Mr. John Versfelt reports
INTERNATIONAL MILLENNIUM MINING CORP. REPORTS 2ND QUARTER RESULTS
International Millennium Mining Corp. has released the company's results for its fiscal year 2013 second quarter ended June 30, 2013.
SUMMARY OF SECOND QUARTER RESULTS ENDED JUNE 30
First quarter, Second quarter, Year to date,
fiscal 2013 fiscal 2012 fiscal 2013
General and administrative
expenditures $ 90,093 $ 108,062 $ 174,566
(Gain) loss on foreign exchange 95 21,180 (343)
Stock-based compensation $ -- $ 240,000 $ --
Gain on disposal mineral
properties $ -- $ -- $ --
Net income (loss) for the period $ (112,457) $ (348,365) $ (231,441)
Net and comprehensive income
(loss) for the period $ (112,457) $ (544,865) $ (231,441)
Net income (loss) per share $ 0.00 $ 0.01 $ 0.00
Summary discussion
At June 30, 2013, the company had a total of 113,363,296 common shares outstanding.
During the six months ended June 30, 2013, the company recorded a net loss of $231,441 as compared with a net income of $129,517 during the comparable period in fiscal 2012. The material variances during the periods are as follows:
- During the second quarter of fiscal 2012, the company recorded a $240,000
stock-based compensation when the company granted 1,615,000 stock
options and extended the expiry date of 1.93 million stock options all
expiring Dec. 31, 2014, as compared with a nil expense during the first
six months of fiscal 2013;
- The company had recorded a gain of $640,000 during the first six months
of fiscal 2012, compared with nil gain in the six months of fiscal 2013
(this amount was recalculated in the fourth quarter of fiscal 2012 to
$170,825) on the sale of the remaining 20-per-cent interest in the
Hilda/Guadalupe property. IMMC received four million shares of First
Mexican Gold Corp. and a 2-per-cent NSR payable to IMMC with 1 per cent
repurchasable by First Mex for $1-million (U.S.). The company had
previously reported the gain of $640,000 in the first quarter of fiscal
2012, but it was revised to reflect the present value of the four million shares received. According to an agreement signed with First Mex, IMMC
can only sell 50,000 shares per month, unless otherwise agreed between
the parties;
- The company incurred an accretion expense of $28,044 as a result of a
$286,000 loan as compared with $16,358 during the first six months of
fiscal 2012;
- The company wrote down resource properties by $15,000 in the first six
months of fiscal 2013.
The company's working capital deficit increased to $585,327 at June 30, 2013, as compared with a deficit of $513,422 at Dec. 31, 2012.
Operating expenses
Comparison of the quarterly results
Over all, there was a 16-per-cent decrease in expenses to $90,093 in the second quarter of fiscal 2013, compared with $108,062 (does not include the $240,000 stock-based compensation expense) in the second quarter of fiscal 2012 and an increase from the $83,473 recorded in the first quarter of fiscal 2013.
-
In the second quarter of fiscal 2013, the company recorded a foreign
exchange loss of $95, compared with a foreign exchange loss of $21,180 in
the comparable fiscal 2012 period as a result of the translation of the
foreign subsidiaries;
- The company recorded a $240,000 stock-based compensation during the
second quarter of fiscal 2012 as compared with nil during the comparable
period in fiscal 2013;
- Promotion and trade show costs increased to $31,601 in the second
quarter fiscal 2013 from $29,596 in the second quarter of fiscal 2012.
The primary difference is the additional costs incurred attending trade
shows;
- Salaries and benefits decreased during the second quarter of fiscal 2013
to $8,375 from $14,286 recorded in the comparable period in fiscal 2012,
due to less administration required for its property record keeping,
regulatory filings and other legal document filings;
- Transfer agent and filing fees increased during the second quarter of
fiscal 2013 to $16,643, compared with $10,264 in the comparable fiscal 2012
period. The majority of this difference is the increased filing fees for
private placements in 2013 compared with 2012, and the annual sustaining
fee for the TSX Venture Exchange.
The company recorded a net loss of $112,457 during the second quarter fiscal 2013, as compared with a net loss of $348,365 in the second quarter of fiscal 2012 and net loss of $118,984 during the first quarter of fiscal 2013. The primary reason for difference is the stock-based compensation expense recorded in the second quarter of fiscal 2012.
