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Aurcana Corporation Message Board

  • tranthor2004 tranthor2004 Jun 6, 2012 3:36 PM Flag

    Block 3/Gold exploration in Presidio Co.

    Looking at table 1.5 of the feasibility showed a M & I of 196K tons 4 oz cutoff grade in block 3.

    Recent drill report good, obviously.


    From same report:

    .30 oz of gold would be nice. :-)

    The Gleim Property, south of the Presidio mine, has the potential for structural-related silver and gold mineralization. GFMC drill hole SD 264 encountered 7 feet of 10 ounces silver per ton, 0.07 ounces gold per ton, 4 percent lead and 2 percent zinc at 393 feet. Drilling is needed to determine the width and length of this portion of the structure. Samples containing high gold values were reported taken at the east edge of the Gleim Property.

    Shafter Silver Project Aurcana Corporation
    lead-zinc veins (often with some minor gold values) with past production at the Montezuma, Chinati, Perry, Gleirn and MacDaniel workings.
    GFMC never followed up on a large zone of bedded and oxidized zinc mineralization that they discovered during their regional drill program. The north-south drill fence with SD 313, SD 316, and SD 317 intersected 6 feet of 10 percent zinc mineralization extending 1,200 feet down-dip from the Montezuma workings. Drill hole SD 313, located approximately 200 feet south of the old mine, encountered two 6-foot zones with 14 percent zinc and the bottom horizon contained 0.03 ounces gold per ton. A 4 percent to 6 percent zinc zone was also encountered in GFMC’s drill holes along strike in fences 2,000 feet to the east and 3,000 feet to the west from the Montezuma workings. The zinc mineral is described as smithsonite. Metallurgical test work is reported to be able to recover this oxidized mineralization.
    The last 30 years of exploration has encountered numerous gold intercepts of merit, but no follow-up work was undertaken. For instance, GFMC drill hole SD 301 encountered 6 feet at 0.52 ounces gold per ton mineralization at 943 feet near the top of the Permian Mina Grande formation (the main ore-bearing sedimentary horizon for the district). SD 301 was not offset with additional drilling.
    On both the east and west sides of the Red Hills intrusive, detailed chip sampling of mineralized outcrops of the Permian sediments was done by Duval and outlined significant zones of gold and silver anomalies. Twenty-eight sets of samples were taken and 18 of these sets had gold values that ranged from 0.005 ounces per ton to 0.33 ounces per ton. Silver values in 6 samples ranged from 2 to 21.2 ounces silver per ton. The mineralization is generally just below the Permian/Cretaceous contact and often associated with igneous sills and southwest-northeast structures.
    On both sides of the draw hosting the MacDaniel underground workings, drifts have been worked on strong structural mineralization. Sampling by RGMC on the north-dipping N75°W structure indicated plus 6 feet carrying 0.03 ounces gold per ton, 1.2 percent lead, and 13.2 percent zinc at the surface. These workings were driven prior to World War II, when gold was $30 per ounce and zinc was $0.12 per pound.
    Northwest trending structures at the MacDaniel workings and at the Sullivan Mine to the west of Shafter demonstrate values of up to 0.30 ounces gold per ton, 2 to 6 ounces silver per ton, 4 to 20 percent lead, and 3 to 10 percent zinc.

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    • Hi Matt and Tran,

      This prior thread in June is relevent to the topic of gold and other mineralization in the trend. We noted many occurences of gold,lead,zinc,copper and Moly. These all seem to be to the West.
      In different documents the geological descriptions of the Red Hills trend they talk about a dome type structure with down sloping outer fringes. The Presideo and Shafter deposits seem to fit this description to a "T".
      Shafter being a lateral outflow of a pretty good sized chimney/chimneys system of hydrothermal sources ( probably similar to the chimney structures that make up La Negra and massive enough to send truely large flows of metals). The small mines...Gliem, Mackenzie, etc to the west and north of Aurcana's property are probably small spider veins eminating from the source/sources.

      The biggest heat source is the very large copper/Moly intrusion called the Red Hills. (Tosco optioned the property and some surrounding sections)
      Somewhere around that huge moly deposit (heat source evidence) would seem to be the large chimney feeder system.

      "SHAMELESS PLUG" Aurcana aught to pick up a minority interest at least and possibly a majority interest in Tosco to gain access to their property [note also other sections that we have pointed out in other posts].
      Tosco (total market cap of less than 4.5 million), could be purchased for pretty cheap cash/stock investment and would double Aurcana's property control and facilitate other mineral rights transactions and further exploration for the feeder sources.

