Aurcana Announces Commercial Production at Shafter Mine in Texas
Aurcana Corporation (“Aurcana” or the “Company”) (TSXV: AUN, OTCQX: AUNFF) is pleased to announce that the commissioning and testing phase has been successfully completed and the Shafter Mine in Texas is now in commercial production.
Mr. Lenic Rodriguez, President and CEO of Aurcana Corporation, said: “I am very pleased to announce that commercial production at Shafter mine in Texas has started. By commencing production at Shafter, Aurcana achieves yet another important milestone in our pursuit to become a senior silver producer.”
Shafter Commercial Production Updates
- The assets at the Shafter Mine are ready for their intended use and the plant is now operating on a continuous basis at an average rate of 600tpd.
- The secondary escape-way has been completed and the mine has received all necessary permits, allowing for the underground mining to start.
- The mine had commenced developing 3 underground stopes and these stopes are currently producing ore.
- Processing of lower grade open pit ore, initially mined during the plant commissioning and testing phase, has been discontinued. The plant is currently processing higher grade underground ore exclusively.
- The Shafter Mine currently employs 152 personnel allowing for a continuous operation. Additional underground miners have been recruited and will join the Shafter mine in January 2013, as the Shafter mine ramps up.
- Aurcana has implemented a production ramp up plan to gradually increase production towards the phase I planned capacity of 1,500tpd, as mining operations proceed.
- As part of the ramp up plan, the installation of additional thickener tanks, increasing the processing capacity of the plant, will be commissioned early Q1, 2013. In addition, upgraded filters will be installed in Q2 2013.
- Initial production results from the Shafter mine are expected to be included in Aurcana’s Q1 2013 financial results.
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 andwww.otcmarkets.com.
ON BEHALF OF THE BOARD OF DIRECTORS OF
AURCANA CORPORATION
“Lenic Rodriguez”, President & CEO
For further information contact:
Lenic Rodriguez, President and CEO
Catalin Chiloflischi, Corporate Communications Director
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Email: ir@aurcana.com
www.aurcana.com
It ain’t the 1,500 tpd production we were promised by Lenic would happen by June but it is commercial production status and so there is cause for some celebration.
It looks like AUN is a year behind their original projections of 1,500 tpd production but that is as bad as it gets.
The good news is that AUN should be a five million oz eq producer shortly and then 7 million eq ag oz in and around Q2 ,2013 with anticipation of 10 million oz production status by year end 2013( annual basis production).
No other junior silver will go to mid tier and then budding senior in a year.
It’s been a long road but some five years later,Shafter is officially a producing mine.
Maybe the rumoured watering problems caused the delays. It certainly presented a buying opportunity under a buck. The only other downside I can see is the huge share float and warrants.
Dan
Dan,the NR states that AUN just finished the escapeway and received the permits to operate underground.The water issues were a nuisance but in no way obstructed the internal delays of mine development:
The secondary escape-way has been completed and the mine has received all necessary permits, allowing for the underground mining to start.
Thanks for the diligence on the matter. I will review their news releases soon.
Dan
Big Al,
Dr. Leeb believes it will EVENTUALLY be safer to invest in mining companies like these because the the US gov will say “NO MAS” to purchasing silver bullion as desperation, short supply and skyrocketing prices eventually take its toll. All the safe money will be in the mines that are productive and with “A LOT of “mine life” left. OK, maybe, but what will the government due when people say NO!!
Marc