Wescan Goldfields Inc. announces second quarter results



    Stock Symbol: WGF: TSX-V

    SASKATOON, Aug. 29 /CNW/ - Wescan Goldfields Inc. ("Wescan" or the
"Company") reports the unaudited results of Wescan's operations for the
quarter ended June 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

    
    -   Airborne geophysical survey conducted over claims in Athabasca Basin
        region.
    -   Resumed exploration on Fork Lake (Jasper) property.
    -   Option agreement signed with Alto-Ventures Inc.
    -   Successful completion of one financing subsequent to quarter-end.
    -   Working capital of $3.7 million at June 30, 2007.
    -   Issued and outstanding shares of 59,095,166 at June 30, 2007.
    

    Athabasca Basin Properties

    Fugro Airborne Surveys Ltd. was contracted in the second quarter of 2007,
to fly the geophysical survey over the Fir Island uranium claims that were
acquired in 2006. These claims are part of the Wescan - Santoy joint venture,
of which Santoy Resources Ltd. is the operator. Approximately 650
line-kilometers were flown using a standard magnetometer and electromagnetic
system. The results of the survey established that the expression of the Black
Lake Fault was well defined by both the magnetic and electromagnetic data, as
well as the terrain itself. Conductive response was noted along the Black Lake
Fault and along other magnetic lineaments.

    Fork Lake Property

    In the second quarter of 2007, Wescan's exploration program on this
property focused on the soil sampling program that commenced last year as well
as the completion of the grid. The areas that were identified in 2006 for
follow-up study were re-sampled at much more detailed spacing. Approximately
40 line-kilometers have been worked with about 800 soil and 40 rock samples
submitted for analyses. Preliminary results have indicated several new target
areas.

    Jojay Lake Property

    During the quarter, the Company hired an independent contractor to
perform a scoping study on the Jojay Lake property. This study is intended to
bring the Jojay Lake property reporting in compliance with National Instrument
43-101 standards. The initial work on the Jojay Lake property in the quarter
re-established ground locations of drill-holes, trenches, grid-lines and
roads. To date, 4 trenches and 37 drill-holes have been located and marked and
this information will be used in the up-coming scoping study. A contract has
been awarded to Can North (a Saskatoon based environmental consulting firm) to
carry out an environmental baseline study on the project area which is
necessary to permit a future underground exploration program.

    Mud Lake Option Agreement

    In the second quarter of 2007, Wescan entered into an option agreement
with Alto Ventures Ltd. (Alto), (ATV: TSX-V). Under the terms of the
agreement, Wescan has an exclusive and irrevocable option to acquire an
undivided 50% interest in Alto's Mud Lake Project by making $600,000 in
exploration expenditures and issuing 150,000 Wescan shares to Alto over a two
year period. Upon exercising the option by Wescan at the completion of the two
year term, the parties will enter into a 50:50 joint venture agreement to
carry out on-going exploration and or development. Alto will remain the
project operator until the completion of a positive pre-feasibility study, at
which time Wescan will have the option to assume the role of operator. On
June 18, 2007 Wescan issued 50,000 shares valued at $17,000 as part of the
agreement.

    Financing

    On July 18, 2007, The Company completed a non-brokered private placement
of 3,888,750 flow-through shares at 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 June 30, 2007, Wescan's cash balance, which included cash and
short-term investments, totaled $3.9 million. The Company recorded a net loss
of $325,564 ($0.01 per share) compared to a net loss of $272,672 ($0.01 per
share) for the same period in 2006. Wescan is an exploration company that
normally has operating deficits.

    
    Selected financial highlights include:
    -------------------------------------------------------------------------
                                                        As at       As at
                                                       June 30,  December 31,
    Consolidated Balance Sheets                         2007         2006
    -------------------------------------------------------------------------
    Current assets                                  $ 4,001,702  $ 5,333,315
    -------------------------------------------------------------------------
    Capital and other assets                          6,696,625    5,927,897
    -------------------------------------------------------------------------
    Current liabilities                                 284,708      155,034
    -------------------------------------------------------------------------
    Future income tax liability                         182,000      402,000
    -------------------------------------------------------------------------
    Share capital                                    11,222,312   11,205,312
    -------------------------------------------------------------------------
    Contributed surplus                                 673,147      496,427
    -------------------------------------------------------------------------
    Deficit                                           1,663,840      997,561
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                         Three months  Three months  Six months   Six months
    Consolidated             Ended        Ended        Ended        Ended
     Statements of          June 30,     June 30,     June 30,     June 30,
     Income (Loss)            2007         2006         2007         2006
    -------------------------------------------------------------------------
    Interest Income       $    36,086  $    53,417  $    88,819  $   105,892
    -------------------------------------------------------------------------
    Operating Expenses        485,650      427,089      975,098      579,848
    -------------------------------------------------------------------------
    Loss for the period
     before other items      (449,564)    (373,672)    (886,279)    (473,956)
    -------------------------------------------------------------------------
    Net loss for the
     period                  (325,564)    (272,672)    (666,279)    (125,956)
    -------------------------------------------------------------------------
    Loss per share              (0.01)       (0.01)       (0.01)       (0.00)
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                         Three months  Three months  Six months   Six months
    Consolidated             Ended        Ended        Ended        Ended
     Statements of          June 30,     June 30,     June 30,     June 30,
     Cash Flows               2007         2006         2007         2006
    -------------------------------------------------------------------------
    Cash flows from
     operating
     activities           $  (363,152) $  (265,814) $  (634,544) $  (399,338)
    -------------------------------------------------------------------------
    Cash flows from
     investing
     activities              (261,002)    (750,374)    (668,112)  (2,015,119)
    -------------------------------------------------------------------------
    Cash flows from
     financing
     activities                     -      199,415            -    1,024,643
    -------------------------------------------------------------------------
    Decrease in cash
     position                (624,154)    (816,773)  (1,302,656)  (1,389,814)
    -------------------------------------------------------------------------
    Cash position -
     beginning of period    4,545,772    5,658,418    5,224,274    6,231,459
    -------------------------------------------------------------------------
    Cash position -
     end of period          3,921,618    4,841,645    3,921,618    4,841,645
    -------------------------------------------------------------------------
    

    Outlook

    As at August 24, 2007, the Company has $4.5 million in cash and cash
equivalents that will partially be used to continue exploration programs on
the Jojay, Fork 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; OR Mr. Todd M. Grychowski, Acting Chief Financial Officer, 600 - 224
4th Avenue South, Saskatoon, SK, S7K 5M5, PH: (306) 664-2422, FAX: (306)
667-3557

Organization Profile

Wescan Goldfields Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890