Aurcana Corporation Announces Updated Resource Estimate for La Negra Mine
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/28/12 -- Aurcana Corporation (TSX VENTURE: AUN)(OTCQX: AUNFF)(PINKSHEETS: AUNFF) (the "Company" or "Aurcana") is pleased to announce an updated resource estimate for La Negra Mine, the Company's silver, zinc, lead, and copper mining operation in the State of Queretaro, Mexico.
Behre Dolbear and Company (USA) ("BEHRE DOLBEAR"), an independent mining consulting firm, has recently prepared a new Mineral Resource estimate at the Company's La Negra mine in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM"), CIM Standards. The Estimate is based on 16,422 diamond drill holes, 22,289 channel samples collected by Minera La Negra S.A. de C.V. (a subsidiary of Aurcana Corp.) during the period 2006 - February 2012, and by Industriales Penoles S.A. de C.V. from 1967 to 2000. A summary of the new mineral resource estimate is tabulated below:
MEASURED AND INDICATED RESOURCES FOR ALL DEPOSITS AND ALL BLOCKS WITH A
MINIMUM RECOVERED VALUE OF US$40 AS OF FEBRUARY 29, 2012
--------------------------------------------------------------------------
Classification Tonnes Average
--------------------------------------------------------------------------
Silver Copper Lead Zinc
(g/t) (%) (%) (%)
--------------------------------------------------------------------------
Measured 11,862,000 133.42 0.50 0.90 2.60
--------------------------------------------------------------------------
Indicated 15,159,000 130.12 0.41 0.92 2.19
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Measured
plus
Indicated 27,021,000 131.31 0.49 0.91 2.36
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Classification In Situ Metal Quantities Average
---------------------------------------------------------------- Recovered
Silver Copper Lead Zinc Value
(oz)(1) (lb)(1) (lb)(1) (lb)(1) ($/t)(2)
--------------------------------------------------------------------------
Measured 50,070,000 130,834,000 228,825,000 673,603,000 180.06
--------------------------------------------------------------------------
Indicated 65,026,000 138,695,000 310,673,000 745,060,000 166.63
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Measured
plus
Indicated 115,096,000 269,529,000 539,498,000 1,418,664,000 172.53
--------------------------------------------------------------------------
(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%.
INFERRED RESOURCES FOR ALL DEPOSITS AND ALL BLOCKS
WITH A MINIMUM RECOVERED VALUE OF US$40 PER TONNE
--------------------------------------------------------------------------
Classification Tonnes Average
--------------------------------------------------------------------------
(000) Silver (g/t) Copper (%) Lead (%) Zinc (%)
--------------------------------------------------------------------------
Inferred 50 39.09 0.47 0.12 1.68
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(1) Metal prices and recoveries used are as follows:
Silver - $28.29/84.87%; Copper - $3.33/81.02%; Lead - $0.88/74.62%;
Zinc - $0.84/70.66%.
--------------------------------------------------------------------------
Mr Lenic Rodriguez, President & CEO stated: "I am very pleased with the results of the NI 43-101 compliant resource estimate that shows a 50 fold increase from the prior Measured and Indicated resource estimate of 2.3 million ounces of silver to the current estimate of over 115 million ounces of silver, plus significant base metals, which confirms an extended life of mine at La Negra. We have already started the certification of the new discoveries on the North West trend where the silver grades are higher and which we expect to report to the public in the near future. La Negra continues mining primarily from new discoveries."
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 announced in this release, has an effective date of August 27, 2012 meets the guidelines as set out in NI 43-101 and 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 of them qualified persons ("QP") as defined under National Instrument NI 43-101 Standards of Disclosure for Mineral Projects.
Mr. Solano-Rico has consented to applicable disclosure contained herein regarding the Mineral Resource estimate. Mr. Solano-Rico is independent of Aurcana Corporation and its subsidiary companies.
Behre-Dolbear is currently preparing the NI43-101 Technical Report in support of the Mineral Resource estimate. This report will be filed by the company in its entirety on SEDAR (www.sedar.com) within 45 days of the date of this news release.
The Behre Dolbear Mineral Resource estimate reported here is the initial Mineral Resource estimate for the entire La Negra Mine operation. Aurcana has previously commissioned, as recently as Q1, 2010, mineral reserve and resource estimates for individual zones at the La Negra Mine; however, this updated disclosure consolidates and demonstrates the scope and potential that exists for the entire La Negra Mine.
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.
In 2006 a joint venture between Aurcana Corporation (80%) and Reyna Mining & Engineering S.A. de C.V. (20%) acquired the property from Penoles and placed it into production June, 2007 at a rate of 1,500 tonnes per day. In 2011 Aurcana increased its interest to 99.86%.
La Negra is currently mining, or has defined resources in 13 separate zones that occur along the boundary between a skarn and limestone. The skarn, which varies in width from 10 to 300 metres (m), developed along the contact with a Tertiary diorite intrusion into Upper Jurassic to Lower Cretaceous limestone. Ore minerals in this deposit include sphalerite, galena, chalcopyrite, arsenopyrite, pyrrhotite, pyrite, hessite, and native silver.
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. The mill upgrade expansion to 2500 tpd is currently in progress and will be completed well before the original expansion date of 2013, with minimal capital expenditures.
The technical information contained in this news release has been reviewed by Nils Von Fersen, P.Geo, the Vice President of Exploration of the Company. Mr. Von Fersen is Qualified Persons ("QP") as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
About Aurcana Corporation
Aurcana is a silver-focused mining and mineral exploration company with a producing operation at the La Negra Mine in Queretaro State, Mexico and the Shafter Mine in Presidio County, Texas, currently in the final phases of achieving commercial production. Aurcana controls 100% of the Shafter operation and 99.86% of La Negra. The common shares of Aurcana trade on the TSX Venture Exchange under the symbol AUN.
Aurcana is well-capitalized, with approximately $ 15 million in its treasury at August 27th, 2012. Aurcana's issued and outstanding share capital totals 453,957,543 common shares.
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.
Contacts:
Aurcana Corporation
(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
