Aurcana Corporation ("Aurcana" or the "Company") is pleased to announce its financial and operating results for the three months ended September 30, 2010. The following summary of selected financial information should be read in conjunction with the unaudited consolidated Financial Statements for the nine months ended September 30, 2010 and the related Management Discussion and Analysis dated November 29, 2010. (www.sedar.com). All figures are in Canadian dollars unless otherwise stated.
Third Quarter Highlights:
FINANCIAL AND OPERATING DATA
* restated to exclude amortization and depletion and re-allocate to expenses.
For the quarter ended September 30, 2010, the Company posted net revenues of $7,476,157 (2009: $5,228,565), earnings from mining operations of $3,007,888 (2009: $1,750,338) and consolidated net earnings of $1,508,131 (2009: $2,625,481).
Included in net earnings was the effect of an unrealized foreign exchange gain of $1,030,350 (2009: $1,930,564) resulting from the weakening of the US dollar against the Canadian dollar during the quarter.
Another significant item of the Q3, 2010 results was a loss from trading activity of $1,045,470 (Q2, 2009: $Nil), the amount of which pertains to the contract the Company has with Silver Wheaton (Caymans) Ltd. ("Silver Wheaton") whereby the Company is contracted to sell to Silver Wheaton the equivalent of 50% of the silver metal produced from ore extracted during the mine-life at La Negra at a price of $3.90 per ounce.
LA NEGRA MINE - PRODUCTION AND SALES
Mining operations and exploration drilling at La Negra continue to delineate additional mineralized zones, either between or as extensions of existing ore zones which add to the mine life of La Negra. La Negra drill crews have completed 10,000 metres of diamond drilling year-to-date.
During the quarter ended September 30, 2010, 44% of the tonnes milled were mined from outside the existing reserve and historic resource base (55,000 of the 125,050 tonnes milled). Exploration drilling and underground development during the third quarter resulted in the definition of 157,000 tonnes in two zones, (Bicentenario, Nuestra Senora) with excellent silver and copper grades. A total of 5,800 tonnes were mined from these zones in the quarter.
With the installation of additional mill equipment, the ramp-up of the mill expansion to 1,500 TPD was achieved, resulting in a 50% increase in throughput and an increase in concentrate production under a rising price scenario. Mine operational efficiency is under constant review to identify cost cutting opportunities. A new tailings disposal area has been defined and initial studies are in progress to fulfill requirements for permitting in order to facilitate the long term operation of the La Negra mine.
About Aurcana Corporation:
Aurcana is committed to become a mid-tier silver producer. Annualized silver production is scheduled to exceed 5 million ounces pure silver (6.5 million ounces silver equivalent) by year 2012.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Lenic Rodriguez", President
For further information, visit the website at www.aurcana.com or contact:
Jack Barnes, Corporate Relations Aurcana Corporation
P: (604) 331-9333
TF: (866) 532-9333
F: (604) 633-9179
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.