Click here to close now.


News Feed Item

Oracle Mining Files First Quarter Financial Results and Provides Finance and Strategy Update

Oracle Ridge Drill Results Include 23.5 Feet of 2.35% CuEQ and 5.5 Feet of 4.81% CuEQ

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/13/14 -- Oracle Mining Corp. ("Oracle Mining" or the "Corporation") (TSX:OMN)(FRANKFURT:OMC) announces its financial results for the period ended March 31, 2014. This news release should be read in conjunction with the unaudited condensed consolidated interim financial statements and notes thereto for the three months ended March 31, 2014 and 2013, and the related management's discussion & analysis ("MD&A"), both available on SEDAR at

First Quarter 2014 financial summary

--  Net loss for the quarter was $2.2 million compared to a net loss of $3.8
    million for the three months ended March 31, 2013, primarily due to a
    decrease of $1.4 million in exploration and evaluation expenditures, and
    a decrease of $0.6 million in general and administrative costs, offset
    by an increase of $0.5 million in interest expense; 

--  Net working capital as at March 31, 2014 was a deficiency of $6.9
    million compared with a deficiency of $5.0 million on December 31, 2013;

--  Cash and cash equivalents at March 31, 2014 totaled $0.3 million
    compared to $0.3 million on December 31, 2013. 

During the quarter ended March 31, 2014, advances were made in three aspects of the Corporation's principal property, the Oracle Ridge copper project ("Oracle Ridge" or the "Project"), located northeast of Tucson, Arizona, U.S.A., including: (a) the announcement on February 26, 2014 of an updated Mineral Resource Estimate in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and filing on March 31, 2014 of a supporting NI 43-101 technical report under the Corporation's profile on SEDAR (; (b) the continuation of geological, mining and engineering studies; and (c) permitting and regulatory programs. A discussion of the progress made on these activities is available in the MD&A.

All financial information for the quarter ended March 31, 2014 is prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in United States dollars unless otherwise noted, including this news release. Please refer to Note 2 of the audited consolidated financial statements for the years ended December 31, 2013 and 2012 for more information.

Corporate strategy update

The Board of Directors of Oracle Mining and Management have reviewed the Corporation's spending priorities at the Oracle Ridge Project. During the past several years, Oracle Mining has focused primarily on project permitting, engineering studies in metallurgy and geotechnical engineering, drilling and resource modelling with the objective of completing a positive feasibility study in support of constructing a complete processing facility and tailings storage area. In the past few months, Oracle Mining has been conducting a review of various project alternatives. The Project is distinctively located in the sixth-largest copper producing region in the world and the proximity to producing copper mines could potentially provide synergistic opportunities to work with third-parties to utilize their existing infrastructure ("Third Party Options").

Accordingly, Oracle Mining has temporarily suspended the 2014 Drill Program and rationalized expenditures to manage remaining financial resources while evaluating Third Party Options and continuing to advance permitting. For additional clarity, evaluation of Third Party Options does not preclude Oracle Mining from pursuing the completion of a Feasibility Study. In conjunction with the change in strategy for the Corporation, Oracle Mining has amended its Loan Agreement with Rich Stone Mining Investment (Hong Kong) Limited ("Rich Stone") to provide additional funds to the Corporation in the short term (See "Rich Stone and Oracle Mining amend loan agreement" below).

There is no assurance that a Third Party Option will be pursued or, if pursued, be successful. To the extent possible, we intend to incorporate previously completed engineering studies in metallurgy and geotechnical engineering into a future Feasibility Study. There is no assurance that a Feasibility Study will be completed or, if completed, that the outcome will be positive. We have not made a production decision with respect to Oracle Ridge. A decision to proceed with production will be based upon the Corporation completing a future Feasibility Study demonstrating economic and technical viability.

Rich Stone and Oracle Mining amend loan agreement

In addition, Oracle Mining provides investors with an update regarding an amendment to its C$10 million secured convertible loan ("Loan Facility") with Rich Stone Mining Investment (Hong Kong) Limited ("Rich Stone"). Effective today, Rich Stone and the Corporation agreed to an amendment of the Loan Facility whereby the interest in aggregate amount of C$1,200,000 and the origination fee payable of C$600,000 (including origination fees paid to date by the Corporation to Rich Stone under the Loan Facility in the amount of C$390,000) are to be advanced to the Corporation as soon as practicable and repaid to Rich Stone on the maturity of the Loan Facility. As at May 13, 2014, the aggregate funds to be received from Rich Stone include C$1.19 million for the remaining second tranche of the Loan Facility and C$1.80 million for fees and interest to be repaid at the Loan Facility's maturity.

