Aurcana Achieves Record Production,
Revenues, Silver Sales and Earnings From Mining Operations In 3rd Quarter
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:
- 72% increase in production to 125,050 tonnes in Q3, 2010 from 72,716 tonnes
in Q3, 2009;
- 43% increase in net revenues to $7,476,157 in
Q3, 2010 from $5,228,565 in Q3, 2009 to;
- 47% increase in ounces of silver sold to
238,722 in Q3, 2010 from 162,086 in Q3, 2009;
- 72% increase in earnings from mining
operations to $3,007,888 in Q3, 2010 from $1,750,338 in Q3, 2009;
- 68% increase in copper concentrate sold to
3,658 tonnes in Q3, 2010 from 2,183 tonnes in Q3, 2009;
- 123% increase in zinc concentrate sold to
2,065 tonnes in Q3, 2010 from 925 tonnes in Q3, 2009;
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
AURCANA CORPORATION
"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
E: info@aurcana.com
NR#10-18
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.
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