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 Mon Nov 7, 2011
Aurcana Reports Record 3rd Quarter Results

 Aurcana Corporation ("Aurcana" or the "Company") (TSXV: AUN, OTCQX: AUNFF") is pleased to report its unaudited financial results for the third quarter ended September 30, 2011. The summary of the selected financial information should be read in conjunction with the unaudited financial statements and the related management's discussion and analysis dated November 4, 2011 together referred to as the "Financial Statements", which have been filed on SEDAR (www.sedar.com) and the Company's website (http://www.aurcana.com). All figures are in US dollars unless otherwise noted.

The most significant highlights for the 3rd quarter ending September 30, 2011 were:
  • 224% increase in earnings from mining operations in Q3, 2011, $6.8 million compared to $2.1 million in Q3, 2010. 415% increase in YTD earnings from mining operations of $17.5 million in 2011 compared to $3.4 million in 2010.
  • 217% increase in net income, $3.8 million in Q3, 2011 compared to $1.2 million in Q3, 2010. YTD net income up $6.8 million, to $6.1 million in 2011 compared to a loss of $0.7 million in 2010.
  • Revenues increased 68% to $12.1 million in Q3, 2011 from $7.2 million in Q3, 2010. YTD revenues increased 114%, to $35.3 million in 2011 from $16.5 million in 2010.
  • Operating cash flow before movements in working capital items, to $6.2 million in Q3 (2010 loss of 0.2 million).
  • Silver production of 244,243 ounces (235,981 ounces sold), based on just 80 days of mill production; year-to-date silver production increased 26% to 742,026 ounces compared to 587,057 ounces in 2010.
  • Shafter Silver Mine in Texas continues to be on schedule for completion in May, 2012 with production commencing immediately thereafter.
Revenue

During the quarter ended September 30, 2011, the Company generated revenues from the sale of 1.690 tonnes of copper concentrate (2010: - 3,658 tonnes); 2,913 tonnes of zinc concentrate (2010: -- 2,065 tonnes); 736 tonnes of Lead Concentrate (2010: nil); and 235,981 ounces of silver (2010 -- 238,722 ounces) for total net revenues of $12.1 million (2010 - $7.2 million).

The average price for sales of copper, silver, zinc and lead during the period were Cu - $3.98 (2010: $3.29) per pound; Ag - $37.24 (2010: $18.98) per ounce; Zn $0.98 (2010: $0.91) per pound and Pb $1.03 (2010: nil).

Earnings

The Company had earnings from mining operations of $6.8 million for the quarter ended September 30, 2011 (2010: $2.1 million); income before taxes of $4.3 million (2010: $1.2 million); a net income of $3.8 million (2010: $ 1.2 million). For the six months ended September 30, 2011 the Company had earnings from mining operations to $ 17.5 million (2010: $ 3.4 million); income before taxes to $ 7.6 million (2010: a loss of $ 0.7 million); a net income of $ 6.1 million (2010: a loss of $ 0.7 million).

The increase in earnings from operations was mainly related to increased operating efficiencies and the increase in the selling prices of the metals produced by the Company.

La Negra Mine Production Highlights
  • 119,772 mill feed tonnes of ore processed during the current quarter, 17% (20,562) from NI-43-101 Measured and Indicated Resources and 83% (99,210) from new discoveries or non-compliant resources. All new mineralized zones will be NI 43-101 compliant.
  • 47% increase in contained zinc to 1,253 tonnes compared to 850 tonnes for Q3 of 2010.
  • Copper, Zinc and Lead concentrate produced during current quarter -- 5,212 tonnes (5,339 tonnes sold).
  • As anticipated, contained copper production was down to 362 tonnes in Q3 2011 compared to 492 tonnes in Q3 2010 due to variable ore zones. Aurcana experienced a significant improvement in realized contained copper grades rising to 23% in Q3 2011 from 13% in Q3 2010 due to the effect of the new lead circuit.
  • Lead circuit continues to perform well, producing 455 tonnes of contained lead which helped improve overall recoveries and increase the quality of our concentrates.
  • 4% increase in ore mined to 134,072 tonnes in Q3 2011 from 128,666 tonnes in Q3 2010.
  • 18% increase in mineralized materials stockpiled from beginning to end of Q3 2011, with the total stockpile now standing at 94,524 tonnes.
La Negra is on track to complete the ongoing mill upgrade to 2,000 tpd in Q1 2012, a 33% increase from the current capacity. This will bring the mill throughput capacity in-line with our planned mining operations of 2,000 tonnes per day.

Also, in the first nine months of 2011 drilling crews have completed 10,613 metres of diamond drilling at La Negra.

Shafter Mine Construction Milestones completed in Q3, 2011

The Company commenced construction of the Shafter Mine in January of this year with an anticipated completion date of May 2012. Significant milestones on the Shafter Mine during Q3 include:
  • The Shafter mine is now fully permitted.
  • Portal is completed and the Ramp is now developed 300 feet underground.
  • Reclaim Tunnel has now been completed.
  • Ball Mill Foundations have been completed and the Mill has been delivered to site.
  • Two of the 6 Leach Tanks have been installed.
  • Construction of the Shafter office at the mine site is underway with the external parts of the building complete, construction is continuing with the interior.
  • The Merrill Crowe Equipment is built and ready for shipment.
  • The refurbishing and modifications to the Filter Presses for the mill are well underway.
  • Underground Production Equipment has been ordered for delivery in December 2011 through April 2012.
  • Underground Development Equipment is on site and being used for decline development.
  • There are 40 employees now on site.
  • Jason Cyr was appointed General Manager for Shafter, taking over responsibilities from the project manager in September, 2011.
Summary

During Q3 2011 Aurcana continued to build on the advances of its La Negra Mine. Metal concentrate prices continued to be significantly higher than the previous year, and the Company continued to adjust its cost structure, both on the operational and administrative side. The Company completed significant milestones of the Shafter mine and mill as well as just recently completing the final permit. Aurcana continues to prepare for future growth.

To read complete Financial Statement click on this link: http://www.aurcana.com/i/pdf/2011Q3FS.pdf

To read complete MD&A click on this link: http://www.aurcana.com/i/pdf/2011Q3MDA.pdf

Corporate

On April 19, 2011, Aurcana commenced trading on the OTCQX International. Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.

The Company trades in the United States on OTCQX under the symbol "AUNFF".

About Aurcana Corporation:


The Shafter Silver Mine is scheduled to start up production within 7 months producing 3.8 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 has produced over 1 million ounces of Silver in the past 4 quarters.

ON BEHALF OF THE BOARD OF DIRECTORS OF

AURCANA CORPORATION

"Lenic Rodriguez", President

For further information, visit the website at www.aurcana.com or contact:

Aurcana Corporation
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Gary Lindsey, Corporate Relations
Phone: (720)-273-6224
Email: gary@aurcana.com
NR#11-15


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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