PETAQUILLA MINERALS LTD ("PTQ-T")
- Highlights Results For 4th Quarter Of Fiscal 2011
Petaquilla Minerals Ltd. ("Petaquilla" or the "Company") announces that
its fourth quarter results of fiscal year 2011 show significant
improvements. As a result of improved operational performance and rising
gold prices, a net profit of US$5.4 million was generated during the fourth
quarter. This second consecutive profitable quarter confirms the Company's
improved profitability profile. Petaquilla's accumulated net income of
US$7.5 million in the last two quarters of fiscal year 2011 reflects a
positive trend in net results and the Company forecasts a positive net
income for fiscal year 2012.
Gold mined during the fourth quarter of fiscal year 2011 increased by
36% compared to the previous quarter. This improvement contributed to a 72%
increase in gold stockpiled for the on/off leach pad project forecasted for
initial production during the second quarter of fiscal year 2012.
Gold poured during the fourth quarter of fiscal year 2011 increased by
30% compared to the previous quarter. Cash costs per ounce of gold sold
during the fourth quarter represent an improvement of 9% compared to the
previous quarter as a result of higher sales combined with reductions in
operating costs. Fourth quarter cash costs of US$557 per ounce of gold sold
represents the lowest cash cost per ounce of gold sold during the fiscal
year.
In addition, during the fourth quarter, the Company filed an updated
National Instrument 43-101 compliant mineral resource and reserve report
for its Molejon Gold Project, upgrading measured and indicated resources to
a proven and probable reserve of 643,266 contained gold ounces (15.3Mt @
1.30g/t Au, average metallurgical recovery of 91.1%) as of the October 1,
2010, production cut-off. This represents an increase of 61% over the
previous calculated reserve as of the October 1, 2010, production cut-off.
Financial and operational conditions improved during the fiscal year
ended May 31, 2011, as evidenced by an increase of 44% in the Company's
total assets and a decrease of 6% in its total liabilities, both compared
to May 31, 2010. Petaquilla's cash position as of the end fiscal year 2011
was US$11.9 million, an increase of 80% compared to its previous year end.
Regarding the Company's infrastructure subsidiary, Panama Desarrollo
de Infraestructuras, S.A. ("PDI Panama"), a leasing facility in the amount
of US$10 million has been signed with a major Panamanian bank for the
acquisition of mining and trucking equipment required to respond to the
Company's planned mining rate increase from a daily level of 7,500t to
40,000t. This equipment will also strengthen PDI Panama's capacity to
extract and deliver construction grade aggregates from the Company's
Molejon open pit and provide additional capacity for the Company's ongoing
exploration projects at its satellite concessions.
In terms of sustainable growth strategy, during the fourth quarter of
fiscal year 2011 the Company entered into a binding letter of intent with
Iberian Resources Corp ("Iberian"), pursuant to which the Company proposed
to acquire all of the outstanding shares of Iberian. Iberian owns 100% of
the Lomero-Poyatos mine, located about 110 kilometres northeast of Seville,
in the heart of the Iberian Pyrite Belt, and also owns several other
exploration licenses in Iberia. This transaction has been approved by
Iberian's shareholders and also by Petaquilla's shareholders at the special
meeting held August 31, 2011. With this acquisition, the Company added
approximately 2Moz of gold and 42Moz of silver to its inferred resources.
About Petaquilla Minerals Ltd.
Petaquilla is a growing, diversified gold producer committed to
maximizing shareholder value through a strategy of efficient production,
targeted exploration and select acquisitions. The Company operates a
surface gold processing plant at its Molejon Gold Project, located in the
south central area of its 100% owned 842 square kilometre concession lands
in Panama - a region known historically for gold content. In addition, the
Company has acquired 100% of the Lomero-Poyatos project located in the
northeast part of the Spanish/Portuguese (Iberian) Pyrite Belt and several
other exploration licenses in Iberia.
Disclaimer.
This press release includes forward-looking statements. All statements,
other than statements of historical fact, contained in this news release,
including, but not limited to, statements regarding future financial
results, market assumptions, the estimation of mineral resources and the
realization of mineral resource estimates, constitute forward-looking
statements. Such forward-looking statements involve known and unknown
risks, uncertainties and other important factors beyond Petaquilla's
control that would cause the actual results, performance or achievements of
Petaquilla to be materially different from future results, performance or
achievements expressed or implied by such forward-looking statements. Such
forward-looking statements are based on numerous assumptions, Petaquilla's
present and future business strategies and the environment in which
Petaquilla will operate in the future. Any forward-looking statements speak
only as at the date of this document. Petaquilla expressly disclaims any
obligation or undertaking to disseminate any updates or revisions to any
forward-looking statements contained herein to reflect any change in
Petaquilla's expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are based, except
to the extent required by applicable law. As a result of these factors, the
events described in the forward-looking statements in this press release
may not occur either partially or at all.
On behalf of the Board of Directors of
PETAQUILLA MINERALS LTD.
Richard Fifer,
Executive Chairman
No stock exchange has approved or disapproved the information contained
herein.
TSX closing price for PTQ-T
Date: 2011/08/31
Closing Price: 0.76
TEL: (604) 694-0021 Petaquilla Minerals Ltd.
FAX: (604) 694-0063 Richard Fifer, Executive Chairman
Toll Free: 1-877-694-0021
Internet: www.petaquilla.com
____________________________________________________________
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Toronto:(416)366-8881 Vancouver:(604)689-1101 Fax:(604)689-1106
Provider ID: 02259040
-0- Sep/01/2011 13:53 GMT
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