New Discoveries at Aurcana’s La Negra Mine Indicates the Presence of Gold
Aurcana Corporation (“Aurcana” or the “Company”) (TSXV: AUN, OTCQX: 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.”
- 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.
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
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
“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