Exploration programs
Nivloc mine property, Nevada
In August, 2012, the company filed its initial National Instrument 43-101 compliant, independent mineral resource estimate on its Nivloc silver and gold project. The independent technical report, entitled "NI 43-101 Technical Report on the Nivloc Mine Property, Esmeralda County, Nevada, USA," was prepared for the company by Seymour Sears, a consulting geologist based in Sudbury, Ont., P. J. Hollenbeck, an independent resource modelling geologist based in Colorado Springs, Colo., and A. David Heyl, an independent geologist based in Denver, Colo. The technical report is available under the IMMC profile on SEDAR and on the company's website.
The technical report concludes that the area tested by the 2011 drilling program on the Nivloc mine property contains an inferred mineral resource, at 40-gram-per-tonne-silver cut-off, of 1.64 million tonnes at a grade of 106.47 grams per tonne silver and 0.78 gram per tonne gold, resulting in 7,689,000 silver-equivalent total ounces at a 50:1 silver-gold ratio pursuant to the NI 43-101 technical report.
Further infill drilling at the Nivloc mine property, reported in December, 2012, verified the thickness and grades that were reported in the technical report. Hole 12NL-35, collared from pad 6, tested an area between the 700- and 800-foot levels within the old mine workings, and below resource blocks outlined by the 2011 drilling program. Drill highlights from the hole included 115 feet of 89.1 grams per tonne silver and 0.33 gram per tonne gold, including 13.5 feet of 210.0 grams per tonne silver and 1.03 grams per tonne gold, including 3.0 feet of 436.0 grams per tonne silver and 2.57 grams per tonne gold.
The company also reported results from two more drill holes completed on its Nivloc mine property. Holes 12NL-36 and 12NL-37 tested an area between the 600- and 800-foot levels of the historic mine workings, within and near the eastern end of the 2011 43-101 resource area. Drill hole 12NL-36 tested an area between three previously drilled holes, while 12NL-37 was a short step-out hole toward the northeast, although proximal to two other holes completed in 2011. Drill highlights from hole 12NL-36 included 70.0 feet of 103.0 g/t Ag and 0.43 g/t Au, including 1.0 foot of 335.6 g/t Ag and 1.12 g/t Au. Drill highlights from hole 12NL-37 included 92.0 feet of 163.8 g/t Ag and 0.80 g/t Au, including 3.5 feet of 599.0 g/t Ag and 4.27 g/t Au.
On March 11, 2013, the company announced that its wholly owned subsidiary, International Millennium Mining Inc., executed a sale and purchase agreement to acquire the balance of Silver Reserve Corp.'s underlying interests in the Nivloc mine property. Pursuant to the agreement, IMMI will pay SRC $425,000 (U.S.) for the Nivloc property interests detailed above, and SRC will transfer 100 per cent of its interest, right and title in those interests to IMMI. The company has made a 10-per-cent deposit of $42,500 (U.S.) during the quarter.
Wild Goose property
The Wild Goose property, encompassing 2,918.62 hectares, is located approximately 23 kilometres northwest of Revelstoke, B.C., and five kilometres north of Mount Copeland (approximately 10 minutes by helicopter from the Revelstoke airport). The property is underlain by the Shuswap metamorphic complex. Historical reports identify four distinct lead/silver/zinc showings, several of which have anomalous gold values. Geologically, the showings all occur in the footwall of the easterly striking Bews Creek fault, which may be a detachment structure.
Mobile Metal Ion (MMI) soil sampling was carried out on the Wild Goose property in October, 2012. The MMI survey was conducted on two grids, each with a line spacing of 100 metres and a sample interval of 25 metres, as part of a program designed to extend the known mineralization on the property and locate previously unknown mineralization. The MMI results revealed that both the north and south MMI grids are almost entirely covered by highly anomalous lead results. In addition, a silver anomaly covers almost the entire north grid.
Management is focused on precious metal polymetallic projects in the Americas and is working toward building a strong, stable and well-financed mineral exploration and small mines mining company.
Concurrently with this news release, the company is filing its quarterly financial statements and management discussion and analysis (B.C. Form 51-102F1) with the regulatory authorities through SEDAR, and has mailed it to shareholders who have requested copies and whose names appear on the company's supplemental list. Additional information about International Millennium Mining and its mineral property interests, including technical reports, is available on the Internet at the SEDAR website, or on the company's website.
We seek Safe Harbor.
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