      Once you have a commercially viable operation as Aurcana has with Shafter these satelite occurances (around old Gliem, MacKenzie, Sullivan mines, old drill hole results,surface sampling,etc.)of gold,lead, zinc, etc. could become viable supplements to mill feeds. As noted in other posts numerous locations around the trend,have gold samples with .33 and .50ozs gold per ton and associated lead,zinc, etc.
      We get excited about contaminated ore with .001 to .003 gold. There are chip samples, old drill cores and mines from around the trend with over 100 times that.

      • 4 Replies to rholl49oswego
      • Rholl,

        You are definitely on top of it.

        Tosca expressed an open interest from the outset to partner up with AUN in some fashion to assist in expediting their project.
        Tosca hit seven cents this week-why not just scoop up the property or extend a few million for a percentage?

        I know of an industry insider that will interview Lenic this week and I sent him the following as per your suggestions:

        Hi again xxxxxxxxxxx,

        Could you please ask Lenic Rodriguez if AUN has any interest in picking up the moly/copper project just 7 kms west of Presidio?
        The deposit is owned by Tosca Mining but has drifted to a low of 7 cents with just 40 million shares o/s.
        Tosco has- from their inception- expressed a positive attitude to and possible synergy combo with Aurcana.
        Why not just buy out the majority of shares or make an offer and buy up the deposit and the associated lands that Tosca retain?
        It would be an inexpensive,viable acquisition that will also provide what may prove to be valuable exploration land in and around Presidio/Shafter/Red Hills.
        Many thanks,
        Matt

      • New shareholders should read this old thread and follow the sources in various postings.
        My current thinking is that as Aurcana's stock starts to perform here... Lenic will make several acquisitions using a very hot stock.

        Tasco (TSMNF) and several surrounding blocks that Aurcana does not control are probably the hydrothermal sources for the lateral outflows that comprise the Shafter deposit.

        If investers read some of the historical data and information from prior drill results found in many documents they will understand the potential in this area.

        Tasco has a multi billion dollar Moly/Copper resource. Surrounding blocks have many hits for Copper, lead, zinc, silver and gold from widely spaced regional drill holes.

        15-25 million shares would probably buy Tosca and the surrounding blocks with minimal dilution. Billions of Moly and copper plus many exploration targets to feed the Shafter mill.

      • Here is some of the relevent info from the feasibility study:
        The Gleim Property, south of the Presidio mine, has the potential for structural-related silver and
        gold mineralization. GFMC drill hole SD 264 encountered 7 feet of 10 ounces silver per ton,
        0.07 ounces gold per ton, 4 percent lead and 2 percent zinc at 393 feet. Samples containing high gold
        values were reported taken at the east edge of the Gleim Property.
        Although the original drill core has been lost, the paper drill logs indicate that there is a zone on
        the east edge of the porphyry, which grades 6 percent copper over a vertical distance of 110
        feet.
        The Red Hills porphyry copper deposit and the Sullivan lead-silver occurrence define the west
        end of the district. However, recent theories about caldera mineral control indicate that potential
        mineralization could exist further to the west. It is believed that possible buried intrusives near
        Red Hills and south and east of Red Hills are the heat source for the hydrothermal solutions
        whose metals formed the currently identified mineral deposits in the district.
        These solutions traversed along regional structures trending N70°E which bound the Shafter-
        Presidio deposit. This regional fabric also hosts a bedded zinc deposit and several high-grade
        lead-zinc veins (often with some minor gold values) with past production at the Montezuma,
        Chinati, Perry, Gliem and MacDaniel workings.
        GFMC never followed up on a large zone of bedded and oxidized zinc mineralization that they
        discovered during their regional drill program. The north-south drill fence with SD 313, SD 316,
        and SD 317 intersected 6 feet of 10 percent zinc mineralization extending 1,200 feet down-dip
        from the Montezuma workings. Drill hole SD 313, located approximately 200 feet south of the
        old mine, encountered two 6-foot zones with 14 percent zinc and the bottom horizon contained
        0.03 ounces gold per ton. A 4 percent to 6 percent zinc zone was also encountered in GFMC’s
        drill holes along strike in fences 2,000 feet to the east and 3,000 feet to the west from the
        Montezuma workings.
        The last 30 years of exploration has encountered numerous gold intercepts of merit, but no
        follow-up work was undertaken. For instance, GFMC drill hole SD 301 encountered 6 feet at
        0.52 ounces gold per ton mineralization at 943 feet near the top of the Permian Mina Grande
        formation (the main ore-bearing sedimentary horizon for the district). SD 301 was not offset with
        additional drilling.
        On both the east and west sides of the Red Hills intrusive, detailed chip sampling of mineralized
        outcrops of the Permian sediments was done by Duval and outlined significant zones of gold
        and silver anomalies. Twenty-eight sets of samples were taken and 18 of these sets had gold
        values that ranged from 0.005 ounces per ton to 0.33 ounces per ton. Silver values in 6 samples
        ranged from 2 to 21.2 ounces silver per ton. On both sides of the draw hosting the MacDaniel underground workings, drifts have been
        worked on strong structural mineralization. Sampling by RGMC on the north-dipping N75°W
        structure indicated plus 6 feet carrying 0.03 ounces gold per ton, 1.2 percent lead, and 13.2
        percent zinc at the surface. These workings were driven prior to World War II, when gold was
        $30 per ounce and zinc was $0.12 per pound.
        Technical Report on Shafter Feasibility Northwest trending structures at the MacDaniel workings and at the Sullivan Mine to the west of
        Shafter demonstrate values of up to 0.30 ounces gold per ton, 2 to 6 ounces silver per ton, 4 to
        20 percent lead, and 3 to 10 percent zinc.

