Aurora Energy Resources Inc. ("Aurora" or "the Company") (TSX: AXU)
reports its financial and operating results for the six months
ended June 30, 2008. Details of the Company's financial results are
described in the unaudited financial statements and Management's
Discussion and Analysis (MD&A) for the six months ended June
30, 2008. Further details on each of the Company's projects and
activities can be found on the Company's website
http://www.aurora-energy.ca and on SEDAR at http://www.sedar.com.
All amounts are in Canadian dollars unless otherwise stated.
Overview
The Corporation was incorporated on June 8, 2005, and operates
in the mineral resource industry. Its principle focus is on the
exploration and development of uranium projects in the Central
Mineral Belt ("CMB"), Labrador, Canada, one of the most promising
uranium districts in the world, as well as potential evaluation and
acquisition of opportunities throughout the world. Aurora is
committed to responsible development, which includes community
consultation, lasting local benefits and the highest standards of
safety, health, and environmental protection.
Aurora's properties in the CMB consist of a total of 223,074
acres in 28 licenses or groups of mineral claims. To date, the
Company has identified six uranium deposits in the region,
collectively containing a measured and indicated resource of 83.9
million pounds of U3O8 and an inferred resource of 49.8 million
pounds of U3O8.(i)
The Company initiated its summer work program in May 2008 with
an infill drill campaign at the Jacques Lake and Michelin deposits.
This campaign was completed at the end of July 2008 and included
13,233 metres of drilling in 22 holes. The winter drill program
finished on March 14, 2008 with 12,132.4 metres of drilling in 28
completed holes and 4 partial holes. Results from both the winter
and summer programs have confirmed the continuity of grade and the
overall potential of both Michelin and Jacques Lake and will assist
Aurora with pre-feasibility work by contributing to the conversion
of inferred to indicated NI 43-101 resource categories.
As part of the 2008 summer work program, Aurora is also
continuing with engineering studies and is conducting a 3,750 metre
geotechnical, environmental and metallurgical drill program from
May until August which is expected to provide Aurora with valuable
data for tailings studies and in moving the Michelin Project
towards development. The Company has reaffirmed its commitment to
building local stakeholder support with the recent formation of the
Michelin Project Community Panel, a forum for the exchange of
information on Michelin Project matters between community members
and company representatives. As well, the Company has initiated the
Michelin Project Training Plan to prepare community members for
employment in ongoing exploration and development activities and,
subject to regulatory approval, the longer term construction and
operations phases.
Operations
Selected Financial Data
This summary of selected unaudited and audited(ii) financial
data should be read in conjunction with the Management Discussion
and Analysis ("MD&A") and the unaudited and audited financial
statements of the Corporation and related notes thereto, for the
periods indicated.
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For the six months ended
June 30, June 30,
2008 2007
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Loss and comprehensive loss for the period $ 2,000,804 $ 5,693,441
Basic and diluted loss per share $ 0.03 $ 0.09
Cash invested in mineral properties $ 15,542,012 $ 8,483,842
Cash generated (used) by financing
activities $ 727,393 $ 2,476,827
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As at
June 30, December 31,
2008 2007
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Cash $ 113,478,844 $ 131,094,585
Working capital $ 113,245,791 $ 129,898,119
Exploration properties and deferred
exploration expenditures $ 73,463,753 $ 56,710,497
Total assets $ 192,100,949 $ 192,186,937
Shareholder's equity $ 180,593,451 $ 184,879,251
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(ii) The December 2007 financial data are the only audited financial data
The Company's net loss for the six months ended June 30, 2008,
was $2,000,804 or a loss per share of $0.03 compared to a net loss
of $5,693,441 and loss per share of $0.09 for the six months ended
June 30, 2007. An increase in interest income and reduction in
stock-based compensation are the primary factors for the
improvement in the Corporation's net loss in 2008 vs. 2007.
The net loss for the six months ended June 30, 2008, consists
primarily of wages and benefits of $1,474,505, stock-based
compensation expense of $932,592, office and general expenses of
$689,098, investor relations, promotion and advertising expenses of
$412,538, consulting fees of $285,107 and Part XII.6 tax of
$247,709 and, offset by interest income of $2,162,211.
Exploration Projects
The Company incurred cash expenditures of $15,537,892 for the
six months ended June 30, 2008, on the development and exploration
of its CMB uranium assets (net of stock-based compensation of
$694,911, amortization of $232,489 and future income taxes of
$283,844).
Liquidity
At June 30, 2008, the Company had cash on its balance sheet of
$113,478,844 and working capital of $113,245,791, as compared to
cash of $131,094,585 and working capital of $129,898,119 at
December 31, 2007. The change in cash and working capital of
$17,615,741 and $16,652,328, respectively, is primarily related to
the use of funds for deferred development and exploration
expenditures of $9,826,717 and $5,711,175, and the purchase of
equipment of $302,313 offset by interest income of $12,162,211 and
receipt of $550,800 upon the exercise of stock options.
