Operations

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:
36 million oz Silver
323 million lbs Zinc
70 million lbs Copper
161 million lbs Lead


The Mineral Resource estimate 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.

For more information, see the amended technical report titled "technical Report on the La Negra Mine Project, Queretaro, Mexico", dated October 4, 2012, as amended May 31, 2013, which is available on www.sedar.com under Aurcana's profile.

NI 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)
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
Indicated 15,159 130.12 0.41 0.92 2.19 65,026 138,695 310,673 745,060
Measured plus
Indicated
27,021 131.31 0.49 0.91 2.36 115,096 269,529 539,498 1,418,664

INFERRED RESOURCES ALL BLOCKS WITH A MINIMUM RECOVERED VALUE OF US$40 PER TONNE
Classification Tonnes
(000)
Average In Situ Metal Quantities
(000)
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

Notes:
  1. Ounces and pounds of in situ metal are calculated using only resource blocks with a recovered value of US$40 or greater.
  2. 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
  3. 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 capacity:
  • 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
13 known mineralized bodies:
  • all accessible by existing workings
  • large mineralized bodies
  • amendable to low cost long hole, open stope mining methods
  • all reserves are above the 2,000 level main haulage way
Exploration potential is very good:
  • many zones open at depth
Infrastructure is in place:
  • power provided by existing powerlines
  • company owned housing
  • water available
All permits and agreements in place:
  • very good local support for the project

Mr. Andrew Kaczmarek a qualified person and the Company's COO has reviewed the scientific and technical information contained on the Company's website.