AURCANA CORPORATION ("Aurcana" or the
"Company") (TSXV: AUN) is pleased to announce today
its updated strategic vision to enhance shareholder value.
The Company’s strategic vision, which has been
developed by the board and management of the Company in the context
of current market conditions following successful completion of the
Company’s transformative 2018 acquisition and financing
transactions, focuses on a plan to increase mineral resources and
reserves at the Company’s production ready Revenue-Virginius Mine
in Ouray, Colorado (the “RV Mine”). This strategic plan will
require significantly less capital in the near term than a full
restart of the RV Mine. In conjunction with these efforts, the
Company has also set a second goal to develop a plan for strategic
options for the Shafter Project in Presidio County, Texas.
Management of the Company believes that the RV
Mine is arguably the highest-grade silver mine in North America, as
well as one of the highest-grade silver mines in the world with
proven and probable mineral reserves. It has a 2018 feasibility
study (the “2018 FS”) prepared in accordance with National
Instrument NI 43-101 – Standards of Disclosure for Mineral Projects
(“NI 43-101”) demonstrating an economic restart of the RV Mine. A
copy of the 2018 FS is posted on the Company’s website and is also
available on the Company’s profile on SEDAR at www.sedar.com.
The main components of the strategic vision are
for the Company to:
- expand mineral resources and
reserves at the RV Mine by proving up extensions of strike length
on established vein systems, extending the life of mine and
enabling an increase in throughput rate (thus improving the already
strong economics of the 2018 FS);
- establish the optimal strategic and
technical path at the Shafter Project to maximize shareholder
value; and
- seek merger and acquisition
opportunities by utilizing and leveraging the Aurcana technical
team’s strong evaluation and operating expertise to develop future
production opportunities.
Resource and Reserve Expansion on the Virginius Vein at
the RV Mine
The Company has developed, planned, and costed a
program to potentially expand the RV Mine mineral resources and
reserves with targeted diamond drilling and level development on
the Virginius Vein adjacent to historic mining areas. The goal of
this three-phase program will be to target a significant increase
in mineral resources at the RV Mine as compared to the current
mineral resources defined in the 2018 FS.
Given the Virginius vein average width over the
expansion area to be evaluated (as shown below in Figure 1),
Aurcana believes that between 450,000 to 676,000 tons is a
reasonable estimate of the tonnage for this area. Assuming
that this area would have similar grades to the Monongahela reserve
stopes (for the tonnages noted above) this would equate to between
17 and 25.5(1) million ounces of Ag, 32 to 48 thousand ounces of
Au, 55 to 82.5 million lbs Pb, and 39 and 58.5 million lbs of
Zn. The foregoing potential quantity and grade is conceptual
in nature as there has been insufficient exploration to define a
mineral resource, and it is uncertain if further exploration will
result in the foregoing exploration target being delineated as a
mineral resource.
Each phase of the program is expected to last
approximately 7 months and average $6.5 million per phase.
The level development completed during this program can be utilized
in future production and should also reduce future restart capital
costs.
FIGURE 1: Resource and Reserve Expansion
in Virginius Vein at the RV
Minehttps://www.globenewswire.com/NewsRoom/AttachmentNg/38b75146-cb0b-4a6b-96f8-8e095be1f570
Resource Conversion and Additional Exploration
Opportunities
The Company has also identified opportunities to
potentially upgrade and additionally increase the RV Mine’s mineral
resources as shown in Figure 2 by accomplishing the following:
- during production start-up development, converting the current
inferred mineral resources to measured and indicated resources;
and
- developing longer term exploration targets situated adjacent to
the current mineral resources.
FIGURE 2: Resource Conversion and Additional Exploration
Upside on the Virginius
Veinhttps://www.globenewswire.com/NewsRoom/AttachmentNg/671e36d3-b523-48f2-9ae0-fc6dd3e7e50a
Qualified Person Statement
The scientific and technical content of this
news release was reviewed and approved by Val Pratico, P.Geo., of
the Company and a “qualified person” within the meaning of NI
43-101.
Notes
(1)Grades below are calculated from FS
Model (SRK) and FS Stope design (OSMI). Average vein width is
calculated from same model region as grade and averaged on a
weighted basis off block tonnage. 1.5 ft' Avg vein
width is a rounded average between V1/V2 intercepts and modeled
width of a more representative area. There is no guarantee
that the above averages will be realized in the new expansion
zone.
|
Au OPT |
Ag OPT |
Pb% |
Cu% |
Zn% |
Width |
Monongahela V1 Stopes (with 1500 Inferred) |
0.07 |
37.70 |
6.10% |
0.40% |
4.32% |
1.94 |
ABOUT AURCANA CORPORATION
Aurcana Corporation owns the Revenue-Virginius Mine, in
Colorado, and the Shafter-Presidio Silver Project in Texas,
US. The primary resource at Shafter and Revenue-Virginius is
silver. Both are fully permitted for production.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
“Kevin Drover”, President & CEO
For further information, visit the website at www.aurcana.com or
contact:
Aurcana Corporation850 – 789 West Pender StreetVancouver, BC V6C
1H2Phone: (604) 331-9333
Gary Lindsey, Corporate CommunicationsPhone: (720)-273-6224
Email: gary@strata-star.com
CAUTIONARY NOTES
This press release contains forward looking
statements within the meaning of applicable securities laws. The
use of any of the words “anticipate”, “plan”, “continue”, “expect”,
“estimate”, “objective”, “may”, “will”, “project”, “should”,
“predict”, “potential” and similar expressions are intended to
identify forward looking statements. In particular, this press
release contains forward looking statements concerning, without
limitation, the Company’s strategic plan, plans for mineral
resource and reserve expansion on the Virginius Vein at the RV
Mine, additional plans for mineral resource conversion and
additional exploration opportunities and plans for potential
M&A opportunities. Although the Company believes that the
expectations and assumptions on which the forward looking
statements are based are reasonable, undue reliance should not be
placed on the forward looking statements because the Company cannot
give any assurance that they will prove correct. Since forward
looking statements address future events and conditions, they
involve inherent assumptions, risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of assumptions, factors and risks. These
assumptions and risks include, but are not limited to, assumptions
and risks associated with the receipt of regulatory or shareholder
approvals, and risks related to the state of financial markets or
future metals prices.
Management has provided the above summary of
risks and assumptions related to forward looking statements in this
press release in order to provide readers with a more comprehensive
perspective on the Company’s future operations. The Company’s
actual results, performance or achievement could differ materially
from those expressed in, or implied by, these forward looking
statements and, accordingly, no assurance can be given that any of
the events anticipated by the forward looking statements will
transpire or occur, or if any of them do so, what benefits the
Company will derive from them. These forward looking statements are
made as of the date of this press release, and, other than as
required by applicable securities laws, the Company disclaims any
intent or obligation to update publicly any forward looking
statements, whether as a result of new information, future events
or results or otherwise.
This press release does not constitute an offer
for sale or a solicitation of an offer to buy, in the United States
or to, or for the account or benefit of, any "U.S. Person" (as such
term is defined in Regulation S under the U.S. Securities Act of
1933, as amended) of any equity or other securities of Aurcana.
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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