    • While Aurcana is opportunisticly picking some low hanging fruit so to speak ( open pit mines ) it gives them more time to explore the rest of the property to cherry pick the best sources of mineral ores.

      La Negra is a perfect example or a mine and mill that can blend different materials to produce a number of metals at the same time. La Negra's lead and zinc production doubles up the silver revenue. If Shafter can get to that point then silver revenues could be doubled up with Gold, lead and zinc production if feasable.

      • 1 Reply to rholl49oswego
      • <<<While Aurcana is opportunisticly picking some low hanging fruit so to speak ( open pit mines ) it gives them more time to explore the rest of the property to cherry pick the best sources of mineral ores.

        If Shafter can get to that point then silver revenues could be doubled up with Gold, lead and zinc production if feasable.>>>

        Per feasibility:

        Internal opportunities include:
        1. Decreased operating costs
        2. Decreased construction costs
        3. Increased run-of-mine head-grade (this is likely as a bulk sample from Block 1 had a
        10% to 15% higher metal content than reported by borehole assays, probably due to ore
        preferentially washing out of borehole core material during drilling)
        4. Increased rate of production of run-of-mine ore
        5. Decreased dilution of run-of-mine ore
        *6. Increased metallurgical recovery Increasing the Mineral Resource by extending the limits
        of the orebody by exploration drilling / development, and by filling gaps in the known
        orebody information by delineation drilling*
        7. Conversion of Inferred Mineral Resources to Measured or Indicated by infill drilling
        8. Discovery of additional Mineral Resources
        *9. Recovery of gold, lead, and zinc from the ore*

        Met testing showed variability in recovery rates up to 92%. Potential is there to raise the 84% recovery. Ching.

        We have no idea of the amount of zinc and lead byproduct at this time. The drilling was mostly done a long time ago by Silver Standard and/or Gold Fields.

        I hope they are in the process of buying property "in trend" to the west.

    • great digging guys - many thanks.

    • This thread has many interesting and informative links to information about shafter and red hill area.

      Aurcana as the early mover in this area has many opportunities to expand their operations.

      Aurcana will be a cash flow machine for decades after they have consolidated their property rights in this trend. Note that Lenic has consolidated a good area around La Negra.

    • Rholl,

      Thanks for that info. Good stuff.

      I am a little confused about the open pit mining scenario.

      From the feasibility 1.4.2 - <<<An 18 month mine development schedule is envisaged, which will allow full production of ore from Blocks 2 and 3 by the time the process plant is commissioned. 50,000 tons of ore will be produced during this mine development and pre-production period, which will be stockpiled on surface adjacent to the process plant.>>>

      The open pit was not in the study so does this mean ore was still stockpiled in your opinion or deferred for the open pit?

      I was looking for for a 3D underground ore body, mining, drill holes, etc. but have not found one. I did find the SSRI study done by PAH:

      http://www.silverstandard.com/assets/pdfs/Shafter.pdf

      Much of it was incorporated in the Aurcana Feasibility but Figure 4.2 page 19 provides a alternate property owner map.

