 | | | January 29, 2009
North American Tungsten Corporation Ltd. Releases Annual Financial Results For September 30, 2008 And Updated Reserves For Cantung
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| | North American Tungsten Corporation Ltd. (TSXV: NTC) ("NTC" or "the Company") announces the release of its annual financial statements for the period ending September 30, 2008. Net production was 272,483 mtu's with an average grade of 1.03% WO3 and recovery of 73.5% (compared to 2007: 286,031 mtu's, average grade 1.16% WO3 and recovery 74.1%).
The full financial statements and MD&A report can be downloaded from the company website www.northamericantungsten.com under the "investor" tab and SEDAR www.sedar.ca
Annual Highlights
- Quarterly production showed significant improvements in the second half of the year:
- Q1 65,297 mtu's
- Q2 57,660 mtu's
- Q3 73,893 mtu's
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- Q4 75,633 mtu's
- The Mactung feasibility study was brought close to completion.
- Tons milled at Cantung increased 8.4% over fiscal 2007 to 398,845 tons, production decreased from 286,031 MTUS in 2007 to 272,483 MTUS in 2008.
- Tungsten sales revenues were $56.0 million compared to $59.2 million in 2007.
- Tungsten business expanded into value added tolling including ammonium paratungstate and tungsten blue oxide.
- The net loss was $11.7 million in 2008 compared to a net loss of $1.2 million in 2007.
- Net proceeds from capital stock issuances were $ 4.8 million.
- New and expanded short term loan facilities total $8.6 million.
- $9.9 million was invested in property plant and equipment and mineral properties in 2008 (Cantung $2.9, US Plant $0.2, US Deferred Development $0.8 million and Mactung $5.9)
- Year end working capital was $0.7 million compared to $12.6 million in 2007.
- Forward integration into tungsten powders and composites is proceeding as from December 2008 through the 43.2% interest in TDI.
Updated Reserves at Cantung Mine
The Company is also pleased to announce the completion of a report on updated reserves and resources for the Cantung Mine. The full report can be downloaded from SEDAR www.sedar.ca
MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
Mineral Resources for the Cantung Mine, as of September 30, 2008, are listed below in Table 1
TABLE 1 CANTUNG INDICATED MINERAL RESOURCES
Zone |
Tons |
Grade (WO3 %) |
STU'S |
West Extension |
250,053 |
1.05 |
262,859 |
West Extension Below 3700 elv. |
231,011 |
1.24 |
287,136 |
E-Zone |
48,748 |
1.23 |
59,940 |
Shop Zone |
8,155 |
0.70 |
5,709 |
Main Zone Pillars |
184,203 |
1.43 |
263,641 |
Central Flats |
159,395 |
1.23 |
195,573 |
South Flats |
71,021 |
1.42 |
100,662 |
Stockpile |
9,091 |
0.62 |
5,636 |
TOTAL Indicated Resources |
961,677 |
1.23 |
1,181,156 |
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Zone |
Tons |
Grade (WO3 %) |
STU'S |
Pit-PUG Total |
468,606 |
1.3 |
609,188 |
Grand Total |
1,430,283 |
1.25 |
1,790,344 |
Notes:
1. Mineral Resources conform to CIM and NI43-101 requirements.
2. Mineral Resources are estimated at a cutoff grade of 0.8% WO3 for underground as well as Pit and Pug
3. All Mineral Resources are listed as INDICATED
Mineral Resources are inclusive of Mineral Reserves; excess resources may at some time in the future become reserves, however, at present they cannot be included in the estimate of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Mineral Reserves include material for which there is a mining plan, and at least a conceptual design. Mineral Reserves for the Cantung Mine, as of September 30, 2008, are summarized in Table 2 below.
TABLE 2 CANTUNG PROBABLE MINERAL RESERVES
Cantung Probable Mineral Reserves
Zone |
Tons |
Grade (WO3 %) |
STU'S |
West Extension |
163,087 |
1.09 |
177,654 |
West Extension Below 3700el |
148,449 |
1.06 |
157,148 |
E-Zone |
20,505 |
1.37 |
28,175 |
Shop Zone |
8,155 |
0.70 |
5,709 |
Main Zone Pillars |
246,523 |
1.14 |
282,085 |
Central Flats |
59,896 |
1.09 |
65,062 |
Stockpile |
9,091 |
0.62 |
5,660 |
TOTAL Probable Reserves |
655,706 |
1.10 |
721,492 |
Notes:
1. Mineral Reserves conform to CIM and NI43-101 requirements.
2. All Mineral Reserves are classified as Probable.
3. Mineral Reserves are estimated at a cutoff grade of 0.80% WO3.
4. A minimum mining width of 15 feet was used.
NTC notes that some mining zone nomenclature may cause confusion for those unfamiliar with the Cantung deposits. The E-Zone refers both to the entire underground orebody, and also to the few remaining stopes that do not fit into a subzone category such as Main, South Flats, or West Extension.
Qualified Persons
J. Britt Reid, P.Eng. the Company's COO and a qualified person as defined by NI 43-101 has reviewed and approved the technical disclosure contained in the news release.
ABOUT NORTH AMERICAN TUNGSTEN CORPORATION LTD
The Company is a publicly listed Tier 1 Junior Resource Company engaged primarily in the operation, development, and acquisition of tungsten and other related mineral properties in Canada. The Company's 100% owned Cantung mine and Mactung development project make it one of the few tungsten producers with a strategic asset in the western world. Mactung is one of the world's largest known undeveloped high grade tungsten-skarn deposits.
ON BEHALF OF THE BOARD OF DIRECTORS
Stephen M. Leahy
Chairman & CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy
or accuracy of this release.
Cautionary Note
Safe Harbour Statement under the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation: Except for the statements of historical fact contained herein, the information presented contains "Forward‐looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and similar Canadian legislation. Often, but not always, forward‐looking statements can be identified by the use of words such as "plans", "expects," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," "believes," or variation of such words and phrases that refer to certain actions, events or results to be taken, and other factors which may cause the actual results, performance or achievements of North American Tungsten Corporation Ltd. to be materially different from any future results, performance or achievements expressed or implied by such forward‐looking statements. Such factors include, among others, the actual results of reclamation activities, the estimation or realization of mineral reserves and resources, the timing and amount of estimated future production, costs of production, capital expenditures, future prices of commodities, possible variations in ore grade or recovery rates, efficacy and efficiency of milling process, failure of plant, equipments or processes to operate as anticipated, accidents, labour disputes and other risks in the mining industry. Although North American Tungsten Corporation Ltd. has attempted to identify important factors that could cause actions, events or results to differ materially from those described in forward‐looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward‐looking statements contained herein and in North American Tungsten Corporation Ltd.'s other filing incorporated by reference.
INVESTOR CONTACT:
Toni Williamson, info@natungsten.com
Vancouver Office: +1.604.684.5300 Fax: +1.604.684.2992
Toronto Office: +1.416.602.2665
www.northamericantungsten.com |
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