Explorator Resources Inc.
TSX VENTURE : EXO

Explorator Resources Inc.

August 30, 2010 16:46 ET

Explorator Resources Reports on Q2 2010 Financial Results

TORONTO, ONTARIO--(Marketwire - Aug. 30, 2010) - Explorator Resources Inc. ("Explorator" or the "Company") (TSX VENTURE:EXO) reports its financial results for Q2 2010. Set out herein are the highlights for the quarter. A full version of the Q2 2010 Financial Statements and Management Discussion and Analysis of the Company is available on the Company's web site at www.explorator.ca and will be available on SEDAR at www.sedar.com.

Highlights:

  • US$10.3 million El Espino budget approved for 2010, including US$3.7 million for drilling (20,425 metres in 95 holes) and US$3.2 million for technical studies. 

  • 4,966 metres (23 drill holes) drilled during Q2, with assay results released on August 30, 2010

  • Updated Scoping Study now expected for Q4 2010 including a comprehensive metallurgical test work program focusing on the flotation of both Sulphide and Oxide ores as well as proportionally blended samples of both types of ore

  • Pre-Feasibility decision to follow with potential completion in the first half of 2011

  • AJ Ali appointed Director of Explorator in July 2010, bringing considerable experience from previous CFO roles with various junior mining companies. Mr. Ali to serve as Chairman of the Company's Audit Committee.

  • $4.7 million cash balance as of August 2010. Explorator Chile shareholder agreement provides that Explorator shall not face any funding requirement for El Espino during 2010. 

  • Net Loss for Q2 2010 of $0.9 million or $0.017/share – Explorator Chile results equity accounted for the period.

Other Information:

A copy of the release, as well as other information related to the Company, is available on the Company's web site at www.explorator.ca and on SEDAR at www.sedar.com.

EXPLORATOR RESOURCES INC.

David Prins, President & CEO

About Explorator Resources:

Explorator Resources is a Canadian-based mining exploration company with a 49% interest in the El Espino Copper-Gold Project in Chile (the "Project"). The Project lies within the prolific copper-gold mineral area of the Cordillera de la Costa, 240 km. north of Santiago, and is central to an important cluster of "Candelaria-style" copper-gold deposits. A National Instrument 43-101 compliant Preliminary Assessment (see press release dated May 11, 2009) has defined the potential for an average annual payable production of 77 million pounds of copper and 40,000 ounces of gold over a 19 year mine life (life-of-mine payable production of 1.467 billion lbs copper and 755,000 oz. gold) at an average cash cost of $1.06/lb, net of gold credits (based on a gold price of $680/oz.) and also noted good potential for further resource expansion. Sociedad Punta del Cobre S.A. ("SPC") acquired the remaining 51% of the Project in March 2009 in return for an investment of up to US$18.5 million, with US$7.0 million used to exercise the option to purchase agreement on the Project and the remaining funds expected to be adequate to fund continued exploration and evaluation through to the end of 2010.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information are identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and included, without limitation, statements regarding the company's plan of business operations, production levels and costs, potential contractual arrangements and the delivery of equipment, receipt of working capital, anticipated revenues, mineral reserve and mineral resource estimates, and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral reserve and resource estimates, equipment and supply risks, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information