| ||August 26, 2009|
North American Tungsten Corporation Ltd. Releases Its Third Quarter Financial Statements For The Period Ended June 30, 2009
VANCOUVER, BRITISH COLUMBIA: North American Tungsten Corporation Ltd. (or "the Company") (NTC: TSX-V) today announced its results for the three and nine months ended June 30, 2009, (the "Third Quarter" or "Q3" -- refer to the three month period ended June 30, 2009) including the results of operations at its Cantung tungsten mine in the Northwest Territories.
- CanTung Mine production up 13% to 83,430 metric tonne units (mtu's) over
Q3 2008 (73,893 mtu's).
- Updated Cantung Probable Mineral Reserve as of July 1, 2009 is estimated at
1.02 million tons grading 1.08% WO3.
- Gross operating margin of $0.91 million in Q3 2009 compared to $0.96 million
in Q3 2008.
- Net loss (after gain on disposal of mineral property interest) of $0.8 million in
Q3 2009 compared to a net loss of $1.3 million in Q3 2008.
For the Third Quarter, the Company reports a net loss of $0.8 million after a gain on disposal of a mineral property interest of $1.0 million; by way of comparison, in Q3 of Fiscal 2008, the Company registered a net loss of $1.3 million. Sales revenues in Q3 were $15.0 million from 64,623 mtu's of concentrates and 9,026 mtu's of tungsten blue oxide ("TBO") and ammonium paratungstate ("APT") compared to $15.4 million in Q3 of Fiscal 2008 from sales of 65,140 mtu's of concentrates and 7,330 mtu's of TBO and APT. The gross operating margin remained stable at $0.91 million in Q3 2009 compared to $0.96 million in Q3 2008.
In Q3 2009, the Cantung mine produced 83,430 metric tonne units (237,614 mtu's for the nine months) - a 13% increase over Q3 of 2008. The mill processed 100,206 tons grading 1.19% WO3 (tungsten trioxide) compared with 104,489 tons grading 1.05% WO3 in Q3 of Fiscal 2008. Recovery for the three month period averaged 77.4%, compared to 74.1% in Q3 of 2008.
Subsequent to the quarter end the Company announced an updated reserve and resource estimate for the Cantung mine. The probable mineral reserve at Cantung is estimated at 1.02 million tons grading 1.08% WO3. (See News Release dated August 18, 2009) This is a significant increase from September 30, 2008 where the probable mineral reserve was estimated at 655,706 tons with an average grade of 1.10% WO3.
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 forwardlooking 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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