Operations
La Negra - History and Resources
The La Negra mine was discovered and developed by Industriales Peņoles S.A. de C.V. The mine commenced production in 1970 and produced until the mine was put on care and maintenance in 2000.
Historical production as reported by Peņoles was approximately 6.6 million tonnes of ore with metal production as follows:
The Mineral Resource estimate has an effective date of August 27, 2012 and meets the guidelines as set out in NI 43-101 and was prepared for Aurcana Corporation by Behre Dolbear and Company (USA). The assignment was undertaken by Baltazar Solano-Rico, M.Sc., Geol. Eng. and Mrs. Betty Gibbs, E.M., MSc. both of them qualified persons ("QP") as defined under National Instrument NI 43-101 Standards of Disclosure for Mineral Projects.
The Behre Dolbear Mineral Resource estimate reported here is the initial Mineral Resource estimate for the entire La Negra Mine operation. Aurcana has previously commissioned, as recently as Q1, 2010, mineral reserve and resource estimates for individual zones at the La Negra Mine; however, this updated disclosure replaces all such previous estimates.
43-101 Resource
Notes:
3,000 tpd mill:
Mr. Nils von Fersen, PGeo, a qualified person and the Company's Vice-President, Exploration and Sadek El-Alfy a qualified person and the Company's Vice-President, Operations have reviewed the scientific and technical information contained on the Company's website.
Historical production as reported by Peņoles was approximately 6.6 million tonnes of ore with metal production as follows:
| 36 million oz | Silver |
| 323 million lbs | Zinc |
| 70 million lbs | Copper |
| 161 million lbs | Lead |
The Mineral Resource estimate has an effective date of August 27, 2012 and meets the guidelines as set out in NI 43-101 and was prepared for Aurcana Corporation by Behre Dolbear and Company (USA). The assignment was undertaken by Baltazar Solano-Rico, M.Sc., Geol. Eng. and Mrs. Betty Gibbs, E.M., MSc. both of them qualified persons ("QP") as defined under National Instrument NI 43-101 Standards of Disclosure for Mineral Projects.
The Behre Dolbear Mineral Resource estimate reported here is the initial Mineral Resource estimate for the entire La Negra Mine operation. Aurcana has previously commissioned, as recently as Q1, 2010, mineral reserve and resource estimates for individual zones at the La Negra Mine; however, this updated disclosure replaces all such previous estimates.
43-101 Resource
| MEASURED AND INDICATED RESOURCES FOR ALL DEPOSITS AND ALL BLOCKS WITH A MINIMUM RECOVERED VALUE OF US$40 PER TONNE | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Classification | Tonnes
(000) |
Average | In Situ Metal Quantities (000) |
Average Recovered Value1 ($/t) |
||||||
| Silver (g/t) |
Copper (%) |
Lead (%) |
Zinc (%) |
Silver (oz) |
Copper (lb) |
Lead (lb) |
Zinc (lb) |
|||
| Measured | 11,862 | 133.42 | 0.50 | 0.90 | 2.60 | 50,070 | 130,834 | 228,825 | 673,603 | 180.06 |
| Indicated | 15,159 | 130.12 | 0.41 | 0.92 | 2.19 | 65,026 | 138,695 | 310,673 | 745,060 | 166.63 |
| Measured plus Indicated |
27,021 | 131.31 | 0.49 | 0.91 | 2.36 | 115,096 | 269,529 | 539,498 | 1,418,664 | 172.53 |
| 1Metal prices and recoveries used are as follows: Silver - $28.29/84.87%; Copper - $3.33/81.02%; Lead - $0.88/74.62%; Zinc - $0.84/70.66%. | ||||||||||
| INFERRED RESOURCES ALL BLOCKS WITH A MINIMUM RECOVERED VALUE OF US$40 PER TONNE | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Classification | Tonnes
(000) |
Average | In Situ Metal Quantities (000) |
Average Recovered Value1 ($/t) |
||||||
| Silver (g/t) |
Copper (%) |
Lead (%) |
Zinc (%) |
Silver (oz) |
Copper (lb) |
Lead (lb) |
Zinc (lb) |
|||
| Totals | 13,278 | 126.05 | 0.42 | 0.88 | 2.14 | 56,501 | 132,260 | 263,033 | 657,370 | 163.25 |
| 1Metal prices and recoveries used for the value estimate are as follow:: Silver - $28.29/84.87%; Copper - $3.33/81.02%; Lead - $0.88/74.62%; Zinc - $0.84/70.66%. | ||||||||||
Notes:
- Ounces and pounds of in situ metal are calculated using only resource blocks with a recovered value of US$40 or greater.
- Metal prices and recoveries used for the average recovered value estimate are calculated using a trailing 12-quarter average spot price and actual recoveries as documented in the company's NSR reports from January through May 2012.as follows: Silver - $28.29/84.87%; Copper - $3.33/81.02%; Lead - $0.88/74.62%; Zinc - $0.84/70.66%.
- Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the estimated Mineral Resources will be converted into Mineral Reserves. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues
- The Mineral Resource was estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM"), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the Standards Committee on Reserve Definitions and adopted by the CIM Council on November 27, 2010
3,000 tpd mill:
- 3 stage crushing plant
- 3 8' x 10' ball mills
- upgrades being done to increase capacity to 3000 tpd
- mill produces zinc, copper and lead concentrates
- all accessible by existing workings
- large orebodies
- amendable to low cost long hole, open stope mining methods
- all reserves are above the 2,000 level main haulage way - ore
- many zones open at depth
- power provided by existing powerlines
- company owned housing
- water available
- very good local support for the project
Mr. Nils von Fersen, PGeo, a qualified person and the Company's Vice-President, Exploration and Sadek El-Alfy a qualified person and the Company's Vice-President, Operations have reviewed the scientific and technical information contained on the Company's website.