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.
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