Aurcana Discovers New Silver Mineralization at Depth at La Negra Mine
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/13/11 -- Aurcana Corporation (TSX VENTURE: AUN)(OTCQX: AUNFF)(PINKSHEETS: AUNFF) ('Aurcana' or the 'Company') is pleased to announce that underground drilling at the La Negra Silver-Copper-Lead-Zinc Mine, located in Querataro State, Mexico, has intersected new deeper mineralization below the 1920 m level of the mine. This is the first time Aurcana has indentified significant amounts of mineralization at this depth.
Strong silver and copper values were encountered in holes IBX-02, 03, 04, 06, and 07 with the highest grade values ranging from 120/t Ag to 405gm/t/Ag and 1.18% Cu to 3.12% Cu.
The La Negra deposits are characterized by chimney and manto style deposits in skarn zones formed near the contact of limestone units and a large intrusive body.
One of Aurcana's key objectives at La Negra is to continue replacing and expanding the ore resources through a combination of underground drilling and development. Ten holes were drilled from four locations to trace the strike and dip extents of several moderately dipping, well mineralized beds (mantos) in the Breccia Norte Zone.
Lenic Rodriguez, President & CEO comments, 'Annual exploration and development programs have continued to successfully replace ore as it is mined, since the operation was restarted, supporting successive mine production expansions from 1,000 tpd to 1500 tpd and then to 2000 tpd. Aurcana is modernizing its database in anticipation of a new 43-101 compliant reserve and resource estimate in early 2012.'
From the following table, multiple intercepts in holes IBX 01, IBX 03, and IBX 05 suggest two to three mineralized mantos. Additional drilling and development is planned to define the extents of the mineralized mantos. The La Negra operation has adopted and is applying NI 43-101 standards in order to certify a number of mineralized zones including the Breccia Norte. Currently only 3 of 28 known mineralized deposits have NI 43-101 compliant resources, however, 86% of the ore mined in 2011 came from historical resources which are non-compliant.
Selected intersected mineralized widths range from 2.15m to 51.45m with an average intersected width of 15.00 m and a length weighted average grade of 87gm/t Ag, 0.17% Pb, 2.00% Zn, 1.10% Cu. (table below)
BRECCIA NORTE INTERSECTIONS
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Width Ag Pb Zn Cu
DDH From-To (m) g/t % % %
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IBX-01 5.00-11.10 6.10 63 0.21 1.33 0.40
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' 19.80-26.10 6.30 50 0.08 4.92 0.58
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' 45.95-48.90 2.95 44 0.15 3.87 0.42
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IBX-02 2.30-14.30 12.00 69 0.13 1.71 0.89
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' 17.60-24.85 7.25 43 0.01 0.16 0.97
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' 26.55-28.80 2.25 405 0.55 1.08 3.12
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IBX-03 1.45-10.35 8.90 120 0.25 2.23 1.53
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' 30.20-34.40 4.20 94 0.03 0.23 1.44
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' 45.65-52.40 6.75 102 0.19 1.23 0.60
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IBX-04 0.90-7.00 6.10 203 0.45 0.88 1.95
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IBX-05 4.20-10.65 6.45 80 0.21 2.88 0.99
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' 22.40-29.45 7.05 91 0.19 2.06 1.38
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IBX-6 4.05-10.55 6.50 172 0.41 2.93 1.18
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IBX-07 4.55-6.70 2.15 297 0.96 10.20 2.24
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IBX-08 4.00-55.45 51.45 56 0.07 1.02 1.11
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IBX-09 1.70-11.50 9.80 62 0.12 2.91 0.62
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IBX-10 21.80-27.70 5.90 98 0.26 6.95 1.37
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1 Intersected widths do not represent true thicknesses
The underground drilling utilized company owned and operated drills and core was assayed by the mine laboratory which is operated by Minera La Negra personnel. Analytical QA-QC controls are maintained through the use of duplicates, blanks, and commercial standards.
About Aurcana Corporation:
The Company's shares are now also traded in the United States on OTCQX under the symbol 'AUNFF'. Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.
About Aurcana Corporation:
The Shafter Silver Mine is scheduled to start production within 6 months and it is estimated to produce 3.8 million ounces silver in the first year of operation. It has an NI 43-101 Measured and Indicated Resource of 24.6 million ounces of silver and an Inferred Resource of 22.8 million ounces of silver using a 4.0 ounce per ton cut off. The 92% owned La Negra silver-lead-zinc-copper mine has produced 1 million ounces of contained silver over the last 4 quarters.
The reader should be cautioned that the Company has not completed a feasibility study to confirm the projected production capacity for La Negra and there is no certainty the Company's plans will be economically viable.
This scientific and technical information contained in this news release has been reviewed by Andy Nichols, P.Eng., of the Company, and a Qualified Person ('QP') as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
Lenic Rodriguez, President & C.E.O.
For further information, visit the website at www.aurcana.com.
NR-12-11
Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include unsuccessful exploration results, changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Aurcana Corporation
(604) 331-9333
Toll Free: (866) 532-9333
(604) 633-9179 (FAX)
www.aurcana.com
Gary Lindsey
Corporate Relations
(720)-273-6224
gary@strata-star.com