Aurora Reports 2008 Annual Results
March 02, 2009
Aurora Energy Resources Inc. (“the Company” or “Aurora”) (AXU:TSX) reports its financial and operating results for the year ended December 31, 2008. The following summary of the Company’s financial results is based upon and qualified in its entirety by reference to the audited financial statements and Management’s Discussion and Analysis (MD&A) for the year ended December 31, 2008, each available on SEDAR at www.sedar.com. Further details on each of the Company’s projects and activities can be found on the Company’s website www.aurora-energy.ca and on SEDAR at www.sedar.com. All amounts are in Canadian dollars unless otherwise stated.Overview
The Corporation was incorporated on June 8, 2005 and operates in the mineral resource industry. Its principle focus is on the exploration and development of uranium projects in the Central Mineral Belt (“CMB”) in Newfoundland and Labrador, Canada, one of the most promising uranium districts in the world, as well as potential evaluation and acquisition of opportunities throughout the world. Aurora is committed to responsible development with lasting local benefits and the highest standards of safety, health, and environmental protection.
Aurora’s CMB properties consist of a total of more than 90,000 ha in 32 licenses or groups of mineral claims collectively containing a measured and indicated resource of 83.9 million pounds of U3O8 and an inferred resource of 49.8 million pounds of U3O8.*
Significant events for the year ended December 31, 2008 include:
Key leadership change in August 2008 with the appointment of Mr. Bruce Dumville as the new President and Chief Executive Officer and the appointment of Dr. Mark O’Dea to the position of Deputy Chair of the Company’s Board of Directors. Mr. Dumville has over 25 years of experience in the international mining industry, including functional responsibility for pre-feasibility and feasibility studies, project management, operations, and the analysis of new investment opportunities.
Aurora took steps to move from an exploration to a mining development company with the recruitment of Mr. Paul Coombs as Chief Financial Officer and Corporate Secretary, Mr. Paul McNeill as Vice-President Exploration, Mr. Chesley Andersen as Vice-President Labrador Affairs, and Mr. Steve Cole as Director of Engineering. Detailed senior management biographies can be found on Aurora’s website.
Completion of the 2008 summer drill program in Labrador, which included an infill drill campaign of 13,233.49 metres of drilling in 26 holes at the Jacques Lake and Michelin deposits. Aurora also completed a 2,908 metre geotechnical, environmental and metallurgical drill program in August 2008 in 25 holes. The environmental work plan for 2008 was also substantially completed (see press releases of Aurora dated October 24, 2008 for further details).
Initiated a tailings management study to identify potential tailings sites for the Michelin Project. Tailings options were identified and those that are acceptable from an environmental, technical and operations standpoint are being used to create a short list for further consideration in 2009 and 2010.
Development of an education, training and employment program for residents of North Coast Labrador is underway.
Selection of members for the Michelin Project Community Panel, announced in June 2008, and completion of its first meeting.
In April 2008, the Nunatsiavut Government placed a three-year moratorium on mining and milling of uranium on Labrador Inuit Lands. In response Aurora implemented a revised work program to fulfill the Company’s contractual and financial obligations for 2008.
Signing of an option agreement with Pacific Ridge Exploration Ltd. pursuant to which the Company was granted the right to earn a 51% interest in a uranium exploration and development property located in the Baker Lake Basin of Nunavut, Canada. The property provides the potential to build value at an excellent entry cost and in a jurisdiction with clearly defined policies on exploration and mining. The Baker Lake Basin property covers 96,000 hectares and boasts attractive near-surface uranium mineralization, including five targets with drill-indicated mineralization, with at least 15 target areas yet to be drill-tested (for further details, please refer to the press release of Aurora dated September 23, 2008).
Completion of an initial 600 metre drill program to test the Lucky 7 zone at the Baker Lake Basin property, as well as geological mapping and ground magnetic surveys, and an airborne magnetic, radiometric and broadband electromagnetic survey, of which results are pending. This work is designed to cover the property and aid in the design of the subsequent exploration program.
Aurora’s 2009 program focuses on conserving the Company’s substantial cash position, while continuing to build community support and advancing environmental and engineering studies. The program also involves completing a tailings management options study, continuing environmental baseline studies and metallurgical studies, and progressing the mill process design, while implementing a comprehensive community engagement plan.
Aurora’s net cash outlay for 2009 is forecasted to be C$5.9 million. The 2009 budget includes estimated interest revenue of $3.5 million and exploration activity to reclaim $1.46 million held in bond by the province of Newfoundland and Labrador. This is a significantly reduced budget from last year’s $35 million budget.
>> View press release Aurora Reports 2008 Annual Results.