The La Negra mine looks to have excellent reserve growth potential with the Valenciana ore body and the recent purchase of a block just to the immediate south of the mine.
Shafter has the potential of adding reserves .
The large copper/Moly deposit owned by Tosca (TSMNF) next door to Shafter seems to have, similarities to Mag's (MVG) Cinco de Mayo prospect about 50 miles away due west. There a large Moly/Gold ore body (Poso Seco) has rich CRD deposits in close proximity. Tosca's properties and other blocks boarding Shafter may very well have similar deposits. Shafter's deposit looks like such a system at a distance from it's feeder zone.
Aurcana's growth prospects around Shafter would be greatly enhanced if they gained control of these boarding properties. Tosca's Market value is only several million... and may be the key to exploration potential in the area just south of the caldera just to the north.
Modern ground geophysics over the mine area is expected to aid in defining the strike and dip extensions of the mineralized zones and their potential structural controls. Historic CSAMT and IP surveys in the early 1980's identified anomalies that appear to correlate well with the location of the known mineralization at the Presidio and Shafter deposits. Additional anomalous responses were also detected that have not been followed up.
Aurcana has engaged Zonge International Inc. to conduct an orientation NSAMT (Natural Source Audio-frequency Magnetotellurics) survey over the Presidio and Shafter deposit area. Initial interpretations are expected next week. The resulting information will assist in developing a comprehensive, focused, drill program.
I had been questioning whether Lenic would engage with such a program using a little bit more modern tech that might narrow the search for drilling. So, I went back to the budget exploration release and had forgotten about this. They were expecting results within a week back in March. Six-seven months have passed.
Looking at the latest corporate presentation of Sept. 2012 and the Shafter exploration opps map on page 25, do you recall if the anomalous alterations had been there previously under the "untested geophysical targets"? I think they were previously there. If not, perhaps this is the result of the Zonge survey? Either way perhaps these were the follow up areas in question.
An additional note.
Presideo/Shafter seems to be more pure silver than the other regional drill results. May have a separate feeder system some distance from the sources for the other occurances in the area
Yes.Lots of potential near Presideo/ Shafter
In prior communications they have indicated that Shafter is still open to the east.
The western anonalies at the western end of the Presideo mine and north are interesting.
Note that these roughly line up with the series of old small mines (silver, lead, zinc and some gold) within a mile or so to the west.
Those old mines are on the Montezuma and Livington blocks west and northwest. Widely spaced drilling from prior owners have shown silver, lead, zinc, and gold. Gliem drill holes also showed these metals present.
I think that Lenic is waiting for Shafter to enter commercial production and will then launch a major series of acquisitions (with a rising stock price)and exploration effort in the whole area.
Cash flow from operations was 5.6 million in the 2nd qrt. Silver probably averaged a $2 increase from the 28 average price(2nd qrt) in the third quarter. This quarter...33 to 35 may be a conservative estimate for average prices. Just on La Negra's 600,000 production of silver equivalent... a $5 increase is a $3 million increase.
Once Shafter starts commercial production (3.8 million ozs annually...1 million quarterly) cash flow from operations should move from the 8 Million level quarterly to over 25 million per quarter.
Exploration/mill expansion and acquisition strategy will bloom during 2013.