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Globally, artisanal and small-scale gold mining accounts for about 20% of annual gold production.
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Oct. 7, 2011) – Aurcana Corporation (“Aurcana” or the “Company”) (TSX VENTURE:AUN)(OTCQX:AUNFF)(PINK SHEETS:AUNFF) is pleased to report silver production for Q3 2011 of 244,243 ounces that is based on just 80 days of mill production at La Negra. Year-to-date (“YTD”), silver production has increased 26% to 742,026 ounces, compared to 587,057 ounces in 2010. As anticipated, Q3 2011 silver production was slightly lower than 2010’s 250,953 ounces as a result of the La Negra ball mill being down nine mill days in order to upgrade a ball mill.
Due to this maintenance, total mill feed of 119,772 tonnes was 4% lower than the 125,050 tonnes for Q3 of 2010. However, on a daily basis when the mill was in production at La Negra, the improvements at La Negra resulted in a 7% increase in the number of tonnes milled per day of 1,497 compared to 1,405 in Q3 2010.
Of 119,772 mill feed tonnes in Q3, 17% (20,562 tonnes) were from NI 43-101 Measured and Indicated Resources and 83% (99,210 tonnes) were 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. Additionally, new ore zone development initiatives are being carried out on the Northwest Trend.
La Negra Highlights
La Negra is on track to complete the ongoing mill upgrade to 2,000 tpd in Q1 2012, a 33% increase from the current capacity. This will bring the mill throughput capacity in-line with our planned mining operations of 2,000 tonnes per day.
Shafter Mine Construction Milestones completed in Q3, 2011
The Company commenced construction of the Shafter Mine in January of this year with an anticipated completion date of May 2012. Significant milestones on the Shafter Mine include:
Summary
During Q3 2011, La Negra continued to perform close to the 1,500 tonne per day production capacity. Construction of the Shafter Mine is on schedule and the Company advanced the permitting process, with only one permit outstanding at Shafter. Aurcana continues to focus on its future growth.
Corporate
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 7 months and it is estimated will 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 & CEO
For further information, visit the website at www.aurcana.com.
NR#11-13
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.
