RE: 12% increase in La Negra silver for AUN?
bye bye .14 cent aurcana making money at %80 percent ownership next quarter will be more better than this quarter with %92 ownership .IMO we will not sea aun belowe .20 cent good luck all longs .:)
Aurcana Corporation Reports Positive Second Quarter Results
VANCOUVER, BRITISHCOLUMBIA--(Marketwire - Sept. 2, 2009) - Aurcana Corporation ("Aurcana"or the "Company") (TSX VENTURE:AUN) is pleased to report its financialresults for the period ended June 30, 2009. The summary of the selectedfinancial information should be read in conjunction with the unauditedfinancial statements for the three and six months ended June 30, 2009and the related management's discussion and analysis dated August 28,2009 together referred to as the "Financial Statements", which havebeen filed on Sedar (www.sedar.com) and the Company's website (www.aurcana.com). All figures are in Canadian dollars unless otherwise noted.
For the second quarter ended June 30, 2009, Aurcana postedconsolidated net sales of $4.0 million, a loss from operationsincluding corporate expenses of $0.6 million, and an overall profit of$2.8 million after the effects of a foreign exchange gain of $2.5million and a gain on debt settlement of $1.0 million. On a year todate basis, consolidated net sales were $7.4 million with a loss fromoperations of $1.1 million and overall earnings of $1.96 million afterthe gains noted above. At the end of the second quarter the Company hadcash and cash equivalents of $1.0 million.
LA NEGRA MINE
During the quarter, the Company took steps to stabilize and advancethe operations of the La Negra mine. With the expiry of the previousoperator's contract, the Company took operational control of the mineand commenced the process of expanding the mine to 1,300 tons per daywith an eventual goal of 1,500 tons per day of production.
In spite of an extended down period in May, as new equipment wasbeing installed to facilitate the expansion, the results from the LaNegra mine for the period were positive. Contributing factors wererising metal concentrate prices, revised contract settlement terms withour concentrate buyer which eliminated some of the pricing risks whichplagued the Company last year, and the first tentative results ofmanagement's efforts to contain costs and commence direct operationalcontrol of the mine:
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3 months ended 6 months ended
La Negra Mine (100%) June 30, 2009 June 30, 2009
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Tonnes of ore Processed 79,110 148,476
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Tonnes of payable Zinc metal sold 403 734
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Pounds of Zinc 888,454 1,618,176
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Tonnes of payable Copper metal sold 313 745
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Pounds of Copper 690,040 1,642,427
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Ounces of payable Silver sold 200,825 391,472
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Revenues $3,796,296 $6,977,791
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Gross Margin $ 759,830 $1,487,706
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Net Income $ 119,982 $ 331,498
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The consolidated financial statements of the Company as of June 30,2009 include only 80% of La Negra's results. Aurcana currently owns 92%of the La Negra mine, having diluted its joint venture partnersubsequent to the quarter end from 20% to 8%.
SHAFTER SILVER MINE
Aurcana acquired 100% of the Shafter silver mine from SilverStandard Resources Inc. in July 2008. Shafter is located in PresidioCounty, southwest Texas and is fully accessible via paved highway fromEl Paso, Texas. Silver was mined in the region from 1883 until 1942,when the mine was closed by the War Act. Production during that periodwas 2.3 million tons of ore containing 35 million ounces of silver atan average grade of 15.24 ounces per ton.
On June 29, the Company announced the results of the pre-feasibility study. The highlights of the report were:
- Payback of under 2 years based on a silver price of $13.55 per ounce;
- An internal rate of return ("IRR") of 25% pre tax;
- A pre tax net present value ("NPV") of $23 million at a 5% discount rate;
- An initial estimated capital expenditure of under $40 million;
- Silver production of 3.75 million ounces in year one and 4 million ounces in year two; and
- An average total cost of $7.50 per ounce of silver produced in the first two years.
ROSARIO
During the quarter, the Company announced entering into anagreement to sell the Rosario property for $250,000, one million sharesof Silvermex Resources, and the assumption of all future propertypayments. Additional consideration $2.5 million and 1 million shares isto be paid in installments upon production or within 24 months. Atquarter end final documentation and the finalization of due diligencewere still in progress.
About Aurcana Corporation:
The Shafter silver mine, with a NI 43-101 measured and indicatedresource of 24.6 million ounces of silver and an inferred resource of22.8 million ounces of silver using a 4.0 ounce per ton cut off, isscheduled to produce at 3.5 million ounces silver per year. The 92%owned La Negra silver-lead-zinc-copper mine in Queretaro State, Mexico,is operating at 1,000 tonnes per day. The reader should be cautionedthe Company has not completed a feasibility study confirming theprojected production capacity for La Negra and there is no certaintythe Company's plans will be economically viable. Ron Nichols, P.Eng. aDirector and Vice President of Exploration for Aurcana, and a QualifiedPerson as defined by National Instrument 43-101, supervised thepreparation of the technical information in this release.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
Lenic Rodriguez, President
Caution Regarding Forward-Looking Statements - This news releasecontains certain forward-looking statements, including statementsregarding the business and anticipated financial performance of theCompany. These statements are subject to a number of risks anduncertainties. Actual results may differ materially from resultscontemplated by the forward-looking statements. Factors that couldcause actual results to differ materially from those in theforward-looking statements include unsuccessful exploration results,changes in metal prices, changes in the availability of funding formineral exploration and development, unanticipated changes in keymanagement personnel and general economic conditions. When relying onforward-looking statements to make decisions, investors and othersshould carefully consider the foregoing factors and other uncertaintiesand should not place undue reliance on such forward-looking statements.The Company does not undertake to update any forward-lookingstatements, oral or written, made by itself or on its behalf.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.