|Fri Feb 8, 2008|
Aurcana Initiates 6,500 Metre Diamond Drill Program at Rosario
|Assay Values in Excess of the 100 Grams per Tonne Detection Limits|
Aurcana Corporation ("Aurcana" or the "Company") announces that it is initiating a $1.7 million exploration program that includes 6,500 meters of diamond drilling on the 8,515 hectare Rosario Silver -- Zinc -- Lead --Gold Project in southern Sinaloa State, Mexico. The program is being supervised by Mr. Nils von Fersen, Exploration Manager, for Aurcana Corporation. The priority objective of the program is to expand historical reserves previously identified at the Plomosas Mine and the San Juan area, and to explore other anomalous zones and vein systems. Tenders from drill contractors have been requested in anticipation of a quick startup.
The Rosario Project includes the Plomosas Mine which is currently being refurbished and restored in preparation for start up at 800 tonnes per day in 2009. The Plomosas Mine currently has 638,000 tonnes of historical reserves with grades of 136 grams per tonne silver, 3.21% zinc, 2.23% lead and 1.05 gram per tonne gold. The drill program calls for two drill stations in existing cross-cuts, on opposite sides of the 825 main haulage level. Four to five holes will be drilled from each station to test the down dip and strike extensions of the Plomosas Vein system.
The San Juan area is the second high priority target. This vein structure has much higher Silver grades of 329 grams per tonne, also 3.73% zinc, 1.69% lead and 0.19 grams per tonne gold all contained in 256,000 tonnes of historical reserves. Developed workings consist of several hundred metres of drifts and cross cuts on two levels. Drilling is planned to test dip and strike extensions of known mineralization.
In addition to the two areas of historical reserves, numerous other targets are being evaluated and prioritized within the project. Rock chip samples collected from the San Francisco Vein structure have returned strongly anomalous silver values, with 26% of the samples exceeding the 100 grams per tonne geochemical detection limits set by the assay lab. The "over limit" samples have been re-submitted for further analysis using ore grade detection limits. In addition, locally strong silver values are accompanied by anomalous gold values within a strike length of 400 metres on the San Francisco vein. Drilling is planned to test the northern portion of the vein system. Surface exploration is planned to define the southern extent of the vein structure.
The information included with the Rosario Project, acquired from Grupo Mexico, provided a wealth of historic exploration data (geology, geochemistry, geophysics, drilling, and landsat studies). The value of this asset cannot be understated, as the accumulation of a data base of this extent today would be prohibitive at current market prices. This information is being compiled into a comprehensive database to support and optimize the current systematic geological and geochemical surveys being carried out on the various targets identified on the property. The reader should be cautioned the historic reserves do not conform to National Instrument 43-101 requirements for reporting purposes; as such the Company is not treating these historic estimates as current reserves or resources. These estimates should not be relied upon until they have been verified by further due diligence and by the Company's "Qualified Person".
Aurcana Corporation 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 a minimum of time and money to re-start. Aurcana is currently carrying out aggressive exploration programs on two projects to increase reserves which will lead directly to expansion of production and increased cash flow.
Aurcana continues to pursue and evaluate other high quality, producing or near producing projects, with the acquisition of any or all of these advanced stage projects, present and proposed cash flow will increase significantly.
With $12 million to $15 million in annual cash flow expected from the 1,000 tonnes per day production established currently and a planned additional 800 tonnes per day being added in 2009 (current plans call for expansion to 1,200 tonnes per day by year 3 of operation), aggressive exploration programs underway on two projects, a strong balance sheet together with a positive outlook for the price of commodities, 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.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Ken Booth", President
For further information, please visit the website at: www.aurcana.com
Ken Booth, President or
Jack Barnes, Investor Relations
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
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.
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