VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2012) - Aurcana Corporation ("Aurcana" or the "Company") (TSX VENTURE:AUN)(OTCQX:AUNFF) is pleased to report a 54% increase in silver production from the La Negra mine for Q3 2012 of 376,687 ounces compared to 244,243 ounces in Q3 2011, making it the largest quarter for silver production in Aurcana's history.
Total silver Equivalent increased 67% to 718,063 oz. for Q3 2012, compared to 430,090 oz. in Q3 2011. Year to date silver was up 40% to 1,037,210 oz. in 2012 YTD, compared to 742,026 oz. in 2011 YTD.
Mill feed was 196,843 tonnes in Q3. 57% (112,781 tonnes) was mined from NI 43-101 Measured and Indicated Resources and 43% (84,062 tonnes) was mined from new discoveries or non-compliant resources. La Negra is now applying 43-101 standards in developing new mineralized zones to increase our compliant resources. A new compliant resource estimate has been released on August 28, 2012 and the technical report was filed on Sedar on Oct 10, 2012.
La Negra Highlights
- Aurcana continues to produce record results. Q3, 2012 silver production was the largest silver volume in Aurcana's history producing 54% more silver than in Q3, 2011.
- Silver sales increased to 323,825 oz. in Q3 2012 compared to 235,981 oz. in Q3 2011, an increase of 37%.
- The average grade of silver increased 7% YTD to an average of 80 grams per ton in 2012, compared to 75 grams per ton in 2011.
- La Negra mine is now milling at a rate greater than 2,300 tpd.
- The mill upgrade expansion to 3,000 tpd is expected to be completed during 1st quarter 2013 with minimal capital expenditures.
- Underground and surface exploration programs at La Negra are progressing according to the plan and continue to provide encouraging results.
Shafter Mine Update
The Company commissioned the Mill at Shafter on April 1, 2012. The commissioning and testing phase is currently underway at Shafter Mine working towards achieving commercial production in Q4 2012.
- Commencement of commercial production is expected in Q4, 2012.
- Technical, management and capital resources are focused on the Shafter Mine in order to allow commencement of commercial production.
- Mine personnel recruitment and miners training is progressing as planned.
- Mine site development is continuously advancing.
- The Shafter surface exploration program continues to evaluate extensions of the main Shafter mineralized horizon and to search for evidence of a deeper mineralized zone.
During Q3 2012, La Negra achieved very good results in silver production setting another record for the largest quarter of silver production. La Negra increased mill production capacity to 2,500 tpd on April 2012. The Shafter mill was commissioned on April 1, 2012. Aurcana expects to announce commencement of commercial production at Shafter in Q4 2012. Aurcana continues to focus on its future growth.
Investor Communications Manager Appointment
Aurcana is also pleased to announce the appointment of Mr. Catalin Chiloflischi as Manager Investor Communications.
Mr. Catalin Chiloflischi is an economist with over 15 years experience in public companies, investor relations, investor communications, corporate governance, sustainability and business development both in Canada and Europe. For the last 10 years, Catalin has been involved in the mining sector both as a senior analyst and most recently as a manager investor communications with a TSX-V listed mining company.
Catalin's skill sets are complementary to Aurcana's investor relations program and brings the level of experience, knowledge and dedication required to provide Aurcana with effective investor communication both in Canada, US and Internationally as we continue our growth.
Lenic Rodriguez, Aurcana's President & CEO said: "I am pleased to welcome Catalin to the Aurcana team. I am confident that his skills and experience will help Aurcana meet our growing needs as we work to become a senior silver producer."
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.
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.
The scientific and technical information contained in this news release regarding the Shafter Silver Mine has been reviewed by Ken Collison, P.Eng. Director of the Company, and a Qualified Person ("QP") and scientific and technical information contained in this news release regarding the La Negra Mine has been reviewed by Baltazar Solano, P.Eng. and a QP as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Project).
ON BEHALF OF THE BOARD OF DIRECTORS OF
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.