Aurcana Update on Underground Development and Resource Expansion Plans Progress
November 11 2019 - 2:00AM
AURCANA CORPORATION ("Aurcana" or the "Company") (TSXV: AUN)
is pleased to provide an update on the progress made at its wholly
owned Revenue-Virginius mine located near the town of Ouray,
Colorado USA.
Underground Development and Resource
Expansion Plans ProgressAt the end of the third quarter
2019, all preparatory and rehabilitation work on the 7,600 ft
Revenue Tunnel was completed, including the replacement and
upgrades of rail sidings, track and switches. In addition,
and consistent with the strategic vision announced June 19, 2019,
Aurcana is initiating the planned vertical development to access
the 1500 level in the Monagnahela area of the mine. Once the
vertical access is completed, we will be in a position to sample
and assay along the 1500 level in conjunction with the planned
lateral development. The goal of this development effort is
two-fold:
- Aurcana expects its sample and
assay program will provide information that may allow resources
that are currently classified as inferred to be converted to a
minimum category of indicated, thereby also allowing conversion of
these resources to reserves after a review of the economics of the
mine plan. The current mine plan is based on the 2018
feasibility study (the “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
FS mine plan directly passes by the potential stopes on the 1500
level. Ultimately, we believe the resource conversion of the 1500
level - if successful - has the potential to materially increase
mine life with a commensurate uplift in net asset value.
- The vertical and lateral
development is required as part of the FS restart plan and should
reduce the time and capital cost to production, which will further
prepare the mine as we seek to secure financing for the re-start of
operations.
Environmental ProgramsThe
ongoing environmental project relating to earthworks and
construction of the expanded passive water treatment system for the
mine site continues to progress and will be completed in 2020. The
project involves enlargement of the existing retention ponds to
handle potential events of increased water flow to ensure long term
water treatment and handling performance.
Land Package ExpansionIn
addition to the development program and mineral resource expansion
plans as outlined above, Aurcana’s wholly owned subsidiary Ouray
Silver Mines Inc. (OSMI) has recently applied for a lease on lands
acquired by the US Forest Service. This process is well defined in
the Mineral Leasing Act for Acquired Lands of 1947 and is expected
to take approximately 18 months to complete. The new leases
will materially expand OSMI’s land package - most importantly
including the strike length of vein systems with known Measured and
Indicated Resources as well as other vein systems with historic
high grade mineralization and production.
Head Office Relocation to
OurayIn January 2020 the company will be relocating the
head office from Vancouver, Canada to the town of Ouray, Colorado,
USA. We believe this will provide a more efficient and cost
effective management approach due to the close proximity to the
company’s primary operation as we progress the development of the
project. Kevin Drover, the President and CEO, as well as the CFO,
will be relocating to work out of the existing offices and
facilities located in Ouray.
Kevin Drover, President and CEO of Aurcana,
stated, “We continue to cross important milestones in the ongoing
development and progress to production for our Revenue-Virginius
mine. I look forward to moving to Colorado to be closer to
operations at the site and the efficiencies it should bring,
setting us up for exciting opportunities for value creation in
2020.”
ABOUT AURCANA
CORPORATIONAurcana 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 NOTESThis 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,
statements relating to the Private Placement (including with
respect to the timing of closing of the Private Placement).
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.
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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