VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 29, 2009) - North American Tungsten Corporation Ltd. (TSX VENTURE: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.com.
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
-- 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 mtu's 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.com.
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
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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
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Stockpile 9,091 0.62 5,636
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TOTAL Indicated Resources 961,677 1.23 1,181,156
Zone Tons Grade (WO3 %) STU'S
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Pit-PUG Total 468,606 1.3 609,188
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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
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Cantung Probable Mineral Reserves
Zone Tons Grade (WO3 %) STU'S
West Extension 163,087 1.09 177,654
West Extension Below 3700 elv. 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
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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 |
