Aurcana Corporation

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OTCQX : AUNFF
PINKSHEETS : AUNFF


Aurcana Corporation

February 11, 2013 08:00 ET

New Discoveries at Aurcana's La Negra Mine Indicates the Presence of Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 11, 2013) - Aurcana Corporation ("Aurcana" or the "Company") (TSX VENTURE:AUN)(OTCQX:AUNFF)(PINKSHEETS:AUNFF) is pleased to announce the results of the 2012 surface mapping program at the La Negra Mine.

The objective of the program was to map and sample the upward projection of the known mineralized zones within the mine, and to identify new, untested exploration targets associated with the favorable northwest and northeast mine trends. Most of this area has not been extensively explored, sampled or drilled. Approximately 420 hectares were mapped at 1:2000 scale and 1,117 samples were collected from skarn and intrusive outcrops.

Mr. Lenic Rodriguez, Aurcana's President & CEO, states: "We are very pleased to report today significant exploration results and new discoveries at La Negra. The presence of gold associated with strong silver, zinc and lead values in new areas tested is very encouraging. While historically gold production has not been a major source of revenue at La Negra, and the potential economic significance of these results is not known, these results are of strong interest to us. The ramp-up at Shafter, increase in mining capacity at La Negra and excellent exploration results, are indeed exciting times for Aurcana."

Highlights

  • Zona Aurifera I, returned strong assay values including:
    • 15.3 gm/t Au and 261 gm/t Ag;
    • 12 gm/t Au and 105 gm/t Ag;
    • 10.0 gm/t Au and 381 gm/t Ag;
  • Zona Aurifera II also returned strong assay values including:
    • 2.8 gm/t Au and 229 gm/t Ag;
    • 2.4 gm/t Au and 307 gm/t Ag;
    • 2.8 gm/t Au and 95 gm/t Ag;

La Negra Exploration Program

The exploration program has outlined six exploration targets. All areas indicate some presence of gold, with two zones, designated Aurifera I and II, returning the greatest number of gold values per total number of samples collected (32% and 29%). Assay values range from 0.2 gm/t to 15.3 gm/t Au and are associated with strong silver, lead and zinc values, as well as geochemically anomalous bismuth and arsenic. All are within skarn similar to that currently being mined and several have favorable metal assemblages including copper, lead, zinc and most notably silver and gold.

Current detailed mapping and sampling are focused on the Aurifera I and II zones and on the El Alacran Norte zone to determine size and average grade. The Aurifera II zone has not been fully delimited to date.

The location of the Aurifera I and II zones is at the southern contact of the main diorite intrusion. Oxidized, fracture controlled mineralization is hosted in massive skarn.

El Alacran Norte is located on the northern contact of the main diorite intrusion. Oxidized Ag-Pb-Zn-Cu mineralization is hosted in skarn horizons.

The La Negra mine was initially in production from 1971 to 2000, then acquired form Penoles and placed back into production by Aurcana in 2007. The mine is accessed through portals at the base of a mountain, and the mineral resource is established by underground diamond drilling programs. The potential for extensions of these resources in the upper portion of the mountain and the deep extensions have not been pursued since Aurcana acquired the property. As such, these results are seen to be a step towards recognizing the greater potential of the La Negra mineralized zones.

