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Aurcana Corporation Message Board

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  • rholl49oswego rholl49oswego Sep 24, 2012 12:00 PM Flag

    Valuation for Aurcanna

    Looks like some smart money decided to get in ahead of more good news.
    That 7 billion market value for metal resources is nicely over 8 billion now.
    Once Shafter starts commercial production...cash flow will rapidly go to expanding La Negra production towards 10,000 production level. Additions of resources on the NW trend and potentially on the new block just below La Negra should add a few more years of mine life. (well into the 2030s)
    Shafter should also add significantly to reserves if it pursues an agressive program of acquisition of surrounding properties.
    As we in America enter Oboma-topia with its fiat money and hyper-inflation over the next few years....the piggy bank just grows and grows.

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    • In a note to clients, Post reckoned a resource for these would be out in the first quarter 2013.

      If Aurcana - busy ramping up its Shafter silver mine in Texas - wasn't yet laying down new mining plans at La Negra, the implication of a 27 million tonne resource with 115 million ounces silver was clear. Assuming Aurcana mines all or most of the ounces at the current 2,500 tonnes per day, it could run La Negra for some 30-odd years.
      More probable though, as Rodriguez intimated, Aurcana will at some point expand La Negra to take advantage of the added resources. Post, at Roth Capital Partners, expected Aurcana would turn the focus back on La Negra in 2013 with an eye to expansion after it brings the Shafter mine to production."

      Is there a potential pattern emerging here?:

      1. LN mill expansion to 2500 tpd.
      a. LN exploration drilling during expansion.

      2. Shafter mine development during LN expansion and resource confirmation.
      a. Shafter exploration drilling providing zinc, lead, and gold findings. Seeking heat source.

      3. LN exploration results released.
      a. Shafter mine startup to commercial production.

      4. LN expansion to 3,000 tpd commenced..
      ***a. Potential Shafter exploration drilling results released***

      5. ***LN expansion to 3,000 tpd completed.***
      ***a. Shafter exploration drilling results released.***

      6. ***Shafter mining facility to be increased to 2500 tpd.***
      ***a.LN recently purchased land exploration results released.***

      7. ***LN expansion to 5,000 tpd commenced.***
      ***a. Shafter mining facility increase completed.***

      *** = speculation

      Possible ping pong mining strategy between LN and Shafter providing increased Ag production and resource increase. If anything it would increase IR news releases to twice a year.

      Sentiment: Strong Buy

      • 1 Reply to tranthor2004
      • Hi Tran
        I am expecting the Shafter mine to commence commercial production this month. I expect that by the end of the year they will be able to build up to the 3.8 million ozs annual rate. Once that cash flow starts...Aurcana can self finance a rapid growth profile at La Negra and Shafter.
        Aurcana will purchase surrounding blocks at La Negra and the Shafter area with an increasingly valuable stock as surrounding block owners seek to ride the rising star. These acquisitions will increase resources and drive continued stock appreciation.
        Lenic has put in place a foundation for a very successful mining company.

 
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