Oracle Ridge drill results

Oracle Mining is pleased to announce the initial assay results from its 2014 Drill Program at the Oracle Ridge Project. The four core holes reported in this news release were all drilled underground from Drill Station 3 with the purpose of extending high-grade copper mineralization beyond the drilling that defines our current Mineral Resource Estimate. Until further drilling is completed and a geologic model constructed, all intervals reported in this news release are apparent thicknesses. All units are imperial unless otherwise noted. Highlights include:

--  OUH-58 intersected two copper-bearing skarn beds of the Martin Formation
    in Zone 8, (B8 48 and B8 51) and copper-bearing endoskarn. OUH-58
    discovered B8 48 as a newly recognized copper-bearing skarn bed within
    the Martin Formation. 
--  OUH-59 intersected an apparent thickness of 19.5 feet grading 2.17 %
    copper equivalent ("CuEQ") of Abrigo Formation (B8 51) 100 feet along
    strike north of the intersection in OUH-58. The hole also intersected
    lower-grade copper-bearing endoskarn north of the OUH-58 intersection. 
--  OUH-60 was drilled to extend Zone 8 mineralization south of OUH-58. The
    hole intersected an apparent thickness of 23.5 feet of 2.35% CuEQ
    enhanced by notably higher silver content of 1.01 ounces silver per
    short ton. The hole also intersected an apparent thickness of 21.5 feet
    grading 1.13% CuEQ which may confirm the continuity of copper
    mineralization in new skarn bed B8 48. 
--  OUH-61 was a vertical hole which successfully tested the trend of copper
    mineralized skarn below the drilling which defines the Mineral Resource
    Estimate. OUH-61 intersected two skarn beds in Zone 8 (B8 48 and B8 51)
    and another in Zone 12. Notable intersection of B8 51 was an apparent
    thickness of 19.4 feet of 2.03% CuEQ which contained and apparent
    thickness of 5.5 feet of 4.81% CuEQ. The potential for copper
    mineralization continues to the east of these intersections. 

Each of these holes confirmed Oracle Mining's geologic interpretation and have extended copper-bearing skarn mineralization beyond the limit of current drilling and our current Mineral Resource Estimate. Intervals in the table below labelled "includes" are higher-grade portions of the previous listed interval. The following tabulates the assay results obtained from the underground drilling program to date:

                                      Au    Ag                              
Drill     From    To   Interval  Cu  (oz/  (oz/  CuEQ(i)                    
Hole     (feet) (feet)  (feet)  (%)  ton)  ton)    (%)     Zone  Azimuth Dip
OUH-58   139.5  150.0    10.5   1.00 0.003 0.26   1.13      B8     280   -68
OUH-58   184.0  217.5    33.5   1.28 0.003 0.23   1.41      B8     280   -68
OUH-58   223.0  235.2    12.2   0.51 0.002 0.19   1.07  Endoskarn  280   -68
OUH-59   220.0  239.5    19.5   2.07 0.003 0.20   2.17      B8     333   -62
OUH-59   249.50 258.50   9.00   0.67 0.002 0.34   0.80  Endoskarn  333   -62
OUH-60   144.5  166.0    21.5   0.97 0.005 0.27   1.13      B8     230   -63
includes 154.5  159.5    5.0    2.12 0.011 0.65   2.51                      
OUH-60   195.5  219.0    23.5   1.89 0.009 1.01   2.35      B8     230   -63
OUH-60   234.5  239.5    5.0    0.58 0.002 0.10   0.65  Endoskarn  230   -63
OUH-61   102.0  108.6    6.6    1.21 0.007 0.36   1.44     B12      0    -90
OUH-61   189.5  202.6    13.1   1.24 0.003 0.24   1.36      B8      0    -90
OUH-61   210.1  229.5    19.4   1.92 0.001 0.33   2.03      B8      0    -90
includes 224.0  229.5    5.5    4.55 0.001 0.84   4.81                      
(i)CuEQ - Copper equivalency has been estimated using metal pricing of $2.80
per pound of copper, $20 per ounce of silver and $1,300 per ounce of gold.  
Metallurgical recovery were derived from preliminary lock cycle test results
and assumed to be 81% for gold and silver. The formula used is as follows:  
CuEQ = Cu% + ((Ag oz/t x $20 x 0.81) + (Au oz/t x $1,300 x                  
0.81))/$2.80/2,000 x 100.                                                   

There are no known drilling, recovery or other factors that could materially affect the accuracy or reliability of the data. Oracle Mining has posted an updated diagram of all drill hole locations of these reported assay results at

Data Verification

The drill program and sampling protocol were managed by qualified persons employed by Oracle Mining. The Corporation maintains a rigorous QA/QC protocol on all aspects of sampling and analytical procedure. Drill core is checked, logged, marked for sampling and split in half. The sample length varies depending on the geology and the mineralization. In general, the samples are predominantly about 5 feet long. Drill core recovery was excellent and exceeded 90 per cent. One-half of each drill core is maintained for future reference and one-half of each drill core is sent for analysis. Half-core samples are shipped to Skyline Assayer and Laboratories ("Skyline"), in Tucson, Arizona, an ISO/IEC 17025 accredited laboratory. Skyline is contracted to complete all sample preparation and assaying and is independent of Oracle Mining. Samples are analyzed employing acid digestion and Atomic Absorption for analyses of copper, as well as fire assaying for silver and gold. For QA/QC purposes, Oracle Mining inserts standard reference materials and blank samples into each sample batch submitted for assay to monitor laboratory performance. The Corporation periodically submits the pulps of the samples assayed by its primary lab to ALS Chemex Labs Ltd. in Reno, Nevada for check analysis.

