VANCOUVER, Feb. 14, 2012 /CNW/ - Sunward Resources Ltd. ("Sunward" or the "Company") (TSX-V: SWD) (OTCQX: SNWRF) announces its financial results for the quarter ended December 31, 2011. All figures are expressed in US dollars, unless otherwise stated.
For the nine months ended December 31, 2011, the Company expended $13,461,120 in exploration and related expenditures advancing its mineral property at 100% - owned Titiribi Project, located approximately 70 kilometres southwest of the city of Medellin, in Colombia. The Company expended $2,140,888 in exploration expenditures for the comparative nine months in the previous year. The overall loss per share for the nine month period in 2011 was $0.11 cents per share compared to a loss of $0.08 cents per share for the same period in the previous year.
At the December 31, 2011, the Company's cash and cash equivalent position amounted to $55,882,698.
Currently, Sunward has 11 drill rigs operating at Titiribi. The Company is adequately funded for its planned exploration and corporate development programs.
The following tables show selected comparative consolidated financial information for the three months and nine months ended December 31, 2011 and December 31, 2010 respectively.
| Three months ended | Nine Months ended | |||||||||
| December 31 2011 |
December 31 2010 |
December 31 2011 |
December 31 2010 |
|||||||
| EXPENSES | ||||||||||
| Administrative | $ | 325,814 | $ | 260,897 | $ | 1,177,818 | $ | 364,106 | ||
| Corporate consulting | 85,923 | 134,264 | 204,590 | 223,795 | ||||||
| Depreciation | 58,079 | - | 138,258 | - | ||||||
| Exploration expenses | 6,181,332 | 1,247,419 | 13,461,120 | 2,140,888 | ||||||
| Investor communications | 149,403 | 36,504 | 420,134 | 91,724 | ||||||
| Professional fees | 56,517 | 44,424 | 221,799 | 136,347 | ||||||
| Stock-based compensation | 285,207 | 167,376 | 3,713,643 | 1,998,474 | ||||||
| Transfer agent and filing fees | 52,295 | 26,638 | 80,860 | 57,413 | ||||||
| Travel | 101,999 | 127,687 | 322,573 | 194,310 | ||||||
| Loss for the period before other items | (7,296,569) | (2,045,209) | (19,740,795) | (5,207,057) | ||||||
| OTHER ITEMS | ||||||||||
| Interest income | 50,588 | 80,042 | 85,292 | 84,489 | ||||||
| Foreign exchange gain (loss) | 513,569 | (116,011) | 338,853 | (66,558) | ||||||
| Gain on sale of La Muriel Mining Corporation | 982,134 | - | 982,134 | - | ||||||
| Loss for the period before income taxes | (5,750,278) | (2,081,178) | (18,334,516) | (5,189,126) | ||||||
| Deferred income tax recovery | 1,708,652 | - | 3,583,044 | - | ||||||
| Loss for the period | (4,041,626) | (2,081,178) | (14,751,472) | (5,189,126) | ||||||
| Cumulative translation adjustment | - | 1,828,368 | - | 2,336,181 | ||||||
| Comprehensive loss for the period | $ | (4,041,626) | $ | (252,810) | $ | (14,751,472) | $ | (2,852,945) | ||
| Basic and diluted loss per common share | $ | (0.03) | $ | (0.02) | $ | (0.11) | $ | (0.08) | ||
| Basic and diluted weighted average number of common shares outstanding |
136,760,999 | 84,620,283 | 133,649,467 | 64,700,213 | ||||||
The selected comparative consolidated financial information, should be read in conjunction with the Company's condensed interim consolidated financial statements for the three and nine months ended December 31, 2011, audited financial statements dated March 31, 2011, Annual Information Form dated January 15, 2012, Technical Reports dated April 12, May 19, 2010, and September 21, 2011, each of which was prepared by an independent "qualified person", as defined in National Instrument 43-101 ("NI 43-101") of the Canadian Securities Administrators. These documents are available on the SEDAR website at www.sedar.com and Sunward Resources' website at www.sunwardresources.com.
About The Company:
Sunward Resources is a well-capitalized, Canadian-based company focused on the exploration of gold/copper porphyry projects in Colombia. The Company has strong operational expertise in Colombia and is currently drilling its Titiribi Project southwest of Medellin with a goal of increasing the NI 43-101 Indicated and Inferred resources.
About the Titiribi Project:
Sunward Resources' Titiribi Project hosts an NI 43-101-compliant Indicated Mineral Resource of 2.2 million ounces of gold within 142.94 million tonnes grading 0.480 grams/tonne gold and 0.148% copper and an Inferred Mineral Resource of 6.08 million ounces of gold within 372.7 million tonnes grading 0.507 grams/tonne gold and 0.078% copper, both assessed using a 0.3 grams/tonne gold cut-off. Based on the above, Titiribi also hosts 465.9 million pounds of copper in the Indicated Resource and 645.7 million pounds of copper in the Inferred Resource. Titiribi thus contains 3.50 million ounces of gold equivalent in the Indicated Resource category and a further 7.90 million ounces of gold equivalent in the Inferred Resource category, calculated on the basis of a gold price of $1,114 per ounce and a copper price of $3.07 per pound (See Report dated September 2011 available at www.sunwardresources.com and on SEDAR.)
Mineralization at Titiribi is hosted within a number of porphyry stocks and porphyritic dikes and sills. The dominant mineral associated with mineralization is chalcopyrite, which occurs as disseminations and in veinlets. Plagioclase and secondary biotite are also significant within the mineralized assemblage. Mineralization appears to be related to extensive potassic alteration, with propylitic and argillic alteration also widespread, along with lesser phyllic alteration. Over 68,000 metres of drilling has been completed at Titiribi to date, including approximately 14,600 metres completed historically by previous operators.
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of Sunward Resources Ltd. and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Sunward Resources Ltd. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Sunward Resources Ltd. disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
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.
For further information:
SUNWARD RESOURCES LTD.
Corporate Contact:
Brenda Dayton
604.568.7617
[email protected]
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