New Mining Equipment For La Negra - Vendor Financing Arranged / 43-101 Audit Commences
November 17, 2006
Aurcana Corporation ("Aurcana" or the "Company") is pleased to announce that new mining equipment has been ordered from Atlas Copco and is currently in transit to the La Negra mine. In addition, Wardrop Engineering Inc. has been engaged to commence an audit of several zones at the La Negra mine in Queratero State, Mexico.
Atlas Copco of Sweden has sent a Simba production drill, a 3.5 cubic yard load, haul and discharge ("LHD"), a single boom jumbo drill and a Diamec 232 diamond drill to the La Negra mine. The Simba drill will be used underground and can drill 3" diameter holes up to 40 metres that will allow for long-hole open stope mining. The 3.5 cubic yard LHD will be used to move broken ore from stopes to ore passes to be discharged to the 2000 meter main haulage level. The single boom jumbo will be used for development and the Diamec diamond drill will be used for both exploration and development. The new, highly efficient mining equipment will enable the La Negra mine to recommence operations in the first quarter of 2007. Atlas Copco has provided a 90% vendor financing of US$1.3M for the equipment of which Aurcana is the guarantor.
43-101 - La Negra Report
Wardrop Engineering Inc. has been engaged to commence an audit of historical reserves on several zones at the La Negra mine. Wardrop will review three zones and will evaluate the zones for silver, zinc, copper and lead as to grade, tonnage and metal values. The zones to be audited by Wardrop were developed by Servicios Industriales Penoles SA de CV ("Penoles") prior to Penoles putting the La Negra mine on care and maintenance in 2000 due to low metal prices. These zones will be the focus of Aurcana's work at La Negra in 2007.
La Negra Update
Aurcana is also pleased to provide an update on progress at the La Negra mine. Approximately 7,000 tonnes of ore has now been stockpiled outside the 2000 main haulage level and by the end of this year the stockpile is expected to reach approximately 50,000 tonnes. This material will be used to restart the 1,000 tonne per day mill. The reader should be cautioned the Company has not completed a feasibility study confirming the projected production capacity and there is no certainty the Company's plans will be economically viable.
The entire three stage crushing circuit has been refurbished and the ball mill is fully operational. New floatation tanks have been delivered and are in the process of being installed. Foundations for new 30 meter diameter thickener tanks for both copper and zinc are being constructed and with the arrival of steel at the mine, the tanks will be fabricated and installed shortly. The progress to date at the La Negra mine has been proceeding very well and is a credit to Aurcana's partner, Reyna Mining and Engineering, who are overseeing the refurbishment of the mine.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Ken Booth", President
For further information, please contact: Ken Booth, President or
Colin Farr, Investor Relations
Phone: (604) 331-9333
Web site: www.aurcana.com
The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.