ROCA Reports Third Quarter Results

    VANCOUVER, July 30 /CNW/ - Roca Mines Inc. (ROK: TSX-V) ("Roca" or "the
Company") has released its financial results for the third quarter of 2008,
including production and sales from the MAX Molybdenum mine located in British
Columbia, Canada. All dollar amounts are stated in Canadian dollars unless
otherwise indicated.

    Overview and highlights:

    -   Revenues of $6.3 million since declaring commercial production as of
        April 12, 2008;
    -   The average price for molybdenum sales in the quarter was
        US$32.82 per pound;
    -   The Company reported its first operating profit of $1.5 million or
        2 cents per share;
    -   The Company reported cash flows from operations of $2.2 million or
        3 cents per share;
    -   Molybdenum production during the quarter was 345,571 pounds compared
        with 261,462 pounds for the three months ended Feb 29, 2008; and,
    -   Molybdenum cash costs for the quarter were approximately $7.75 per
        pound of molybdenum.

    MAX Molybdenum Mine - Production Results and Concentrate Sales

    During the quarter, the Company produced and sold 345,571 pounds of
molybdenum contained in concentrates. The value of the molybdenum in
concentrates sold equaled $11.3 million based on an average molybdenum price
received of US$32.82 per pound. Revenues of $6.3 million for the quarter
resulted from sales which occurred after the commencement of commercial
production on April 12, 2008. Concentrate inventory at May 31, 2008, was
24,729 pounds of molybdenum contained. The Company sells its concentrates to a
UK-based buyer with sales revenues based on prevailing molybdenum oxide
    The table below is a summary of the operating statistics for the three
months ended May 31, 2008:

    MAX Molybdenum Mine                       Q3 - 2008
    Month                                     MAR-08      APR-08      MAY-08
    Molybdenum Produced (lbs)(1)              69,825     125,243     150,502
    Average Head Grade (% Mo)                  0.333       0.712       0.732
    Molybdenum Recovery (%)                     89.9        93.8        94.3
    Mill Availability (%)                         79          74          82
    Average Daily Throughput (tpd)               348         300         335
    Notes: (1) molybdenum in concentrate

    Third Quarter 2008 Summary

    The Company announced on April 12, 2008 that it had achieved commercial
production at its MAX Molybdenum Mine located in British Columbia, Canada. The
MAX Mine was constructed over an 18-month fast-tracked timeframe, with a
capital cost for the Phase I mine of approximately C$50 million. The mine
became British Columbia's first new metal mine in a decade and the newest
primary molybdenum mine in Canada.
    Production during the Phase I commissioning process was facilitated
utilizing stockpiled development material to run mill tests and optimize
circuits. During the quarter, Phase II development of a second access adit,
engineering for a third ball mill and other expansion activities were carried
out. Also during the quarter, the delivery and processing of ore directly from
mine stopes to the mill commenced. After review of operations it is clear that
the number of tonnes mined was greater than planned and resulting head grades
from those stopes was lower than anticipated due to mine dilution. Mine
dilution occurs as a result of mixing higher grade material with lower grade
rock and can occur for a number of reasons. Lack of previous exposure in the
high-grade zone and inexperience with geological controls on mineralization in
general are believed to have caused the lower overall head grades to the mill.
    Opportunities to run continuous milling operations were also hampered due
to availability and unscheduled maintenance of on-site generator sets. These
primary power sources impacted production capacity and the number of pounds of
concentrate produced for the quarter.
    At various times and for sustained periods, the mine and mill have
operated well and achieved their targeted production rates. Grade control and
power generation issues at the site, which have recently been resolved, have
had a prolonged impact and effect into the months of June and July 2008. The
resulting down time, reduced production capacity and lesser grades than
planned, occurring in each month of the quarter have caused targeted
production rates to be missed.
    Since the end of the third quarter grade control has improved with the
implementation of a grade control program. The redesign of longhole blasting
in stopes and overall improvements in stope layout and procedures makes the
mining operation much less susceptible to mine dilution. However, some of
these improvements were not realized until after the reporting period and
their beneficial effects may not be delivered until August 2008.

    Mine/Mill Expansion

    During the quarter, the Company completed development of the No. 2 Adit
with work now underway to establish an upgraded ventilation system for the
Phase II mine.
    The Company is currently completing the foundations on a mill base for a
third ball mill acquired in 2007. The installation of this mill will allow for
greater production flexibility and will provide for a nominal capacity of
1,000 tonnes per day. The new equipment is to be commissioned by the fall of
2008. A concentrate drying system has also been installed to control moisture
content in the molybdenite concentrates to levels consistent with the minimum
specification for the product.

    Subsequent events


    In early July 2008 both the mine and the mill were operating at target
production rates for a prolonged period demonstrating capacity and grade as
planned. Later in July however, activities occurring in the mine prevented
attaining the planned production rate of 500 tpd. As a result of that, head
grades to the mill were also lower than expected because of blending dilution
that was taking place at the mill. Blending was being carried out with lower
grade material such that milling operations could proceed at mill capacity.
The underground activities included excess freshet drainage into the adits
causing sediment control challenges in mine water effluent and overall mine
ventilation challenges. Both of these are currently being remedied and
significant improvement is anticipated in early August 2008. Recorded head
grades in June and July 2008 are therefore unrelated to actual stope grades
during certain periods in those months. Production of molybdenum in June and
July 2008 was 112,555 pounds and 126,326 pounds respectively.


    Final results from the Company's 2007 underground drilling program at MAX
were received and confirmed additional molybdenite mineralization is present
at depth and that a previously undiscovered feeder zone may be present.
    The Company also completed initial drill programs on separate molybdenum
and tungsten targets located on the MAX property. The Ridge Tungsten Zone
appears to have significant potential for a large-scale tungsten resource and
planning is underway to expand on this work.
    The Company is also conducting prospecting, mapping and ground
geophysical programs at its Foremore Project in northwestern British Columbia.
Foremore has several copper, lead, zinc, gold and silver targets, and has been
the focus of much past work by the Company. A diamond drilling program is
planned for the project in August 2008.

    Financial results

    The information in this news release and the selected financial
information should be read in conjunction with the interim consolidated
financial statements, and management discussion and analysis, for the three
and nine month periods ended May 31, 2008, which will be available at ROCA's
website at

    Consolidated Statements of Operations
                                                          Three months ended
                                                                May 31, 2008
    Total Revenues                                                $6,275,767
    Total (cost) of sales                                        ($4,389,104)
    Operating Profit                                              $1,886,663

    General and Administrative and other expenses                   $270,971
    Other items (loss)                                              ($98,846)

    Earnings for Period                                           $1,516,846
    Earnings per share - Basic and Diluted                             $0.02

                               ROCA MINES INC.

                              "Scott Broughton"

                 Scott E. Broughton, P.Eng. - President & CEO

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    %SEDAR: 00018660E

For further information:

For further information: Doug Fosbrooke, Investor Relations, Tel: (604)
684-2900, Fax: (604) 684-2902, Email:, Web:

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890