Aurcana acquires near term silver production project

Aurcana Corporation has agreed to acquire a 100% interest in the Shafter Silver Mine (Shafter) from Silver Standard Resources Inc. (Silver Standard). Shafter is located in southwest Texas and is fully accessible via paved highway from El Paso, Texas. Shafter has an estimated measured and indicated resource of 21,000,000 ounces of silver and an inferred resource of 20,200,000 ounces of silver.

The Company plans to commission a NI 43-101 compliant technical report to confirm the resource estimate.

Shafter’s past production history spanned the period from 1883 to 1942 when the mine was closed by the War Act. Total production during that period was 2.306 million tons of ore containing 35.153 million ounces of silver at an average grade of 15.24 ounces of silver per ton.

All necessary infrastructure is in place at Shafter with a major power line and paved highway crossing the property, an electrical sub-station on site, a 320 metre shaft serviced by a 80 ton per hour hoist, 1,555 metres of underground development and an 800 ton per day conventional mill that was moved to Shafter in 2003.

Aurcana will use the expertise and experience of its operating team, which successfully refurbished and restarted the La Negra mine in 13 months, to assemble the mill and re-start the mine at Shafter. The Company estimates that the Shafter mine could be in production in just over 15 months.