Sunward reports financial results for the three months ended June 30, 2012

VANCOUVER, Aug. 14, 2012 /CNW/ - Sunward Resources Ltd. ("Sunward" or the "Company") (TSX: SWD; OTCQX:  SNWRF) is pleased to announce its first quarter results and announces that it has filed on SEDAR its Condensed Consolidated Interim Financial Statements ("Financial Statements"), and Management Discussion and Analysis ("MD&A") for the three months ended June 30, 2012.

For the full Financial Statements and MD&A, please visit SEDAR at www.sedar.com or the Company's website, www.sunwardresources.com

Summary of Key Operational and Financial Highlights

The Company incurred a net loss for the three (3) months ended June 30, 2012 of USD$9,748,646 compared to a loss of USD$2,712,229 for the same period in 2011.

For the three (3) months ended June 30, 2012 compared to the same period in 2011, the Company substantially increased its exploration and related activities in the advancement of its 100%-owned Titiribi Project (the "Project" or "Titiribi") in Colombia. As a consequence, the Company's expenditures for administrative, corporate consulting and exploration increased significantly for the three (3) months ended June 30, 2012 compared to the same period in 2011. The Company's transfer agent and filing fees increased significantly for the three (3) months ended June 30, 2012 compared to the same period in 2011 as a result of graduating to the Toronto Stock Exchange ("TSX") from the TSX Venture Exchange in April 2012.

On June 4, 2012, the Company released a Technical Report respecting the updated resource estimate prepared by Behre Dolbear & Company (USA), Inc. ("Behre Dolbear") in accordance with NI 43-101.  The Company reported that, based on a cut-off of 0.3 grams per tonne gold (as used in the September 2011 Technical Report), the Titiribi Project currently hosts 275.4 million tonnes ("Mt") of Measured and Indicated Mineral Resources averaging 0.52 grams per tonne gold, and thus containing 4.58 million ounces ("Mozs") of gold. In addition, the Project contains substantial amounts of copper in the Measured and Indicated Resource categories resulting in a corresponding gold-equivalent resource of 6.28 Mozs.

In addition, Inferred Resources amounted to 359.6 million tonnes averaging 0.56 grams per tonne gold yielding 6.44 million ounces of gold and, incorporating copper, 7.51 million ounces gold-equivalent. The resource estimates are now based on 120 drill holes in the Cerro Vetas and Chisperos zones for a total of 73,362 metres of drilling. The most recent Titiribi resource summary is shown below:

	GOLD	GOLD EQ	COPPER
Measured & Indicated	4.58 Mozs*	6.28 Mozs **	615.4 million pounds*
Inferred	6.44 Mozs*	7.51 Mozs **	388.5 million pounds*

*The Company's core asset is the Titiribi Project, with an NI 43-101 compliant Measured & Indicated Mineral Resource of 4.58 million ounces gold (within 275.4 Mt grading 0.52 grams/tonne gold).  Within this Resource 167.2 Mt contains 0.50 grams/tonne gold and 0.17% copper (using a 0.3 grams/tonne gold cut-off). Additional Inferred Mineral Resources contain 6.44 million ounces gold (within 359.6 Mt grading 0.56 grams/tonne gold). Within this Resource 205.2 Mt contain 0.51 grams/tonne gold and 0.09% copper (using a 0.3 grams/tonne gold cut-off). For more information, please see the Company's press release dated June 4, 2012 as published on SEDAR and on the Company's website.

** Equivalent ounces calculated using $3.07 copper/pound, $1,114 gold per ounce representing approximate 3-year moving averages.

In addition to Cerro Vetas and Chisperos, the Company identified five (5) more mineralized zones at Titiribi. As a result of a 12-hole drilling campaign, a gold-dominant mineralization was found on the Porvenir target located approximately 2,000 metres off the Cerro Vetas zone. In addition, strong intermittent porphyry-type gold-copper mineralization was found on the Candela target and significant discovery holes were announced on the Junta target. The Company is now turning its attention to Margarita and Rosa, the two (2) remaining previously identified targets on the Titiribi property which is rapidly evolving into one of the world's major gold-copper districts.

To attract and retain well-qualified people in Management and Executive roles as well as on the Board of Directors, the Company granted more stock options for the three (3) months ended June 30, 2012 compared to the same period in 2011 which resulted in a significant increase in the non-cash expense for stock based compensation in 2012 compared to 2011.

