Aurcana Silver Corp V.AUN.H

Current reserves not good basis ?

[andre171]

I believe that the current reserves do not constitute a good basis for assessment because it is an underground mine without the possibility of drilling and exploring from the surface. From then on, exploration will continue as the underground develops. On the other hand, it would be unreasonable to incur exploration costs for an area too early before its exploitation. They have historical drilling on the whole (which they cannot include in current calculations), but current estimates are only based on the 400 meters of vein. Therefore, it seems difficult to me to evaluate Aurcana on the basis of its resources. It would be unwise to assume future exploration results, but it would also be inappropriate to consider only current resources (which would only cover the estimated production of 4 or 5 years). I have a feeling that the resources should have been constantly at the current level over the years!

[Lifexprt]

It's a 6.5 year mine life as per initial assessment. Alimak lift completion will allow for further exploration all the way from level 2000 to level 1200. As of now the grades are much higher than anticipated on average 83% higher than feasibility plan. We can estimate the mine will produce almost twice as many ounces as planned. You are seeing grades in excess of 1000 grams per tonne (even

[andre171]

Almost double for the same tonnage of rocks (as long as the concentration is constant). But, in addition as I describe it, the exploitable volume will be constantly renewed (or at least for twenty years, it seems)!

[Lifexprt]

Well it's a rescue mining method. Start at the bottom and cover exploited areas with waste. Now once they can get more men down there in timely manner they will explore horizontally and there is a good chance those veins extend further than initial estimates