Starcore International Mines Ltd.

Starcore International Mines Ltd.

March 18, 2008 09:00 ET

Starcore Reports Financial Results from the Second Quarter of 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 18, 2008) - Starcore International Mines Ltd. (the "Company") (TSX:SAM) has filed the results for the second quarter ended January 31, 2008, and the first complete year of its mining operations from the San Martin Mine, which was acquired February 1, 2007 from Goldcorp Inc. Starcore had revenues from metal sales of $5.2 million, earnings from mining operations of $0.4 million, and a net loss of $1.9 million for the quarter ended January 31, 2008. Over the six month period ended January 31, 2008, the Company reports revenues of $12.8 million, earnings from mining operations of $2.5 million and a net loss of $2.5 million, due largely to a $1.9 million non-cash stock-based compensation charge on option awards. The basic and diluted loss per share for the quarter ended January 31, 2008 was $0.03 per share. Basic and diluted loss of $0.04 per share was reported for the six months ended January 31, 2008.

The following table contains selected highlights from Starcore's consolidated income statement and consolidated balance sheet for the three and six month periods ended January 31, 2008:

For the three For the six
months ended months ended
January 31 January 31
000's 000's (audited)
2008 2007 2008 2007
Total Revenue $ 5,224 -- $ 12,849 --
Earnings from mining operations $ 420 -- $ 2,495 --
Net (loss) $ (1,883) $ (782) $ (2,522) $ (887)
Net (loss) per share - basic and
diluted $ (0.03) $ (0.06) $ (0.04) $ (0.07)

The Company also had positive cash flow from operations of $1.05 million for the quarter and $2.55 million for the six months ended January 31, 2008.

The following table is selected information of mine production statistics for the San Martin mine for the second quarter of operations and the complete year of operations under the Company. Chief Executive Officer, Robert Eadie, stated, "Although results are not as expected for the last quarter of operations, management is optimistic about the future of the San Martin mine."

Actual Actual
results for results for
3 months ended Year ended
January 31, January 31,
(Unaudited) Unit of measure 2008 2008
Production of Gold in Dore thousand ounces 3.8 24.1
Production of Silver in Dore thousand ounces 33.4 213.1
Equivalent ounces of Gold(i) thousand ounces 4.4 28.2

Milled thousands of tonnes 70.1 258.1

Operating Cost per
Equivalent Ounce US dollars/tonne 490 301
(i) assuming a 50:1 silver to gold equivalency ratio

Overall equivalent gold production was lower at 4,400 ounces, compared to the prior three quarters' average of 7,900 ounces per quarter. The decrease is due to lower ore grades in the quarter. The lower ore grades resulted primarily from a temporary loss of access to ore bodies 29 to 31 as a result of redevelopment of the access ramp during the last quarter. The Company has historically mined higher grade ore from these ore bodies and it is expected that the Company will place these ore bodies back into full production over the next quarter. The Company is also commencing the development of the New Zone discovered in the prior quarter (see news release dated November 27, 2007) named the "Guadelupe vein" with a view to mining ore from this vein by the end of the next quarter.

Full financial statements are available on SEDAR at and on Starcore's website at


Gary Arca, Chief Financial Officer and Director

The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.

Contact Information