VANCOUVER, May 8, 2014 /CNW/ - Yellowhead Mining
Inc. ("Yellowhead" or the "Company") (TSX: YMI) reports its
results of operations for the first quarter of the financial year
ended March 31, 2014.
For the full condensed consolidated interim financial statements
and management discussion & analysis for the first financial
quarter ended March 31, 2014, please
see SEDAR at www.sedar.com or the Company's website at
www.yellowheadmining.com.
Highlights
Highlights for the first quarter ended March 31, 2014 include:
- Initiating the update of the feasibility study for the Harper
Creek Project ("Harper Creek Project"), including updating the
resource and reserve estimates, updating estimates of initial
capital costs, sustaining capital costs and operating costs, and
the financial analysis of the Harper Creek Project
- Initiating the revision of the application for an environmental
assessment certificate ("EA Application") for the Harper Creek
Project
Strategy for 2014
The Company's strategy for 2014 includes:
- Updating the feasibility study for the Harper Creek Project,
with a target date for completion by the end of the second quarter
of 2014
- The updated feasibility study will also incorporate a series of
design changes that have been made to the Harper Creek Project over
the past two years in order to further mitigate potential
environmental impacts resulting from the development of the Harper
Creek Project
- Updating, revising and re-submitting the EA Application for the
Harper Creek Project to the British Columbia Environmental
Assessment Office by the end of the third quarter of 2014
- Continuing public consultation with all stakeholders, including
local communities and local First Nations, regarding any potential
environmental and socio-economic impacts of the development of the
Harper Creek Project and the Company's proposed mitigation
strategies
- Continuing negotiations with local First Nations with respect
to an impact benefits agreement
Review of Quarterly Results
(Amounts are
expressed in thousands of Canadian dollars, except per-share
amounts)
|
Q1
2014
|
Q1 2013
|
Administrative
expenses
|
$
519
|
$
984
|
Exploration and
evaluation expenses
|
918
|
1,956
|
Other
income
|
(22)
|
(129)
|
Net loss and
comprehensive loss for the period
|
1,415
|
2,811
|
Basic and diluted
loss per share for the period
|
$
0.01
|
$
0.04
|
Yellowhead has no revenue from operations. Results can
fluctuate significantly from period to period due to the level of
engineering and environmental study effort and resource
drilling.
The loss in Q1 2014 was $1.42M
compared to $2.81M in Q1 2013.
This decrease in loss of $1.40M was
primarily due to a decrease in administrative expenses of
$465K and a decrease in exploration
and evaluation expenses of $1.04M. At the end of 2013, the Company
undertook a reduction in general and administrative expenses,
including staffing levels, and this resulted in lower consulting
fees, lower investor relations activities, lower wages and
benefits, and lower professional fees in Q1 2014 compared to Q1
2013. The decrease in exploration and evaluation expenses was
due to expenses related to an in-fill drilling program initiated in
late 2012 and completed in early 2013, and there were no costs
associated with this program in Q1 2014. Exploration and
evaluation expenses in Q1 2014 primarily related to the update of
the feasibility study and the update and revision of the EA
application. Costs associated with activities related to the
EA Application increased from $290K
in Q1 2013 to $665K in Q1 2014.
Cash and Cash Equivalents
The Company had cash and cash equivalents of $8.38M as at March 31,
2014, as compared to cash and cash equivalents of
$10.00M as at December 31, 2013. As at March 31, 2014, the Company had working capital
of $8.32M, as compared to working
capital of $9.70M as at December 31, 2013.
The Company's focus going forward is continuing the development
of the Harper Creek project. Major activities include completing
the Environmental Assessment process, advancing the Mine Permitting
process and pursuing funding activities to increase its working
capital to fund the development of the Harper Creek project.
The Company believes its current working capital is sufficient for
the next twelve months of general and administrative activities,
however, additional funding will be required by the Company to
complete its strategic objectives and to continue as a going
concern.
About Yellowhead Mining Inc.
Yellowhead Mining Inc. is a development stage company with a
100% interest in the Harper Creek copper-gold-silver project
located in the North Thompson
region of British Columbia,
Canada. The proposed Harper Creek mine will be a large scale,
long life, low cost open pit copper mine, has a NI 43-101 compliant
feasibility study, and is currently in the environmental permitting
phase of development.
For more information on Yellowhead and the Harper Creek Project,
please visit Yellowhead's website at www.yellowheadmining.com.
Forward Looking Statements
Except for statements of historical fact, this news release
contains certain "forward-looking information" within the meaning
of applicable securities laws. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking
statements, including, among others, the accuracy of mineral grades
and related assumptions, inherent operating risks, planned
expenditures, proposed exploration and development at the Harper
Creek Project, operating and economic aspects of the Harper Creek
Project, as well as those risk factors identified in the Company's
Annual Information Form filed under the Company's SEDAR profile.
Yellowhead undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions
should change except as required by law. The reader is cautioned
not to place undue reliance on forward-looking statements. More
detailed information about potential factors that could affect
projected results is included in the documents filed from time to
time with the Canadian securities regulatory authorities by
Yellowhead.
SOURCE Yellowhead Mining Inc.