Oracle Mining Corp.

Oracle Mining Corp.

August 14, 2012 14:58 ET

Oracle Mining Files Second Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 14, 2012) - Oracle Mining Corp. ("Oracle Mining" or the "Corporation") (TSX:OMN)(OTCQX:OMCCF)(FRANKFURT:OMC) announces the filing of its financial and operating results for the quarter ended June 30, 2012. This media release should be read in conjunction with the unaudited condensed consolidated interim financial statements and accompanying notes for the quarter ended June 30, 2012, and the management's discussion & analysis ("MD&A") for the quarter ended June 30, 2012, both available on SEDAR at

Second Quarter 2012 financial summary

  • Net loss for the quarter was $4.8 million compared to a net loss of $3.6 million for the three months ended June 30, 2011, resulting from an increase of $0.3 million in exploration and evaluation expenditures and $0.9 million in general and administrative and other costs compared to the second quarter of 2011;
  • Loss on a per-share basis in the second quarter of 2012 remains unchanged from the same period in 2011, at $0.12 per share;
  • Net working capital as at June 30, 2012 was $5.7 million compared with $6.0 million on December 31, 2011;
  • Cash and cash equivalents at June 30, 2012 totaled $6.9 million compared to $7.9 million on December 31, 2011; and
  • Non-current liabilities totaled $4.0 million at June 30, 2012 compared to $4.7 million on December 31, 2011.

During the quarter, SRK Consulting, lead author of the ongoing Feasibility Study, reviewed the results of the previously announced confirmatory drill program and validated the existing historic drill hole database that is comprised of 534 drill holes amounting to 163,000 feet of drilling. The Corporation engaged one underground drilling contractor and another surface drilling contractor in support of the Feasibility Study. During the quarter, the first core hole of the underground drilling program was completed for a length of 673 feet. The hole successfully intersected skarn mineralization and assays are pending.

The Corporation received its Class II Air Quality Installation and Operating Permit from Pima County on July 3, 2012, marking a significant milestone in advancing the project. The Air Permit is the first new mine Air Quality Operating Permit to be granted in Pima County in more than 11 years, and the only one issued under the current regulatory environment. The Corporation anticipates submitting applications for Rights-of-Way, Storm Water Discharge and 404 Wetlands permits in the third quarter of 2012.

All financial information for the quarter ended June 30, 2012 is prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in United States dollars unless otherwise noted, including this media release. Please refer to Note 2 and Note 21 of the December 31, 2011 and 2010 audited annual financial statements for more information.

About Oracle Mining Corp.

Oracle Mining Corp. (TSX:OMN)(OTCQX:OMCCF)(FRANKFURT:OMC) is a Vancouver, Canada-based corporation that is the sole owner and operator of Oracle Ridge Mining LLC and the Oracle Ridge Copper Mine located 24 km north of Tucson, Arizona. Oracle Mining has minimal long-term debt and is managed by an experienced team of mining professionals with extensive operating and financial experience.

Forward-looking Statement Disclaimer

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation. These forward-looking statements are made as of the date of this document and Oracle Mining Corp. (hereinafter referred to as the "Corporation") does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or future performance and reflect management of the Corporation's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the receipt of permits to develop and operate the project, the timing and amount of estimated future production, costs of production, access to capital, capital expenditures, success of mining operations, commodity prices, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Corporation's annual information form for the year ended December 31, 2011 filed and available for review on SEDAR at Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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