Aurcana Corporation
TSX VENTURE : AUN

Aurcana Corporation

April 07, 2011 12:16 ET

Aurcana Announces Record Silver Production, La Negra Production Expansion and Shafter Construction on Target

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 7, 2011) - Aurcana Corporation ("Aurcana" or the "Company") (TSX VENTURE:AUN) is pleased to report that the 2011 first quarter production figures for the La Negra mine in Mexico confirmed record silver production and La Negra is on track for a record year.

In July 2010, La Negra completed in time and budget a mine and mill expansion from 1000 tonnes per day ("tpd") to 1500 tpd.

La Negra's production increase was successfully supported by a 2010 diamond drilling program of 11,000 metres.

Aurcana has recently completed a lead concentrate circuit that is currently being tested, and will remove lead from the Copper concentrate. The success of the 2010 expansion and current metal prices has prompted engineering work on the design, cost and schedule for a second expansion to over 2000 tpd.

La Negra Mine Production

Year   2007 2008 2009 2010 2011
  unit Year Year Year Year 1st Qrt
Production            
Ore mined (WMT) 122,702 306,384 323,330 477,759 142,000
Ore milled (MT) 149,578 297,867 300,952 422,603 127,231
Average grades            
Silver (g/t) 66 75 94 76 74
Copper % 0.76% 0.79% 0.54% 0.47% 0.44%
Zinc % 1.02% 1.08% 0.99% 1.18% 1.09%
Concentrate            
Lead (March 2011) (DMT) - - - - 108
Copper (DMT) 4,100 9,151 9,036 11,655 2,994
Zinc (DMT) 1,564 3,112 3,449 5,219 1,582
Contained metal            
Silver in lead (March 2011) (tr oz) - - - - 20,284
Silver in Copper (tr oz) 228,201 514,853 749,442 838,077 219,991
Copper in Copper (lbs) 1,891,832 4,136,865 3,432,671 3,686,534 1,028,965
Zinc in zinc (lbs) 1,512,141 3,320,088 3,225,166 5,136,865 1,473,600

Mr. Lenic Rodriguez, President and CEO of the Company, commented: "The La Negra Mine is a success story for Aurcana. It has delivered consecutive years of increasing silver production and reduction in unit cost. The 2010 expansion of the mine and mill from 1000 to 1500 tpd, was very well timed for the rise in Silver and Copper prices."

Shafter Silver Mine Project, Texas

Shafter Silver mine is currently in the fourth month of an 18 month construction program. The project is on budget and on schedule to go into production in May of 2012.

At the end of the first quarter 2011:

  • Earthmoving and site preparation is 60% complete and will be finished by the end of April. Pouring concrete foundations will commence in early May 2011;
  • Mine portal is excavated and ground support installed in preparation for mining commencing in mid April 2011;
  • The first of three sets of new Sandvik underground equipment has been delivered or is in transit;
  • An oversized ball mill has been procured and is currently being removed from its location in Florida and will be delivered to site in June 2011;
  • All key members of the project team are hired and on site;
  • Detailed engineering was started in October 2010 and is well in advance of construction; and
  • Ways of accelerating the project schedule are being investigated.

Technical Reports on Reserves and Resources for the La Negra Mine are available on the Company's website at www.aurcana.com and filed on SEDAR.

About Aurcana Corporation:

Aurcana is committed to become a mid-tier silver producer. Annualized pure silver production is on schedule to exceed 5 million ounces (6.0 million ounces of silver equivalent) by year 2012. 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.

ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION

Lenic Rodriguez, President and C.E.O.

NR-11-06

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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