URSA Major Minerals Incorporated
TSX : UMJ

URSA Major Minerals Incorporated

April 30, 2009 18:23 ET

URSA Major Minerals Announces Year-End Financial Results

TORONTO, ONTARIO--(Marketwire - April 30, 2009) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY U.S. NEWS WIRE SERVICE OR FOR DISSEMINATION IN THE UNITED STATES.

URSA Major Minerals Incorporated ("URSA Major" or the "Company") (TSX:UMJ) announces its financial results for the year ended January 31, 2009. The audited financial statements and related Management Discussion and Analysis have been filed on SEDAR (www.sedar.com). Additionally these documents are available on URSA Major's website at www.ursamajorminerals.com. All amounts are in Canadian dollars unless otherwise indicated.

Financial Highlights:

- During the year the Company received proceeds of $8,013,699 on the sale of metals from the test mining program at the Shakespeare Project. This pre-production revenue was applied against the total investment in the Shakespeare Project. Costs associated with this test mining during the year were $7,159,708.

- For the year ended January 31, 2009, the Company reported a net loss for the year of $2,021,634 or ($0.06) per share compared to a net income of $1,714,409 or $0.06 per share for the previous year. The income in the previous year resulted primarily from a one time sale of the Agnew Lake uranium property. Included in the loss noted above was a write off of the Worthington Bell exploration property and a realized loss on the sale of investments.

- During the year at the Shakespeare project, the Company completed site improvements at a cost of $706,674 including building a sedimentation pond, weight scales, road upgrades and other related site infrastructure. Other Shakespeare expenditures included feasibility study updates, engineering related costs, environmental and related costs, diamond drilling and geological and geophysical expenditures totalling $463,376 (2008 - $1,164,239). Exploration expenditures on other properties in 2008 were $420,767.

- In the fourth quarter the Company monetized its investment in a non core asset. The Company owned 12,237,119 common shares, representing approximately 28% of Patricia Mining Corp. ("Patricia"), a public company that formerly traded on the TSX Venture Exchange. Pursuant to a plan of arrangement between Patricia and Richmont Mines Inc. ("Richmont") a TSX listed company, the Company received in exchange for all of its shares in Patricia, 673,041 common shares of Richmont and cash of $1,835,568. As at January 31, 2009, URSA Major owned 118,355 common shares of Richmont with a market value of $366,900. Subsequent to the year end the Company sold its remaining shares in Richmont for gross proceeds of $392,428.

- As a result of monetizing the Patricia investment, the Company repaid all outstanding debt during the fourth quarter. As a result the Company has no outstanding debt

- In late December the Company completed a flow through private placement by issuing a total of 5,854,628 common shares for gross proceeds of $409,824.

Outlook

The decline in commodity prices, particularly the decline in the price of nickel in the last quarter of 2008 had a significant impact on the development of URSA Major's projects and the Company's financial position. The Company temporarily suspended pre-production mining operations at the Shakespeare project and took steps to improve liquidity from the sale of non-core assets. The Company continues to look for opportunities to strengthen its financial position and to reduce site and head office costs.

Although operations have been suspended due to low commodity prices, the Shakespeare project pre-production mining program exceeded the block model ore grades by approximately 10% and successfully demonstrated that the Shakespeare ore has a very consistent grade and metallurgical properties. The project is fully permitted and, being an open pit, can quickly be restarted once commodity prices improve.

URSA Major continues to evaluate its' exploration properties and anticipates resuming field exploration programs once liquidity is improved and market conditions warrant. The Company is currently evaluating high-grade nickel exploration targets at the Nickel Offsets property, particularly down-plunge from previously mined ore shoots, and on the down-plunge projection of the Shakespeare deposit. At Nickel Offsets, the Company has planned a five hole, 1,800 meter diamond drilling program to explore potential sulphide bearing environments within the Foy Offset dyke, all occurring in close proximity to the existing workings of the former Nickel Offset No.1 Mine.

URSA Major also recently announced the staking of two exploration properties located 70 km north of Thunder Bay, Ontario that target intrusions similar to Magma Metals Limited's platinum-palladium discovery at Current Lake, north of Thunder Bay. The Company plans a prospecting and mapping program in the early summer to follow up on results of data compilation and develop targets for drill testing.

Numerous nickel and other base metal mines have been forced to suspend operations in the past few months and there has been a significant reduction in global base metal supply. Management considers that metal prices will respond favourably once the global economic conditions improve and at that time will evaluate restarting mining operations at the Shakespeare Project.

URSA Major is an emerging mining company that is focused on growth through nickel, copper, and precious metal exploration and development, primarily in Ontario, Canada. Mining at URSA Major's Shakespeare Nickel Project located 70 km west of Sudbury, Ontario has been temporarily suspended since October 2008. To date, URSA Major has mined approximately 150,000 tonnes of ore at Shakespeare and this has been processed at Xstrata Nickel's Strathcona mill.

For more information please see URSA Major's website at www.ursamajorminerals.com.

Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production.

This release was prepared by management of the Company who takes full responsibility for its contents. The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • URSA Major Minerals Incorporated
    Dr. Richard Sutcliffe
    President & CEO
    416-864-0615
    416-864-0620 (FAX)
    or
    URSA Major Minerals Incorporated
    Chris Chadder
    CFO
    416-864-0615
    416-864-0620 (FAX)
    info@ursamajorminerals.com
    www.ursamajorminerals.com
    or
    URSA Major Minerals Incorporated
    Gus Garisto
    Investor Relations
    416-805-3106