|Tue Feb 16, 2010|
NI 43-101 Report increases Maravillas Deposit Resources by 47%
|Aurcana Corporation ("Aurcana" or the "Company") is pleased to report that it has received a positive NI 43-101 compliant resource estimation for the Maravillas Deposit at the La Negra mine, Queretaro State, Mexico. The Maravillas Deposit is one of 27 deposits identified to date at the La Negra Mine, four of which have been identified by the geological staff since Aurcana re-started the mine in 2007. The resource estimate for the Maravillas deposit represents a 47% increase to 188,941 tonnes from the 128,400 tonnes of historical reserves reported in 2000 by Penoles. The report prepared by Aurcana's independent consultant, Ronald G. Simpson, P.Geo of GeoSim Services Inc. (GeoSim), will be filed at www.SEDAR.com within 45 days.|
Historic and recent exploration work carried out on the Maravillas Deposit has defined a mineralized zone extending some 270 metres down dip and up to 140 metres along strike with a thickness ranging up to 10 metres.
Table 1 Maravillas Deposit Mineral Resource
(*using $US35/t NSR cut-off)
The Maravillas Deposit is estimated to contain a measured and indicated resource of 188,941 tonnes grading 114 g/t Ag, 0.55% Pb, 3.73% Zn and 0.75% Cu. An additional 38,422 tonnes is classified as an inferred resource and averages 98 g/t Ag, 0.42% Pb, 3.62% Zn and 0.89% Cu.
The Maravillas Deposit remains open to depth below the 2150 level and along strike. Additional drilling is planned to test the continuity and extensions of mineralization, to convert inferred resource blocks to a higher category and to provide more data to refine the mining plan
The resource estimate contained in Table 1 was based on resource modeling for the Maravillas Deposit which utilized analytical data primarily derived from 340 saw-cut channel samples and 124 chip samples. These were collected by the La Negra Mine geological staff in underground workings from all levels and ramps within the Maravillas Deposit during 2007 and 2009. Sample data from 5 historic Peñoles drill holes was also included. Historic Peñoles underground channel samples were not used as the locations had been re-sampled by Aurcana.
Block grades for Ag, Pb Zn and Cu were estimated by the inverse distance weighting method to the third power. Grade estimation was constrained by wireframe shapes representing the sulphide zones. Block size was 4x4x4 metres with sublocking to 1x1x1 metre. A minimum of 3 composites were required to estimate a block grade and a maximum search distance of 50 m was used. Blocks were classified based on distance to the closest composite.
Maravillas Mine Contractor
The La Negra operation has signed a contract with Servicios Mineros S.A. a contract mining operator, to mine the Maravillas resource blocks after a positive trade-off study of capital investment and manpower requirements indicated this as the most cost effective option.
This will allow operational flexibility and additional production at a competitive cost. The contractor will develop a ramp system within the mineralized zone, thus optimizing the recovery of higher grade material and reducing mine dilution. The existing mine infrastructure including haulage levels and an ore pass are already in place to facilitate a fast and efficient start-up. Preparations to have the deposit ready to contribute ore to production are on schedule for the start-up of the 1,500 tpd plant expansion by mid-year.
About Aurcana Corporation:
The Shafter Silver Mine is scheduled to start up production within 18 months of securing permits and financing, producing 3.9 million ounces silver in the first year. It has a NI 43-101 measured and indicated resource of 24.6 million ounces of silver (2,900,000 tons at 8.48Ag opt) and an inferred resource of 22.8 million ounces of silver (2,167,000 tons at 10.52 Ag opt) using a 4.0 ounce per ton cut off. The 92% owned La Negra silver-lead-zinc-copper mine is on target to increase production to over 2 million ounces Silver Equivalent annually when expansion to 1,500 t/d is completed by mid year. The reader should be cautioned the Company has not completed a feasibility study confirming the projected production capacity for La Negra and there is no certainty the Company's plans will be economically viable. Ron Nichols, P.Eng. a Director and Senior Vice President 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
"Lenic Rodriguez", President
For further information, visit the website at www.aurcana.com or contact:
Jack Barnes, Corporate 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.
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.
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