Wescan Goldfields Inc. announces third quarter results

Stock Symbol: WGF: TSX-V

SASKATOON, Nov. 27 /CNW/ - Wescan Goldfields Inc. ("Wescan"or the "Company") reports the unaudited results of Wescan's operations for the quarter ended September 30, 2009 have been filed and may be viewed at www.sedar.com. A summary of key financial and operating results for the quarter follows:

    
    Highlights

    -   Completed an airborne geophysical survey over its highly prospective
        Hudson Bay, Saskatchewan coal permits.
    -   Commenced drilling on the Company's 100% owned Hudson Bay,
        Saskatchewan coal exploration project.
    -   Working capital of $1.3 million at September 30, 2009.
    -   Issued and outstanding shares of 79,612,645 at September 30, 2009.
    

Coal Projects

In the third quarter of 2009, Wescan completed a 2,000 line-kilometre GEOTEM Electromagnetic Magnetic airborne geophysical survey over its highly prospective Hudson Bay, Saskatchewan coal permits. The survey provided extensive magnetic and electromagnetic geophysical data over areas believed to be highly prospective for coal. The contract included a Broadband GEOTEM Electromagnetic/Magnetic survey as well as specialized geophysical processing and interpretation to identify coal bearing sub-basins. The GEOTEM survey aimed to delineate all potential sub-basins in the Devonian basement which are favorable for the hosting of coal in the overlying Cretaceous sediments.

Based on the results of the GEOTEM survey, the Company commenced drilling in August 2009 on certain targets identified on the Hudson Bay exploration project. Due to the potential shallow depth to coal within this northern block, Wescan initially explored a large block of coal permits, approximately 86 kilometres wide lying north of the Pasquia Hills. As well, a number of priority geophysical anomalies were identified within this northern block. These geophysical anomalies were interpreted to be very large, with some in excess of 15 kilometres in diameter. Wescan will explore for coal on two of its southern coal permit blocks, which have also been identified to potentially host numerous coal bearing sub-basins. The first phase of drilling will be extensive and will need to utilize helicopter support to maximize efficiency and reduce the impact to the environment. (See Wescan News Release dated August 12 , 2009).

    
    Selected financial highlights include:
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                                                      As at         As at
                                                  September 30,  December 31,
    Consolidated Balance Sheets                       2009           2008
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    Current assets                                $  2,322,507  $  2,724,519
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    Capital and other assets                        10,789,703     9,453,030
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    Current liabilities                              1,001,701       381,548
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    Future income tax liability                        455,000             -
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    Share capital and warrants                      15,017,085    14,799,329
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    Contributed surplus                              1,588,274     1,444,117
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    Deficit                                         (4,949,850)   (4,447,445)
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                       Three months  Three months  Nine months   Nine months
    Consolidated          Ended         Ended         Ended         Ended
     Statements of       Sept. 30,     Sept. 30,     Sept. 30,     Sept. 30,
     Income (Loss)         2009          2008          2009          2008
    -------------------------------------------------------------------------
    Interest and Other
     Income           $      9,677  $     28,590  $     19,052  $     75,990
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    Operating Expenses     185,205       344,779       731,430     1,331,704
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    Loss for the period
     before other items   (175,528)     (316,189)     (712,378)   (1,255,714)
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    Net loss and
     comprehensive loss
     for the period       (131,846)     (234,289)     (502,405)   (1,039,314)
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    Loss per share           (0.00)        (0.00)        (0.01)        (0.02)
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                       Three months  Three months  Nine months   Nine months
    Consolidated          Ended         Ended         Ended         Ended
     Statements of       Sept. 30,     Sept. 30,     Sept. 30,     Sept. 30,
     Cash Flows            2009          2008          2009          2008
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    Cash provided by
     (used in)
     operations       $    270,666  $   (457,149) $    134,275  $   (926,920)
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    Cash provided by
     (used in)
     investing
     activities         (1,009,115)       81,542    (1,377,406)   (2,596,290)
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    Cash provided by
     financing
     activities            860,056       123,235       860,056       128,025
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    Increase (decrease)
     in cash & cash
     equivalents           121,607      (252,372)     (383,075)   (3,395,185)
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    Cash and cash
     equivalents -
     beginning of
     period              2,044,753       270,462     2,549,435     3,413,275
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    Cash and cash
     equivalents - end
     of period           2,166,360        18,090     2,166,360        18,090
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Outlook

As at November 24, 2009 , the Company has $1.8 million in cash and cash equivalents that will be used to fund drill programs on the coal exploration properties as well as continue exploration programs on the Jojay, Fork Lake, Hanson Lake and Munro properties. In addition, the Company will continue to evaluate the potential for acquisition of more mineral properties in Canada and internationally. Management has determined that the Company will continue to require additional financing and believes it will have sufficient access to financial markets to continue its planned activities.

Caution Regarding Forward-looking Information

From time to time, Wescan makes written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Ontario Securities Act. Wescan may make such statements in this MD&A, in other filings with Canadian regulators, in reports to shareholders or in other communications. These forward-looking statements include, among others, statements with respect to Wescan's objectives for the ensuing year, our medium and long-term goals, and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may," "could," "should," "would," "suspect," "outlook," "believe," "plan," "anticipate," "estimate," "expect," "intend," and words and expressions of similar import are intended to identify forward-looking statements. In particular, statements regarding Wescan's future operations, future exploration and development activities or other development plans contain forward-looking statements.

All forward-looking statements and information are based on Wescan's current beliefs as well as assumptions made by and information currently available to Wescan concerning anticipated financial performance, business prospects, strategies, regulatory developments, development plans, exploration, development and mining activities and commitments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, developments in world gold markets, risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of Wescan or its joint operation partners; the effects of competition in the markets in which Wescan operates; the impact of changes in the laws and regulations regulating mining exploration and development; judicial or regulatory judgments and legal proceedings; operational and infrastructure risks and the additional risks described in Wescan's most recently filed annual and interim MD&A and Wescan's anticipation of and success in managing the foregoing risks.

Wescan cautions that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Wescan, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise required by applicable securities laws, Wescan does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Wescan or on our behalf.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

For further information: Mr. Todd M. Grychowski, Chief Financial Officer, 300 - 224 4th Avenue South, Saskatoon, SK, S7K 5M5, PH: [phone], FAX: [phone]; OR Mr. Darren Anderson, President, 300 - 224 4th Avenue South, Saskatoon, SK, S7K 5M5, PH: [phone], FAX: [phone]