Aurcana Silver Corp V.AUN.H

Shafter avg grades 8.5 oz / ton ?

[art27]

I was thinking. I made some calculations and came up with this:

From their website it states:

The Resource
24.6 million oz @ 8.48 oz per ton -- Measured and Indicated
22.8 million oz @ 10.52 oz per ton -- