Aurcana Silver Corporation provided the following update with respect to its wholly owned Revenue-Virginius Mine (“RV Mine”) located in Ouray, Colorado, USA. The company announced that it has completed an updated feasibility study prepared by SRK Consulting (US) (“SRK”) with an effective date of December 31, 2021 and in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The Updated Feasibility Study re-affirms the substantial value of the RV Mine with an after-tax net present value 5% (NPV) of USD 108.8 million.

As part of preparation of the Updated Feasibility Study, SRK conducted site visits, reviewed the current status of the RV Mine, and completed a detailed review of all geologic and operational data. The Updated Feasibility Study contemplates total production at the RV Mine of approximately 17.7 million payable silver equivalent ounces (including approximately 13 million payable ounces of silver) over the approximately 6.25 year life for the current mineral reserve base at an “All In Sustaining Cost” (AISC) net of by-product credits equal to USD 12.55 per ounce over the life of mine. The Updated Feasibility Study assumes five months of operations to complete the #1 Alimak Hoist to be followed by finalization of development of four full mining faces, and then ramping up production thereafter.

The Updated Feasibility Study contemplates total costs to cash flow positive of approximately USD 20 million, with the significant majority being pre-production operating costs associated with completing the underground development. Aurcana continues to review opportunities to reduce the required funding through improved productivity, as well all other options for sourcing the required funds to achieve sustainable production at the RV Mine.