Third Quarter Financial Results-Baca Oil & Gas Environmental Study & Otish Uranium Exploration Update
November 30 2007 - 5:38PM
Marketwired
TORONTO, ONTARIO
LEXAM EXPLORATIONS INC. (TSX VENTURE: LEX) (PINK SHEETS: LEXEF)
(FRANKFURT: D2Q) is pleased to announce financial results for the
third quarter 2007, including an update on the Baca Oil and Gas
Project in Colorado, USA and Otish Uranium Project in Quebec,
Canada.
FINANCIAL HIGHLIGHTS & RESULTS
Third Quarter 2008
Lexam recorded a net loss of $1,589,986 ($0.03 per share basic
and diluted) during the three months ended September 30, 2007,
compared to net income of $11,599 ($0.00 per share basic and
diluted) during the corresponding period in 2006. The loss for the
quarter was the result of exploration expenditures, administrative
and corporate development costs, and unrealized foreign exchange
losses; this loss was partially offset by the realized gain on the
previously announced sale by Lexam's 62% owned subsidiary, MacPass
Resources, of the Jason property in the Yukon to HudBay
Minerals.
Major expenditures during the quarter included costs associated
with an Environmental Assessment (EA) being prepared in conjunction
with the Lexam's planned drilling at its Baca Project in Colorado,
exploration spending at the Otish Uranium Project in Quebec
including costs related to administration and corporate development
activities. For the year to date, net income was $8,742,933 ($0.18
per share and $0.17 per share diluted) compared to a loss of
$244,359 ($0.01 per share basic and diluted) in the corresponding
period in 2006. The gain for the year is the result of the sale of
the Nevada properties during the second quarter.
The complete third quarter report, including management's
discussion and analysis, financial statements, and notes can be
found on the Company's website at www.lexamexplorations.com and on
SEDAR at www.sedar.com.
BACA OIL & GAS PROJECT UPDATE
On May 25th, 2007 Lexam announced that the San Luis Valley
Ecosystem Council (SLVEC) had filed and served a Complaint against
the United States Fish and Wildlife Service (USFWS) in Federal
District Court in Denver, Colorado. The SLVEC claims that the USFWS
had not complied with the National Environmental Policy Act (NEPA)
in connection with certain exploration activities carried out and
proposed by Lexam on the Baca Oil & Gas Project.
Since the Complaint was filed, the USFWS engaged ENSR, a leading
environmental consultancy firm, to complete an EA pursuant to NEPA.
On August 17th 2007, USFWS held a public meeting to inform
interested parties about Lexam's activities and to seek initial
comments on the Company's proposed oil and gas drilling. The USFWS
and ENSR have reviewed the public's comments and have undertaken
the necessary actions to complete an EA in compliance with
NEPA.
Lexam has been informed by the USFWS and ENSR that the EA is now
being finalized. Once the final EA is complete it will be submitted
for a minimum 30 day public comment period. The USFWS will consider
all additional public comments before determining the level of
impact Lexam's proposed exploration activities will have on the
federal land.
OTISH URANIUM PROJECT
Initial Exploration Program
During the third quarter Lexam and its joint venture partner,
Golden Valley Mines, carried out their initial exploration program
on the Otish Uranium Project in north-central Quebec. Lexam's
properties are situated near Strateco Resources, which recently
announced a total resource estimate of 4.1 million lbs. of uranium
at an approximately grade of 0.7% U3O8 (Strateco News Release
October 1, 2007) and Cameco, the world's largest uranium producer,
which recently disclosed a drill result of 1.06% eU3O8 over nearly
16 meters (Cameco MD&A October 31, 2007). Lexam and Golden
Valley hold approximately 205,400 acres, making it the regions
largest land holder.
An airborne geophysical survey was completed over the Mistassini
portion of the project, which defined 5 new high priority target
areas for potential economic uranium mineralization that are
situated along the unconformity contact of the basin. The style of
mineralization that will be tested is similar to the high-grade
uranium deposits found in Saskatchewan's Athabasca Basin where 28%
of the world's annual uranium production is mined. Prior drilling
in the Mistassini section of Lexam and Golden Valley's land
position returned a uranium intersection of 0.16% U3O8over 1.40
meters. A second airborne survey was initiated on the Otish section
of the project before winter conditions set in. Approximately 27%
of the second airborne survey was completed before the program
concluded. Results from this survey are currently pending. The
survey is scheduled to be completed during the 2008 spring
season.
Lexam and Golden Valley also completed a detailed geological and
geophysical survey with the objective of re-locating and
re-sampling historical uranium showings on the project area.
Exploration focused on 7 of the most significant reported
historical showings on the project. Sampling over the Mistassini
section was also conducted to identify radioactive mineralized
zones for drill testing in early 2008 with surface samples over
both sections returning anomalous uranium values and path finder
elements.
Lexam and Golden Valley are now preparing to carry out their
first phase drill program to commence by the second quarter of
2008. The initial program of diamond drilling will consist of
approximately 3,500 ft (1,067 meters) of drilling. The results from
this initial program, along with exploration results obtained from
the second, full field season on the ground, will be used to
establish the size of the second, phase II drill program that is
scheduled for the second half of 2008.
Michael P. Rosatelli, P. Geo. is a "Qualified Person" as defined
in National Instrument 43-101 and is responsible for the technical
information related to uranium exploration presented in this news
release.
About Lexam
Lexam Explorations is a North American based energy exploration
company. The company is advancing the Baca Oil & Gas Project
located in south-central Colorado, USA, which is 75% owned by Lexam
and 25% by ConocoPhillips and has an option to earn 50% interest in
Golden Valley Mines Otish Basin uranium project located in Quebec,
Canada.
CAUTIONARY STATEMENT
Some of the statements contained in this release are
"forward-looking statements". Such forward-looking statements
involve known and unknown risks, uncertainties and other factors
that may cause our actual results, performance or achievements to
differ materially from the anticipated results, performance or
achievements expressed or implied by such forwardlooking
statements. Factors that could cause actual results to differ
materially from anticipated results include risks and uncertainties
such as: ability to raise financing for further exploration and
development activities; risks relating to estimates of reserves,
deposits and production costs; extraction and development risks;
the risk of commodity price fluctuations; political, regulatory and
environmental risks; and other risks and uncertainties in the
reports and disclosure documents filed by Lexam from time-to-time
with Canadian securities regulatory authorities. The Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. The complete third quarter report
including management's discussion and analysis, financial
statements and notes can be found on our Company's website at
www.lexamexplorations.com and on SEDAR at www.sedar.com.
Contacts: Lexam Explorations Inc. Ian J. Ball Vice-President,
Corporate Development (647) 258-0395 or Toll Free: 1-866-441-0690
(647) 258-0408 (FAX) Email: ian@lexamexplorations.com Website:
www.lexamexplorations.com Lexam Explorations Inc. Corporate Head
Office 99 George Street, 3rd Floor Toronto, ON M5A 2N4
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