|Tue Apr 27, 2004|
Summary Report of Second Quarter
| ||Vancouver, British Columbia, April 22, 2004: Roca Mines Inc. (the "Company") has released its quarterly report containing unaudited financial statements for the six months ended February 29, 2004. Pursuant to the requirements of National Instrument 54-102, this news release provides a summary of the information contained in the quarterly financial statements and is qualified in its entirety by the full text of the quarterly report which is available through the SEDAR website (www.sedar.com).|
During the quarter, the Company performed interpretative and reporting work in connection with its FOREMORE Project, incurring $41,113 in costs compared to $251,894 during the prior quarter and $102,604 during the 3-months ended February 28, 2003. As at February 29, 2004, the Company had expended a total of $1,357,883 on the FOREMORE Project including $60,000 in share issuances (200,000 shares at a deemed price of $0.30 per share), $25,000 in option payments and $25,194 in additional staking costs. A complete summary of the 2003 field season and recommendations for 2004 can be accessed via SEDAR in a technical report entitled "Summary Report of Geological Investigations on the Foremore Project, June - October 2003" by Consulting Geologist, Sandy Sears, P.Geo. For 2004, a two-phase $2,060,500 budget has been recommended, which would encompass approximately 10,000m of diamond drilling, primarily focused on the North and SG Zones, 40 line kilometres of induced polarization geophysics (North Zone), grid and reconnaissance soil sampling, consultancy work for detailed structural mapping, prospecting and additional rock sampling. The Company plans to begin Phase I of the recommended programs in June.
In December of 2003, the Company announced that it had signed an option agreement to acquire a 100% interest in the SEAGOLD Property, located in the Eskay/Iskut Camp in northwestern British Columbia, Canada. Roca has paid $25,000 and must issue 200,000 common shares and an additional $75,000 to the vendor in stages prior to December 1, 2006 to earn its interest. No exploration costs have been incurred to date at the SEAGOLD Property.
By agreement dated January 16, 2003 the Company signed an option to acquire a 100% interest in the MAX Property located near Revelstoke, B.C. Under the terms of its option agreement, the Company may earn its interest by making cash payments totaling $200,000 and by issuing 400,000 common shares to the vendor at certain dates up to January 16, 2007. As of this date, a $50,000 cash payment has been made and 100,000 common shares have been issued to the vendor. During the second quarter, the Company incurred exploration costs of $2,100, $22,000 in share issuance costs (100,000 shares at a deemed price of $0.22 per share), $50,000 in option payments and $18,581 in additional staking costs. The Company has received its exploration permits and is currently planning its initial diamond drill program for the Max Property.
During the second quarter, the Company advised Homestake Canada Inc., a wholly owned subsidiary of Barrick Gold Corporation that it would not be completing further work on the PBR property. Therefore, for the quarter-ended February 29, 2004, the Company has written-off the total amount of $186,198 in acquisition ($30,000, being 100,000 shares at a deemed $0.30 per share) and deferred exploration costs ($156,198) incurred in connection with the property.
For the six months ended February 29, 2004, the Company incurred a loss of $390,377 compared to a loss of $89,911 during the six months ended February 28, 2003 (during the first quarter of 2003, the company was relatively inactive prior to its IPO). The loss of $390,377 includes a one-time write-off of $186,198 associated with abandonment of the PBR Property. General and administrative costs for the six months included consulting expenses of $94,875, promotion and shareholder communication expenses of $35,642, travel expenses of $23,244, accounting, audit and legal fees of $24,209, listing and filing fees of $16,486, office and sundry expenses of $7,391 and rent costs of $3,000. The Company incurred a loss of $286,451 during the second quarter second quarter of 2003 and compared to a loss of $103,926 for the previous quarter-ended Nov 30, 2003, the significant increase due to the PBR Property write-off.
At the end of the period, the Company had working capital of $257,999, which is sufficient to meet its general and administrative expenses and to begin its initial drill program at the Max Property. Management's immediate business objective is to plan and budget for the 2004 exploration season. The focus of the 2004 field season will be being diamond-drilling programs at the FOREMORE Project and MAX Property.
ROCA MINES INC.
David J. Skerlec - Chief Financial Officer
For further information contact Scott Broughton, John Mirko or David Skerlec at:
Tel: 604-684-5900 (Broughton Ext. 114 / Mirko Ext. 110 / Skerlec Ext. 147)
Email: [email protected] / [email protected] / [email protected]
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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