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VANCOUVER, British Columbia, Nov. 11, 2019 (GLOBE NEWSWIRE) -- AURCANA CORPORATION ("Aurcana" or the "Company") (AUN.V) 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 Progress
At 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.
The 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 Expansion
In 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 Ouray
In 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 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:
850 – 789 West Pender Street
Vancouver, BC V6C 1H2
Phone: (604) 331-9333
Gary Lindsey, Corporate Communications
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, 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.