ZONA AURIFERA I ZONA AURIFERA II
Sample No. Au gm/t Ag gm/t Pb % Zn % Cu % Sample No. Au gm/t Ag gm/t Pb % Zn % Cu %
9272 5.40 164.0 0.60 0.31 0.04 9256 0.90 117.0 0.65 1.99 1.65
612863 10.00 381.0 1.47 1.15 0.07 9259 0.40 121.0 0.65 1.99 1.65
612865 0.30 14.9 0.12 0.23 0.07 9269 2.80 95.0 0.28 0.25 0.14
612867 0.90 7.6 0.04 0.06 0.02 612899 1.10 272.0 1.78 5.70 2.76
612868 7.00 225.0 1.25 2.84 0.10 612900 2.40 307.0 2.02 1.76 4.46
612870 0.20 5.4 0.02 0.04 0.00 612901 0.60 103.0 0.81 1.80 0.75
612873 6.30 298.0 1.65 0.42 0.04 612904 0.20 154.0 0.87 2.60 0.96
612876 0.40 9.3 0.07 0.14 0.00 612905 0.30 147.0 0.81 2.71 0.76
612877 0.40 5.2 0.02 0.03 0.00 612906 0.20 93.4 0.79 3.30 0.59
78210 15.30 261.0 1.25 0.11 0.03 612907 0.30 24.5 0.17 1.86 0.02
78212 0.40 9.3 0.07 0.14 0.00 78132 1.10 10.4 0.08 0.04 0.03
78213 0.70 16.8 0.02 0.01 0.00 78134 0.70 5.1 0.12 0.12 0.06
78214 0.40 32.4 0.02 0.03 1.19 78171 0.20 23.6 0.30 2.13 0.01
78416 0.60 73.5 0.47 0.82 0.47 78176 0.50 127.0 0.65 1.11 0.18
78424 0.30 438.0 3.21 27.80 0.89 78181 1.10 0.0 1.10 0.67 0.65
78429 0.40 164.0 1.05 9.47 0.16 78190 0.30 104.0 0.63 8.46 0.41
78436 0.60 267.0 1.25 12.85 0.12 78268 2.20 1.2 0.01 0.01 0.00
78437 0.20 45.0 0.20 4.29 0.04 79206 3.4 2.9 0.02 0.03 0.00
78438 0.70 78.3 0.37 6.48 0.26 79208 0.20 0.7 0.01 0.01 0.00
78439 3.20 119.0 0.56 4.55 0.08 79272 0.3 2.5 0.03 0.05 0.01
78441 3.20 92.2 0.39 2.89 0.22 79277 0.3 2.0 0.02 0.02 0.00
78442 0.70 39.3 0.16 0.35 0.06 79257 1.1 11.6 0.03 0.07 0.03
78443 5.50 71.9 0.10 0.38 0.34 79258 0.3 6.2 0.02 0.07 0.03
78444 4.90 96.8 0.12 0.09 0.35 79261 0.2 4.3 0.02 0.09 0.05
78445 5.90 217.0 0.46 1.52 0.55 79262 3.3 17.2 0.04 0.05 0.08
78446 0.50 5.3 0.02 0.33 0.05 79267 2.1 18.2 0.05 0.02 0.24
78447 2.20 9.7 0.03 0.24 0.09 79214 0.3 1.5 0.01 0.00 0.00
78448 0.30 12.0 0.04 0.44 0.12 79216 0.3 2.2 0.01 0.08 0.00
78426 0.30 287.0 1.69 13.15 0.17 79298 2.80 229.00 1.56 2.25 2.61
78428 1.8 755.0 3.94 16.70 0.23 79303 0.20 76.90 0.54 2.66 0.61
78433 0.20 185.0 1.03 14.70 0.15 79304 0.60 172.00 0.92 5.45 0.57
78435 1.6 400.0 2.01 17.80 0.10 79305 1.20 26.70 0.21 1.77 0.01
78519 0.4 0.92 0.06 0.01 0.01 79336 1.00 94.10 0.30 0.36 0.15
78526 1 10.55 0.00 2.29 0.47 79339 1.60 2.96 0.06 0.05 0.03
78534 0.9 7.72 0.02 0.05 0.33 79341 0.20 2.71 0.02 0.04 0.02
78537 0.8 7 0.01 0.41 0.38 79342 4.10 6.21 0.03 0.03 0.04
78538 0.7 9.21 0.10 0.12 0.50 79348 2.10 4.68 0.03 0.03 0.00
78542 4.8 28.7 0.13 0.04 0.01 79358 0.30 0.24 0.01 0.02 0.00
78543 4.6 34.1 0.18 0.06 0.01 79363 0.30 16.40 0.06 0.07 0.24
78544 12 105.0 0.50 0.03 0.02
78567 0.3 11.9 0.02 0.00 0.68
ZONA ALACRÁN NORTH
SAMPLE Au gm/t Ag gm/t Pb % Zn % Cu %
78043 0.20 134.0 0.47 1.91 0.18
612999 0.30 182.0 0.66 0.53 0.63
10-0473 0.40 531.0 2.53 10.50 1.38
78101 0.20 197.0 0.89 3.44 1.20
78102 0.20 287.0 0.75 2.41 2.09
78116 0.20 30.1 0.03 0.03 0.38
78117 0.30 45.5 0.03 0.51 0.61
78119 0.30 38.7 0.05 0.72 0.51
78123 0.50 88.3 0.07 0.47 0.36
79104 0.40 364.0 1.53 0.10 0.56
79171 0.20 129.0 0.10 0.17 1.53
79172 0.20 200.0 0.11 0.10 0.86
79177 0.20 55.6 0.09 0.40 0.71
79178 0.20 27.7 0.09 3.86 0.44
79025 0.20 151.0 0.94 1.76 0.47

