Aurcana Corp.

Published : June 30th, 2009

Positive Pre-Feasibility for Shafter Silver Mine 7.75 Million Ounces Silver Expected in First Two Ye

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  

News Release
Monday, June 29, 2009
Positive Pre-Feasibility for Shafter Silver Mine 7.75 Million Ounces Silver Expected in First Two Years

Aurcana Corporation ("Aurcana" or the "Company") is pleased to announce it has received a positive Pre-Feasibility Study ("PFS") on its 100% owned Shafter Silver Mine, located in Presidio County, south-west Texas. The study shows that with the incorporation of a decline to access the deposit, a production rate of 1500 tons per day (TPD) can be achieved. At this rate it is estimated that capital payback will be achieved in under 2 years with approximately 7.75 million ounces of silver produced during this period. The company is now moving forward on a full feasibility study, and final permitting.

The full report will be available on the Aurcana website ( and on SEDAR (

Highlights of the Pre-Feasibility Study results include:
(All amounts are in US$ unless otherwise stated.)
  • Payback of under 2 years based on silver price of $13.55/ounce
  • An Internal Rate of Return ("IRR") of 23% (pre-tax)
  • A pre-tax Net Present Value ("NPV") of $23 million at a 5% discount rate
  • An estimated initial capital expenditure of under $40 million
  • Silver production -- 3.75 million ozs. - year one and 4 million ozs. year two
  • Average total cost of $7.50 per oz. of silver produced in the first two years.

    Over a mine life of 4.7 years based on Measured and Indicated resources
  • Average silver production of 3.2 million ounces per year, life of mine
  • 1,500 tons per day production rate achieved by driving a decline

Revenue has been calculated on the base case, the three-year average silver price of $13.55 per ounce as of April 2009, as published by the London Metal Exchange. Only the Measured and Indicated resources are used in the study for PFS design, economics, and life of mine.

Sensitivity to Silver Price Units Base -$1 Base Case Base +$1 Base +$2
Silver Price US$/oz $12.55 $13.55 $14.55 $15.55
Pre-Tax, Net Present Value (NPV) US$M $10 $23 $36 $48
Pre-Tax, Internal Rate of Return (IRR) % 15% 25% 35% 44%
Discount Rate % 5% 5% 5% 5%
Peak Capital US$M $39.80 $39.80 $39.80 $39.80
Mine Cash Cost US$/ton $55 $55 $55 $55
Mine NSR US$/ton $80 $87 $93 $100
Mine Life yr 4.7 4.7 4.7 4.7
Payback Period yr 2.4 1.98 1.7 1.5

The Shafter Project contains an estimated Measured and Indicated 24.6 million ounces Silver (2,900,000 tons at 8.48 oz per ton), and an Inferred 22.8 million ounces Silver (2,167,000 tons at 10.52 oz per ton) (at 4.0 opt silver cut-off) Only the Measured and Indicated resources are used in the PFS design, economics, and life of mine studies. Future plans will include upgrading the Inferred resources through an underground Diamond drill program once access is established to accommodate an efficient infill drill program.

The PFS estimates production, capital and operating cost parameters and project economics. An optimized mine design which includes a decline for mechanized equipment will allow earlier access to higher grade ore, and support for a 1500 TPD operation. The central location of the decline will result in an improved start-up rate, and will lead to balanced production from all the known zones. Mechanized mining, instead of the previously proposed conventional mining using the existing shaft has increased the capital and operating costs, however these cost increases have been offset by increased daily production rate, improved recoveries and the current higher silver price. The PFS indicated that more work is warranted to select the best option for cyanide removal and destruction, and tailings disposal method.

Silver was mined in the Shafter region from 1883 until 1942 from the Presidio deposit, when the mine was closed, by the War Act. Historically reported total production during that period was 35 million ounces of silver from 2.3 million tons of ore, at an average grade of 15.24 ounces per ton. The historic Presidio mine workings total close to 100 miles of drifts and stopes and include 3 shafts that were used for production. This infrastructure will be integrated into the current mine planning with the shafts serving as ventilation shafts for the new decline, some of the workings will be used as pilot headings to access remnant blocks of ore left behind by the previous operators and provide access for underground Diamond drilling, and a number of the old stopes will be utilized for waste rock storage. Goldfields carried out exploration east of the Presidio Mine from 1978 to 1982, and outlined a new deposit which they named the Shafter deposit. Their work included a 1,050 foot shaft serviced by a 80 ton per hour hoist and 5,100 feet of underground development which will be utilized in the later stages of the proposed mine plan to reduce haulage distances.

Aurcana acquired the Shafter Silver Mine in July, 2008. All necessary infrastructure is in place with a major power line and paved highway crossing the property, and an electrical sub-station on site.

Resource Estimate
A N.I. 43-101 compliant report on the resource estimate for the Shafter Silver Mine located in south-west Texas, was prepared by Tetra Tech Inc of Golden Colorado. The full report can be viewed on the Aurcana website ( or on Sedar ( An economic cut off of four ounces per ton was selected for use in the pre-feasibility study, based on the current strong silver price.

Tetra Tech 43-101 Compliant Resource

Resources Tons Silver oz/ton Contained Silver Ounces
Measured 883,000 8.5 7,500,000
Indicated 2,017,000 8.48 17,100,000
Measured and Indicated 2,900,000 8.48 24,600,000
Inferred 2,167,000 10.52 22,800,000

Assumes a 4.0 opt silver cut-off

The pre-feasibility study selected the mechanized room and pillar extraction method, and will use a decline to access the deposit, the decline will facilitate the efficient movement of supplies and large equipment for production. The existing exploration shaft will be used for reducing haulage distance by hoisting ore from the lower part of the mine and emergency egress. The daily mine production is calculated at a rate of 1,500 tons per day.

The process facilities will operate at 1,500 tons per day, assuming 96 percent operating availability. Ore would be crushed in a two-stage crushing circuit to 3/8". The crushed ore would then be ground in a milling circuit and sent to thickening, cyanidation, countercurrent decantation (CCD) washing with subsequent recovery of the silver in a standard Merrill-Crowe recovery plant. The zinc-silver precipitate from the Merrill-Crowe recovery plant would be mixed with fluxing reagents and smelted to produce dore' bars. The process plant would be constructed as an open-air facility with roofs and enclosures limited to sensitive areas of the plant. The Merrill-Crowe recovery plant and the refinery would be enclosed in a building.

Tailings slurry from the CCD would be treated in a cyanide destruction circuit, utilizing the Air/SO2 Process to remove substantially all residual cyanide. After cyanide destruction, the tailings would be treated on a vacuum filter with the filter cake being stockpiled before being trucked away to a waste disposal site located on the Shafter property.

About Aurcana Corporation:

Aurcana Corporation's strategy is "Growth through Acquisition". The Shafter silver mine represents the third acquisition in two years.

The 80% owned La Negra mine in Queretaro State, Mexico, operates at 1,000 tonnes per day with silver production approaching one million ounces. The 100% owned Rosario project located in the Sierra Madre precious metals belt, Sinaloa State, Mexico, is an exploration and development project, which is currently subject to a sale agreement with Silvermex Resources Ltd. The reader should be cautioned the Company has not completed feasibility studies confirming the projected production capacity for La Negra and there is no certainty the Company's plans will be economically viable.

The results of this Pre-Feasibility Study represent the culmination of 12 months of work by Qualified persons; Sandy McVey, P.Eng of T&G Consulting, John Rozelle, P.Geo of Tetra Tech, Alexander Mitchell, P.Eng., of GBM MEC Ltd, M. John Brodie, P.Eng., of Brodie Consulting Ltd, and Martin J. Demerse, P.Eng of the Gault Group, Inc.

Andy Nichols, P.Eng. Vice President Operations for Aurcana, and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.


"Lenic Rodriguez", President

For further information, please visit the website at

Or contact:
Lenic Rodriguez, President or
Jack Barnes, Investor Relations

Aurcana Corporation
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 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.", which has been prepared by management.

Data and Statistics for these countries : Mexico | All
Gold and Silver Prices for these countries : Mexico | All

Aurcana Corp.

ISIN : CA0519185064
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
Projects & res.
Asset profile
Contact Cpy

Aurcana is a silver development stage company based in Canada.

Aurcana produces silver, copper, lead and zinc in Mexico, and holds various exploration projects in Mexico.

Its main assets in production are LA NEGRA and SHAFTER in Mexico.

Aurcana is listed in Canada and in United States of America. Its market capitalisation is CA$ 1.3 millions as of today (US$ 1.0 millions, € 890 288).

Its stock quote reached its highest recent level on October 31, 1997 at CA$ 9.92, and its lowest recent point on November 03, 2022 at CA$ 0.01.

Aurcana has 84 740 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
In the News and Medias of Aurcana Corp.
1/7/2010Aurcana Corp. (Tsxv: Aun): New Recommendation
Annual reports of Aurcana Corp.
2008 Annual Report
2007 Annual Report
Financings of Aurcana Corp.
6/20/2014Closes $5,060,000 Equity Financing
6/14/2013Amends Warrants Expiring June 30, 2013
7/23/2010Closes Non-Brokered Private Placement
6/24/2010To Conduct A Best Efforts Non-Brokered Private Placement
11/30/2009Closes Non-Brokered Financing For CDN$2,549,300
Option Grants of Aurcana Corp.
1/19/2009(Shafter)reports 350,000 stock options at a price of $0.13
Nominations of Aurcana Corp.
11/20/2013Appoints New Board Member
9/25/2013Appoints Andrew Kaczmarek as Interim COO
2/13/2013Announces Appointment of New Board Member
2/22/2011Adds Paul Matysek to the Board of Directors and Strengthens ...
7/6/2010Appoints Director
5/18/2010Appoints Chief Financial Officer
3/4/2010Appoints Financial Advisor
5/21/2009Appoints Lenic Rodriguez President and CEO
12/18/2008Appointment of Director
5/16/2008Appoints Vice President of Operations
Financials of Aurcana Corp.
11/28/2013Announces Date for Q3 2013 Financial Results Webcast and Tel...
8/30/2013Reports Q2 2013 Financial Results and Provides Update
8/23/2013Announces New Date for Q2 2013 Financial Results Webcast and...
7/25/2013Announces Q2 2013 Financial Results Webcast and Teleconferen...
5/13/2013Announces Q1 2013 Financial Results Webcast and Teleconferen...
4/12/2013Reports Year End Financial Results and Provides Operational ...
3/28/2013Announces Year End Financial Results and Operational Update ...
6/27/2011RETRANSMISSION: Aurcana Reports Record 1st Quarter Results
5/9/2011Reports Record 2010 Results
12/2/2009Reports Positive Third Quarter Results
9/3/2009Reports Positive Second Quarter Results
12/3/2008Reports Third Quarter Results
9/5/2008Reports Second Quarter Results
5/2/2008Files Annual Statements La Negra Mine Records Profit in Four...
Project news of Aurcana Corp.
4/3/2013(Shafter)Shafter 2012 Exploration Program Identifies Evidence for a L...
2/11/2013(La Negra)New Discoveries at Aurcana's La Negra Mine Indicates the Pre...
2/5/2013Bull & Bear's Resource Investor: Silver & Gold Forecasts; En...
1/24/2013(La Negra)La Negra Drill Hole Results Confirm High Grade Continuity in...
11/6/2012Bull & Bear's Resource Investor: Commodity Makets, Gold & Si...