The Company currently has no operating revenues other than
interest income and relies primarily on existing cash balance to
fund its exploration, development and administrative costs.
ABOUT AURORA
Aurora is a uranium exploration and development company focused
on the Central Mineral Belt in coastal Labrador. It owns 100% of
one of Canada's largest undeveloped uranium deposits. Aurora is
committed to generating superior shareholder value and responsible
development, with lasting local benefits. Aurora has offices in
Postville, Makkovik, Happy Valley-Goose Bay, Labrador, St. John's,
Newfoundland, Toronto and Vancouver.
The Company hosted its annual general meeting on June 10, 2008
at The Rooms in St. John's, Newfoundland.
(i) The Michelin deposit contains a measured resource of 1.289
million tonnes of resource grading 0.12% U3O8 (underground) and
5.795 million tonnes of resource grading 0.08% U3O8 (open pit), an
indicated resource of 16.170 million tonnes of resource grading
0.13% (underground) and 7.146 million tonnes of resource grading
0.06% U3O8 (open pit), and an inferred resource of 12.577 million
tonnes of resource grading 0.12% U3O8 (underground) and 1.564
million tonnes of resource grading 0.05% U3O8 (open pit). The
Jacques Lake deposit contains a measured resource of 0.415 million
tonnes of resource grading 0.09% U3O8 (underground) and 0.401
million tonnes of resource grading 0.09% U3O8 (open pit), an
indicated resource of 3.357 million tonnes of resource grading
0.08% (underground) and 1.909 million tonnes of resource grading
0.07% U3O8 (open pit), and an inferred resource of 2.778 million
tonnes of resource grading 0.08% U3O8 (underground) and 2.210
million tonnes of resource grading 0.05% U3O8 (open pit). The
Rainbow deposit contains an indicated resource of 1.088 million
tonnes of resource grading 0.09% U3O8 and an inferred resource of
0.931 million tonnes of resource grading 0.08% U3O8 (both open
pit). The Nash deposit contains an indicated resource of 0.757
million tonnes of resource grading 0.08% U3O8 and an inferred
resource of 0.613 million tonnes of resource grading 0.07% U3O8
(both open pit). The Inda deposit contains an indicated resource of
1.460 million tonnes of resource grading 0.06% U3O8 and an inferred
resource of 3.042 million tonnes of resource grading 0.07% U3O8
(both open pit). The Gear deposit contains an indicated resource of
0.520 million tonnes of resource grading 0.06% U3O8 and an inferred
resource of 0.210 million tonnes of resource grading 0.06% U3O8
(both open pit). Aurora's CMB Mineral Resources are reported at
cut-off grades that contemplate underground (0.05% U3O8) and open
pit (0.03% U3O8) mining scenarios, based on preliminary economic
assumptions, and may be refined with more in-depth economic
analyses. For further details of the property interests of Aurora,
please refer to the National Instrument 43-101 compliant technical
report dated April 7, 2008 entitled "An Update on the Exploration
Activities of Aurora Energy Resources Inc. on the CMB Uranium
Property, Labrador, Canada, during the period January 1, 2007 to
December 31, 2007, Part II - CMB Mineral Resources" prepared by Ian
Cunningham-Dunlop, P. Eng. and Christopher Lee, P. Geo., and
available on SEDAR at www.sedar.com.
Except for the statements of historical fact contained herein,
certain information presented constitutes "forward-looking
statements". Such forward-looking statements, including but not
limited to the timing and level of exploration activities,
including drilling activities, the timing of completion of a
pre-feasibility study and anticipated results of the 2008 work
program; involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievement of Aurora to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others,
risks related to the actual results of current exploration
activities, conclusions of economic evaluations, uncertainty in the
estimation of mineral resources, changes in project parameters as
plans continue to be refined, future prices of uranium, economic
and political stability in Canada, environmental risks and hazards,
increased infrastructure and/or operating costs, labor and
employment matters, and government regulation as well as those
factors discussed in the section entitled "Risk Factors" in
Aurora's Annual Information Form on file with the Canadian
Securities Commissions. Although Aurora has attempted to identify
important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate as actual results
and future events could differ materially from those anticipated in
such statements. Aurora disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Accordingly,
readers should not place undue reliance on forward-looking
statements.
Contacts: Aurora Energy Resources Inc. Mark O'Dea President
& CEO (604) 632-0110 or (709) 726-2223 Aurora Energy Resources
Inc. Paul Coombs Chief Financial Officer (604) 632-0110 or (709)
726-2223 Website: www.aurora-energy.ca
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