Aurora Energy Resources Inc. ("Aurora" or "the Company") (TSX: AXU)
reports its financial and operating results for the nine months
ended September 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 nine months
ended September 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. The Corporation has a focus on
exploration and development opportunities globally with current
uranium projects in the Central Mineral Belt ("CMB"), Labrador,
Canada, one of the most promising uranium districts in the world,
and Baker Lake, Nunavut. 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).
Significant events for the nine months ending September 30, 2008
include:
- Key leadership change in August 2008 with the appointment of
Mr. Bruce Dumville as the new President and Chief Executive Officer
and the appointment of Dr. Mark O'Dea to the position of Deputy
Chair of the Corporation's Board of Directors. Mr. Dumville has
over twenty-five years of experience in the international mining
industry, including functional responsibility for pre-feasibility
and feasibility studies, project management, operations and the
analysis of new investment opportunities.
- Signing of an option agreement with Pacific Ridge Exploration
Ltd. on a uranium exploration and development opportunity in the
Baker Lake Basin of Nunavut, Canada. The property provides the
potential to build value at an excellent entry cost and in a
jurisdiction with clearly defined policies on exploration and
mining. The Baker Lake Basin property covers 96,000 hectares and
boasts attractive near-surface uranium mineralization, including 5
targets with drill-indicated mineralization, with at least 15
target areas yet to be drill-tested.
- Completion of the 2008 summer drill program in Labrador, which
included an infill drill campaign of 13,233.49 metres of drilling
in 26 holes at the Jacques Lake and Michelin deposits. Aurora also
completed a 2,908 metre geotechnical, environmental and
metallurgical drill program in August 2008 in 25 holes. The
environmental work plan for 2008 was also substantially
completed.
- Initiated a tailings management study to identify potential
tailings sites for the Michelin Project. Tailings options will be
identified and those that are acceptable from an environmental,
technical and operations standpoint will create a short list for
further consideration in 2009 and 2010.
- Development of an education, training and employment program
for residents of coastal Labrador is underway.
- Recruitment of Mr. Chesley Andersen as Vice President,
Labrador Affairs. Mr. Andersen has over twenty years of experience
representing the Labrador Inuit. Born and raised in the Inuit
community of Makkovik in coastal Labrador, he most recently held
the position of Senior Negotiator with the Nunatsiavut Government
and previously served as the Secretary to the Executive Council of
the Nunatsiavut Government.
- Selection of panel members for the Michelin Project Community
Panel, announced in June 2008, is complete.
- Completion of an initial 600 metre drill program to test the
Lucky 7 zone at the Baker Lake Basin property, as well as
geological mapping and ground magnetic surveys, and an airborne
magnetic, radiometric and broadband electromagnetic survey, of
which results are pending. This work is designed to cover the
property and aid in the design of the subsequent exploration
program.
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 nine months ended
September 30, September 30,
2008 2007
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Loss and comprehensive loss for the
period $ 2,721,221 $ 7,133,761
Basic and diluted loss per share $ 0.04 $ 0.11
Cash invested in mineral properties $ 23,048,350 $ 18,369,009
Cash generated (used) by financing
activities $ 864,508 $ 2,444,773
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As at
September 30, December 31,
2008 2007
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Cash $ 106,253,139 $ 131,094,585
Working capital $ 105,091,624 $ 129,898,119
Exploration properties and deferred
exploration expenditures $ 81,441,462 $ 56,710,497
Total assets $ 191,910,177 $ 192,186,937
Shareholder's equity $ 180,511,000 $ 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 nine months ended September 30,
2008, was $2,721,221 or a loss per share of $0.04 compared to a net
loss of $7,133,761 and loss per share of $0.11 for the nine months
ended September 30, 2007. Increased interest income offset by a
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 nine months ended September 30, 2008,
consists primarily of wages and benefits of $2,149,430, stock-based
compensation expense of $1,407,534, office and general expenses of
$1,003,117, investor relations, promotion and advertising expenses
of $494,514, consulting fees of $406,807 and Part XII.6 tax of
$261,444 and, offset by interest income of $2,994,365.
Exploration Projects
The Company incurred cash expenditures of $23,048,350 for the
nine months ended September 30, 2008, on the development and
exploration of its CMB uranium assets (net of stock-based
compensation of $857,936, amortization of $358,318 and future
income taxes of $466,361).
Liquidity
At September 30, 2008, the Company had cash on its balance sheet
of $106,253,139 and working capital of $105,091,624, as compared to
cash of $131,094,585 and working capital of $129,898,119 at
December 31, 2007. The changes in cash and working capital of
$24,841,446 and $24,806,495, respectively, are primarily related to
the use of funds for deferred exploration and development
expenditures of $14,404,011 and $8,644,339, and net equipment
purchase of $286,002 offset by interest income of $2,994,365 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 active
in the Central Mineral Belt of coastal Labrador - one of the
world's most promising uranium districts - and in Nunavut, Canada,
where it has acquired an interest in the Baker Lake Basin property
through a deal with Pacific Ridge Exploration Ltd.
Aurora has no debt and approximately C$102 million in cash that
is fully liquid and held with a large Canadian commercial bank.
Aurora is committed to responsible development, which includes
community consultation, lasting local benefits and the highest
standards of safety, health, and environmental protection.
(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 and amended August 28, 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. Bruce Dumville President
& CEO (709) 726-2223 Aurora Energy Resources Inc. Paul Coombs
Chief Financial Officer (709) 726-2223 Website:
www.aurora-energy.ca
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