|Mon Aug 15, 2011|
Record Results for Aurcana Q2, 2011
Aurcana Corporation ("Aurcana" or the "Company") is pleased to report its unaudited financial results for the second quarter ended June 30, 2011. The summary of the selected financial information should be read in conjunction with the unaudited financial statements and the related management's discussion and analysis dated August 12, 2011 together referred to as the "Financial Statements", which have been filed on SEDAR (www.sedar.com) and the Company's website (http://www.aurcana.com). All figures are in US dollars unless otherwise noted.
Join the Q2 Conference Call for Aurcana Corporation at 4:30pm (EST), Monday, Aug. 15, 2011, details at end of this press release.
Highlights for the quarter ended June 30, 2011 were:
La Negra Mine
Mining operations and exploration drilling at La Negra continue to delineate additional mineralized zones, either between or as extensions of existing ore zones. These results are expected to add to the mine life of La Negra.
Drill crews have completed 6,863 metres of diamond drilling during the six months ended June, 2011.
A lead-silver concentrate circuit was installed and was placed into production during the quarter ended June 30, 2011. Metallurgical studies concluded that the new circuit, using gravimetric separation, would eliminate the penalty for lead content and result in a higher quality copper concentrate.
Additional expansion of La Negra is planned to increase production from 1,500 up to 2,000 tonnes/day, with an investment of $ 4.5 million and an estimated completion in early 2012.
The Company had earnings from mining operations of $5.3 million for the quarter ended June 30, 2011 (2010: $0.6 million); income before taxes of $1.7 million (2010: a loss of $1.4 million); a net income of $1.6 million (2010: a loss of $ 1.4 million). For the six months ended June 30, 2011 the Company had earnings from mining operations to $ 10.7 million (2010: $ 1.3 million); income before taxes to $ 3.3 million (2010: a loss $ 1.9 million); a net income of $ 2.3 million (2010: a loss of $ 1.9 million).
The increase in earnings from operations was mainly related to increased volumes sold and the increase in the selling prices of the metals produced by the Company.
During the quarter ended June 30, 2011, the Company generated revenues from the sale of 1,832 tonnes of copper concentrate (2010: - 2,788 tonnes); 2,667 tonnes of zinc concentrate (2010: -- 1,085 tonnes); 846 tonnes of Lead Concentrate (2010: nil); and 263,357 ounces of silver (2010 -- 172,356 ounces) for total net revenues of $12.4 million (2010 - $4.8 million).
The average price for sales of copper, silver, zinc and lead during the period were Cu - $4.14 (2010: $3.45) per pound; Ag - $36.86 (2010: $18.22) per ounce; Zn $1.02 (2010: $1.15) per pound and Pb $1.16 (2010: $0.88). Metal prices were a significant factor in the increased profitability of the Company.
During Q2 2011 Aurcana continued to build on the advances of its La Negra Mine. Metal concentrate prices continued to improve, and the Company continued to adjust its cost structure, both on the operational and administrative side. The Company continued to advance the permitting process at Shafter and initiated development of the Shafter mine. Aurcana continues to focus on its future growth.
To read complete Financial Statement click on this link: http://www.aurcana.com/i/pdf/2011Q2FS.pdf
To read complete MD&A click on this link: http://www.aurcana.com/i/pdf/2011Q2MDA.pdf
On April 19, 2011, Aurcana commenced trading on the OTCQX International. Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.
The Company trades in the United States on OTCQX under the symbol "AUNFF".
About Aurcana Corporation:
The Shafter Silver Mine is scheduled to start up production within 12 months producing 3.8 million ounces silver in the first year. It has a NI 43-101 measured and indicated resource of 24.6 million ounces of silver (2,900,000 tons at 8.48 Ag opt) and an inferred resource of 22.8 million ounces of silver (2,167,000 tons at 10.52 Ag opt) using a 4.0 ounce per ton cut off. The 92% owned La Negra silver-lead-zinc-copper mine is on target to increase production to over 2 million ounces Silver Equivalent annually.
Q2 2011 Conference Call Details
Monday, August 15, 2011, 4:30 PM EDT (1:30 PM Pacific)
Attendee Access Information: Canada and USA Toll Free 1-800-319-4610, Vancouver 604-638-5340, Outside of Canada & USA 1-604-638-5340
A replay of the conference call will be available immediately following the conference by dialing 1-800-319-6413 in Canada & USA (Toll-free) or 1- 604-638-9010 outside of Canada and USA. The required pass code is 2729 followed by the # sign.
Please dial-in to the meeting at least 5 minutes prior to the start time using one of the attendee phone numbers.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
Lenic Rodriguez, President
For further information, visit the website at www.aurcana.com.
Caution Regarding Forward-Looking Statements -- This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include unsuccessful exploration results, changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf.
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.
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