Quality Assurance - Quality Control

One meter chip samples were collected from fresh rock after oxidized surface material was removed. For every 10 samples a blank of un-mineralized country rock and a duplicate sample was inserted. Sample locations were marked with metal tags and were photographed. Samples were bagged and sent to the ALS Prep Lab in Mexico. Pulps were submitted to the ALS Chemex Laboratory in Vancouver and analyzed for 49 elements (ME-M41). High copper, lead, zinc and silver values were re-analyzed using ore grade analysis. Gold values have not been confirmed by Fire Assay.

Blanks and duplicates were checked for conformity with lab results.

The scientific and technical information contained in this news release has been reviewed by Nils von Fersen, P.Geo. Vice President of Exploration of the Company, and a Qualified Person ("QP") as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

About Aurcana Corporation

Arcana Corporation is an emerging senior silver producer with two operating mines located in Mexico and Texas, United States.

La Negra Mine, Mexico, current installed capacity is 2,500tpd. In order to allow for an increase in future production, La Negra mine is now working to increase mill capacity to 3,000 tpd by the end of Q1, 2013.

La Negra has a NI 43-101 M&I resource of 115.1 million (mm) oz silver, 1,418.7 mm lbs zinc, 539.5 mm lbs lead and 269.5 mm lbs copper and an Inferred Resource of 56.5 mm oz silver, 657.4 mm lbs zinc, 263.0 mm lbs. lead and 132.3 mm lbs copper.

Commissioning and mill testing of the Shafter Mine in Texas commenced on April 1, 2012 and commencement of commercial production was achieved in December 2012. The Shafter Silver Mine, according to the data from the published feasibility study, is expected to produce 3.8 million ounces of silver over 12 months once ramp up to its 1,500tpd capacity is completed.

Shafter has a NI 43-101 M&I Resource of 23.9 mm oz of silver and an Inferred Resource of 22.8 mm oz of silver. (All National Instrument 43-101 technical reserve reports can be found on SEDAR at: www.sedar.com).

Aurcana continues to focus on its future growth.

Corporate

The Company's shares are also traded in the United States on OTCQX under the symbol "AUNFF". Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.

ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION

Lenic Rodriguez, President & CEO

NR-13-3

Baltazar Solano-Rico and Betty Gibbs have reviewed the technical information reported in the National Instrument 43-101 technical reports regarding the La Negra Silver Mine. All National Instrument 43-101 technical reports can be found on the Company's website at www.aurcana.com or on SEDAR at www.sedar.com.

Baltazar Solano-Rico (M.Sc., Geol. Eng.) and Mrs. Betty Gibbs (E.M., MSc.) of Behre Dolbear are the independent Qualified Persons pursuant to NI 43-101 for the Company. Mr. Nils von Fersen (PGeo), Vice President, Exploration is also certified Qualified Person of the company. The technical contents of this release have also been reviewed by Nils von Fersen for QP technical disclosures.

This news release contains certain forward-looking statements, including statements regarding forecast silver production, silver grades, recoveries, potential mineralization, exploration result, 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.

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, 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. Accordingly, readers should not place undue reliance on forward-looking statements.

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.

Contact Information

  • Aurcana Corporation
    Lenic Rodriguez
    President and CEO
    (604) 331-9333 or Toll Free: (866) 532-9333

    Aurcana Corporation
    Catalin Chiloflischi
    Corporate Communications Director
    (604) 331-9333 or Toll Free: (866) 532-9333
    (604) 633-9179 (FAX)
    ir@aurcana.com
    www.aurcana.com

    StrataStar Group
    Gary Lindsey
    720-273-6224
    gary@strata-star.com