Roca Mines Inc. Reports Second Quarter Results by 24hgold

Mots clés associés : Canada | Dollar |

Re: News Release - Thursday, April 29, 2010
Title: ROCA Reports Second Quarter Results

Vancouver, British Columbia: Roca Mines Inc. (TSX-V: ROK) ("Roca" or "the Company") has released its financial results for the three and six months ended February 28, 2010, including production and sales from the MAX Molybdenum mine located in British Columbia, Canada. All dollar amounts are stated in Canadian dollars unless otherwise indicated.

Q2-2009 Highlights

MAX Molybdenum mine subsequently awarded British Columbia's 2009 Mining and Sustainability Award;
Revenues of $7.1 million for September 1, 2009 to February 28, 2010;
Cash costs of $12.26 (US$11.58) per lb of molybdenum produced during the six months ended February 28, 2010;
Q1 and Q2 average molybdenum recoveries of approximately 95%; and
Q1 and Q2 molybdenum in concentrate production of 362,633 pounds and 305,485 lbs respectively.

MAX Molybdenum Mine - Production Results and Concentrate Sales

Revenues of $7.1 million for the six months ended February 28, 2010 result from shipments during the period and reflect final and/or estimated final pricing at February 28, 2010. The Company sells its concentrates to a UK-based buyer with sales revenues based on average prevailing molybdenum oxide prices subsequent to delivery.

The table below summarizes the average operating statistics for the three months ended February 28, 2010:

MAX Mine Statistics	Q2-2010
	DEC �09	JAN �10	FEB �10	TOTAL
Molybdenum Produced (lbs) ¹	82,962	106,897	115,626	305,485
Average Head Grade (% Mo)	0.30	0.38	0.38
Molybdenum Recovery (%)	94	96	96
Mill Availability (%)	97	100	100
Average Daily Throughput (tpd)	420	432	511

Note 1: molybdenum contained in concentrate.

The MAX Mine and concentrator continue to operate at targeted Phase I throughput rates with good efficiency and excellent recovery. However, ore produced from the single production area during the first and second quarters has returned average head grades that are below targets. In October 2009, the mine experienced dilution due to a failure caused by the intersection of previously unknown structures in the 805m level stope, impacting molybdenum production well into January 2010.

New development plans and future stoping methods will minimize the possibility of such an occurrence on the next levels of the mine. Development crews are now advancing on the 780m level where head grades for the operation are expected to improve.

Cash costs of production during the second quarter were higher than previous quarters as a result of these low average grades received at the mill. Cash costs averaged $14.09 per lb (US$13.40) of molybdenum sold during the second quarter. For the six months ended February 28, 2010 cash costs averaged Cdn$12.26 (US$11.58) per lb of molybdenum sold. At February 28, 2010, the Company had readily saleable concentrates in inventory containing approximately 45,000 lbs of molybdenum by weight.

The grade management challenges encountered over the last two quarters highlight the mine's current dependency on a single producing stope. The development of multiple stopes in the Phase II, 1000 tpd plan will reduce the impact of the production difficulties encountered during late 2009 and early 2010.

Financial Results

The information in this news release and the selected financial information should be read in conjunction with the interim consolidated financial statements, and management discussion and analysis, for the period ended February 28, 2010, which will be available at Roca's website at www.rocamines.com.

During the six months ended February 28, 2010, the Company recorded production revenues of $7,132,426 and a net loss of $1,873,039. The Company had negative operating cash flows of $175,737 during the period, which was offset by $447,993 in proceeds from outstanding option and warrants. The Company reported revenues of 11,577,854 and a loss of $11,850,042 during the six months ended February 29, 2009 on significantly higher sales of molybdenite concentrates during the prior year (and higher depletion charges under the Phase I mine plan). General and administrative expenses decreased over the prior year reflecting the Company's continuous efforts to reduce costs.

Despite significantly lower production during the three months ended February 28, 2010, production revenues improved to $4,055,486 with a net loss of only $507,197 due to higher prevailing prices for molybdenum based products. The Company had revenues of $3,267,337 and a loss of $6,728,318 during the three months ended February 29, 2009 on significantly lower realized prices for concentrates in the prior year.

Summary Consolidated Statements of Operations and Loss

	Three months ended February 28, 2010	Six months ended February 28, 2010
Total Revenues	4,055,486	7,132,426
Operating expenses	(3,853,074)	(7,862,888)
Depletion, amortization, accretion	(213,771)	(838,553)
Mining Loss	(11,359)	(1,569,015)
G&A, Stock-based comp., write-offs	(528,556)	(956,650)
Loss from Operations	(539,915)	(2,525,665)
Exchange gain (loss) and other income (loss)	(29,440)	(131,161)
Income and mining tax provision	62,158	783,787
Net Loss for the Period	(507,197)	(1,873,039)
Loss per Share � Basic and Diluted	(0.01)	(0.02)

Outlook

It remains management's belief that recent global events have seriously eroded the supply of molybdenum and management contends that a realization of supply and demand fundamentals in the medium-term will result in positive changes to pricing. It is therefore management's goal to accelerate production at MAX to 1000 tpd to reduce unit costs and to preserve the opportunity to produce concentrates in an appreciating price environment.

Exploration work at the Company's various projects has been limited recently to preserve cash resources. The Company has recently completed a short program at the Nuevo Milenio gold/silver project at relatively low cost, as expenditures towards mine expansion and operating efficiencies continue to be management's priority.

ROCA MINES INC.
"David Skerlec"

David J. Skerlec -- Chief Financial Officer

For further information contact:
Investor Relations
Tel: 604-684-2900
Fax: 604-684-2902
Email: info@rocamines.com
Web: www.rocamines.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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