|Wed Jun 9, 2010|
Aurcana Expands Resource Potential At La Negra
|Aurcana Corporation ("Aurcana" or the "Company") is pleased to announce that first quarter underground drilling directed towards extending the boundaries of existing ore-bodies and testing other promising exploration targets at the La Negra Mine has intersected significant mineralization in the La Cruz and Sofia Deposits.|
La Cruz Deposit
Drilling was designed to follow up evidence of copper mineralization during the mapping and sampling of historic workings in the La Cruz deposit area. Four holes were drilled to trace the vertical extent of a copper rich replacement zone at the contact with a diorite dyke. Intersected widths (see table below) range from 7.90m to 13.00m with an average intersected width of 9.94m. Mineralization was traced over a vertical interval of 85.0m, from the 2100 level to the 2015 level. The zone is interpreted to be moderately folded, based on the spatial distribution of intersections, and the actual length of the zone exceeds its vertical extent. Further support for the continuity of grade is provided by development drifts into the zone on the 2080 level which produced 3,281 tonnes ("t") of ore grading 58g/t Ag, 0,04% Pb, 0.07% Zn, 0.87% Cu.
LA CRUZ ZONE INTERSECTIONS
* Intersected widths do not represent true thicknesses
Additional drilling is necessary to define the full strike and dip extent of the mineralization in order to calculate a resource; however the potential for delineating an additional 150,000 t** of well mineralized material appears reasonable. The new zone is already contributing mill feed to daily production due to its proximity to the main haulage level.
Excellent additional tonnage potential was discovered at the Sofia Deposit during the quarter. Exploration drifting parallel to the Maravillas dyke on the 2025 level has encountered replacement mineralization at the footwall contact for a strike length of 110m averaging 74g/t Ag, 0.20% Pb, 0.97% Zn, 0.58% Cu based on channel sampling. Five short Packsack holes drilled to establish the thickness of the mineralized zone returned a weighted average intersection of 9.84 m grading 40 gm/t Ag, 0.01% Pb, 1.00% Zn, 0.92% Cu. Further drilling to test the vertical continuity and strike extent of the zone, as well as the prospective hangingwall of the dyke contact is pending. The potential for delineating an additional 50,000 t** of well mineralized material appears very reasonable.
SOFIA ZONE INTERSECTIONS
* Intersected widths do not represent true thicknesses
A second Diamec 232 drill has been ordered to beef up the operations drilling capacity to evaluate the multiple underground targets at La Negra. The use of in house drill crews and equipment has reduced the drill cost per meter by more than 50% compared to historic contractor costs. The contact margins of the numerous dykes and intrusive bodies continue to present excellent targets for growing the future resources of the La Negra Mine.
The underground drilling was conducted with drill equipment owned and operated by Minera La Negra, and core was assayed by the mine assay laboratory which is operated by Minera La Negra qualified personnel. Analytical QA-QC controls are maintained through the use of duplicates, blanks, and commercial standards.
**The reader should be cautioned the potential quantity and grade is conceptual in nature. There has been insufficient drilling to define a mineral resource and it is uncertain if further exploration will result in discovery of a mineral resource.
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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