Aurcana Corporation ("Aurcana" or the "Company") (TSXV: AUN, OTCQX: AUNFF) is pleased to report its audited financial results for December 31, 2011. The summary of the selected financial information should be read in conjunction with the audited financial statements and the related management's discussion and analysis dated April 12, 2012 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 2011 Earnings Conference Call will be at 12:00 pm Eastern Time on Thursday, April 16. See bottom of press release for details.
The most significant highlights for 2011 were:
The Company had earnings from mining operations of $23.2 million for the year ended December 31, 2011 (2010: $1.6 million); income before taxes of $9.6 million (2010: loss for $9.1 million); a net income of $7.7 million (2010: loss for $8.6 million). Earnings per share increased to a profit of $0.02 per share from a loss of $0.06 per share in 2010.
The increase in earnings from mining operations was mainly related to increased volumes sold and the increase in the selling prices of the metals produced by the Company.
During the year ended December 31, 2011, the Company generated revenues from the sale of 8,119 tonnes of copper concentrate (2010: 11,821 tonnes); 9,836 tonnes of zinc concentrate (2010: 5,273 tonnes); 2,303 tonnes of Lead Concentrate (2010: nil); and 1,007,256 ounces of silver (2010: 808,921 ounces) for total net revenues of $45.9 million (2010: $26.1 million).
The average price for sales of copper, silver, zinc and lead during the year were Cu - $4.04 (2010: $3.50) per pound; Ag $35.25 (2010: $21.50) per ounce; Zn $0.97 (2010: $0.99) per pound and Pb $1.03 (2010: nil).
La Negra Mine Production Highlights
The reader should be cautioned that the Company has not completed a feasibility study to confirm the projected production capacity for La Negra and there is no certainty the Company's plans will be economically viable.
Shafter Silver Mine Updates
Mr Lenic Rodriguez, President & CEO stated "The 2011 record results and the completion of the expansion at La Negra and the commissioning of the plant at the Shafter silver mine conclude our turnaround activities and position Aurcana Corporation to become an emerging silver producer in 2013".
During 2011 Aurcana continued to upgrade and expand the 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. In early 2011 the Company initiated construction of the Shafter mine and completed many significant milestones throughout the year. Recently the Shafter processing plant was commissioned and the final phase of construction has been entered two months ahead of schedule. Aurcana is prepared for significant increases in production in 2012 and beyond.
To read complete Financial Statement click on this link: http://www.aurcana.com/i/pdf/2011-Q4-FS.pdf
To read complete MD&A click on this link: http://www.aurcana.com/i/pdf/2011-Q4-MDA.pdf
Aurcana Corporation is scheduling a conference call to discuss the audited 2011 results at 0900 Hs PST on Monday 16th, 2012.
Conference Call Details:
Date: Monday 16th, 2012
Time: 12:00 PM EDT (9:00 AM Pacific)
Attendee Access Information:
1-800-319-4610 Canada and USA Toll-free
1-604-638-5340 Outside of Canada & USA
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.
The Company's shares are now also traded in the United States on OTCQX under the symbol "AUNFF". Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com andwww.otcmarkets.com.
About Aurcana Corporation:
The Shafter Silver Mine is scheduled to produce 3.8 million ounces of silver in the first full 12 months of operation. It has an NI 43-101 Measured and Indicated Resource of 24.6 million ounces of silver and an Inferred Resource of 22.8 million ounces of silver using a 4.0 ounce per ton cut off. The 99.9% owned La Negra silver-lead-zinc-copper mine produced over 1 million ounces of contained silver in 2011.
The scientific and technical information contained in this news release regarding the Shafter Silver Mine has been reviewed by Ken Collison, P.Eng. Director of the Company, and a Qualified Person ("QP") and scientific and technical information contained in this news release regarding the La Negra Mine has been reviewed by Baltazar Solano, P.Eng. and a QP). as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Project)
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Lenic Rodriguez", President & CEO
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
This news release contains certain forward-looking statements, including statements regarding forecast silver production, silver grades, recoveries, potential mineralization, exploration result, future plans and objectives of the Company and the business and anticipated financial performance of the Company. These statements are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Exploration results that include geophysics, sampling and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classified as a category of mineral resource. A mineral resource which is classified as "inferred" or indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or does not expect", "is expected", anticipates" or "does not anticipate" "plans", "estimates" or "intends" or stating that certain actions, events or results " may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.
Actual results may differ materially from results contemplated by the forward-looking statements. Important factors that could differ materially from the Company's expectations include, among others ,risks related to international operations, unsuccessful exploration results, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as 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. Accordingly, readers should not place undue reliance on forward-looking statements.
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.