Aurcana Corporation ("Aurcana" or the "Company") (TSXV: AUN, OTCQX: AUNFF") is pleased to report its unaudited financial results for the third quarter ended September 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 November 4, 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.
The most significant highlights for the 3rd quarter ending September 30, 2011 were:
During the quarter ended September 30, 2011, the Company generated revenues from the sale of 1.690 tonnes of copper concentrate (2010: - 3,658 tonnes); 2,913 tonnes of zinc concentrate (2010: -- 2,065 tonnes); 736 tonnes of Lead Concentrate (2010: nil); and 235,981 ounces of silver (2010 -- 238,722 ounces) for total net revenues of $12.1 million (2010 - $7.2 million).
The average price for sales of copper, silver, zinc and lead during the period were Cu - $3.98 (2010: $3.29) per pound; Ag - $37.24 (2010: $18.98) per ounce; Zn $0.98 (2010: $0.91) per pound and Pb $1.03 (2010: nil).
The Company had earnings from mining operations of $6.8 million for the quarter ended September 30, 2011 (2010: $2.1 million); income before taxes of $4.3 million (2010: $1.2 million); a net income of $3.8 million (2010: $ 1.2 million). For the six months ended September 30, 2011 the Company had earnings from mining operations to $ 17.5 million (2010: $ 3.4 million); income before taxes to $ 7.6 million (2010: a loss of $ 0.7 million); a net income of $ 6.1 million (2010: a loss of $ 0.7 million).
The increase in earnings from operations was mainly related to increased operating efficiencies and the increase in the selling prices of the metals produced by the Company.
La Negra Mine Production Highlights
La Negra is on track to complete the ongoing mill upgrade to 2,000 tpd in Q1 2012, a 33% increase from the current capacity. This will bring the mill throughput capacity in-line with our planned mining operations of 2,000 tonnes per day.
Also, in the first nine months of 2011 drilling crews have completed 10,613 metres of diamond drilling at La Negra.
Shafter Mine Construction Milestones completed in Q3, 2011
The Company commenced construction of the Shafter Mine in January of this year with an anticipated completion date of May 2012. Significant milestones on the Shafter Mine during Q3 include:
During Q3 2011 Aurcana continued to build on the advances of its La Negra Mine. Metal concentrate prices continued to be significantly higher than the previous year, and the Company continued to adjust its cost structure, both on the operational and administrative side. The Company completed significant milestones of the Shafter mine and mill as well as just recently completing the final permit. Aurcana continues to prepare for future growth.
To read complete Financial Statement click on this link: http://www.aurcana.com/i/pdf/2011Q3FS.pdf
To read complete MD&A click on this link: http://www.aurcana.com/i/pdf/2011Q3MDA.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 7 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 8.48Ag 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 has produced over 1 million ounces of Silver in the past 4 quarters.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Lenic Rodriguez", President
For further information, visit the website at www.aurcana.com or contact:
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Gary Lindsey, Corporate Relations
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.