VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 21, 2013) - Aurcana Corporation ("Aurcana" or the "Company") (TSX VENTURE:AUN) (OTCQX:AUNFF) wishes to report the third quarter 2013 production results.
THIRD QUARTER PRODUCTION HIGHLIGHTS FOR THE LA NEGRA MINE
- Total silver equivalent production for Q3 2013 was 748,294 oz, a 4% increase from 718,063 oz in Q3 2012.
- Total ore milled in Q3 2013 was 221,118 tonnes, a 12% increase from 196,843 tonnes in Q3 2012.
- Total ore mined in Q3 2013 was 207,458 tonnes, a 6% increase from 196,401 tonnes in Q3 2012.
- Total silver equivalent production for the first 9 months of 2013 was 2,158,858 oz, a 14% increase from 1,899,280 oz silver equivalent produced during the same period one year ago.
- Total ore milled for the first 9 months of 2013 was 626,586 tonnes, a 24% increase from 504,005 tonnes milled during the same period one year ago.
- Total ore mined for the first 9 months of 2013 was 656,988 tonnes, a 39% increase from 472,557 tonnes mined during the same period one year ago.
La Negra Mine Updates
During Q3 2013 the La Negra mill averaged a running rate of 2,622 tonnes per day (tpd). The lower than planned mill throughput during the quarter was the result of equipment breakdowns as well as unusually heavy rains that impacted mining operations.
During the quarter, La Negra continued to mine the more accessible higher grade copper and zinc zones, resulting in increased volumes of copper and zinc concentrate. This required upgrades of the existing copper and zinc filter presses. New larger filter presses for both copper and zinc concentrates are on order and will be commissioned in Q4 2013.
These improvements together with repairs to the plant equipment should allow higher production rates to be maintained at approximately 3,000 tpd in the future, starting Q1 2014. In the meantime, La Negra's average running rate during Q4 2013 is projected to be in the order of 2,200 tpd.
Mine development continued during the quarter with the goal of opening up new areas that would sustain higher production rates in the future. As a result, a larger proportion of ore was sourced from development headings, resulting in increased dilution and lower than historic head grades processed during the quarter. Plans for 2014 include a transition to the higher silver grade mineralized zones in the upper levels of the La Negra mine. These require ore pass and ventilation raise development that will commence upon receipt of raise boring equipment in Q1 2014.
Shafter Mine Updates
With the successful closing of the $50 million financing in September 2013, the Shafter mine is continuing to make the necessary improvements to achieve its planned capacity of 1,500 tpd during Q2 2014.
Aurcana is pleased to report the following progress to date:
- Two new tailings filter presses providing a filtering capacity of up to 1,500 tpd have been installed and are operating to specifications.
- Three new precipitate filter presses have been installed and are currently being commissioned in the refinery.
- A new custom built retort and furnace are expected to be received in December 2013.
- Underground mine development is progressing supported by a contract miner.
- Construction of the counter current decantation (CCD) circuit is ongoing with estimated completion during Q2 2014.
- Recruiting efforts continue to improve technical competencies and operating manpower levels.
About Aurcana Corporation
Aurcana Corporation is a primary silver producing company with two mines: the La Negra Mine in Mexico and the Shafter Mine in Texas, US. The Company is positioned to grow organically from its existing mines to become a senior silver producer.
The Company's shares are also traded in the United States on OTCQX under the symbol "AUNFD". Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.
Lenic Rodriguez, President & CEO
Mr Andrew Kaczmarek a qualified person (as defined in National Instrument 43-101) and the Company's Chief Operating Officer, has reviewed and approved the scientific and technical information contained in this release.
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.
This news release contains certain forward-looking statements, including statements regarding mill throughput rates at the La Negra and Shafter mines, upgrades and repairs at the La Negra and Shafter projects, potential mineralization, exploration results, future plans and objectives of the Company and the business and anticipated financial performance of the Company. These statements are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. Estimates of future mill throughput at the La Negra and Shafter projects are based on the following factors and assumptions: (i) that mine development and successful intersection of predicted ore zones yield the necessary feed to the process facilities; (ii) that equipment availability and repair parts allow for planned runtimes to achieve the necessary production levels; (iii) that no catastrophic equipment failures occur; (iv) that no power interruptions or shortages are suffered; (v) that no delays are encountered in the receipt, installation and commissioning of mine and plant equipment necessary to achieve and sustain the planned production levels; and (vi) that the requisite number of qualified experienced personnel are hired and retained.
Exploration results that include geophysics, sampling and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classified as a category of mineral resource. A mineral resource which is classified as "inferred" or indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or does not expect", "is expected", anticipates" or "does not anticipate" "plans", "estimates" or "intends" or stating that certain actions, events or results " may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.
Actual results may differ materially from results contemplated by the forward-looking statements. Important factors that could differ materially from the Company's expectations include, among others, risks related to international operations, unsuccessful exploration results, the ability of suppliers to provide equipment, the availability of skilled labour, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as 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, except as required pursuant to applicable securities laws. Accordingly, readers should not place undue reliance on forward-looking statements.