Wescan Goldfields Inc. announces second quarter results

Stock Symbol: WGF: TSX-V 

SASKATOON, Aug. 24, 2012 /CNW/ - Wescan Goldfields Inc. ("Wescan" or the "Company") reports that the unaudited results of Wescan's operations for the quarter ended June 30, 2012 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

During the first half of 2012, Wescan continued the exploration of its portfolio of gold properties in the La Ronge Gold Belt in northern Saskatchewan, with the primary focus being the Jojay property.  Following the successful drill programs on its Jojay and Jasper properties in 2011, which had significant intercepts (see Wescan News Releases dated November 18, 2011 and December 8, 2011, respectively), the Company raised an additional $1.0 million in late December 2011 to continue exploring these highly prospective areas.  During the second quarter of 2012, the Company announced the results of a 1,903 metre drill program ("Phase II") on its Jojay property which included significant intercepts of gold in and outside the current Mineral Resource shell (see Wescan News Release dated May 22, 2012).

Quarterly Results

For the quarter ended June 30, 2012 the Company recorded a net and comprehensive loss of $269,384 ($0.00 per share) compared to a net and comprehensive loss of $318,793 ($0.00 per share) for the same period in 2011.  The difference between the quarter ended June 30, 2012 and 2011 is primarily due to the Company expending less on exploration during the second quarter of 2012 compared to the same period in 2011 as well as a larger recovery of flow-through share premiums as the result of the Company partially satisfying its obligation to spend certain money on qualifying exploration expenditures before December 31, 2012.

Year to Date Results

For the six months ended June 30, 2012, the Company recorded a comprehensive and net loss of $796,014 ($0.01 per share) compared to a comprehensive and net loss of $456,297 ($0.01 per share) for the same period in 2011.  This difference from 2012 to 2011 was primarily the result of higher exploration and evaluation expenditures incurred.

Selected financial highlights include:

Consolidated Statement of Financial Position			As at June 30, 2012	As at December 31, 2011
Current assets			$      256,088	$     1,137,039
Property and equipment			1,504,188	1,513,330
Current liabilities			206,150	150,018
Other liabilities			225,169	375,380
Share capital, warrants and broker warrants			19,581,114	19,610,688
Contributed surplus			2,139,841	2,110,267
Deficit			20,391,998	19,595,984
Consolidated Statements of Loss and Comprehensive Loss	Three Months Ended June 30, 2012	Three Months Ended June 30, 2011	Six Months Ended June 30, 2012	Six Months Ended June 30, 2011
Interest and other income	$           142	$       13,699	$             663	$       24,233
Operating expenses	315,019	345,409	946,888	493,447
Loss for the period before other items	314,877	331,710	946,225	469,214
Flow-through share premium recovery	(45,493)	(12,917)	(150,211)	(12,917)
Net and comprehensive loss for the period	269,384	318,793	796,014	456,297
Loss per share	0.00	0.00	0.01	0.01
Consolidated Statements of Cash Flows			Six Months Ended June 30, 2012	Six Months Ended June 30, 2011
Cash used in operations			$      (910,109)	$      (434,324)
Cash provided (used) in investing activities			-	(6,464)
Cash provided by financing activities			-	1,416,293
Increase (decrease) in cash and cash equivalents			(910,109)	975,505
Cash and cash equivalents - beginning of period			1,094,924	499,115
Cash and cash equivalents - end of period			184,815	1,474,620

Outlook

The Company has focused exploration efforts on its properties with known gold mineralization. The Company's success in raising additional flow-through financing during the fourth quarter of 2011 has allowed it to perform further exploration work on the Company's Jojay gold property in northern Saskatchewan located in the La Ronge Gold Belt and to commence a preliminary economic assessment on this property (see Wescan News Release dated May 22, 2012). The funds may also be used to complete additional exploration work on the Jasper Gold deposit also located in the La Ronge Gold Belt.  In addition, the Company intends to do a prospecting program on the Munro Lake gold property in northern Saskatchewan which is on trend with known mineralized zones in the immediate area. 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 during 2012 to meet its current commitments and ongoing working capital requirements.  Management believes the Company will have sufficient access to financial markets to continue its future plans.

The Company recently announced that Mr. Maurice F. Lindsay resigned his position as director of the Company effective August 15, 2012 for personal reasons (see Wescan News Release dated August 8, 2012). Wescan management and fellow directors acknowledge the extensive and diligent work that has been performed by Mr. Lindsay and gratefully thank him for his service to the Company.

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 pursue exploration activities, the use of such funds, 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 gold and coal 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.

For further information:

Mr. Darren S. Anderson, President
or
Mr. Harvey J. Bay, Chief Financial Officer
300 - 224 4^th Avenue South
Saskatoon, SK S7K 5M5
PH: [phone]
FAX: [phone]