|Mon Nov 5, 2007|
Rosario Project Continues to Advance
|Aurcana Corporation ("Aurcana" or the "Company") is pleased to report the progress made on the re-opening of the 100 per cent owned silver-zinc-lead-gold Rosario mine in southeastern Sinaloa State, Mexico. Aurcana is forecasting to incrementally increase the capacity of the mill by 100 per cent from the historical production rate of 600 tonnes per day to a maximum level of 1200 tonnes per day with a start up level at 800 tonnes per day. |
To assist in meeting its goal of production start up in the last quarter of 2008, Aurcana has acquired a critical piece of mill equipment. Currently, lead times in the mining industry for both mill equipment and mining equipment are becoming increasingly longer but Aurcana has been successful in securing a SAG ("Semi-Autogenous Grinding") mill that will be instrumental in the refurbishment of the Rosario mill and ensure that timelines are maintained. The SAG mill is capable of processing up to 1200 tonnes per day.
The Company is also pleased to announce that Constructora Bavixi, S.A. de C.V. ("Bavixi") has been retained to assist the Company in the refurbishment of the mill and the mine. Bavixi has worked with Aurcana at the La Negra mine and has all the necessary equipment and personnel to help Aurcana achieve its targets at Rosario. Aurcana has already initiated many of the tasks needed to ready the mill for refurbishment and will now begin to prepare the underground workings for both development and exploration.
An underground diamond drill contract is being negotiated with CAMMSA, and drilling will commence once Bavixi prepares underground drill stations. A total of 3000 metres of drilling is planned for the first stage of exploration which will initially target the Plomosas vein and the Lead -- Zinc stock work zone.
Surface exploration is also continuing on the 8,515 hectare property. The former owner identified numerous targets and geologists at site are continuing to follow up on these targets in order to prioritize them for diamond drilling.
"I am very pleased with the progress to date at Rosario. The ability to secure a critical piece of equipment like the SAG mill and the hiring of Bavixi and CAMMSA is once again a testament to the ability of Aurcana and its operating team in Mexico to advance its projects at a time in the mining industry when key equipment and personnel are at a premium. I want to acknowledge the dedication and commitment of our people" says Mr. Ken Booth, President, Aurcana Corporation.
Aurcana remains committed to becoming a mid tier base-precious metals producer. The Company is focused on the acquisition, development and operation of silver, zinc and copper mines with good infrastructure and ore reserves/resources requiring minimal time to re-start. With a very positive outlook for the price of commodities, a strong balance sheet, 1,000 tonnes per day production currently established at La Negra and Rosario adding an additional initial production of 800 tonnes per day by the end of 2008, the future is very promising for Aurcana and its shareholders.
Ron Nichols, P.Eng. a Director and Vice President of Exploration for Aurcana, and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release. The reader should be cautioned the Company has not completed a feasibility study confirming the projected production capacity at Rosario and there is no certainty the Company's plans will be economically viable.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Ken Booth", President
For further information, please contact:
Ken Booth, President or
Jack Barnes, Investor Relations
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Web site: www.aurcana.com
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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.
You can return to the Top of this page