Starcore International Mines Ltd.

Starcore International Mines Ltd.

March 17, 2009 17:15 ET

Starcore Reports Positive Financial Results from the Second Quarter of 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 17, 2009) - Starcore International Mines Ltd. (TSX:SAM) (the "Company") has filed the results for the second quarter ended January 31, 2009, and the second complete year of its mining operations from the San Martin Mine. Starcore had revenues from metal sales of $5.3 million, earnings from mining operations of $1.2 million, and a net loss of $nil for the quarter ended January 31, 2009. Over the six month period ended January 31, 2009, the Company reports revenues of $12.0 million, earnings from mining operations of $2.2 million and a net loss of $0.1 million. The basic and diluted loss per share for the quarter and the six months ended January 31, 2009 was $nil.

The following table contains selected highlights from Starcore's consolidated income statement for the three and six month periods ended January 31, 2009:

For the three For the six
months ended months ended
January 31 January 31
000's 000's
2009 2008 2009 2008
Total Revenue $ 5,340 5,224 $ 11,969 12,849
Earnings from mining operations $ 1,210 48 $ 2,169 1,990
Net (loss) $ (22) $ (1,491) $ (131) $ (2,130)
Net (loss) per share-
basic and diluted $ (0.00) $ (0.02) $ (0.00) $ (0.04)

While mining revenue and earnings for 2009 was comparable to 2008, the revenue from mined ore was actually $1.18 million higher for the six months ended January 31, 2009 compared to the prior year, due mainly to poorer ore grades in 2008. The loss of purchased concentrate revenue in 2009 lowered gross revenues significantly by $2.1 million from the prior year, however, this had little effect on earnings from mining operations due to the low margin on purchased concentrate. Net loss was, therefore, lower overall as a result of the higher revenues and earnings from mining operations and due to management efforts to decrease administrative expenses.

The Company also had positive cash flow from operations of $0.1 million for the six months ended January 31, 2009.

The following table is selected information of mine production statistics for the San Martin mine for the second quarter of operations and the second complete year of operations under the Company.

results Actual
for results
3 months for
ended Year ended
January 31, January 31,
(Unaudited) Unit of measure 2009 2009
Production of Gold in Dore thousand ounces 5.0 19.0
Production of Silver in Dore thousand ounces 43.8 160.3
Equivalent ounces of Gold(i) thousand ounces 5.5 21.6

Milled thousands of tonnes 68.9 266.2

Operating Cost per
Equivalent Ounce US dollars/tonne 400 433
(i) assuming a 79:1 silver to gold equivalency ratio for three months and
62:1 for the year ended January 31, 2009.

Overall equivalent gold production was 5,500 ounces, which is comparable to the prior years' average of 5,400 ounces per quarter.

The Company expects to maintain or increase the current ore grades over the next quarter and continues exploration efforts to increase reserves of resources and to find higher grade deposits. Management also continues efforts to cut mine and administration costs, where possible, to improve earnings and cash flow.

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.

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