold by such finder pursuant to the
offering.

    Quarter End Results

    As at September 30, 2007, Wescan's cash balance, which included cash and
short-term investments, totaled $4.7 million. The Company recorded a net loss
of $197,915 ($0.00 per share) compared to a net loss of $176,017 ($0.00 per
share) for the same period in 2006. Wescan is an exploration company that
normally has operating deficits.

    Year to Date Results

    For the nine-month period ended September 30, 2007, the Company recorded
a net loss of $864,195 ($0.01 per share) compared to a net loss of $301,973
($0.01 per share) for the same period in 2006. The loss for the period ended
September 30, 2007 was mitigated by non-cash income tax recoveries of $237,500
(2006 - $534,000). The income tax recovery is the result of the Company
recording certain tax pools to the extent a future income tax liability was
created upon the renunciation of flow-through expenditures. Without the income
tax recovery the loss for the nine-month period would have been $1,101,695
(2006 - $835,973). The primary difference from 2006 to 2007 relates to
increased administration costs over the same period of 2006.

    
    Selected financial highlights include:
    -------------------------------------------------------------------------
                                                     As at          As at
                                                 September 30,   December 31,
    Consolidated Balance Sheets                       2007           2006
    -------------------------------------------------------------------------
    Current assets                                $ 4,809,681    $ 5,333,315
    -------------------------------------------------------------------------
    Capital and other assets                        7,304,282      5,927,897
    -------------------------------------------------------------------------
    Current liabilities                               423,803        155,034
    -------------------------------------------------------------------------
    Future income tax liability                       131,000        402,000
    -------------------------------------------------------------------------
    Share capital                                  12,701,688     11,205,312
    -------------------------------------------------------------------------
    Contributed surplus                               719,227        496,427
    -------------------------------------------------------------------------
    Deficit                                         1,861,755        997,561
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Consolidated   Three months   Three months   Nine months    Nine months
     Statements       Ended          Ended          Ended          Ended
     of Income     September 30,  September 30,  September 30,  September 30,
     (Loss)            2007           2006           2007           2006
    -------------------------------------------------------------------------
    Interest Income $    51,023    $    51,228    $   139,842    $   157,120
    -------------------------------------------------------------------------
    Operating
     Expenses           266,438        413,245      1,241,537        993,093
    -------------------------------------------------------------------------
    Loss for the
     period before
     other items       (215,415)      (362,017)    (1,101,695)      (835,973)
    -------------------------------------------------------------------------
    Net loss for
     the period        (197,915)      (176,017)      (864,195)      (301,973)
    -------------------------------------------------------------------------
    Loss per share        (0.00)         (0.00)         (0.01)         (0.01)
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Consolidated   Three months   Three months   Nine months    Nine months
     Statements       Ended          Ended          Ended          Ended
     of Cash       September 30,  September 30,  September 30,  September 30,
     Flows             2007           2006           2007           2006
    -------------------------------------------------------------------------
    Cash flows from
     operating
     activities    $  (115,498)   $   158,644    $  (709,289)    $  (247,870)
    -------------------------------------------------------------------------
    Cash flows from
     investing
     activities       (544,138)      (636,644)    (1,253,003)     (2,644,587)
    -------------------------------------------------------------------------
    Cash flows from
     financing
     activities      1,451,189          3,780      1,451,189       1,028,423
    -------------------------------------------------------------------------
    Increase
     (decrease) in
     cash position     791,553       (474,220)      (511,103)     (1,864,034)
    -------------------------------------------------------------------------
    Cash position
     - beginning
     of period       3,921,618      4,841,645      5,224,274       6,231,459
    -------------------------------------------------------------------------
    Cash position
     - end of
     period          4,713,171      4,367,425      4,713,171       4,367,425
    -------------------------------------------------------------------------
    

    Outlook

    As at November 22, 2007, the Company has $4.6 million in cash and cash
equivalents that will partially be used to continue exploration programs on
the Jojay, Fork Lake, Mud Lake and other properties, fund its 50% share of
future exploration programs on the Company's uranium property interests, and
evaluate the potential for acquisition of more mineral properties in Canada
and internationally.

    Caution Regarding Forward-looking Information

    From time to time, Wescan makes written or oral forward-looking
statements within the meaning of certain securities laws, including the "safe
harbour" provisions of the Ontario Securities Act. Wescan may make such
statements in this news release, in other filings with Canadian regulators, in
reports to shareholders or in other communications. These forward-looking
statements include, among others, statements with respect to Wescan's
objectives for the ensuing year, our medium and long-term goals, and
strategies to achieve those objectives and goals, as well as statements with
respect to our beliefs, plans, objectives, expectations, anticipations,
estimates and intentions. 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. In particular, statements regarding Wescan's
future operations, future exploration and development activities or other
development plans contain forward-looking statements.
    All forward-looking statements and information are based on Wescan's
current beliefs as well as assumptions made by and information currently
available to Wescan concerning anticipated financial performance, business
prospects, strategies, regulatory developments, development plans,
exploration, development and mining activities and commitments. Although
management considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect.
    By their very nature, forward-looking statements involve inherent risks
and uncertainties, both general and specific, and risks exist that
predictions, forecasts, projections and other forward-looking statements will
not be achieved. We caution readers not to place undue reliance on these
statements as a number of important factors could cause the actual results to
differ materially from the beliefs, plans, objectives, expectations,
anticipations, estimates and intentions expressed in such forward-looking
statements. These factors include, but are not limited to, developments in
world 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 or its joint venture partners; 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; operational and infrastructure
risks and the additional risks described in Wescan's most recently filed
annual and interim MD&A and Wescan's anticipation of and success in managing
the foregoing risks.
    Wescan cautions that the foregoing list of factors that may affect future
results is not exhaustive. When relying on our forward-looking statements to
make decisions with respect to Wescan, investors and others should carefully
consider the foregoing factors and other uncertainties and potential events.
Wescan does not undertake to update any forward-looking statement, whether
written or oral, that may be made from time to time by Wescan or on our
behalf.

    %SEDAR: 00021049E




For further information:

For further information: Mr. M.F. (Moe) Lindsay, President, 600 - 224,
4th Avenue South, Saskatoon, SK, S7K 5M5, PH: (306) 664-2422, FAX: (306)
667-3557; Mr. Todd M. Grychowski, Chief Financial Officer, 600 - 224, 4th
Avenue South, Saskatoon, SK, S7K 5M5, PH: (306) 664-2422, FAX: (306) 667-3557

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Wescan Goldfields Inc.

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