ENP Newswire -
Release date- 29082014 -
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
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.
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
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
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.
In July, 2014,
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.
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
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
Since the previous resource estimates dated
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.
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,
These amounts will be added as a principal and amortized ratably over the remaining 43 months of the term of the credit facility, with payments by the Company re-commencing on
The company also announces the appointment of
The outlook for silver equivalent production in 2014 continues to be 3.6 to 4 million ounces.
The Company's shares are also traded in
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.
Forward-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.
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