Revised questions also sent to Aurcana........__________
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../ From the Aurcana Interactive Web Site
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S E N D A M E S S A G E
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TO: Aurcana Administrator
cc:
Reference Number: J0B.40P.Y90.QVG
Date: Sun Oct 21, 2007 at 7:04:51 AM Pacific Time
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FROM: Name [ ]
Company [ Revised II: Questions for Aurcana (Ken and Ron) ]
Email [
via:
with: ADNET Primary Server Grid
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Messages, Questions and Comments:
:
: Questions for Aurcana (Ken and Ron)...
:
: Dear Aurcana,
:
: Please find below the questions I plan to ask Aurcana
: executives when I attend the Toronto Resource Investment
: Conference this weekend.
:
: These questions have been put together and are endorsed by
: some members of the Aurcana Stockhouse and Agoracom
: forums, whom collectively hold more than several million
: shares.
:
: Questions:
:
: 1. Why was production in the most recent quarter only 60%
: of the forecasted 440 tonnes/week? Your production was
: 270t X 12 weeks = 3240 tonnes of concentrate, when it
: should have been 440t X 12 weeks = 5280 tonnes of
: concentrate. Was this due to reduced grades, lower than
: expected recovery rates, or reduced (less than 1000tpd)
: throughput in processing?? Are you actually processing at
: 1000tpd, and if so, since when?
:
: 1a. There is widespread confusion concerning the
: concentrate(s). Please supply your investors with a full
: breakdown for the quarter including tonnage mined and
: concentrates produced including the average metal contents
: for each (please see last page attachment for an example).
: Has pay been received for all or a part of the
: concentrates shipped? How much?
:
: 2. If the lower than projected production of concentrate
: was only temporary (due possibly such things as processing
: lower grade material), then why is the forecasted annual
: cashflow only $20 million ($.21/sh)? You report that your
: costs are inline with projections, and steps are being
: taken to lower them further, so based on your forecasted
: concentrate production of 440 tonnes/week, should your
: annual cashflow not be closer to double what you are
: forecasting, i.e., 35-40 million?? The bottom line is that
: 20 million projected annual cash flow is much lower than
: expected and is disappointing. Can you provide updated
: figures for your rock value/tonne and you production
: cost/tonne?
:
: 3. What net impact does the rising Canadian dollar have on
: your bottom line, and how are you planning to take
: advantage of your resulting increased purchasing power?
: Will you accelerate plans to acquire other properties?
:
: 4. Do you have any professional Canadian or American
: mining engineers on staff, or on the board, and if so why
: not? You are now a mining company with producing mines,
: and with all due respect, geologists should not be running
: mining and processing operations. Do you not think that,
: at minimum, an audit of your mining, processing, and
: maintenance methods by a Canadian mining engineer with 20+
: years experience with similar types of operation is in
: order? It is often the case that significant improvements
: in operations efficiency can be found in these areas by
: highly experienced 'outside' mine engineers/managers.
:
: 5. It is my opinion that there has been serious disregard
: for maintaining shareholder value through the promotion of
: the company and its operations to the appropriate
: investment/analyst community (Bay St. fund managers,
: etc.). The addition of Jack Barnes to manage investor
: relations, and your attendance at this conference, are
: certainly steps in the right direction, but how do your
: respond to these concerns, and what actions, specifically,
: do you plan to undertake to correct this serious
: deficiency/oversight and repair the serious damage that
: has been done to shareholder value? Furthermore, when will
: be there analyst coverage of Aurcana, and when will there
: be an organized analyst tour of operations in Mexico?
:
: 6. When will be you finalizing an agreement with Agoracom
: for their services, to supplement and/or compliment the IR
: operations of Aurcana Management. Agoracom will conduct
: and post interviews with company executives, spam
: Blackberry s, Yahoo Finance and other news media with your
: news releases, thereby exposing the company to a much
: broader 'audience' than it currently retains. Agoracom
: will also manage a monitored investors forum as part of
: the Aurcana hub that it would create, which be a one-stop
: location for all company news, interviews, and other
: company information. I know you have received their
: proposal and are aware of the services they can provide,
: so when will you be acting on it?
:
: 7. Finally, when will the first 43-101 compliant
: resource/reserve be completed and made public? This is
: desperately long overdue and Aurcana, in terms of its
: market capitalization, has been a slowly sinking ship
: without it.
:
: Sincerely,
: