News Release
Wednesday, March 19, 2008
Aurcana Adds Over 500,000 Tonnes In Monica Zone
Deposit Open To Depth
Aurcana Corporation ("Aurcana" or the "Company") is pleased to report that it has received a positive NI 43-101 compliant resource calculation on the Monica deposit at the La Negra mine, Queretaro State, Mexico, from its independent consultant, GeoSim Services Inc. (GeoSim). The report estimates a measured and indicated resource of 587,698 tonnes in the Monica zone. A copy of the GeoSim report will be filed at www.SEDAR.com within 45 days.
The present resource estimate only considers data collected over a 200 meter vertical interval from the 2250 level down to the 2050 level. Sampling on the 2000 level has located the interpreted depth extension of the Monica deposit, and work continues in this area in order to further define additional resources. A Diamond drill program is currently underway at Monica in order to expand the Zone to depth, as well as to provide infill holes within the resource blocks to help refine the mining plan.
Aurcana is very encouraged by the tonnage increase which is a result of a re-interpretation of the geometry of the Monica deposit, and the present favorable metal price environment. Other known deposits at La Negra are currently undergoing re-evaluations and are expected to contribute significantly to further increases to the overall tonnage present in the 23 known deposits at La Negra.
Highlights of the 43-101 Report
- 587,698 tonnes of measured and indicated resources, a 1,115 % increase in tonnage from historically reported reserves
- 42,442 tonnes of inferred resources in addition to the resources, not reported historically
Monica area
Table 1
Resources
$30 NSR Cut off |
Tonnes |
Silver g/t |
Lead% |
Zinc % |
Copper % |
Measured |
403,497 |
127 |
0.79 |
0.94 |
0.48 |
Indicated |
184,201 |
128 |
0.85 |
1.40 |
0.31 |
Measured & Indicated |
587,698 |
127 |
0.81 |
1.08 |
0.43 |
Inferred |
42,442 |
102 |
0.65 |
1.89 |
0.35 |
The GeoSim resource estimate for the Monica deposit, (using a $30 per tonne NSR cut-off) is 587,698 tonnes which represents a 1,115 % increase from the 48,300 tonnes of historical reported reserves in 2000. The GeoSim calculation also determined a present day NSR value which follows a similar format used by the previous owner in accounting for metallurgical recoveries, and uses metal prices of $13.50 per ounce of Silver (Ag), $2.85 per pound of Copper (Cu), $1.00 per pound of Zinc (Zn). (No value was assigned to the Lead (Pb) content since no lead concentrate is currently being produced from the Monica ore.) It also factors in concentrate sale terms as negotiated by Aurcana with the concentrate buyer.
The resource estimates contained in tables 1 and 2 are a result of a compilation of 45 historical drill holes, previous underground sampling and additional sampling carried out by Aurcana. A total of 3,702 underground channel sample composites were used in the resource calculation. All of this data was entered into a Surpac 3D model and the resource estimate was then completed based on the kriging method.
GeoSim also completed the following resource estimates for the Monica deposit using a $40 NSR cut-off level. This estimate indicates that with additional mine planning it may be possible to selectively mine the deposit, and thus achieve a higher overall NSR value.
Table 2
Resources
$40 NSR Cut off |
Tonnes |
Ag g/t |
Pb % |
Zn % |
Cu % |
|
|
|
|
|
|
Measured |
284,195 |
145 |
0.91 |
1.07 |
0.57 |
Indicated |
107,990 |
156 |
1.09 |
1.73 |
0.38 |
Measured & Indicated |
392,185 |
148 |
0.96 |
1.25 |
0.52 |
|
|
|
|
|
|
Inferred |
31,152 |
111 |
0.74 |
1.96 |
0.38 |
About Aurcana Corporation:
Aurcana Corporation is a Canadian mining company listed on the TSX Venture Exchange, symbol AUN. The 80% owned La Negra silver-lead-zinc-copper mine in Queretaro State, Mexico operates at 1,000 tonnes per day and the 100% owned Rosario silver-lead-zinc-gold mine in southeast Sinaloa State, Mexico is forecast to commence production at a planned rate of 800 tonnes per day in 2009. The Company is currently carrying out aggressive exploration programs on both projects to increase historical reserves and resources and with success this could lead directly to expansion of production.
Aurcana, while committed to ongoing exploration and expansion of current operations, continues to seek 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.
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
AURCANA CORPORATION
"Ken Booth", President
For further information, please contact:
Ken Booth, President or
Jack Barnes, Investor Relations
Email: info@aurcana.com
Local: 604.331.9333
Fax: 604.633.9179
Toll Free: 1.866.532.9333 U.S.
Toll Free: 001.800.514.5557 Mexico
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.
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