Aurcana launches La Negra production

Vancouver – Production has commenced at Aurcana‘s (AUN-V, AUNFF-O) 80%-owned La Negra silver-copper-zinc-lead mine in Queretaro State, Mexico following completion of a mill refurbishment and expansion phase.

With a planned throughput of 1,000-tonnes-per-day, the refurbished mill will start processing about 50,000 tonnes of material stockpiled over the past several months along with regular daily ore output.

Lower grade ore will be initially fed through the circuit to test and fine-tune recoveries. Aurcana expects to commence concentrate shipment and sales within a month.

The La Negra underground mine commenced production in 1970, operated by Industrias Peoles (IPOAF-O), until it was put on care and maintenance in 2000 due to weak metal prices. In its 30-years of operation about 6.6 million of ore was mined producing 36 million oz. of silver, 323 million lb. (146,500 tonnes) of zinc, 70 million lb. (31,750 tonnes) of copper and 161 million lb. (73,000 tonnes) of lead.

Historic reserves of 1.22 million tonnes grading 161 grams silver per tonne, 2.8% zinc, 0.94% copper and 0.88% lead were tabled by the previous operator. In late-2006 Aurcana initiated an audit on the historic reserves to bring them up to NI 43-101 status.

La Negra is a skarn-hosted polymetallic deposit with 23 known orebodies identified.

Aurcana, along with partner company Reyna Mining and Engineering, purchased La Negra in mid-2006 from Peoles for US$3 million in cash and shares. Reyna, a private Mexican company, has 20% ownership in the mine.

In addition to La Negra, Aurcana also recently entered into an option to acquire the Rosario silver-lead-zinc-gold project from Grupo Mexico (GMBXF-O) for US$3 million.

Situated in the southeastern portion of Mexico’s Sinaloa State, the property has two main areas of mineralization: San Juan and Rosario.

At San Juan, Grupo Mexico calculated historic reserves of 256,756 tonnes grading 329.3 grams silver, 3.73% zinc and 1.69% lead. A shallow decline was also driven to test the mineralized zone that is reported open to depth.

Historic reserve estimates conducted by Grupo Mexico on the Rosario area in 2000 (non NI43-101 compliant) showed proven reserves of 37,944 tonnes at 122 grams silver, 3.82% zinc 2.57% lead and 0.98 gram gold per tonne and probable reserves of 277,074 tonnes grading 89 grams silver, 3.45% zinc, 2.36% lead and 1 gram gold. A further 323,738 tonnes of inferred resource was also tabled averaging 178 grams silver, 2.92% zinc, 2.07% lead and 1.1 grams gold.

Grupo Mexico reports past production (1986-2000) of 2.5 million tonnes of ore grading 190.5 grams silver, 2.02% zinc, 2.38% lead and 0.92 gram gold from the Rosario property.

Shares of Aurcana have recently rallied to new highs around the $1.95-level.