RE: 5CADHi everybody,
this is my first post on the AUN board.Here is the update on AUN. Sorry it's a bit long
good luck everyone
mystiqe
Aurcana
(AUN-TSXV)
Aurcana has secured an option to acquire a 100% interest in a second past-producing Mexican mining operation. This dealwould add to Aurcana’s 80%-owned LaNegra mine, which is close to re-starting
production. Mining is underway at La Negra,with the re-furbished mill close to commencing commercial production. That
mine will produce zinc, lead and copper.The present deal would add silver to the mix.
The junior has an option on the past producing Rosario silver-zinc-lead-gold mine,located in Sinaloa state, Mexico. The seller
is Grupo Mexico, one of Mexico’s largest mining companies.
The property has substantial “reserves” as reported by Grupo Mexico in 2000.
(Aurcana will have to validate those figures to bring them into compliance with present standards.) The figures, as reported,would be potentially adequate for several years of production. In addition to the reserves as reported by the major, Aurcana
sees considerable exploration potential,and that is the driving force in the acquisition.The Rosario mine produced from 1986 to
2000 at an average rate of 600 tonnes per day, yielding a total of 2.5 million tonnes of ore averaging 190.5 grams per tonne
silver, 2.02 per cent zinc, 2.38 per cent lead and 0.92 g/t gold.
The deal would include all of the facilities,including surface rights, underground workings, water, power, offices, shops,
warehouses, met lab, mill infrastructure and a town site.
The purchase price is $3-million, payable as to $250,000 upon signing with the remaining $2.75-million payable over two
years.
We enjoyed a spectacular gain when Aurcana made its first acquisition. If this deal proceeds, it should add further value. In
any event, the official launch of commercial production at La Negra should enhance the value of the company.