LAC LA HACHE, BRITISH COLUMBIA - GWR Resources Inc. (the “Company” or “GWR”) (TSX Venture: GWQ) is pleased to summarize progress made during 2011, a transformative year for the Company. With the benefit of new management and world class technical advice we are pleased to provide an overview of the major events of 2011, a year of significant progress, and the plans for 2012.
NOTE: A Shareholder’s Conference Call will be hosted on Thursday January 12, 2012 at 09:00 PST to provide updates and answer questions. Interested parties may call 1-877-385-4099 and when prompted, enter the Access Code 6482439#
The following Summary is also available on our website: http://www.gwrresources.com/i/pdf/GWR-201-Year-In-Review.pdf
GWR Year In Review: A Year of Significant Progress
After the change of management and major change in the directorship of GWR which was completed by mid-July 2011, the following actions were taken:
- Review of financial statements and controls by outside auditor BDO Dunwoody
- Establishment of a compensation committee
- Establishment of an audit committee
- Retainer of new legal counsel and review of corporate documentation
- Formal planning of exploration, acquisition and marketing
Consistent with GWR’s commitment to maximizing return to shareholders a number of significant decisions were made to control expenditures and optimize money available for exploration. These include:
- Merit based hiring
- Purchase by GWR of its own equipment including trucks, new bulldozer and new hoe.
- Purchase of the office building - core storage complex at Lac La Hache
- Consolidation of offices to the Lac La Hache complex.
- Sale of the residential property at Lac La Hache purchased by prior management
- Drill contracts at rates 25% lower than previously charged to the company
- Advancement of relationships to obtain exploration and mineralization data at no cost to GWR
As a result of these controls and exercise of warrants, GWR has sufficient funds to proceed with its planned 2012 exploration program without raising funds until October 2012.
GWR has achieved successful fall drilling programs at Lac La Hache, BC and at Sainte Sabine, PQ. The assay results from each Project are expected to be in hand and reported in late January and mid-late February (respectively). The timing of assays is a result of consolidation by our assay lab and the increased activity in the exploration sector. Reports from visual and in-house-XRF assessment of drill core by our exploration teams are positive.
The long awaited revised, interim NI43101-compliant report by SRK on the Spout Zones at Lac La Hache was delayed by slow assay turn-around, and is now scheduled for receipt in late January 2012. This will be released to public in February following internal review. The report is anticipated to provide significant information on the structure and tonnage of commercial grade copper, gold, silver and magnetite in that zone and serves as an important foundation in expanding the overall resource base at Lac La Hache.
GWR has acquired from Candorado Operating Company a block of mineral claims referenced as the Murphy Block, adjacent to our Lac La Hache property. This transaction has been approved by the TSX-V and is anticipated to complete mid-January 2012. GWR has commenced the process of drill permitting on the Murphy Block and will be progressing with exploration planning there after the Christmas holiday period.
GWR is pleased to advise that it has commenced preliminary discussions with Imperial Metals to have bulk samples from its Lac La Hache mineral claims analyzed by Imperial Metals at its Mount Polley labs. This work follows previously announced metallurgical tests conducted by Imperial Metals on surface samples.
The bulk sampling is being done to assist in considering the viability of ore concentrations of copper, gold, silver and magnetite at the existing Mt. Polley mill which is located approximately 35 kms north of the GWR Lac La Hache mineral claims. Imperial Metals, from its Mt. Polley mine is the major supplier of magnetite to the coal industry in Western Canada. With the near term increase production of coal in Western Canada from new and existing mines, the demand for magnetite is increasing. Given this increased demand, increased specifications of end users and the very high magnetite concentrations at Lac La Hache GWR is analyzing this opportunity on a priority basis.
GWR has retained Jag Sandhu as financial relations consultant. Mr. Sandhu is very experienced in this capacity for both a number of publicly traded companies and his own mining ventures. With the assistance of Mr. Sandhu GWR has made preliminary presentations to the brokerage communities in Vancouver and Toronto, effectively placing the company on their radar. Our initial expectations were modest, as these firms knew nothing about GWR Resources. Our goal was to engage and stimulate ongoing interest in GWR. We were encouraged by the positive response of the investors, analysts, and brokers, who affirmed strong interest in GWR on the basis that corporate structure, exploration programs and potential return were of top quality.
