The most significant highlights for the 2nd quarter ending
-- Silver equivalent ounces produced decreased by 4%, with 786,505 ounces produced in Q2, 2014, compared to 818,060 in Q2, 2013. -- Silver production was down 6% to 329,368 ounces in Q2, 2014, compared to 351,210 ounces in Q2, 2013. -- Revenues decreased
$2.1 millionto $9.2 millionin Q2, 2014 from $11.3 millionin Q2, 2013, mainly due to a combination of lower metal prices, lower amount of ounces sold and higher TCRC deductions. -- Mineralization milled was down 1% to 232,763 tonnes in Q2, 2014, compared to 235,388 tonnes in Q2, 2013. -- The average silver grade was 55 grams per tonne (g/t) in Q2, 2014 compared to 59 g/t in Q2, 2013, due to increased throughput of lower grade mineralization -- Cash cost per silver equivalent ounce increased 16% to $10.29in Q2, 2014, compared to $8.90in Q2, 2013, due to lower silver ounces produced and increased production costs.
During the quarter ended
The average price for sales of silver, copper, zinc and lead during the quarter were Ag
The Company had earnings (losses) from mining operations at La Negra for the quarter ended
June 30, 2014in the amount of ($1.4) million(2013: $2.6 million), and $2.0 millionfor the first six months of 2014 (2013: $7.3 million). The decrease in earnings from mining operations at La Negra for the current period against the same period of the previous year was mainly related to the decrease in metal prices, lower silver grade at the La Negra mine and lower mill through-put as a result of mill downtime due to mechanical problems. Operations Review -- On April 29, 2014 Aurcanaannounced that it had completed the restructuring of a loan with Orion Mine Finance (Master) Fund I LP, an affiliate of Orion Mine Finance Group. -- In July, 2014, Kevin Droverwas appointed President and Chief Executive Officer of Aurcana. Kevin has more than 40 years' of experience in mining operations including as VP of Operations at Kinross Gold Corporation. -- Management has initiated a review of all facets of the Company including capital expenditures, staffing levels, cost controls and resource estimates. At La Negra the immediate focus will be on cost reductions, productivity and efficiency improvements, reducing mining dilution and improving grade estimation practices and control. -- During the month of July a number of changes were implemented at the La Negra mine including a change in mining method that has resulted in an improvement in the silver grade from an average of 50g/t in June to an average of 68g/t in July, a 36% improvement. -- In addition, Aurcanahas commissioned a new resource estimate for its La Negra mine. Updated details of the Company's operations at La Negra, including an updated resource estimate, will be contained within a Technical Report issued within 45 days of the Company's initial reporting of the results of the resource estimate. The resource estimate will be done in accordance with CIM Standards for the Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines and supported by a Technical Report conforming to NI 43-101, Standards of Disclosure for Mineral Projects. The Company has engaged AMC Mining Consultants (Canada) Ltd.to complete this work, with an anticipated completion date in the fourth quarter of 2014. The objective in preparing a new resource estimate is to provide shareholders with updated information on the grade, tonnages and metal potential at La Negra and to provide Aurcana'smine management with a more reliable and current model for production planning. Since the previous resource estimates dated June 30, 2012, mining operations at La Negra have ramped-up to approximately 3,000 tonnes per day, resulting in a larger draw-down of lower grade mineralization. Over the past 26 months there have been significant downward movements in metal prices and while the Company expects commodity prices to improve over time, the changes call into question the current applicability of some of the underlying assumptions in the existing resource model, including metal prices. At the La Negra operation, the Company has been able to successfully explore and develop new zones of mineralization as well as extend known zones such that approximately 35% of current production comes from areas outside the earlier block models. Aurcana'snew management group feel that these factors dictate the need for a revised resource estimate. -- The technical information in this Release has been reviewed and approved by Jerry Blackwell, P. Geol. A Director of the Company and Qualified Person for purposes of National Instrument 43-101. -- In addition to the above, the Board and Management will be exploring alternatives that could result in an improved balance sheet and increased shareholder value.
To improve the Company's short term liquidity,
The company also announces the appointment of
The outlook for silver equivalent production in 2014 continues to be 3.6 to 4 million ounces.
To read the complete Condensed Interim Consolidated Financial Statements click on this link: http://www.aurcana.com/i/pdf/2014-Q2-FS.pdf or go to Company's profile at www.sedar.com
To read the complete Management Discussion and Analysis click on this link: http://www.aurcana.com/i/pdf/2014-Q2-FS.pdf or go to Company's profile at www.sedar.com
The Company's shares are also traded in
The Company also announces the appointment of
The technical information in this release has been reviewed by
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
For further information, visit the website at www.aurcana.com.
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. Fforward-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 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. 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, except as required by applicable law. Accordingly, readers should not place undue reliance on forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Aurcana Corporation(604) 331-9333 Toll Free: (866) 532-9333 (604) 633-9179 (FAX) Gary LindseyCorporate Relations (720)-273-6224 firstname.lastname@example.org Source: Aurcana Corporation