News Release
May 25, 2012
Aurcana Reports: Record 1st Quarter Results Aurcana Corporation ("Aurcana" or the "Company") (TSXV: AUN, OTCQX: AUNFF") is pleased to report its unaudited financial results for the first quarter ended March 31, 2012. The summary of the selected financial information should be read in conjunction with the Condensed Interim Consolidated Financial Statements (Unaudited) and the related Management Discussion and Analysis for the quarter ended March 31, 2012 dated May 24, 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 most significant highlights for the 1st quarter ending March 31, 2012 were:
- Revenues increased 6% to 11.6 million in Q1, 2012 from 10.9 million in Q1, 2011.
- 186% increase in net income, $2.0 million in Q1, 2012 compared to $0.7 million in Q1, 2011.
- 21% increase in operating cash flow before movements in working capital, to $5.7 million in Q1, 2012 compared to $4.7 million in Q1, 2011.
- Earnings from mining operations increased 2% in Q1, 2012, $5.5 million compared to $5.4 million in Q1, 2011.
- 20% increase in silver production of 287,486 ounces (258,767 ounces sold) in Q1 2012 compared to 240,275 ounces in Q1, 2011 (218,701 ounces sold).
- The upgrade of the La Negra mill was completed on March 31, 2012, increasing production from 1,500 tpd to 2,000 tpd, a 33% increase in production capacity.
Revenue
During the quarter ended March 31, 2012, the Company generated revenues from the sale of 3,266 tonnes of zinc concentrate (2011: 1,364 tonnes); 1,570 tonnes of copper concentrate (2011: 3,050 tonnes); 737 tonnes of lead concentrate (2011: nil); and 258,767 ounces of silver (2011: 218,701 ounces) for total net revenues of $11.6 million (2011: $10.9 million).
The average price for sales of zinc, copper, silver and lead during the period were Zn $0.91 (2011: $1.09) per pound; Cu $3.76 (2011: $4.37) per pound; Ag $32.80 (2011: $31.95) per ounce; Pb $0.95 (2011: nil) per pound.
Earnings
The Company had earnings from mining operations of $5.5 million for the quarter ended March 31, 2012 (2011: $5.4 million); income before taxes of $2.7 million (2011: $1.6 million); a net income of $2.0 million (2011: $ 0.7 million).
The increase in earnings from operations was mainly related to volumes sold and the increase of higher grades of the metals in the concentrates produced by the Company.
La Negra Mine Production Highlights- La Negra completed its second consecutive mine expansion from 1,500 tpd to 2,000 tpd production capacity on time and on budget for a cost of $4.5 Million.
- 130,570 mill feed tonnes of ore processed during the current quarter, 15% (18,948) from NI-43-101 Measured and Indicated Resources and 85% (111,622) from new discoveries or non-compliant resources. All new mineralized zones will be NI 43-101 compliant.
- 15% increase in Copper, Zinc and Lead concentrate produced during current quarter, 5,356 tonnes (2011: 4,684).
- 2% increase in ore mined to 132,438 tonnes in Q1 2012 from 129,612 tonnes in Q1 2011.
- La Negra's production increase was supported by a continuous in-house diamond drilling program.
Shafter Mine HighlightsConstruction at the Shafter silver mine in Texas has been successfully completed two months ahead of schedule and under budget. Commissioning and testing of the processing plant began on April 1, 2012. The ramp up to reach the 1,500 tpd production is expected by early Q3. Power was initially supplied by generators, but now the mill is operating on existing power from the grid. Drilling has defined another 150 feet to the resource of the 1st block. The warehouse building, cyanide mixing plant and potable water system are now complete.
To read complete Financial Statement click on this link: docs.google.com
To read complete MD&A click on this link: docs.google.com
Corporate
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 and www.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 and 287,486 ounces for Q1 2012.
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.
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
AURCANA CORPORATION
"Lenic Rodriguez", President & CEO
For further information, visit the website at www.aurcana.com or contact:
Aurcana Corporation
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Gary Lindsey, Corporate Relations
Phone: (720)-273-6224
Email: gary@strata-star.com |