7/11/2012(La Negra)Reports: Record Silver Production, up 54% at La Negra Mine; ...
3/31/2012(La Negra)to Commission Plant at Shafter Mine and Completes Mine Expan...
12/14/2011(La Negra)Discovers New Silver Mineralization at Depth at La Negra Min...
4/8/2011(La Negra)Announces Record Silver Production, La Negra Production Expa...
1/21/2011(Shafter)Commences Construction at Shafter Silver Mine
6/1/2010(La Negra)Expansion To 1,500 T/D At La Negra Mine Completed
2/16/2010(La Negra)NI 43-101 Report increases Maravillas Deposit Resources by 4...
6/30/2009(Shafter)Positive Pre-Feasibility for Shafter Silver Mine 7.75 Millio...
6/3/2009(La Negra)Takes Control of Operations at the La Negra Mine: Expansion ...
3/2/2009(Shafter)Scoping Study Upgraded to Pre-Feasibility: Consultant Hired ...
11/20/2008(La Negra)Shafter Silver Mine Timeline and Update; Additional Operatio...
7/31/2008(Shafter)47.4 Million Ounce Silver Resource at Shafter Silver Mine Co...
7/17/2008(Shafter)Finalizes Acquisition of Shafter Silver Mine
4/11/2008(La Negra) Intersects 8.15 Metres of 420 Grams per Tonne Silver and 1....
3/19/2008(La Negra) Adds Over 500,000 Tonnes In Monica Zone
Corporate news of Aurcana Corp.
5/2/2016Aurcana Files 2015 Annual Financial Statements
1/8/2016Aurcana Corporation Announces Completion of Restructuring Tr...
1/7/2016Aurcana Corporation Announces Completion of Restructuring Tr...
1/5/2016Aurcana Voluntarily Delists From OTCQX
12/18/2015Aurcana Corporation Update on Restructuring Transaction
12/1/2015Aurcana Reports Q3 2015 Financials And Provides Update on Re...
11/30/2015Aurcana reports 3Q loss
10/30/2015Aurcana Corporation Announces Commencement of CBCA Proceedin...
10/19/2015Aurcana Production Results for Q3 2015
10/16/2015Aurcana Corporation Announces Restructuring Transaction and ...
8/14/2015Aurcana reports 2Q loss
8/14/2015Aurcana Reports Q2 2015 Financials.
8/14/2015Aurcana Reports Q2 2015 Financials
7/14/2015Change of Auditor
7/3/2015Change of Auditor
4/14/2015Aurcana Reports 2014 Financial Results
3/25/2015Notice regarding the Proposed Class Action Settlement
3/25/2015Notice regarding the Proposed Class Action Settlement (frenc...
2/10/2015Aurcana Announces Settlement of Class Action
1/13/2015Aurcana Delivers Highest Quarterly Production in History in ...
12/16/2014Aurcana Board Update
12/3/2014Aurcana Announces New Mineral Resource Estimate for the La N...
12/1/2014Aurcana Reports 3rd Quarter Financial Results
10/27/2014Aurcana Sets New Production Record in Third Quarter
10/27/2014Aurcana Sets New Production Record in Third Quarter
10/10/2014S&P Dow Jones Indices Announces Quarterly Review of S&P/TSX ...
8/29/2014Aurcana Reports Q2, 2014 Financial Results
7/17/2014Aurcana Appoints New Board Member
7/10/2014Aurcana Announces New President & CEO
6/9/2014Aurcana Reports Voting Results of Annual and Special Meeting
5/30/2014Aurcana Reports Q1, 2014 Financial Results
5/9/2014Aurcana Announces Completion of Issuance of Debt Settlement ...
5/1/2014Aurcana Reports 2013 Financial Results
5/1/2014Aurcana Announces Completion of Transactions Under Amended C...
4/30/2014IIROC Trading Resumption - AUN
4/29/2014IIROC Trading Halt - AUN
4/7/2014Aurcana Reports 55% Increase in Silver Equivalent for First ...
2/6/2014Reports Fourth Quarter and 2013 Production Results
11/4/2013(Shafter)Shafter Update - Aurcana Appoints David Drips General Manage...
10/31/2013Provides Update
10/21/2013Reports Third Quarter Production Results
9/30/2013Announces Departure of VP Operations
9/20/2013Closes $50 million Loan Facility
