|Fri Jul 16, 2004|
Summary Report of Third Quarter
| ||News Release #10-04|
Vancouver, British Columbia, July 16, 2004: Roca Mines Inc. (the "Company", "Roca") has released its quarterly report containing unaudited financial statements for the nine months ended May 31, 2004. 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 located approximately 45 km north of the Eskay Creek mine in northwestern British Columbia. Roca incurred $49,118 in costs compared to $43,113 during the prior quarter and $21,954 during the 3-months ended May 31, 2003. Acquisition costs of $55,000 were also incurred during the three months ended May 31, 2004, consisting of a $25,000 cash payment and 100,000 shares at a deemed $0.30 per share. To May 31, 2004, the Company had expended a total of $1,462,001 on the FOREMORE Project including $90,000 in share issuances (300,000 shares at a deemed price of $0.30 per share), $50,000 in option payments and $25,194 in additional staking costs. The Company has now mobilized to FOREMORE and commenced a Phase I exploration program to consist of prospecting, mapping, geophysics and diamond drilling of various volcanogenic massive sulphide and gold targets identified by the Company in 2002 and 2003. A complete summary of the 2003 field season and recommendations for 2004 can be found 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.
Various gold and massive sulphide targets at the SEAGOLD Project will also be prospected during the summer months, with field crews accessing the property directly from the FOREMORE camp 20 kilometres to the north. During the quarter ended May 31, 2004, $350 in interpretive work and $7,500 in acquisition costs (25,000 shares at a deemed $0.30 per share) were incurred on the SEAGOLD Project.
In May, the Company completed an initial diamond drill program at the MAX Molybdenum Project, located approximately 50 kilometres south of Revelstoke, B.C. at a cost of $181,611. To date, the Company has spent $274,292 at the MAX Project including $68,581 in cash acquisition and additional staking costs and $22,000 in share issuances (100,000 shares at a deemed $0.22 per share). Results from the initial drill program were released on July 13, 2004 (see ROK #9-04). Based on these initial drill results, the Company is accelerating its exploration plans for the property.
For the nine months ended May 31, 2004, the Company incurred a loss of $501,929 compared to a loss of $161,418 during the nine months ended May 31, 2003. The loss of $501,929 includes a one-time, non-cash write-off of $186,198 associated with abandonment of the PBR Property (see press release ROK#4-04 dated March 24, 2004). General and administrative costs for the nine-month period included consulting expenses of $111,900, advertising and shareholder relations expenses of $61,382, travel expenses of $55,514, accounting, audit and legal fees of $28,236, stock-based compensation expense of $20,700, listing and filing fees of $17,956, office and sundry expenses of $14,937 and rent costs of $4,500. The Company incurred a loss of $111,900 during the third quarter of 2004, compared to a loss of $80,232 for the third quarter of 2003, the difference due largely to greater consulting and travel costs associated with management's successful fund-raising efforts in Europe. The loss of $286,451 for the previous quarter ended February 29, 2004 includes the one-time PBR Property write-off of $186,198.
At the end of the period ended May 31, 2004, the Company had cash on hand of $24,670 and a working capital deficit of $137,772. Subsequent to quarter-end, the Company completed a financing by way of Short Form Offering of 10,000,000 units at a price of $0.20 per unit ("Units") raising gross proceeds of $2 million (see news release ROK#8-04 dated June 23, 2004).
The focus of fourth-quarter 2004 will be the ongoing exploration at the FOREMORE and MAX Projects.
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: sbroughto[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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