The following tables show selected comparative consolidated financial information as at and for the three (3) months ended June 30, 2012 and June 30, 2011 (all amounts in USD):

				June 30, 2012	June 30, 2011
Balance Sheet:
		Total assets		$ 67,147,067	$ 76,323,333
			Total liabilities	1,739,525	4,556,911
			Total shareholders' equity	65,407,542	71,766,422
				For the three months ended
				June 30, 2012	June 30, 2011
Operations:
		Expenses
			Administrative	$    498,029	$   321,593
			Corporate consulting	76,595	28,420
			Depreciation	60,456	32,509
			Exploration	6,215,214	2,879,773
			Investor communications	123,400	130,225
			Professional fees	4,306	27,434
			Stock-based compensation	3,515,561	286,004
			Transfer agent and filing fees	203,932	23,037
			Travel	62,271	132,491
		Loss for the period before interest income and other items		10,759,764	3,861,486
		Interest income		(23,578)	(28,704)
		Other items		(987,540)	(1,120,553)
Loss for the period				9,748,646	2,712,229
Basic and diluted loss per common share				$      (0.07)	$      (0.02)
Dividends per share				-	-

Cash and Cash Equivalents

The Company had cash and cash equivalents of USD$41,664,043 as at June 30, 2012 compared to cash and cash equivalents of USD$50,938,156 as at March 31, 2012.

ABOUT SUNWARD:

Sunward Resources is a well-capitalized, Canadian-based company focused on the exploration and development of the 100%-owned Titiribi Project in Colombia. The Titiribi Project is located approximately 70 kilometres southwest of the city of Medellin, Colombia, in Antioquia department, within the historical Titiribi mining district (estimated total production of 1.5 to 2 million ounces gold equivalent). Access is by paved highway from Medellin.

Titiribi hosts an NI 43 101-compliant Measured and Indicated Resource of 4.6 million ounces of gold contained within 275.4 million tonnes grading 0.52 grams per tonne and Inferred Resource of 6.4 million ounces of gold contained within 359.6 million tonnes grading 0.56 grams per tonne. All Titiribi resources were assessed using a cut-off of 0.3 grams per tonne gold. Titiribi also hosts 279,131 tonnes of copper in the Measured and Indicated Resource and 176,205 tonnes of copper in the Inferred Resource. For more information, please see the Company's press release dated June 4, 2012 as published on SEDAR and on the Company's website, as well as the technical report by Behre Dolbear & Company (USA), Inc. dated June 1, 2012.

Cautionary Statement Regarding Forward Looking Information

This news release contains forward-looking information within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking information. Forward-looking information may include, but is not limited to, statements with respect to future activities of the Company; the Company's plans for its mineral properties; the Company's business strategy, plans and outlook; the merit of the Company's properties; exploration results; mineral resource estimates; work plans and timelines; completion of transactions; shareholder value; projections and targets; the future financial or operating performance of the Company, its subsidiaries and its projects; operating and exploration expenditures and costs of future exploration and other activities; and approvals, permits and licenses. Often, but not always, forward-looking information can be identified by the use of words such as "plans," "expects," "is expected," "possible," "budget," "scheduled," "strategy," "goal," "objective," "potential," "estimates," "assumes," "forecasts," "intends," "anticipates," or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may," "could," "should," "would," "might" or "will" be taken, occur or be achieved.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any results, performance or achievements expressed or implied by the forward-looking statements. Such uncertainties and factors include, among others, inherent risks involved in the exploration of mineral properties; risks associated with foreign operations; risks relating to the Company's property titles; the uncertainties involved in resource estimates and in interpreting drilling results and other geological data; fluctuations in currency exchange rates and commodity prices; uncertainties regarding the issuance of approvals, licenses and permits; risks related to competition; risks related to the Company's ability to acquire additional mineral properties; the availability of and costs of required financing; economic, political and social uncertainties; accidents and labour disputes; and political instability, insurrection or war; as well as those factors discussed under "Risk Factors" in the Company's Annual Information Form. Although the Company has attempted to identify important factors that could cause actual 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 to differ from those anticipated, estimated or intended.

Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to that the Company's exploration of its properties and other activities will be in accordance with the Company's public statements and stated goals, that there will be no material adverse change affecting the Company or its properties, anticipated costs and timing for the Company's activities and such other assumptions as set out herein. Forward-looking statements are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking 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.

 

SOURCE: Sunward Resources Ltd.

Corporate Contact:
Brenda Dayton
604.568.7617
[email protected]