VANCOUVER, BRITISH COLUMBIA - (Marketwire - Jan. 21, 2011) - Aurcana Corporation (TSX VENTURE:AUN) ("Aurcana" or the "Company") is pleased to announce that work has commenced on the 100 percent owned Shafter Silver Mine, located in Presidio County, southwest Texas. The site access road has been upgraded, geotechnical and survey work is underway, and plant site and portal earthworks are on track to be completed by April. The portal cut for the decline will be blasted and excavated in February. The first set of new and rebuilt underground mining equipment has been purchased and is scheduled to be on site for mining to commence on the decline in early March.
Key senior management personnel have been hired and are on site. All construction permits are in place. All long lead items such as the 14 ft ball mill and tailings filter presses have been secured and are scheduled to be refurbished. A 5-year off-take contract has been signed with the regional power supply company to upgrade the electrical substation which will provide power for the operation of the mine and mill.
A Ground Breaking ceremony with a first blast and a number of guests is scheduled for February 16, 2011.
The Shafter Silver Mine is scheduled to start silver production in mid-2012 which is estimated to produce 3.8 million ounces per year at a mining production rate of 1,500 tons per day of ore grading 8 ounces silver per ton. Shafter has a NI 43-101 compliant resource of 24.6 million ounces Measured and Indicated (2,900,000 tons @ 8.48 opt), 22.8 million ounces Inferred (2,167,000 @ 10.52 opt) (using a 4.0 opt cut off). Construction is scheduled to take 18 months.
About Aurcana Corporation:
Aurcana is committed to become a mid-tier silver producer. Annualized pure silver production is on schedule to exceed 5 million ounces (6.0 million ounces silver equivalent) by year 2012.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
Lenic Rodriguez, President and C.E.O.
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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