Aurcana Moves to Expand Production and Mine Higher Grades at La Negra
February 26, 2008
Aurcana Corporation ("Aurcana" or the "Company") announces they have approved capital expenditures for the purchase of additional mining and milling equipment to expand production at the 1,000 tonne per day La Negra Silver-Lead-Zinc-Copper mine in Queretaro State, Mexico. The new equipment will also offer the flexibility of mining from a number of higher grade areas such as Monica, Dificultad and Virginia in addition to continuing production from the Alacran area.
"Each ore body presents different advantages" stated Mr. Ken Booth, President of Aurcana. "Working from several different areas allows us to optimize the blend of ore maximizing efficiencies and recoveries."
A Jumbo Drill and two Scoop Trams have been ordered. Delivery is expected in the second quarter of 2008. A third Scoop Tram, currently owned by the Company, is being reconditioned and will be available for service in approximately one month.
Additionally, a metallurgical study is underway at La Negra to define the benefits of utilizing a second ball mill currently owned by the Company. The ball mill could incrementally increase daily throughput by up to 30% and potentially lead to improvements in metal recoveries. The study results are expected within one month.
About The La Negra Mine:
Acquired in May of 2006, the 1,000 tonne per day La Negra silver-lead-zinc-copper mine went from "care and maintenance" to current production levels in 13 months. Since restarting, the operation has performed as expected with monthly production and sales levels on target. Annual operating cash flow at the La Negra Mine is estimated at $12 -- $15 million. Current production is from the Alacran zone but this will be supplemented using the new equipment to draw ore from several zones to optimize the blending of ore and increase the efficiency of the mine.
The Company announced a 15,000 metre underground diamond drill program in the fourth quarter of 2007. Currently 3 drills are working in the Alacran and Monica areas. The drill program is designed to identify new mineral zones and increase historical reserves. Assays are expected shortly.
About Aurcana Corporation:
Aurcana Corporation is committed to becoming a mid-tier base/precious metals producer generating $100 million plus in annual operating cash flow.
Aurcana is currently carrying out aggressive exploration programs on two projects to increase historical reserves which will lead directly to expansion of production. The Company has a diversified asset base with five different metals contained in two mines. With a strong balance sheet and a positive outlook for the price of commodities, the future is very promising for Aurcana and its shareholders.
Aurcana, while committed to exploration and expansion of current operations, continues to seek and evaluate other high quality, producing or near producing projects. With the acquisition of any or all of these advanced stage projects, present and proposed cash flow will increase significantly.
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
For further information, please visit the website at: www.aurcana.com
Ken Booth, President or
Jack Barnes, Investor Relations
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Caution Regarding Forward-Looking Statements -- This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include unsuccessful exploration results, 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.
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