Wescan Goldfields Inc. reports the unaudited results of Wescan's operations for the quarter ended June 30, 2008 have been filed and may be viewed at www.sedar.com . A summary of key financial and operating results for the quarter follows:
Highlights
- "Letters of Comfort" received from the Saskatchewan Ministry of Energy and Resources on an extensive package of coal dispositions applied for in east central Saskatchewan.
- Wescan and Alto Ventures Ltd. ("Alto) approve $300,000 exploration program and budget.
- Issued and outstanding shares of 63,045,892 at June 30, 2008.
Applications for Coal Dispositions
In the second quarter of 2008, Wescan applied for an extensive package of coal dispositions in the east central area of Saskatchewan. Coal permit applications covering approximately 253,000 hectares were submitted in accordance with the Coal Disposition Act of Saskatchewan, immediately following the announcement of a significant coal discovery in that region by Goldsource Mines Inc. (see Goldsource news release dated April 22, 2008). The near surface intersections discovered by Goldsource were made in two holes spaced 1.64 kilometres apart in an area 50 kilometres north of Hudson Bay, Saskatchewan.
In May of 2008, Wescan announced receipt of "Letters of Comfort" from the Saskatchewan Ministry of Energy and Resources stating that the majority of all coal permit applications made on behalf of the Company are "first in line" and would be given priority sequence. At that time, Wescan's priority sequenced coal permit applications totaled 253,000 hectares (2,530 square kilometres) located adjacent to and partially surrounding the coal discovered by Goldsource. The criteria for targeting the coal permit applications were: proximity to the recent coal discovery made by Goldsource; regional extent of the Cretaceous Mannville Group; and glacial overburden thickness.
Subsequent to the end of the period, Wescan announced it had received an initial package of 83 coal permit certificates from the Saskatchewan Ministry of Energy and Resources. The area covered by these initial permits is approximately 60,080 hectares (601 square kilometres) and is located west of the major coal discovery previously announced by Goldsource (see Goldsource news releases dated April 22 and April 28, 2008). These permits allow Wescan to explore the area for coal and cover a period of one year with two possible six-month extensions and convertible to a 15-year lease. The Company has a balance of 268 priority sequenced ("first in line") coal applications listed in Letters of Comfort in the Hudson Bay, Saskatchewan area from the Saskatchewan Ministry of Energy and Resources, comprising 192,640 hectares (1,936 square kilometres) remaining to be issued. Exploration permitting with Saskatchewan Environment is in progress with an initial program proposal submitted to that department. This primary drilling will focus on Wescan's southeasterly permits, located adjacent to Goldsource and proximal to their recent drilling activity.
Mud Lake Option Agreement
In the second quarter of 2008, Wescan and Alto announced that a $300,000 exploration program and budget was approved for the Wescan-Alto Mud Lake project in the Beardmore-Geraldton Gold Belt of northern Ontario. The program includes an airborne high-resolution magnetometer and XDS/VLF electromagnetic surveys as well as surface work consisting of prospecting, mechanical stripping and sampling. The geophysical work was completed in late June and the survey report is still pending. The surface work commenced in early Julyand will be followed by diamond drilling scheduled to start in late September.
Quarter End Results
As at June 30, 2008, Wescan's cash and cash equivalents balance totaled $270,462. The Company recorded a net loss of $545,313 ($0.01 per share) compared to a net loss of $325,564 ($0.01 per share) for the same period in 2008. The Company's major source of income is the result of investing excess cash reserves in short-term deposits. For the quarter ending June 30, 2008, the Company reported interest and other income of $16,280 as compared to $52,733 for the quarter ending June 30, 2008.
Total operating costs for the quarter ended June 30, 2008 equaled $670,593 compared to $485,650 for the quarter ended June 30, 2007. This represents an increase of $184,943 and is the result of increases in administration expenses and amortization and decreases in consulting and professional fees. Administration expense increased from $382,463 in the second quarter of 2007 to $615,762 for the quarter ended June 30, 2008. The $233,299 increase is predominately related to increases in personnel costs and stock based compensation during the second quarter of 2008 compared to 2007. Consulting fees were $6,027 during the second quarter of 2008 compared to $21,818 for the same period in 2007.
The higher amount in 2007 was a result of costs incurred from an executive search company. Finally, professional fees decreased from $56,703 for the second quarter of 2007 to $18,569 for the corresponding quarter in 2008. The decrease in expense was primarily related to professional fees associated with due diligence on a certain mineral property opportunity. -- www.cnxmarketlink.com
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