Kevin Francis RM SME, Vice President Technical Services of Oracle Mining, a non-independent "qualified person" within the meaning of NI 43-101, has reviewed and approved the scientific and technical information included in this news release.

About Oracle Mining Corp.

Oracle Mining Corp. (TSX:OMN)(FRANKFURT:OMC) is a Vancouver, Canada-based corporation that is the sole owner and operator of Oracle Ridge Mining, LLC and the Oracle Ridge copper project located 24 km northeast of Tucson, Arizona. Oracle Mining is managed by an experienced team of mining professionals with extensive operating and financial experience.

Cautionary Note Regarding Forward-Looking Information

Information and statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of Canadian securities legislation that involves risks and uncertainties. Forward-looking information included herein is made as of the date of this news release and Oracle Mining does not intend, and does not assume any obligation, to update forward-looking information unless required by applicable securities laws. Forward-looking information relates to future events or future performance and reflects management of the Corporation's expectations or beliefs regarding future events. In certain cases, forward-looking information can be identified by the use of words such as "plans", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. Examples of forward-looking information in this news release include, but are not limited to, statements with respect to: our plans and expectations for the Oracle Ridge Project, including our ability to negotiate a favourable arrangement with any third-party for a Third-Party option to utilize their existing infrastructure and the timing or completion of any work on the Oracle Ridge Project. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information. Such factors and assumptions include, but are not limited to: our ability to successfully raise capital.

By its very nature, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by forward-looking information. Such factors include, but are not limited to: risk that we are unable to enforce our legal rights under existing agreements, permits or licences or are subject to litigation or arbitration that has an adverse outcome, including results of operations, our mining and project development operations or our current or potential financing arrangements; risk that we are unable to obtaining financing or are substantially delayed in obtaining financing, as well as those factors discussed in the section entitled "Risks and Uncertainties" in the Managements' Discussion and Analysis for the year ended December 31, 2013 and discussed in the Corporation's annual information form dated March 31, 2014, for the year ended December 31, 2013, filed and available for review on SEDAR at Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated by such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
In their session at DevOps Summit, Asaf Yigal, co-founder and the VP of Product at, and Tomer Levy, co-founder and CEO of, will explore the entire process that they have undergone – through research, benchmarking, implementation, optimization, and customer success – in developing a processing engine that can handle petabytes of data. They will also discuss the requirements of such an engine in terms of scalability, resilience, security, and availability along with how the archi...
The web app is agile. The REST API is agile. The testing and planning are agile. But alas, data infrastructures certainly are not. Once an application matures, changing the shape or indexing scheme of data often forces at best a top down planning exercise and at worst includes schema changes that force downtime. The time has come for a new approach that fundamentally advances the agility of distributed data infrastructures. Come learn about a new solution to the problems faced by software organ...
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
Organizations already struggle with the simple collection of data resulting from the proliferation of IoT, lacking the right infrastructure to manage it. They can't only rely on the cloud to collect and utilize this data because many applications still require dedicated infrastructure for security, redundancy, performance, etc. In his session at 17th Cloud Expo, Emil Sayegh, CEO of Codero Hosting, will discuss how in order to resolve the inherent issues, companies need to combine dedicated a...
IT data is typically silo'd by the various tools in place. Unifying all the log, metric and event data in one analytics platform stops finger pointing and provides the end-to-end correlation. Logs, metrics and custom event data can be joined to tell the holistic story of your software and operations. For example, users can correlate code deploys to system performance to application error codes.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, will explore HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, ...
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult - let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and li...
In his session at DevOps Summit, Bryan Cantrill, CTO at Joyent, will demonstrate a third path: containers on multi-tenant bare metal that maximizes performance, security, and networking connectivity.
As-a-service models offer huge opportunities, but also complicate security. It may seem that the easiest way to migrate to a new architectural model is to let others, experts in their field, do the work. This has given rise to many as-a-service models throughout the industry and across the entire technology stack, from software to infrastructure. While this has unlocked huge opportunities to accelerate the deployment of new capabilities or increase economic efficiencies within an organization, i...
Manufacturing has widely adopted standardized and automated processes to create designs, build them, and maintain them through their life cycle. However, many modern manufacturing systems go beyond mechanized workflows to introduce empowered workers, flexible collaboration, and rapid iteration. Such behaviors also characterize open source software development and are at the heart of DevOps culture, processes, and tooling.
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, will look at di...