Aurcana Silver Provides Update on the Restart Progress of Its Revenue Virginius Mine, With First Ore Through the Mill

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, Aug. 30, 2021 (GLOBE NEWSWIRE) -- AURCANA SILVER CORPORATION ("Aurcana" or the "Company") (TSXV: AUN) is pleased to provide an update on the restart activities of the Company’s wholly owned Revenue Virginius Mine in Ouray, Colorado.

The Company is pleased to report that the processing plant initiated commissioning with development ore on Friday August 27, 2021. This is an important milestone in the restart of full operations, with stope ore to be processed in the near future.   The Company plans to continue to ramp up to the full production rate of 270 short tons per day over the month of September.

The Company is also pleased to report that initial assay results from the 1800 drift level show an average undiluted grade over 78 feet of drift of 54.0 (33.9 diluted to a minimum mining width of 1.5 ft) ounces per ton silver equivalent (AgEq)¹ per short ton (ST). The actual measured vein width in this area is 1.19ft as compared to the modeled vein width for the same 78 feet of 0.23 feet and an undiluted grade of 26.9 (4.2 diluted to a minimum mining width of 1.5 ft) AgEq¹/ST over for the same drift section. Assay data lags actual development and the Company looks forward to reporting more assay results in the near future, but visual inspections each shift indicate that this strong mineralization continues.

Concentrate shipments are anticipated to begin in the first half of September. Trafigura Trading LLC is the off-taker for 100% of the concentrates and will pay 95% of the contained metals value based on the mine site concentrate assays at the time of shipment, with final settlement based on smelter returns.   

Kevin Drover commented, “These additional assay results – 15 feet below the first mining stope – which confirm the mineralization is as we expected is the key data validation point we needed to confirm that we can be successful. Mining productivity at the face has been strong and we have some of the best miners in the business working for us. While some logistics issues related to movement of ore and waste in the same underground area slowed our initial development in opening up the production stopes, these short term delays are resolvable as the stope is opened to its full length. With this grade confirmation in hand, the processing plant now moving into commissioning, and with logistics improving rapidly as the first production stope expands both north and south, we are very confident of a successful restart.”

________________________________
¹ Silver equivalent is based on the 2Q 2021 average London prices of Ag US$26.6387/oz, Au US$1,805.04/oz,
Pb US$0.9568/lb and Zn US$1.3206/lb; includes payability and payment timing of the Trafigura offtake contract.

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:

Aurcana Corporation
850 – 789 West Pender Street
Vancouver, BC V6C 1H2
Phone: (604) 331-9333

Gary Lindsey, Corporate Communications
Phone: (720)-273-6224
Email: gary@strata-star.com

CAUTIONARY NOTES

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.