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Casablanca Mining Reports First Quarter Financial Results

^{Published on 2011-05-18 10:10:42 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--CASABLANCA MINING (OTCBB: CUAU) announced today financial results for the quarter ended March 31, 2011.

"We are focused on our 2011 operational plan and it is going according to schedule. We are exploring opportunities in gold, copper and copper sulfate and will continue to pursue additional mining properties and copper processing contracts."

First Quarter Highlights:

• Increase in Cash and Total Assets from stock sales
• Copper Sulfate Plant Construction In Progress
• Ownership Increases and Additional Gold Mining Properties in Negotiation
• 43-101 Technical Reports in Progress

Financial and Operations Overview:

aIn the first quarter of 2011, we began construction of our copper sulfate processing plant, achieved milestones in our mining permits, began our 43-101 technical reports for Casuto and Free Gold, negotiated the purchase of increased ownership stakes in existing properties, began negotiations for new mining properties and raised additional capital towards our 2011 operating budget,a said Juan Carlos Camus Villegas, CEO of Casablanca Mining.

Total assets grew from $3.8 million at December 31, 2010 to $6.0 million at March 31, 2011. Net Loss per share dropped from ($0.01) at March 31, 2010 to ($0.00) per share at March 31, 2011. Cash for the quarter increased to $639,808 from no available cash a year earlier.

The increase in total assets from $3.83 million at December 31, 2010 to $6.02 million at March 31, 2011 is primarily due to the increase in cash from financing activities and a $1.5 million intercompany loan to Sulfatos Chile for the first phase of construction on the copper sulfate production plant.

Total expenses increased from $7,200 for the quarter ended March 31, 2010 to $197,790 for the quarter ended March 31, 2011. The increase in operating expenses was primarily associated with the operations of Santa Teresa Minerals in the ordinary course of business as well as legal and accounting expenses required by a public company and costs incurred in connection with the acquisition of Santa Teresa Minerals.

Zirk Engelbrecht, President of Casablanca Mining, said aWe are focused on our 2011 operational plan and it is going according to schedule. We are exploring opportunities in gold, copper and copper sulfate and will continue to pursue additional mining properties and copper processing contracts.a

About Casablanca Mining, Ltd.:

Casablanca Mining (OTC: CUAU), through its wholly owned subsidiary Santa Teresa Minerals, S.A., engages in the acquisition, exploration, development, and operation of precious metal properties in South America. Its gold and copper mining operations are based near Santiago, Chile. Santa Teresa Minerals currently has, directly and indirectly through various equity interests, mining rights in a producing gold mine, aFree Gold,a and in an exploration project, the aCasuto Project,a consisting of Los Azules 1-3, Tauro 1-6, and Los Chipi 1-16. These projects include 30 different mining and mineral exploration properties including gold, copper and copper sulfate. Santa Teresa Minerals also owns a 60% equity position of Sociedad Sulfatos Chile S.A., a copper sulfate production project that owns the Anica Copper Mines, and a 60% equity position in a company with the rights to a revolutionary mining technology that extracts gold, silver and copper from raw mining materials using a proprietary and patented electrolysis method of electromining.

FORWARD LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results and estimates that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results or estimates expressed or implied by this press release. Such risk factors include, among others: whether Casablanca Mining can successfully execute its operating plan, including mining and exploration projects; results of exploration, project development and capital costs of mineral properties; volatility of market prices for gold, copper and copper sulfate; Casablanca Mininga™s ability to integrate acquired companies and technology; Casablanca Mininga™s ability to retain key employees; general market conditions; and other factors discussed under aRisk Factorsa in its annual report on Form 10-K filed with the Securities and Exchange Commission on April 18, 2011. Furthermore, estimates of mineralized material are based upon estimates made by us and our consultants. Until mineralized material is actually mined and processed, it must be considered an estimate only. Actual results may differ materially from those contained in the forward-looking statements in this press release. Casablanca Mining does not undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.