VANCOUVER, BRITISH COLUMBIA--(Marketwire -07/11/12)- Aurcana Corporation ("Aurcana" or the "Company") (AUN.V)(AUNFF)(AUNFF) is pleased to report silver production for Q2 2012 of 373,037 ounces compared to 257,508 in Q2 2011, the largest quarter for silver production in Aurcana's history. Silver production for the second quarter of 2012 increased 44.9% compared to Q2, 2011. Silver Equivalent increased 54.0% to 689,275 for Q2 2012, compared to 447,533 in Q2 2011. Year to date silver was up 32.7% to 660,253 in 2012 YTD, compared to 497,783 in 2011 YTD.
Mill feed was 176,591 tonnes in Q2. Fifteen percent (26,640 tonnes) were from NI 43-101 Measured and Indicated Resources and 85% (149,951 tonnes) were from new discoveries or non-compliant resources. La Negra is now applying 43-101 standards in developing new mineralized zones to increase our compliant resources. A new compliant resource estimate will be released by the third quarter.
La Negra Highlights
-- 54.0% increase in silver equivalent production exceeding the nameplate capacity of the newly upgraded mill by 21%. Significant increase was achieved by exceeding the daily milling capacity during the quarter. -- Aurcana continues to produce record results. Q2, 2012 silver production was the largest silver volume in Aurcana history producing 373,037 ounces of silver, 44.9% increase over Q2, 2011. -- Silver sales increased to 323,307 ounces in Q2 2012 compared to 263,357 in Q2 2011, an increase of 22.7%. -- The average grade of silver increased 5% YTD from an average of 80 grams per ton in 2012, compared to 76 grams per ton in 2011. -- La Negra mine is now milling at a rate greater than 2,200 tpd.
The mill upgrade expansion to 2,500 tpd is currently in progress and will be completed well before the original expansion date of 2013, with minimal capital expenditures.
The Company commissioned the Mill at Shafter on April 1, 2012. The ramp-up phase is currently underway at Shafter and is progressing on schedule. Highlights include:
-- Ramp-up expected to be completed later this month, July, 2012. -- As of April 9, 2012 underground development commenced of the first resource block in the Shafter mine. -- Currently 30% of the mill feed is coming from underground and 70% is coming from the open pit. -- Assay Lab construction is complete. -- Cyanide mixing plant system is ready and plant from supplier will be complete in September. -- Warehouse building is complete. -- Potable water system is complete. -- On June 8th Shafter was connected to the upgraded electric grid.
During Q2 2012, La Negra achieved record results in silver production with the largest quarter of silver production in Aurcana's history. La Negra increased production to 2,000 tpd in mid April and is currently increasing beyond that capacity. The Shafter mill was commissioned on April 1, 2012. Shafter is now in the ramp up phase and will produce 1,500 tpd capacity upon announcement of commercial production. Aurcana continues to focus on its future growth.
The Company's shares are now also traded in the United States on OTCQX under the symbol "AUNFF". Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.
About Aurcana Corporation:
The Shafter Silver Mine is scheduled to produce 3.8 million ounces of silver in the first full 12 months of operation. It has an NI 43-101 Measured and Indicated Resource of 24.6 million ounces of silver and an Inferred Resource of 22.8 million ounces of silver using a 4.0 ounce per ton cut off. The 99.9% owned La Negra silver-lead-zinc-copper mine produced 2,085,354 silver equivalent ounces in the past 12 months.
The reader should be cautioned that the Company has not completed a feasibility study to confirm the projected production capacity for La Negra and there is no certainty the Company's plans will be economically viable.
The scientific and technical information contained in this news release regarding the Shafter Silver Mine has been reviewed by Ken Collison, P.Eng., Director of the Company, and a Qualified Person ("QP") and scientific and technical information contained in this news release regarding the La Negra Mine has been reviewed by Baltazar Solano, P.Eng. and a QP as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Project).
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
Lenic Rodriguez, President & CEO
This news release contains certain forward-looking statements, including statements regarding forecast silver production, silver grades, recoveries, potential mineralization, exploration result, future plans and objectives of the Company and the business and anticipated financial performance of the Company. These statements are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Exploration results that include geophysics, sampling and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classified as a category of mineral resource. A mineral resource which is classified as "inferred" or indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or does not expect", "is expected", anticipates" or "does not anticipate" "plans", "estimates" or "intends" or stating that certain actions, events or results " may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.
Actual results may differ materially from results contemplated by the forward-looking statements. Important factors that could differ materially from the Company's expectations include, among others, risks related to international operations, unsuccessful exploration results, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as 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. Accordingly, readers should not place undue reliance on forward-looking statements.
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.