Aurcana Corporation
TSX VENTURE : AUN
OTCQX : AUNFF

Aurcana Corporation

July 21, 2011 09:10 ET

Aurcana Reports Record 2nd Quarter Silver Production

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 21, 2011) - Aurcana Corporation (TSX VENTURE:AUN)(OTCQX:AUNFF) ("Aurcana" or the "Company") is pleased to report record silver production for Q2 of 2011 of 257,508 contained silver ounces. This is a 7% increase over the 240,275 silver ounces produced in Q1 of 2011, and a 41% increase over Q2 of 2010.

Total mill feed of 133,700 tonnes increased 31% compared to 94,201 tonnes for Q2 of 2010. Daily throughput averaged 1,504 tonnes per day for 89 mill days, an increase of 7 operating days over Q2 of 2010.

This is the third consecutive quarter that the mill average daily throughput has exceeded the 1,500 tonnes per day design capacity of the plant, confirming the success of the 2010 expansion.

Of 133,700 mill feed tonnes, 14% (19,196 tonnes) were from NI 43-101 Measured and Indicated Resources and 86% (115,504 tonnes) were from new discoveries or non-compliant resources. La Negra is now applying 43-101 standards in developing new mineralized zones to make more resources compliant. New ore zone development is initially focusing on the Northwest Trend.

La Negra

  • 31% increase in tonnes milled to 133,700 compared to 94,201 for Q2 of 2010
  • 143% increase in zinc concentrate produced to 2,731 tonnes compared to 1,124 tonnes for Q2 of 2010
  • 41% increase in silver produced to 257,508 ounces
  • 34% reduction in tonnes of copper concentrate produced to 1,882 compared to 2,852 tonnes for Q2 of 2010 (The addition of a Lead Concentrate Circuit significantly improved the Copper concentrate quality by removing 778 tonnes of Lead concentrate that would previously have been reported with the Copper and incurred a Smelter penalty.)

Shafter

  • Aurcana Corporation continued construction of the 100% owned Shafter Silver Mine Project. The Shafter Feasibility Study shows an estimated pay back of 1 year at $21 per ounce of Silver. Construction started in December 2010 and is on track to be completed by May 2012.
  • Key construction milestones include:

    • Decline portal steel sets and concrete structure completed in July 2011
    • Crushing and screening plant to be delivered in July 2011
    • Ball Mill foundations to be complete in August 2011
    • Ball Mill to be delivered in August 2011
    • Fine ore reclaim tunnel to be completed in August 2011
    • Six leach tank foundations complete, and leach tanks to be delivered in August 2011
    • Evaporation pond civil work to be completed in July 2011 and pond liner to be installed in August 2011
    • MSHA Quarterly Inspections commenced in July 2011
    • Modification to existing permits continues on schedule

Summary

During Q2 of 2011 Aurcana made further improvements at its La Negra Mine, with higher production, improved copper concentrate quality and the addition of a lead circuit. The Company advanced the permitting process at Shafter and continued construction of the Shafter mine on schedule. Aurcana continues to focus on its future growth.

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 production within 9 months and will produce 3.8 million ounces silver in the first year of operation. It has an 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 1 million ounces of contained Silver over the last 4 quarters.

The reader should be cautioned that the Company has not completed a feasibility study to confirm 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 & CEO

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

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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