Aurcana Corporation (“Aurcana” or the “Company”) (TSXV: AUN, OTCQX: AUNFF”) is pleased to report silver production for Q4 2011 of 265,230 ounces, the largest quarter for silver production in Aurcana history, compared to 251,020 in Q4 2010. Silver production for 2011 increased 20.1% to 1,007,256 ounces compared to 838,077 ounces in 2010. Silver Equivalent increased 28.3% to 1,737,203 for 2011, compared to 1,354,315 in 2010.
The average grade of silver increased 8% to 81 grams per ton in Q4, 2011, compared to 75 grams per ton in Q3, 2011 and 79 grams per ton in Q4, 2010.
Of 125,262 mill feed tonnes in Q4, 14% (17,537 tonnes) were from NI 43-101 Measured and Indicated Resources and 86% (107,725 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 in the first quarter. Additionally, new ore zone development initiatives are being carried out on the Northwest Trend.
La Negra Highlights
- Aurcana continues to produce record results. Q4, 2011 silver production was the largest silver volume in Aurcana history producing 265,230 ounces of silver.
- 28.3% increase in silver equivalent produced to 1,737,203 ounces in 2011 compared to 1,354,315 ounces in 2010.
- 20.2% increase in silver equivalent produced to 463,843 (Oz Ag Eq) in Q4, 2011 compared to 385,942 in Q4, 2010.
- 52% increase in mineralized materials stockpiled from beginning to end of 2011, with the total stockpile now standing at 101,038 tonnes.
Shafter Mine Construction Milestones completed in Q4, 2011
The Company commenced construction of the Shafter Mine in January, 2011 with an anticipated completion date of May 2012. Significant Q4, 2011milestones on the Shafter Mine include:
- Ramp is now 1,134 feet underground, and will reach the first resource block in January, 2012.
- Ball Mill completed in November
- 100% permitted, as of November, 2011.
- 6 Leach Tanks along with Pregnant and Barren Tanks completed in December, as planned.
- Mine Office completed in December, as planned.
- The Merrill Crowe Equipment delivered and 70% installed.
- Initiated refurbishing #46 shaft for ventilation.
- Jaw crusher and cone crusher have been installed, ready for commission in January.
- Filter Press Structure and Filter Presses to be installed in January.
- Assay Lab construction begins in January.
- Underground Production Equipment continues to arrive as scheduled.
- 95% of concrete work has been completed, finalized by February.
- Final projects to complete: Cyanide mixing plant, warehouse building, potable water system
During Q4 2011, La Negra achieved record results in silver production with the largest quarter of silver production in Aurcana’s history. La Negra also continued to perform close to the 1,500 tonne per day production capacity. Construction of the Shafter Mine is on schedule and only 4 months away from initiating production. The Shafter Mine is now fully permitted. Aurcana continues to focus on its future growth.
Corporate
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 start production within 4 months and is estimated to produce 3.8 million ounces of silver in the first year 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 92% owned La Negra silver-lead-zinc-copper mine produced over 1 million ounces of contained silver in 2011.
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.
This scientific and technical information contained in this news release has been reviewed by Andy Nichols, P.Eng. of the Company, and a Qualified Person (“QP”) as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
ON BEHALF OF THE BOARD OF DIRECTORS OF
AURCANA CORPORATION
“Lenic Rodriguez”, President & CEO
For further information, visit the website at www.aurcana.com or contact:
Aurcana Corporation
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Gary Lindsey, Corporate Relations
Phone: (720)-273-6224
Email: [email protected]
NR# 1-12
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.
