It's really not too far off from last quarter--silver ounces sold Q2 323,307, Q3 323,825; silver production Q2 373,073, Q3 376,687. It does show that they are stockpiling silver. I'm interested to see what the revenue is, and what the average price sold per ounce is (Q2 was 28.51).
La Negra Highlights
•Aurcana continues to produce record results. Q3, 2012 silver production was the largest silver volume in Aurcana''s history producing 54% more silver than in Q3, 2011.
•Silver sales increased to 323,825 oz. in Q3 2012 compared to 235,981 oz. in Q3 2011, an increase of 37%.
•The average grade of silver increased 7% YTD to an average of 80 grams per ton in 2012, compared to 75 grams per ton in 2011.
•La Negra mine is now milling at a rate greater than 2,300 tpd.
•The mill upgrade expansion to 3,000 tpd is expected to be completed during 1st quarter 2013 with minimal capital expenditures.
•Underground and surface exploration programs at La Negra are progressing according to the plan and continue to provide encouraging results.
Shafter Mine Update
The Company commissioned the Mill at Shafter on April 1, 2012. The commissioning and testing phase is currently underway at Shafter Mine working towards achieving commercial production in Q4 2012.
•Commencement of commercial production is expected in Q4, 2012.
•Technical, management and capital resources are focused on the Shafter Mine in order to allow commencement of commercial production.
•Mine personnel recruitment and miners training is progressing as planned.
•Mine site development is continuously advancing.
•The Shafter surface exploration program continues to evaluate extensions of the main Shafter mineralized horizon and to search for evidence of a deeper mineralized zone.
La Negra is humming along. Small increases in volumes plus about $2 an equivalent oz for the third quarter spell about a 1.5 million increase in operating cash flow...for the quarter.
Shafter finally looks to be on the countdown to starting commercial production.
Earnings around the Thanksgiving holiday and commercial production should be announced at same time. As the learning curve develops at Shafter we will be very happy as 2013 progresses.
Cash flow next year doubles then triples then quadruples as the quarters pass ( metal prices at current levels)
"Mill feed was 196,843 tonnes in Q3. 57% (112,781 tonnes) was mined from NI 43-101 Measured and Indicated Resources and 43% (84,062 tonnes) was mined from new discoveries or non-compliant resources. La Negra is now applying 43-101 standards in developing new mineralized zones to increase our compliant resources. A new compliant resource estimate has been released on August 28, 2012 and the technical report was filed on Sedar on Oct 10, 2012."
So, 43% of ore was mined from non-compliant resources. Compliant resources will grow with newly developed mineralized zones.
"silver production from the La Negra mine for Q3 2012 of 376,687 ounces.
Silver sales increased to 323,825 oz. in Q3 2012 "
That's almost 53K oz's not sold this qtr. Either transactions not processed in time for quarter end or perhaps they are holding sales back for higher future silver prices. Maybe neither.