Wow, what a joke. Let me guess paid by a hedge fund to start rumors with small precious metal stocks? You created your yahoo account today I see, so congrats on that... LOL. I googled it and could find nothing but good news about Shafter mine appraisals or operations. Go try another stock!
It is not a joke, and do not resort to name calling and oversimplifying the issue. The following is the report by the appraiser at Shafter (on Jan 24, 2013). If you have something substantive to add to alleviate the concern, please do so.
Consultant updates appraisal district on Shafter mine
January 24th, 2013 under Top Stories
By JOHN DANIEL GARCIA
MARFA – Capitol Appraisal Group appraisers Charlie Price, Clay Fowler, and Jordan Albridge met with the Presidio County Appraisal District (PCDA) board for a special meeting in Marfa on Wednesday, January 16 to update board members on the appraisal of the Shafter mine.
The mine, located off of U.S 67, recently began production and has been excavating at roughly 600 tons per day with a goal of producing 1,500 tons per day with an estimated mine life of nine years. Rio Grand Mining Company and its parent company, Aurcana Corporation, believe they can produce 20 ounces of silver per ton excavated, which is about how much the mine produced before they were shut down by the War Act in 1942.
The mine was appraised in August of 2011, with some contention from the corporation. The mine had been off schedule and had yet to begin producing, leading the mine to ask for a break. The appraisal was made for mineral content in the ground and the silver was counted at market price, about $20 per ounce. The company received an appraisal break in mineral value in August 2012, to the chagrin of Price, with a discount rate of 33%.
The mine has been appraised on its mineral content, the company’s assets, and the development of the mine. The cost incurred by the mine for hardware and the tunnel has been estimated at $60 million, and the company saw a decline in earnings for the 4th quarter of the fiscal year. Still, the company managed to raise $25 million in revenue through private sources and have left Price scratching his head with how much they’ve really spent.
“There’s a lot of stuff they’re not particularly forthcoming with,” he said to the board, adding that the Appraisal Review Board is the only local entity with subpoena power to attain records and that the company has the lax discloser laws in Texas on their side.
The three appraisers also updated the board on the Red Hills Prospect, also outside of Shafter, being led by another Canadian corporation, Tosca. The hills are believed to be rich in copper, among other minerals. Fowler explained to the board that, since there hasn’t been any activity on the site, assessing the value at the time would not be accurate.
The prospective mining had PCDA board member Carlos Nieto concerned.
“Will there be orange dust storms in south county?” he asked, adding, “the concern is not just arriving at fair value, there’s also the environmental risk. We have 8,000 people in south county. What will be the impact?”
Presidio County Judge Paul Hunt chimed in, speaking of the inadequate bonding for clean-up held by the company, as well as other issues the mine had not foreseen.
“The average person walking down the street in Texas doesn’t know the effective tax rate, and those in Canada didn’t know about property taxes in Texas,” said Hunt, following with other issues the mine has met, such as their lack of environmental planning, knowledge of the ground water district and the Dark Sky Code, which the mine is currently violating.
“The deed was done with the first appraisal,” said Fowler, effectively ending the meeting.
Tags: Presidio County, Rio Grande Mining Company, Shafter