Pacific Iron Ore Corp.

Pacific Iron Ore Corp.

November 29, 2011 12:16 ET

Pacific Iron Ore Corporation Release of September 30, 2011 Financial Statements and Management Discussion and Analysis

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2011) - Pacific Iron Ore Corporation (TSX VENTURE:POC), announces that it has filed its Financial Statements and Management Discussion and Analysis for the three and nine months ended September 30, 2011. These documents are now available on SEDAR.

2011 Drilling Activity

During the first six months of 2011 POC has drilled an additional 17 diamond drill core holes on the Port Renfrew Project. The locations for which were determined in consultation with Wardrop Engineering Inc., of Vancouver, British Columbia ("Wardrop"). Also in January 2011 Wardrop updated its 2009 resource estimate for the Bugaboo Creek Area located within the Pearson Project, to assess the results of the 2008 Exploration Program and provided recommendations for additional diamond drilling to be completed in 2011. In their report, Wardrop estimated that the Bugaboo Creek deposits which comprises a small component of the Port Renfrew Block, contain inferred resources of 14.2 million tonnes, grading 60% magnetite prior to any update required for the 2011 Exploration Program.

2011 Results

During the first nine months of 2011 the Corporation incurred a net loss of $858,223 or $0.01 per common share as compared to a net loss of $853,875 or $0.01 per common share in the first nine months of 2010.

The net loss for the three months ended September 30, 2011 amounted to $194,692 as compared to a net loss of $150,061 in the same period in 2010.

Its major expenses inured in the nine month period included:

Operating expenses totaled $106,121 in 2011 as compared to $118,753 in 2010 an decrease of $12,632.

Mineral property acquisition costs and exploration costs expensed during the period totaled $188,510 as compared to $105,891 in 2010 due to higher costs associated with maintaining access to claims where significant exploration costs had not be incurred.

General and administrative expenses totaled $207,494 in 2011 as compared to $238,227 in 2010, a decrease of $30,733.

Write downs of mineral properties totaled $nil in 2011 and $25,000 in 2010 as a result of changes associated with the adoption of IFRS.

Stock based compensation expense totaled $225,199 ($115,154 in 2010) and arises from the issuance of stock options and broker warrants during the period.

Net financial expenses during the period totaled $7,449 as compared to $31,567 in the prior period. Financial income consists of interest earned on invested cash deposits. Cash deposits are comprised solely of bank investment certificates with a maturity date of less than one month and are on deposit with a Canadian Chartered Bank. Financial expenses are comprised interest and bank charges and accruals for Part XII taxes.

Income taxes during the year amounted to $123,450 as compared to a recovery of $219,283 in the prior year principally as a result of recognizing the deferred income taxes on flow through share obligations offset by the future benefit of discretionary income tax deductions and net operating losses carried forward for income tax purposes.

During 2011, subject to maintaining sufficient capital resources to support its activities, the Corporation anticipates spending approximately $1,500,000 on exploration activities to fulfill its flow through expenditure commitments. Limited amounts will be spent on the acquisition of mineral properties and equipment. During 2011, the Corporation will focus its efforts on the Port Renfrew property in British Columbia and the St. Anthony Project in Ontario. These expenditures will be financed with the Corporation's existing working capital balances. Should equity markets permit, the Corporation will consider the issuance of additional equity to finance these activities.

Corporate Direction and Strategy

Pacific Iron Ore Corporation is dedicated to the development of its strategic mineral deposits, located in the Port Renfrew area (iron resources) of Vancouver Island, British Columbia, as well as, in the Kenora area (gold resources) of Ontario. With the success of the previous exploration and the existence of sufficient capital resources to undertake additional exploration activities in 2011, the Corporation is well-positioned to continue its exploration efforts.

It is the objective of Pacific Iron Ore Corporation to delineate 20 million tonnes of high-grade iron ore in the existing deposits and complete a pre-feasibility study for the production of iron concentrates to be sold directly to the Far East. It is believed that the high-grade nature of the deposits, proximity to tide-water, and the existence of Port Facilities such as the Port of Naniamo Duke Point facility, will significantly benefit the potential projects economics along with the current high demand and pricing for iron concentrates. The Corporation has set an objective to identify sufficient resources to allow for a production capacity of 2 million tonnes per year of iron concentrates from the site.

Company Contacts:

For further information please refer to the Corporations profile on SEDAR which can be accessed at, visit our website at

Forward Looking Statements:

The TSX.V Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward looking statements". All statements in this release, other than statements of historical facts, that address future production, reserves potential, exploration drilling, exploration activities and events or developments that the Corporation expects are forward looking statements. Although the Corporation beliefs the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause results to differ materially from those in the forward looking statements include, but are not limited to: market prices; exploitation and exploration successes; continued availability of capital, financing and personnel; government regulation and laws; the Corporations relationship with First Nations; environmental developments; and general economic, market or business conditions. Investors are cautioned that such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward looking statements. For more information on Pacific Iron Ore Corporation, Investors should review the Corporation's registered filings which are available at

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.

Contact Information

  • Pacific Iron Ore Corporation
    Todd Montgomery
    (403) 228-0607
    (403) 262-4860 (FAX)

    Pacific Iron Ore Corporation
    Jeffery Austin
    (250) 763-4892
    (403) 265-2887 (FAX)