Aurcana Reports Record Silver Production at La Negra Mine
May 29.05.2012, 2012 - Aurcana Corporation ("Aurcana" or the "Company") is pleased to report silver production for the first quarter of 287.486 of 240.275 ounces. This represents an increase of 2011% compared to silver production of 19,6 ounces in the first quarter of 381.146, the best quarter for silver production in Aurcana history. Silver equivalent production increased 2011% compared to 29,3 ounces in the first quarter of 492.864 to 2012 ounces in the first quarter of XNUMX.
The average silver content increased in the first quarter 2012 compared to 74 grams per ton in the first quarter 2011 by 9% to 81 grams per ton.
Mill throughput in the first quarter was 2012 130.570 tonnes. Fifteen percent (18.948 tonnes) came from NI 43-101 compliant measured and indicated resources, while 85% (111.622 tons) came from new discoveries and non-NI 43-101 compliant resources. At La Negra, the development of new mineralized zones now uses NI 43-101 standards to increase compliant resources. A new NI 43 101 compliant resource estimate will be released in the second quarter of 2012. In addition, the trend Northwest development initiatives are carried out for new ore zones.
Highlights at La Negra
• The upgrade of the mill at La Negra was on 30. March 2012 completed, which increased the production capacity of 1.500 tons per day to 2.000 tons per day, an increase of 33%.
• Aurcana continues to achieve record results. 2012's first quarter silver production of 287.486 ounces of silver was the largest volume of silver produced in Aurcana's history.
• Increase in silver equivalent production by 29,3% from 381.146 ounces in the first quarter 2011 to 492.864 ounces in the first quarter 2012.
• Increase of silver sales in the first quarter 2012 versus 218.701 ounces in the first quarter 2011 by 18%.
• The start-up phase of the La Negra Mine has now been completed and the mill now operates at a capacity of 2.000 tonnes per day.
After upgrading the mill at La Negra to a capacity of 2.000 tonnes per day, the mill will now begin to expand to 2.500 tonnes per day. This is to be completed 2013. The investment required for this expansion will be minimal.
Mine Shafter
The company has commenced construction of the Shafter mine in February 2011 and expects to complete it in May 2012. The company will be able to complete the construction of the mine two months ahead of schedule and below budget. Highlights include:
• The ramp is now equal to the first resource block.
• Drilling has added more 150 feet to the resource in the first block.
• All approvals for the 2013 extension of the mill project at Shafter have now been received.
• The Merrill Crowe equipment has been installed.
• The rehabilitation of the shaft no. 46 for ventilation is underway.
• The construction of the research laboratory is almost completed.
• Concrete work was completed in February.
• Projects still to be completed: Cyanide mixing plant, construction of the warehouse, drinking water system and connection to the electricity network.
Summary
In the first quarter 2012, La Negra achieved record silver production and recorded the best quarter in Aurcana's history in terms of silver production. Production at La Negra increased to 2.000 tonnes per day in mid-April. The mill at Shafter was commissioned by 2012 in early April. Within the next 90 days Shafter's capacity will increase to 1.500 tonnes per day. All permits for the Shafter mine are now available. Aurcana continues to focus on future business growth.
The companyn
The company's shares are now listed on the OTCQX in the US under the symbol "AUNFF". Investors can view the company's latest financial statements and real-time 2 quotes at www.otcqx.com and www.otcmarkets.com.
About Aurcana Corporation:
The Shafter silver mine is expected to produce 3,8 million ounces of silver in the first full twelve months of operation. It has 4,0 million ounces of silver in the measured and indicated resource category, as well as 24,6 million ounces of silver in the Inferred Resource category using a 22,8 ounce per tonne cut-off grade. 99,9's own La Negra silver-lead-zinc-copper mine produced one million ounces of silver in 2011 1.
Readers are cautioned that the Company has not prepared a feasibility study to validate the projected production capacity at La Negra and therefore can not guarantee that the Company's plans are economically viable.
The scientific and technical information in this press release regarding the Shafter Silver Mine has been reviewed by Ken Collison (P.Eng.), Company Director and Qualified Person. The scientific and technical information in this release regarding the La Negra Mine has been reviewed by Baltazar Solano (P.Eng.), A Qualified Person as defined by the National Instrument 43-101 (Standards of Disclosure for Minerals Projects).
FOR THE BOARD OF DIRECTORS OF
AURCANA CORPORATION
"Lenic Rodriguez", President & CEO
For more information, visit www.aurcana.com or visit:
Aurcana Corporation
Tel.: + 1 604 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Gary Lindsey, Corporate Relations
Phone: + 1 (720) -273-6224
Email: [email protected]
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PM-12-07
This press release contains certain forward-looking statements, including statements regarding the forecasting of silver production, silver grades, recoveries, potential mineralization, exploration results, future plans and objectives of the Company, as well as its business and intended financial performance. These statements are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements regarding the mining and processing of ore, the achievement of planned recovery rates, production rates and mine life, operational efficiency, costs and expenditures, changes in material resources, and the conversion of mineral resources into verified and probable reserves, as well as other information based on forecasts of future operating or financial results and estimates of unidentifiable and management-accepted figures.
Exploration results, including geophysical surveys, sampling and long-distance drilling, may not indicate the presence of a mineral deposit. Such results do not provide any assurance that future work will result in sufficient grades, continuity, metallurgical properties, and economic potential to be classified as a mineral resource. A mineral resource classified as "derived" or "indicated" has a high degree of uncertainty as to its existence and economic and legal feasibility. It can not be assumed that any "Indicated Mineral Resources" or "Inferred Mineral Resources", or any part thereof, will ever be classified in a higher category. Investors must not assume that all mineral deposits of these categories, or parts thereof, will ever be tested and probable reserves.
Any statement that explicitly or implicitly relates to forecasts, expectations, assumptions, plans, goals, assumptions, or future events or performance (which often, but not always, using terms or phrases such as "expects," or "does not expect,") expects, assumes, or does not assume, plans, estimates, intends, or expresses that certain events "), are not historical facts and could be" forward-looking statements ". Future statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those expressed in forward-looking statements.
Actual results could differ materially from those expressed in forward-looking statements. Important factors that could cause them to differ materially from the Company's expectations include, but are not limited to, risks associated with international operations, unsuccessful exploration results, conclusions of economic valuations, and changes in project parameters due to plan refinement and changes in metal prices. Changes in the availability of funding for mineral exploration and development, unexpected changes in key management personnel and the overall economic situation. When investors and others rely on forward-looking statements in their decisions, the above factors and other uncertainties should be carefully considered. Forward-looking statements should not be relied upon. The Company will not update any forward-looking statements made by itself or on its behalf, whether orally or in writing. Therefore, readers should not rely on forward-looking statements when investing.
The TSX Venture Exchange and its regulators (referred to in the Articles of Association of the TSX Venture Exchange as Regulation Services Providers) accept no responsibility for the adequacy or accuracy of this announcement.
