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Aurcana Begins Drilling at Shafter Silver Mine in Texas

Aurcana Corporation (TSX VENTURE:AUN) has announced that work has commenced on the 100 percent owned Shafter Silver Mine, located in Presidio County, southwest Texas.

The site access road has been upgraded, geotechnical and survey work is underway, and plant site and portal earthworks are on track to be completed by April. The portal cut for the decline will be blasted and excavated in February. The first set of new and rebuilt underground mining equipment has been purchased and is scheduled to be on site for mining to commence on the decline in early March.

Key senior management personnel have been hired and are on site. All construction permits are in place. All long lead items such as the 14 ft ball mill and tailings filter presses have been secured and are scheduled to be refurbished. A 5-year off-take contract has been signed with the regional power supply company to upgrade the electrical substation which will provide power for the operation of the mine and mill.

A Ground Breaking ceremony with a first blast and a number of guests is scheduled for February 16, 2011.

The Shafter Silver Mine is scheduled to start silver production in mid-2012 which is estimated to produce 3.8 million ounces per year at a mining production rate of 1,500 tons per day of ore grading 8 ounces silver per ton. Shafter has a NI 43-101 compliant resource of 24.6 million ounces Measured and Indicated (2,900,000 tons @ 8.48 opt), 22.8 million ounces Inferred (2,167,000 @ 10.52 opt) (using a 4.0 opt cut off). Construction is scheduled to take 18 months.


Aurcana Corporation


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