Aurcana Corporation ("Aurcana" or the "Company") announces that the Gault Group Inc. ("Gault"), an environmental consulting firm based in the United States, has been hired to assist Aurcana with the mine permitting phase at Shafter. The 100% owned Shafter silver mine, located in Presidio County, southwest Texas, has a N.I. 43-101 resource in all categories of 47.4 million ounces and is scheduled to start production at 3.9 million ounces silver per year. During the period 1998 to 2001, with the help of the Gault staff, the Shafter project had all of the key permits granted, or under application, for the construction and operation of the mine.
The Gault Group brings over two decades of experience in assisting the mining industry with the permitting of mining projects. They count amongst their clients, Asarco LLC, Kennecott Utah Copper Corporation, General Moly Corp, and Silver Standard Resources. The Gault Group personnel were the principal outsourced permitting group (then known as Environet) involved in permitting the Shafter Project for Rio Grande Mining Company.
Additionally, Aurcana has upgraded the internal scoping study on Shafter to an independent National Instrument 43-101 compliant Prefeasibility Study which is expected to be completed in March. Gault will work with Aurcana on the Prefeasibility Study to assist in renewing or amending the permits and approvals necessary to advance Shafter into production.
About Aurcana Corporation:
The Shafter silver mine has a NI 43-101 resource of 24.6 million ounces at 8.48 ounces per ton measured and indicated and 22.8 million ounces at 10.52 ounces per ton inferred using a 4.0 ounce per ton cut off. Production, scheduled 18 months after permitting and financing is secured, is estimated at 3.9 million ounces silver in year one.
The 80% owned La Negra silver-copper-lead-zinc mine in Queretaro State, Mexico, is operating at 1,000 tonnes per day. The 100% owned Rosario mine in Sinaloa State, Mexico, is an advanced stage silver-lead-zinc-gold exploration project.
Ron Nichols, P.Eng., 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, Shafter or Rosario and there is no certainty the Company's plans will be economically viable.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Ken Booth", President
For further information, please visit the website at www.aurcana.com, or contact:
Ken Booth, President or
Jack Barnes, Investor Relations
Phone: (604) 331-9333
Toll Free: (866) 532-9333
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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