Construction Update And Production Outlook For The Revenue Virginius Mine

VANCOUVER — Aurcana Silver Corporation reported on construction and a production outlook for the remainder of 2021 for its Revenue Virginius Mine, (RV) located near Ouray, Colorado.

Mine Development: Underground mine development is proceeding on schedule with three raises being driven vertically from the 2000 main haulage level 800 feet to the 1200 level; The #1 Alimak raise is advancing vertically at an average rate exceeding 16 feet per day and is scheduled to be complete by late May, after which the hoist and shaft timber will be installed for permanent men and material access; The #2 Alimak raise has progressed up to the 1500 level and is temporarily being used for men and materials transport from the 2000 level to the 1800 and 1500 level pending completion of #1 Alimak raise; The #3 Alimak raise vertical development began in May and is scheduled to reach the 1800 level by the third week; On completion of #1 Alimak raise, the #2 and #3 Alimak raises will be dedicated ore and waste raises; Level (horizontal) development has commenced on the 1800 level to intersect the Virginius vein, which is scheduled to occur during the third week of May. Following this, development will continue by driving drifts both north and south on vein for over 1000 feet to prepare for stope development; Stope development on the 1800 level is estimated to begin in late June with first ore to the mill in early July; Ore development on 1800 level is on schedule to deliver initial ore to the processing plant in July. Two stopes (mining blocks) on the 1800 level will provide the initial ore supply while stopes on the 1500 level are developed; It is anticipated that four stopes will be available by year end 2021 (two stopes per level) to supply the processing plant. However only two stopes are required to provide the 270 tons per day as specified in the 2018 feasibility study (the “2018 FS”) prepared in accordance with National Instrument NI 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101).

Processing Plant Preparation: All processing plant upgrades including installing additional flotation capacity, replacing cyclones with sizing screens, installing a rod mill, installing crushers and conveyors along with a new instrument control system will be completed by mid-June. Processing plant commissioning with water is scheduled for the last week of June with first ore through the processing plant in the second week of July; Final work on the transition chute from the coarse ore bin to the new primary pan feeder is scheduled to be completed by July 10th, 2021 and will enable full processing plant operation; Throughput will be ramped up over the course of July to reach 111 tons per day (tpd) during August, and then to the full production level of 270 tpd during September; Concentrate shipments will be in 100 ton lots and are anticipated to begin in early August. Trafigura Trading LLC is the off-taker for 100% of the concentrates and will pay the value of 95% of the contained metals based on the mine site concentrate assays at the time of shipment, with final settlement based on smelter returns; and Payable silver equivalent1 production for the period between August to December 2021 is anticipated to be 1,300,000-1,600,000 ounces.