GWR will be meeting in February and March with the brokerage communities in Vancouver, Toronto, Montreal and New York to advance coverage and framework discussions regarding future financings. We have scheduled these important meetings after due consideration. We chose a time that will be long before we need to raise money, at a time when we are confident that we will be able to substantiate our value with the SRK 43-101 compliant report on the Spout, a full range of impressive drill core assays, and the tripling the size of our Lac La Hache property with the successful completion of the Murphy Block acquisition.
Mr. Sandhu has recently returned from a series of conferences and investor meetings in Hong Kong. He can confirm that interest in Canadian mining companies is quite high in Asia and the Pacific Rim. Mr. Sandhu had the most success with the Chinese and Australians and will continue to raise GWR’s profile with them, in order to attract investment.
The mineral claims of GWR host potential for exploitable deposits of copper, magnetite, silver and gold.
This diversity presents a unique opportunity to investors, offering value on either base or precious metal potential, such that GWR share price may respond positively to increases in either group of metal prices.
Scott Berkey was a dear friend and colleague to many at GWR, and to our shareholders. Scott was stalwart during his 23 year period with the Company, and as corporate director he demanded transparency, accountability and performance. After his resignation as director he remained an advocate for proper exploration of the property, with which he was so familiar.
Many of you will have enjoyed the pleasure of Scott’s company, insights and food at his family restaurant in Cache Creek. Since Scott passed the restaurant has been closed while his family grieves and they consider their respective futures.
To assist the Berkey family during this difficult period a Berkey Children Trust Fund has been established. Donations can be made at any branch of the Interior Savings Credit Union in British Columbia. Your contribution to this trust would greatly assist in the care and education of Scott’s children. In recognition of Scott’s many contributions to GWR the company has made a contribution of $5,000.00.
A Year of Significant Progress: Summary
Besides the momentous and extensive personnel changes during 2011, GWR has made significant progress where it counts and we know from our broker presentations that they have been well received. Management and Accounting systems have been modernized and revamped to be more effective and proactive. We have had considerable success establishing the existence of a dense and potentially rich deposit of copper, gold and magnetite in the Spout Skarn, which adds to the value of the extensive copper and gold showings on many areas of the property. In addition, we have completed our gold-focused initial drilling program at Sainte Sabine, inspired by prospective geophysics and soil geochemical values. Drilling success at Sainte Sabine could potentially provide spin-off possibilities one day.
The groundwork has now been completed for what is likely to be a huge expansion of the potential of the company. Adding the Murphy claims not only more than triples our British Columbia land position, the new ground contains a number of significant geophysical anomalies, identified from the air by our VP of Exploration, years ago, but never explored.
Surely, 2011 has been a year of significant progress for GWR. We will do our best to build on that success and make 2012 even better.
This news release may contain “forward-looking statements”. Readers are cautioned that any such statements are not guarantees of future performance and that actual development or results may vary materially from those in these “forward looking statements”.
GWR is an active mineral exploration company currently exploring for gold and base metals on two properties within Canada. The Lac La Hache copper-gold porphyry project hosts multiple zones containing commercial grades of gold, copper, silver and magnetite. The project is located in British Columbia’s prolific Quesnel Trough between producing mines at Imperial Metals’ Mt. Polley Copper-Gold Mine and New Gold Inc.’s New Afton Copper-Gold project (Teck-Cominco’s legendary Afton mine). The Lac La Hache project is well-served by rail, road and power infrastructure. The Sainte Sabine gold (+Ag, Zn, Cu) property is located within the Bellechasse Mineral Belt in southeastern Quebec, adjacent to known zones on Golden Hope Mines’ Bellechasse Project.
For further information, please contact:
John van Driesum, President/CEO
Telephone Number: 778-440-4472
Rob Shives, VP Exploration
Telephone Number: office 250-396-4978 / cell 613-882-1755
Neither the 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.