Vancouver-based junior Aurcana Corp. (AUN-V) has expanded the resource estimate at its Maravillas deposit in Mexico by 47%. The news pushed up the stock 9.1% or 2.5¢ to close at 30¢ per share.
Maravillas is just one of 27 deposits at Aurcana’s 92%-owned La Negra silver-lead-zinc-copper mine in Mexico’s Queretaro state.
Aurcana restarted the mine in 2007 and expects to complete an expansion project there by the middle of the year that will bring its capacity to 1,500 tonnes per day.
Once that is accomplished, the company says, the mine will be on track to produce more than 2 million oz. silver equivalent a year.
The latest resource estimate for Maravillas represents a 47% increase to 188,941 tonnes, up from the 128,400 tonnes of historical reserves Penoles reported in 2000.
The deposit is estimated to contain a measured and indicated resource of 188,941 tonnes grading 114 grams silver, 0.55% lead, 3.73% zinc and 0.75% copper.
An additional 38,422 tonnes is classified as an inferred resource and averages 98 grams silver, 0.42% lead, 3.62% zinc and 0.89% copper.
Aurcana used both historical and recent exploration work to define a mineralized zone 270 metres down dip and up to 140 metres along strike with a thickness of up to 10 metres.
The deposit remains open to depth below the 2,150 level and along strike. Additional drilling is planned to test the continuity and extensions of mineralization, to convert inferred resource blocks to a higher category and to provide more data to refine the mining plan.
The resource used analytical data primarily derived from 340 saw-cut channel samples and 124 chip samples.
The samples were collected in underground workings from all levels and ramps within the Maravillas deposit during 2007 and 2009.
Aurcana will use a contract miner to develop a ramp system within the mineralized zone, and existing infrastructure for the mine including haulage levels and an ore pass are already in place.
Over the last year the junior has traded in a range of 8.5¢-47¢ and has 120.7 million shares outstanding.
Be the first to comment on "Aurcana boosts Maravillas deposit resource by 47%"