CALGARY, Alberta, July 23 /PRNewswire-FirstCall/ -- The following was
released on behalf of the Board of FEC Resources Inc, by Larry W. Youell,
President and CEO:
FEC Resources (OTC Bulletin Board: FECOF) announces that the latest
results on MPSA 148 in the Philippines, have confirmed the presence of gold
in both the Lascogon and Danao prospects. Trenching and subsequent assays
on the Lascogan portion of the property confirm findings of between 0.1g/t
to 10 g/t, to as high as 33.2g/t.
Lascogon and Danao
During the month of June trenching in select locations continued to
determine the extent of gold mineralization in both Lascogon and Danao with
some very encouraging results.
Trenches 1, 4B, 5A, and 5B were actively advanced during the month and
excavation to an extension of Trench 4, dubbed the Southern Extension (SE),
started in the middle of June. This segment aims to intersect the areas
that small-scale miners are currently working, in order to study the patchy
occurrence of jasperoid boulders and gold-bearing soil horizon in Danao.
It has already been ascertained that the samples from Trenches 2B, 2C,
3B and 4A have negligible Au content.
Assay results from Trench 1 show Au enrichment in at least 3 segments
in the upper portion of the soil profile. Values range from 0.1 to 0.8 ppm
Au. Deepening of the trench down to 4 meters exposed a 5-meter wide
oxidized vertical zone that serves as the boundary between the siltstone
and the jasperoid-bearing horizon.
Assay results from Trench 5B. indicate strong Au mineralization.
Channel samples taken 1 meter from the surface show high Au content ranging
from 0.1-10 ppm, to as much as 33.2 ppm Au. In addition the assay results
clearly confirm the presence of Au not only in the jasperoid, but also in
the soil horizon which would allow for open pit mining in the event a
commercial discovery is determined. These results are only from the top 2
meters of the soil profile and more Au mineralization could be expected in
deeper levels.
Nabago Prospect
The Nabago team has completed detailed geologic mapping and soil
sampling of the entire prospect, whilst trenching and test pitting are
still in progress. Once the remaining assay results are available, a soil
geochemical anomaly map will be prepared which will aid in the selection of
drill hole locations. Pre-drilling preparations are already underway, as
known soil assay results have shown several samples with significant Au
contents ranging from 0.1 to 0.6 ppm.
In addition selected rock chip samples are also deemed indicative of Au
mineralization, with a variable range from 0.1 ppm to as much as 5.85 ppm
Au. The 5.85 g/ton Au sample was described as a gouge material with
grayish-cream color and disseminated pyrite within the andesite porphyry
domain. The outcrop is approximately 500 aerial meters north of the
epithermal vein system where high-grade small-scale mining is concentrated.
Work Program
Over the next two months trenching activities will continue with the
completion of Trenches 1, 4SE and 5B thus achieving the primary objectives
of the trenching program, which is to characterize the vertical and lateral
distribution of Au and jasperoid materials in the soil horizon.
Year End Financials
FEC has now released its audited year end financials. The Management
Discussion and Analysis along with the financial statements are available
at http://www.sedar.com
A restatement of a prior period was necessary as the Company recorded
its disposition of FEI at the fair value of the FEP shares it received
instead of the carrying value of its interest in FEI given up. As a
consequence of recording the initial investment in FEP shares at their fair
value, the Company recorded a gain on disposition of its FEI investment of
$20,062,833 whereas using the carrying value of its interest, no gain has
been reported.
The effect of the correction of the financial statements as at December
31, 2005 and for the year then ended is summarized as follows:
As Reported Adjustment As Restated
Gain (loss) on
disposition of
investments $24,758,061 $(20,062,833) $4,695,228
Gain on dilution of
investment in FEP 754,827 9,721,959 10,476,786
Retained earnings
(deficit) 6,430,792 (10,340,874) (3,910,082)
Investment in FEP 21,867,173 (10,340,874) 11,526,299
Net income per common
share:
Basic $0.12 $(0.06) $0.06
Fully diluted $0.10 $(0.05) $0.05
FEC Resources Inc., holds a diverse portfolio of Oil, Gas, Coal, Gold
and Iron Ore assets located in the Philippines through its shareholdings in
Forum Energy Plc, Lascogon Mining Corporation and Metalore Mining
Corporation. For further information email info@fecresources.com
On behalf of the Board of,
FEC Resources Inc.
"Larry W. Youell"
Larry W. Youell
President and CEO
This release contains "forward looking statements" as per Section 21E
of the US Securities and Exchange Act of 1934, as amended. Although the
Company believes that the expectations reflected in such forward looking
statements are reasonable, it can give no assurance that such expectations
will prove to have been correct. Management is currently reviewing many
options and there is no assurance that they will not make decisions other
than those now contemplated. The Company is subject to political risks and
operational risks identified in documents filed with the Securities and
Exchange Commission, including changing and depressed oil prices,
unsuccessful drilling results, change of government and political unrest in
its main area of operations
For more information please contact Larry Youell at (403) 290-1676
e-mail info@FECResources.com or visit the FEC Resources website at
http://www.FECResources.com
FORUM ENERGY HEADQUARTERS
Calgary, Alberta
E-mail:info@FECResources.com
Website: http://www.FECResources.com
Tel: 1-403-290-1676
Fax: 1-403-398-1382
SOURCE FEC Resources Inc.
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Related links:
http://www.fecresources.com
CONTACT:
Larry Youell, President and CEO of FEC
Resources Inc., +1-403-290-1676, info@FECResources.com
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