LOUVEM MINES INC.
TSX VENTURE : LOV

LOUVEM MINES INC.

November 01, 2007 08:30 ET

Louvem Mines Reports its Third Quarter Results 2007

- Net loss of $227,729, compared with a loss of $515,305 for the same period in 2006; - Beaufor Mine resumes operations after a five week shut down in order to construct a new headframe; - 1,880 ounces of gold sold at an average price of US$662 compared to 2,500 ounces of gold sold at an average price of $US607 for 2006; - 52% grade improvement at the Beaufor Mine compared to the average grade for the year 2006; - Production cash cost of US$521, compared with US$550 for the corresponding third quarter in 2006.

MONTREAL, QUEBEC--(Marketwire - Nov. 1, 2007) - Louvem Mines Inc. (TSX VENTURE:LOV), announces today its financial results for the third quarter, which ended September 30, 2007.

Precious-metal revenues and other revenues fell by $322,342 to reach $1,407,223 during the third quarter of 2007 compared to the same quarter in 2006. In the third quarter of 2007, 1,880 ounces of gold were sold at an average price of US$662 (CAD$728), compared with 2,500 ounces of gold sold at an average price of US$607 (CAD$688) for the same period in 2006. The decrease in revenues is attributable to the five-week production shut down at the Beaufor Mine in order to construct a new headframe.

The Company posted a loss of $227,729 for the third quarter of 2007, compared with a loss of $515,305 for the same period in 2006. The difference of $287,576 is due primarily to:

- the change in the profit margin from mining operations, which totalled $291,877 during the third quarter of 2007, compared with $160,470 during the same period in 2006, owing to a substantial rise in the ore grade (which rose from 5.75 g/t in the third quarter of 2006 to 8.40 g/t for the same period in 2007) and the higher selling price per ounce of gold that was achieved;

- the increase in depreciation and depletion expenses, which rose from $113,290 for the third quarter of 2006 to $212,488 for the same quarter in 2007, due to a higher rate of depreciation and depletion per ounce, which is calculated based on the proven and probable reserves at the Beaufor Mine as at December 31, 2006;

- and a lower charge for mining and income taxes.

The Company posted a net profit of $529,223 for the first nine months of 2007 ending September 30, 2007, compared with a loss of $1,274,528 for the same period in 2006.

Precious-metal revenues and other revenues rose by $1,542,710 during the first nine months of 2007 to reach $8,433,442 during the first nine months of the year compared with $6,890,732 during the same period in 2006. The difference is attributable to the increase in gold sales and to the higher average selling price per ounce that was achieved. Specifically, 11,284 ounces of gold were sold at an average price of US$674 (CAD$741), compared with 10,132 ounces of gold sold at an average price of US$596 (CAD$676) for the same period in 2006.

As announced previously the Beaufor Mine closed for a period of five weeks during the third quarter in order to build a new headframe. The mining activities resumed on August 21, 2007. An amount of $929,972 was spent on this work, $464,986 represents Louvem's share of this cost.
During the third quarter of 2007 the Beaufor Mine produced a total of 13,934 tonnes of ore at an average recovered grade of 8.40 g/t for a total of 3,761 ounces of gold, Louvem's share of 1,880 ounces were sold at an average price of US$662 per ounce. For the third quarter of 2006 the Beaufor Mine produced a total of 27,052 tonnes of ore at an average recovered grade of 5.75 g/t for a total of 5,000 ounces of gold, Louvem's share of 2,500 ounces were sold at an average price of US$607 per ounce.

Excluding the shut down period, more gold was recovered on a per day basis in the third quarter than the prior year. Due to the reduction in volume from fewer operating days, the cash cost in the third quarter of 2007 was US$521 per ounce sold compared with US$550 in the third quarter of 2006.
Mr. Rivard declared, "Our results at the Beaufor Mine have been very positive this year, and we expect production in the fourth quarter to return to the pre-shut down level of close to 10,000 tonnes per month. We anticipate the recovered grade to meet expectations and remain in the 7 to 8 g/t range."

Beaufor Mine exploration: A $1.8 million exploration program is in process at Beaufor to uncover potential new faults that may contain gold-bearing zones. Additionally, drilling efforts were underway in the third quarter to define the magnitude of the extensions of the two main zones of the deposit. Of the 25,000 metres of drilling planned for 2007, 6,658 metres were completed in the third quarter, for a total of 18,848 metres since the beginning of the year. Over $1.3 million has been invested in exploration at Beaufor in the first nine months of 2007, $0.7 million for Louvem.

Outlook

Louvem is pleased with the recent operating improvements at the Beaufor Mine and remains enthusiastic with the exploration potential on this property. The Company has no hedging contract on gold and currency.


Jean-Guy Rivard

President and Chief Executive Officer

About Louvem Mine Inc.

The Company has a 50% interest in the Beaufor Mine and owns other exploration properties located near Val-d'Or, in North-western Quebec, Canada.

More information on Louvem Mines can be found o its website at: www.louvem.com.



KEY FINANCIAL DATE
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Three-month period Nine-month period
ended September 30 ended September 30
2007 2006 2007 2006
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Results ($)
Revenues 1,407,223 1,729,565 8,433,442 6,890,732
Net earnings (loss) (227,729) (515,305) 529,223 (1,274,528)
Cash flow from
(used in) operations (247,226) (647,933) 2,610,488 (713,815)

Results per share ($)
Net earnings (loss)
basic and diluted (0.01) (0.02) 0.02 (0.05)

Weighted average
number of common
Shares outstanding 25,929,689 25,929,689 25,929 689 25,941,099
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September 30, 2007 December 31, 2006
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Financial position ($)

Total assets 4,638,425 4,997,514
Working capital 1,816,750 532,072
Due to parent company - 700,000
Long term debt - -
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Sales and production data
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Beaufor Mine - 50 % Three-month period ended September 30
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2007 2006
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Gold sales (ounces) 1,880 2,500
Production of gold (ounce) 1,935 2,487
Cash cost (per ounce sold) 521 550
Average selling
price (per ounce of gold) 662 607
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Mine Beaufor - 50 % Nine-month period ended September 30
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2007 2006
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Gold sales (ounces) 11,284 10,132
Production of gold (ounce) 11,200 10,095
Cash cost (per ounce sold) 445 581
Average selling price
(per ounce of gold) 674 596
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Average exchange rate used
for the third quarter 2006: 1 $ US equals 1.13 $ CAN
2007 estimated exchange rate: 1 $ US equals 1.10 $ CAN

The TSX Venture Exchange accepts no responsibility for the veracity or accuracy of this news release.

Contact Information

  • Louvem Mine Inc.
    Jean-Guy Rivard
    President and Chief Executive Officer
    514-397-1448
    514-397-8620 (FAX)
    www.louvem.com