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VANCOUVER, British Columbia, March 26, 2020 (GLOBE NEWSWIRE) -- AURCANA CORPORATION ("Aurcana" or the "Company") (AUN.V) Vancouver, BC - is pleased to provide a progress update for the Revenue-Virginius Mine in Ouray, CO, including the Virginius North underground development project (“VN Project”) currently underway in preparation for a full mine restart. During the third quarter of 2019 and the first quarter of 2020, Aurcana has cumulatively raised C$14.8 million in equity in order to fund working capital and advance the Virginius North project.
The VN Project (November 11, 2019 news release) entails initiating the planned horizontal and vertical development to access the 1500 and eventually 1200 levels on the Virginius vein in the Monagnahela area of the mine. Once the level access is completed, the Company will then be in a position to sample and assay along these levels in conjunction with the planned lateral development.
In preparation for the commencement of the vertical development and subsequent lateral development on the 1500L a cross-cut is nearing completion on the 2000L. The cross-cut is necessary in order to correctly locate and orient the vertical raise to the 1500L and to allow efficient removal of waste from the development process. The Number 1 Alimik raise climber is being refurbished and will be completed by mid-April along with a number of other important pieces of mining equipment needed to efficiently execute the VN development plan.
The goal of VN Project is two-fold:
The vertical development of the VN Project is required as part of the current mine plan 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. This development should reduce the time and capital to production which will further prepare the mine as we seek to secure financing for the re-start of operations.
Aurcana expects the sample and assay program included in the VN Project to provide information that may allow resources on the 1500 level and areas North of the current stopes on the 1800 level and 1200 level that are currently classified as inferred to be converted at a minimum, to a category of indicated, thereby also allowing conversion of these resources to reserves after a review of the economics of the FS mine plan. The FS mine plan directly passes by the potential stopes that have previously been excluded from the FS mine plan. Ultimately, the Company believes the resource conversion - if successful - has the potential to materially increase mine life with a commensurate uplift in net asset value.
In conjunction with the VN Project and to supplement the leadership at site as the Company progresses to a full restart, Aurcana is pleased to announce the hiring of Mike Lee as general manager at the Revenue Virginius Mine. Mr. Lee has over 40 years’ experience in mining, including significant narrow vein and conventional mines while working at Coeur d’Alene Mines and ASARCO. He was also instrumental in the construction of numerous other mining startup operations around the world. Through his and Aurcana’s COO Brian Briggs connections locally in Colorado and across the industry, the Company is also adding additional miners to accelerate the VN Project’s progress. The Company is pleased to be attracting experienced managers and miners to join in this development campaign as the first step toward full restart.
With the hiring of Mike Lee and staffing up with additional mining crews the company is on schedule with the VN Project development plan and is targeting samples to be available for testing in the second quarter of this year.
As of the date of this press release Aurcana remains unaffected by the Covid-19 virus. Vancouver staff have been successfully working remotely, and operations at the Revenue-Virginius mine in Ouray are able to continue while at the same time following local, state and federal guidelines for social distancing and other prudent containment measures.
Qualified Person Statement
The scientific and technical content of this news release was reviewed and approved by Michael Gross, P.Geo., a “qualified person” within the meaning of NI 43-101.
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.