Aurcana Corporation (the "Company") announced today its financial and operating results for the three months ended March 31, 2010. The following summary of selected financial information should be read in conjunction with the unaudited consolidated financial statements for the three months ended March 31, 2010 and the related management's discussion and analysis dated May 31, 2010, which have been filed on Sedar (www.sedar.com). All figures are in Canadian dollars unless otherwise stated.
|First Quarter 2010 Highlights|
|Earnings from Mining Operations||
|Earnings per share||
|Silver ounces sold||
|Copper content sold (tonnes)||
|Zinc content sold (tonnes)||
For the three months ended March 31, 2010, the Company posted consolidated net sales of $4,677,771 (2009: $3,037,037), earnings from mining operations of $610,434 (2009: $64,384) and consolidated net earnings of $701,540 (2009: net loss of $879,946) which includes the effects of a foreign exchange gain of $1,291,315 (2009: loss of $292,566).
During the three months ended March 31, 2010, the Company spent $1,053,436 on the purchase of property, plant and equipment and $437,985 on mineral property expenditures, with the majority of the purchases going towards the La Negra Mine plant expansion.
LA NEGRA MINE
For the three months ended March 31, 2010 and 2009, the Company:
As at May 31, 2010, the Company's targeted plant expansion from 1,000 tonnes per day ("TPD") to 1,250 TPD was completed with the addition of a second ball-mill, a new cyclone system and an expansion of the flotation circuit. With the construction of a second water tank and a third fine-ore storage bin, the Company's targeted plant expansion to 1,500 TPD was achieved by mid-June 2010. The Company is extremely pleased with expansion as the majority of the expansion was completed internally, ahead of schedule and within budget. The Company is looking forward to achieving economies of scale as well as the significant impact the increased production will have on its revenues, cash flows and profitability throughout the rest of 2010.
SHAFTER SILVER PROJECT
The Company is pleased to report that during the first and second quarters of 2010, the Shafter Project configuration was finalized, including several very significant design optimizations. SNC-Lavalin, Tetra Tech, The Gault Group, and other independent qualified persons were used to perform this work. Consequently, the July 2009 Prefeasibility capital estimate has been raised to a Feasibility level of accuracy. The Company is currently making amendments to already existing permits to reflect the final project configuration. Such amendments are minor in nature and the Company has received positive indication from Texas regulators that amended permits will be issued upon application.
Work has also continued in maintaining the strong social license that exists for the Shafter Project by regular two-way communications with the residents of Shafter and the surrounding communities of Marfa and Presidio.
Key members of the execution team have been identified, as have preferred engineers for detailed design work and contractors for mine construction.
About Aurcana Corporation:
The Shafter Silver Mine is scheduled to start up production within 18 months of securing permits and financing, producing 3.9 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 8.48Ag 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 when expansion to 1,500 t/d, is completed by mid year. The reader should be cautioned the Company has not completed a feasibility study confirming the projected production capacity for La Negra and there is no certainty the Company's plans will be economically viable. Ron Nichols, P.Eng. a Director and Senior Vice President for Aurcana, and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.
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
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (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.