Acquisition of silver-zinc-lead-gold Rosario Property Completed; Mapping and Prospecting Identifies Several New Structures
August 16, 2007
Aurcana Corporation ("Aurcana" or the "Company") is pleased to announce that further to its news release of February 22, 2007 the Company has exercised the option to purchase 100% of the Rosario silver-lead-zinc-gold property located in south eastern Sinaloa State Mexico from Industrial Minera Mexico, S.A. de C.V. ("IMMSA").
During the six month option period Aurcana's geologists completed the first phase of surface exploration consisting of mapping and prospecting on a substantial portion of the 8,515 hectare property. The preliminary results of this work are very encouraging as several new structures have been identified and will be the subject of ongoing investigation. In addition to the surface exploration the Company's engineers have been working on completing the mill design and have recently commenced re-construction and refurbishment of the facilities. The Company anticipates that the mill will be operational in 15 months.
The Rosario property consists of 18 concessions totalling approximately 8,515 hectares, located 94 kilometres southeast of Mazatlan and is accessed by an all weather road. There are two main areas on the Rosario Property, San Juan and Rosario where IMMSA has calculated historic reserves. At the San Juan area, west of the Rosario mine site, IMMSA reported historic reserves of 256,756 tonnes at a grade of 329.3 g/t silver, 3.73% zinc, 1.69% lead, and 0.19 g/t gold. A decline has been driven into the San Juan zone and has tested the zone over a vertical distance of 40 metres, with the zone still open to depth. Originally reported as reserves by IMMSA in 2000 using a cut-off grade based on metal prices at that time, the reader should be cautioned the historic reserves do not conform to National Instrument 43-101 requirements for reporting purposes; as such the Company is not treating these historic estimates as current reserves or resources. These estimates should not be relied upon until they have been verified by further due diligence and by the Company's "Qualified Person".
At the Rosario area, in 2000, IMMSA calculated 638,756 tonnes at a grade of 136 g/t silver, 3.21 % zinc, 2.23 % lead, and 1.05 g/t gold. consisting of 37,944 tonnes of proven reserves grading 122 g/t silver, 3.82% zinc, 2.57% lead and 0.98 g/t gold; 277,074 tonnes of probable reserves grading 89 g/t silver, 3.45% zinc, 2.36% lead and 1.0 g/t gold; and 323,738 tonnes of inferred resources grading 178 g/t silver, 2.92% zinc, 2.07% lead and 1.1 g/t gold. Aurcana will also focus on the exploration potential that remains on this zone and intends to expand the areas remaining between old mine levels, and from below the lowest level exploited. As with the San Juan area, the reader should be cautioned the historic reserves do not conform to National Instrument 43-101 requirements for reporting purposes; as such the Company is not treating these historic estimates as current reserves or resources. These estimates should not be relied upon until they have been verified by further due diligence and by the Company's "Qualified Person".
The purchase price for the Rosario Property is US$3,000,000; (US$500,000 paid) with the remaining US$2,500,000 payable in two equal instalments over two years.
Ron Nichols, P.Eng, a Director and Vice President of Exploration for Aurcana, and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.
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.