Aurcana Corporation ("Aurcana" or the "Company") reports that the three year operating agreement with Reyna Mining and Engineering has expired and will not be renewed. Overall operational responsibilities for the 1,000 tpd silver-copper-lead-zinc La Negra mine, located in Queretaro State, Mexico, will continue under the supervision of the senior staff at the mine. The majority of the key individuals involved have been overseeing the operation since the start of commercial operations in June of 2007. The assumption of day to day control of the mining and milling operations has simplified the operational structure and is expected to increase operational management efficiencies. This will result in significant cost reductions while providing more direct and effective mine management.
Aurcana also reports that the expansion to 1,300 tpd at the La Negra mine is progressing as scheduled. Work consists of upgrading pumps and flotation cells, adding an additional ball mill and expanding the number of fine ore bins from two to three. The two banks of old Denver flotation cells have been removed and four of the eight new larger flotation tanks have been installed. The new tanks are working more efficiently, and have initially increased the zinc concentrate grade by approximately four percent and the copper concentrate by up to one percent.
About Aurcana Corporation:
SHAFTER SILVER MINE: With a NI 43-101 compliant measured and indicated resource of 24.6 million ounces of silver (2,900,000 tons @ 8.48 ounces per ton) and an inferred resource of 22.8 million ounces of silver (2,167,000 @ 10.52 ounces per ton) assuming a 4.0 ounce per ton cut off, production is scheduled at 3.5 million ounces silver per year with start up estimated to be 18 months after permitting and financing is secured.
LA NEGRA MINE: The 80% owned silver-copper-lead-zinc mine in Queretaro State, Mexico, operates at 1,000 tonnes per day. Work is underway to increase throughput of the mill to 1,300 tpd.
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.
The reader should be cautioned the Company has not completed feasibility studies confirming the projected production capacity for La Negra or Shafter and there is no certainty the Company's plans will be economically viable.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Lenic Rodriguez", President
For further information, visit the website at www.aurcana.com or contact:
Jack Barnes, Manager 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.