      I also found mention during core drilling of a "nugget effect". This could mean higher Ag content in the ore than cutoff allowed.
      Also mention of Ag lost during drilling due to water washing out silver particles. Again, could result in higher Ag production.

      Copper in underlying gravel further west which makes sense as that is directional to Red Hills and Tosca.

      Aurcana has the makings of one heck of a poly-metallic miner. How manly circuits can they put in the plant, lol.

    • The Shafter deposit justified the building of the new mill with rich ore.
      The old Presideo mine is being drilled to locate rich new ore deposits not previousely identified as evidenced by the latest drill results.
      The new open pit activity supplies low cost ore and traces of gold. Like La Negra we are probably going see a lot of none compliant ore used. Thats great because it is increasing mine life. It is nice that Aurcana can source ore from multiple locations.
      The old descriptions of the presideo mine and variouse other area mines mention lead and zinc as well as silver and traces of gold. As time goes by and Aurcana adds new circuits to the mill we will see more gold and base metal by products increasing revenues.

    • Rholl,

      I talked with Gary Lindsey in IR today. Found some interesting info.

      Evidently the silver they are pulling out of the pit, not the dump, is now averaging 36 oz. Repeat 36. They have been quite surprised by this turn of events. They are still averaging 11% gold per bar. Friday was the 5th pour.

      Per your post relating to Tosca:

      <<<"plus a “potential open-pit resource” of about 3 million ounces of silver averaging about 6oz Ag/ton (Rio Grande Mining Co., 1998a).">>>

      Mr. Lindsey said they now expect to have several years of mining material from the pit not included in the Shafter study.

      His direct number is 720-273-6224 fi you have any questions or wish to verify.

    • It is interesting that george said that the Dower bars were 10-11% gold.
      If a 100% pure metal bar is 100 ozs of silver then the bar would be worth about $2,800.
      If the 100 oz bar is 10% gold then you have 90 ozs of silver at $2,520 and 10 ozs of gold at about $16,000. Total $18,520.

      If they are actually getting these kinds of results, they are going to have to immediately drill and access this open pit resource.
      Hold onto your hats if these values are even half or one quarter of these values.

    • You have really found a great deal of good information for us small investors to use to make investing decisions.
      No wonder volume spicked after the weekend tour.
      I would guess that before long we will hear that they are going to speed up the through put capacity...maybe directly up to the 2,500 level.
      I love noncompliant ore. If that prior reference to 3 million ozs of silver in an open pit operation is near accurate the company will be able to concentrate on mine optimization and exploration not just mine production milestones.

    • <<<Gold Fields identified a silver “resource” at the Shafter silver deposit adjacent to the Presidio mine of 29.68 million ounces of silver with a grade of 7.6oz Ag/ton at a cutoff of 3oz Ag/ton
      plus a ****“potential open-pit resource” of about 3 million ounces of silver averaging about 6oz Ag/ton**** (Rio Grande Mining Co., 1998a).>>>

      <<<From the feasability report...
      "Drilling in 1998 by RGMC explored shallow mineralization immediately east of the Mina Grande Fault based on mineralization of surface outcrops."

      Table 12-1
      Aurcana Corporation - Shafter Silver Mine Exploration Drill Hole Summary
      Drill Hole Type, Number Of Holes, Total Footage, Number Of Samples

      Block Groups III, IV & V
      RG (RGMC surface holes) 89 6,208 783
      The 89 holes averaged 70 Feet deep.
      It appears that the 3 million silver ozs reference came from these drill results.
      This is all non compliant ore not in the Shafter resources and feasability report numbers.>>>

      I was thinking about those drill results, so I went back and saw the Gold Fields potential of 6oz average for 3M oz's of silver. My mind saw 60 not 6 because of the oz. 36 oz is a far cry from the the combined avg. of 2.2 recently pulled out. That just seems awfully high. But, the man said they were extremely excited about what was coming up out of the pit. 70 feet deep drill holes. They could not be below that yet. I wonder if he was talking about core section that averaged 36 oz while I was talking about the open pit? He mentioned something about pillars...being mixed in? Trying to remember. Does that make any sense?

      Regardless, he did confirm the gold was still there and like you say while non-compliant it still extends mine life. I think P&P is going to be a big upside surprise when all is said and done.

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