Aurcana Files Technical Report on Updated Resource Estimate for La Negra Mine
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/11/12 -- Aurcana Corporation ("Aurcana" or the "Company") (TSX VENTURE: AUN)(OTCQX: AUNFF)(PINKSHEETS: AUNFF) is pleased to announce that it has filed a technical report on SEDAR updating the resource estimate for La Negra Mine, the Company's silver, zinc, lead, and copper mining operation in the State of Queretaro, Mexico (see AUN news release dated August 28, 2012). The updated mineral resource has been completed to NI 43-101 ("NI 43-101") standards.
A complete copy of the NI 43-101 technical report can be downloaded at www.sedar.com
Behre Dolbear and Company (USA) ("BEHRE DOLBEAR"), an independent mining consulting firm, prepared the resource estimate in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards. A summary of the new mineral resource estimate includes:
MEASURED AND INDICATED RESOURCES FOR ALL DEPOSITS AND ALL BLOCKS WITH A MINIMUM RECOVERED VALUE OF US$40 AS OF FEBRUARY 29, 2012
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Classification Tonnes Average
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Silver Copper Lead Zinc
(g/t) (%) (%) (%)
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Measured 11,862,000 133.42 0.50 0.90 2.60
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Indicated 15,159,000 130.12 0.41 0.92 2.19
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Measured
plus 27,021,000 131.31 0.49 0.91 2.36
Indicated
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Classification In Situ Metal Quantities Average
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Silver Copper Lead Zinc ered
(oz) (1) (lb) (1) (lb) (1) (lb) (1) Value
($/t) 2
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Measured 50,070,000 130,834,000 228,825,000 673,603,000 180.06
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Indicated 65,026,000 138,695,000 310,673,000 745,060,000 166.63
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Measured
plus 115,096,000 269,529,000 539,498,000 1,418,664,000 172.53
Indicated
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(1) Ounces and pounds of in situ metal are calculated using only resource
blocks with a recovered value of US$40 or greater.
(2) Metal prices and recoveries used for the average recovered value
estimate are calculated using a trailing 12-quarter average spot price and
actual recoveries as documented in the company's NSR reports from January
through May 2012.as follows: Silver - $28.29/84.87%; Copper - $3.33/81.02%;
Lead - $0.88/74.62%; Zinc - $0.84/70.66%.
Notes:
i. Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability. There is no certainty that all or any part of the
estimated Mineral Resources will be converted into Mineral Reserves. The
estimate of Mineral Resources may be materially affected by
environmental, permitting, legal, title, taxation, sociopolitical,
marketing, or other relevant issues
ii. The Mineral Resource was estimated in accordance with the Canadian
Institute of Mining, Metallurgy and Petroleum ("CIM"), CIM Standards on
Mineral Resources and Reserves, Definitions and Guidelines prepared by
the Standards Committee on Reserve Definitions and adopted by the CIM
Council on November 27, 2010.
Qualified Persons & Technical Report
The Mineral Resource estimate and technical report was prepared for Aurcana Corporation by Behre Dolbear. The assignment was undertaken by Baltazar Solano-Rico, M.Sc., Geol. Eng. and Mrs. Betty Gibbs, E.M., MSc. both qualified persons ("QP") as defined under National Instrument NI 43-101 Standards of Disclosure for Mineral Projects.
Aurcana's La Negra Mine
The La Negra mine was discovered and developed by Industriales Penoles S.A. de C.V. The mine commenced production in 1970 and produced until the mine was put on care and maintenance in 2000. During this period Penoles mined approximately 6,600,000 tonnes of ore producing 36 million ounces of silver, 323 million pounds of zinc, 70 million pounds of copper, and 161 million pounds of lead.
Aurcana acquired rights to La Negra In 2006 from Industriales Penoles S.A. de C.V. At the time the operation was on care and maintenance. Aurcana Corporation placed it back into production by June, 2007 at a rate of 1,500 tonnes per day.
The operation at La Negra has expanded significantly since 2007 with the addition of a lead concentrator and increased milling capacity to 2,200 tpd, In Q2, 2012 silver production was 373,037 ounces of silver, a 44.9% increase over Q2, 2011.
La Negra mine is now milling at a rate greater than 2,200 tpd. A mill upgrade expansion to 2,500 tpd is currently in progress and is expected to be completed before 2013, with minimal capital expenditures.
The technical information contained in this news release has been reviewed by Nils Von Fersen, P.Geo, Vice President of Exploration of the Company. Mr. Von Fersen is a Qualified Persons ("QP") as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
About Aurcana Corporation:
The Shafter Silver Mine is scheduled to produce 3.8 million ounces of silver in the first full 12 months 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 99.9% owned La Negra silver-lead-zinc-copper mine produced over 1.87 million ounces of silver equivalent in the first nine months of 2012.
Corporate
The Company's shares are 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.
Cautionary Statement Regarding Forward-Looking Information
This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "anticipate", "believe", "plan", "expect", "intend", "estimate", "forecast", "project", "budget", "schedule", "may", "will", "could", "might", "should" or variations of such words or similar words or expressions. Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of the information and is subject to known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking information.
Forward-looking information in this news release includes information with respect to the La Negra mineral resource estimate and its potential expansion and upgrade to a higher level of confidence, the timing and location of future work programs, the results and interpretation of studies and exploration activities, the nature of the mineralization of the project, and the possibility that the resources reported herein will prove to be economic.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be factors that cause results to be other than as anticipated, estimated or intended. There can be no assurance that the forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information contained herein, except in accordance with applicable securities laws.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
Lenic Rodriguez, President & CEO
This news release contains certain forward-looking statements, including statements regarding forecast silver production, silver grades, recoveries, potential mineralization, exploration result, future plans and objectives of the Company and the business and anticipated financial performance of the Company. These statements are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Exploration results that include geophysics, sampling and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classified as a category of mineral resource. A mineral resource which is classified as "inferred" or indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or does not expect", "is expected", anticipates" or "does not anticipate" "plans", "estimates" or "intends" or stating that certain actions, events or results " may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.
Actual results may differ materially from results contemplated by the forward-looking statements. Important factors that could differ materially from the Company's expectations include, among others, risks related to international operations, unsuccessful exploration results, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as 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. Accordingly, readers should not place undue reliance on forward-looking statements.
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
Lenic Rodriguez
President & CEO
(604) 331-9333 or Toll Free: (866) 532-9333
Aurcana Corporation
Catalin Chiloflischi
Manager of Investor Communications
(604) 331-9333 or Toll Free: (866) 532-9333
(604) 633-9179 (FAX)
Aurcana Corporation
Gary Lindsey
Corporate Relations
(720)-273-6224
gary@strata-star.com
www.aurcana.com