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Gold/Mining/Energy : The Molybdenum Discussion Board -- Ignore unavailable to you. Want to Upgrade?

To: Zincman who wrote (2151)	8/10/2006 10:14:24 PM
From: darra	Respond to of 3267

======================================================================= Re: News Release - Thursday, August 10, 2006 Aurcana Reports Progress to Date at La Negra ======================================================================= Aurcana Corporation ("Aurcana" or the "Company") is pleased to provide the following update on activities at the La Negra silver-copper-zinc-lead mine in Queretaro State, Mexico. Following the acquisition of the mine from Industrias Penoles S.A. de C.V. ("Penoles") in May 2006, Aurcana, which holds an 80% interest and its 20% partner, Reyna Mining and Engineering S.A. de C.V. ("Reyna") have commenced the refurbishment of the mill and ancillary facilities and initiated underground mapping and sampling, along with a review of all information from Penoles relating to the remaining orebodies and their potential extensions. Review of the 800 tonne per day mill, has shown normal "wear and tear" with minimal replacement parts and equipment required, including screens in the primary, secondary and tertiary crushers and wider belts for the conveyors. Re-engineering of the mill has shown that mill capacity can be expanded to 1000 tonnes per day with the addition of larger floatation tanks, 10 metres in diameter, zinc and copper thickeners and filters, all of which have been ordered. This upgrade to the copper and zinc circuits is also expected to result in greater recoveries of copper and zinc. Included in the purchase of the mine were several pieces of underground mine equipment which included four scoop trams, two 6 and two 3.5 cubic yards, a 5 cubic yard loader, a single boom hydraulic jumbo drill jack legs and compressors. The equipment was found to be in good working condition with minimal repairs required. The scoop trams are currently being used to clean up certain ramps and stopes. The single boom jumbo along with jack legs will be used to conduct the initial development and commencement of mining operations anticipated during the fourth quarter of this year. Review of underground operations has commenced with a digital database being completed to assist with mine planning. The remaining infrastructure including office and warehouse facilities, maintenance shop, electrical substation and a tailings dam were also found to be in good condition. A housing site has undergone a few upgrades and will now accommodate the large anticipated workforce of which 45 are currently on site. A review of the Penoles database for the previous underground drilling at the mine is underway and will be used to prepare a 2,000 metre drill program on key zones such as Cristo Rey, Tania and Alacran. The present underground workings in this area of the mine are all accessible and provide direct access to ore zones as defined by Penoles. The workings also provide drill stations from which the proposed diamond drill program will verify the Penoles results as well as expand known unexploited portions of these ore zones. Two areas in which Penoles completed a total of 16 diamond drill holes below the lowest underground level illustrate the potential that the present drill program will confirm and expand upon. A total of 11 drill holes have defined a 100 by 100 metre area immediately below the Cristo Rey orebody where a length weighted average of intercepts in these holes has returned an average width of 8.52 metres with average grades of 227 grams per tonne silver (7.3 ounces/tonne), 1.28% lead, 3.65% zinc and 1.65% copper. Drilling of 5 drill holes underneath the Tania orebody has identified a 50 metre by 100 metre extension that averages 8.19 metres thick and averages 265 grams per tonne silver (8.5 ounces per tones), 1.85% lead, 6.17% zinc and 2.15% copper. Mr. Ron Nichols, P.Eng. is the Company's qualified person who has reviewed the contents of this news release. Aurcana is very pleased with the advancement to date at the mine and will continue to update our shareholders as operations progress. ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION "Ken Booth", President For further information, please contact: Ken Booth, President Aurcana Corporation Phone: (604) 331-9333 Web site: www.aurcana.com The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release. ======================================================================= Copyright (c) 2006 AURCANA CORPORATION (AUN) All rights reserved. For more information visit our website at aurcana.com or send mailto:info@aurcana.com Message sent on Thu Aug 10, 2006 at 6:12:10 PM Pacific Time =======================================================================