| ||June 01, 2009|
North American Tungsten Corporation Ltd. Releases Its Second Quarter Financial Statements For The Period Ended March 31, 2009
- CanTung production up 29% (74,206 metric tonne units (mtu's)) over Q2 2008
- Recoveries averaged 76.5% versus 69.5% in Q2 2008
- Gross operating margin increased to $0.8 million from a loss of $3.5 million in Q2 2008
- Net loss (after future income tax recovery) of $0.3 million compared to a net loss of $5.5 million in Q2 2008
VANCOUVER, BRITISH COLUMBIA: North American Tungsten Corporation Ltd. (or "the Company") (NTC: TSX-V) today announced its results for the three and six months ended March 31, 2009, (the "Second Quarter" or "Q2" -- refer to the three month period ended March 31, 2009) including the results of operations at its Cantung tungsten mine in the Northwest Territories.
For the Second Quarter, North American Tungsten reports a net loss of $0.3 million; by way of comparison, in Q2 of Fiscal 2008, the Company registered a net loss of $5.5 million. Sales revenues in Q2 were $14.0 million from 58,507 mtu's of concentrates and 3,000 mtu's of tungsten blue oxide ("TBO") compared to $12.5 million in Q2 of Fiscal 2008 from sales of 58,840 mtu's of concentrates and 6,035 mtu's of ammonium paratungstate ("APT"). The gross operating margin increased from a loss of $3.5 million in Q2 2008 to earnings of $0.8 million in Q2 2009.
In Q2, the Cantung mine produced 74,206 metric tonne units (MTUs) (154,184 mtu's for the six months) - a 29% increase over Q2 of 2008. The mill processed 96,190 tons grading 1.11% WO3 (tungsten trioxide) compared with 95,877 tons grading 0.95% WO3 Q2 of Fiscal 2008. Recovery for the three month period averaged 76.5%, compared to 69.5% in Q2 of 2008.
"We are very pleased with the continued high level of production at our CanTung Mine. Soft World markets, which are the main cause for our rising inventory, have not been easy to deal with however I am impressed with our Team and the innovative responses we have seen." the Company's Chairman & CEO, Stephen Leahy, reported.
During the First Quarter, North American Tungsten released an NI 43-101 compliant report on updated reserves and resources for the Cantung mine. As of Sept. 30, 2008, probable reserves were estimated at 655,706 tons with an average grade of 1.1% WO3.
Indicated mineral resources at Cantung are estimated at 1.43 million tons grading 1.25% WO3. (See News Release dated January 29, 2009)
During the Second Quarter the Company released (See News Release dated February 23, 2009) and subsequent to March 31, 2009 filed its bankable feasibility study for the Mactung property at NTC Corp. Ltd. Announces Q2 Financial Statements www.sedar.com (See News Release dated April 13, 2009). Mactung is one of the world's largest known high grade undeveloped tungsten-skarn deposit. Indicated mineral resources at Mactung are estimated at 33 million tonnes grading 0.88% WO3. Underground indicated mineral reserves have been calculated at 8.2 million tonnes grading 1.09% WO3. North American Tungsten has initiated an application on the Mactung project to the environmental review process managed by the Yukon Environmental and Socio-economic Assessment Board. (See News Release dated February 23, 2009).
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 both a producing mine and strategic development 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
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." Cautionary Note: The Company relies upon litigation protection for "forward-looking" statements.
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.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: This press release may use the terms "Measured," "indicated" and "inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulators, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.
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