9/11/2013Announces $5,000,000 Bridge Loan
7/25/2013(Shafter)letter: Shafter's New Miners Training Program Featured on CB...
7/10/2013Provides Corporate Update
6/28/2013Announces $50 million Loan Facility
6/26/2013Reports Voting Results of Annual and Special Meeting
6/7/2013Files Amended Technical Report
5/23/2013(La Negra)Clarifies That La Negra Mineral Resource Estimate Remains U...
5/16/2013Adopts Advance Notice Policy
4/15/2013Announces Share Consolidation Effective Apr 30, 2013
3/28/2013Announces Shareholder Approval of Share Consolidation
2/13/2013Announces Proposed Share Consolidation
1/25/2013letter: Aurcana CEO invited at CNBC Asia to talk about futur...
1/17/2013Reports Fourth Quarter and 2012 Year to Date Production Resu...
10/24/2012Investors Newsletter
10/18/2012(La Negra)Reports: Record Quarter of Silver Production, up 54% at La N...
10/18/2012(La Negra)Reports: Record Quarter of Silver Production, Up 54% at La N...
10/11/2012(La Negra)Files Technical Report on Updated Resource Estimate for La N...
8/28/2012(La Negra)Announces Updated Resource Estimate for La Negra Mine
8/20/2012Reports Record Results for Q2, 2012
6/6/2012(Shafter)Commences Open Pit Mining at Shafter
6/1/2012(Shafter)Intersects High Grades in Shafter Surface Drilling
5/25/2012Reports: Record 1st Quarter Results
4/26/2012(La Negra)Reports: Record Silver Production at La Negra Mine
4/16/2012Reports Record 2011 Results
3/25/2011-Amends Convertible Debenture Terms
6/16/2010Reports 54% Higher Revenues in Q1, 2010 Compared To Q1, 2009...
5/6/2010Reports $3.8M Net Earnings
4/24/2010Announces US$40,000,000 Silver Backed Unit Offering
4/22/20102010 "Virtual" World Money Show
12/4/2009Closes Sale of Rosario Project
9/17/20092009 AGM Invitation
8/18/2009La Negra Corporate Update
5/25/2009Sells Rosario To Focus On Shafter Development
8/22/2008Annual General Meeting Reminder
7/7/2008Receives US$25 Million - Shafter Silver Mine Acquisition to ...
5/21/2008Reports 145 g/t Silver and 1.96% Copper over 23.5 meters
4/7/20082008 Calgary Resource Investment Conference
4/3/2008 Acquires Near Term Silver Production Project
2/26/2008Aurcana Moves to Expand and Mine Higher Grades at La Negra
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
CA$ 0.015
12/02 09:30 -
Prev close Open
0.015 0.015
Low High
0.015 0.015
Year l/h YTD var.
0.005 -  0.400 -96.20%
52 week l/h 52 week var.
0.005 -  0.425 -95.45%
Volume 1 month var.
53,500 200.00%
24hGold TrendPower© : -3
Produces Copper - Lead - Silver - Zinc
Explores for
Interactive chart Add to compare
Print Compare Export
Last updated on : 2/12/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
5 years chart
3 months chart
3 months volume chart
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
announces expected non-cash impairment
AU$ 7.15-3.77%Trend Power :
Oceana Gold(Au)OGC.AX
AU$ 2.20+0.00%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
US$ 5.86-1.35%Trend Power :
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
Reduced Funding Requirement
GBX 0.80-3.15%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.08-11.11%Trend Power :
Closes Bridge Loan Financing
CA$ 2.04+2.51%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 8.40-0.65%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.18+2.86%Trend Power :
Q A April 2017 Quarterly Report
AU$ 0.30+0.00%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.41-1.23%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 69.03+1.10%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
2nd Quarter Report
AU$ 0.03+0.00%Trend Power :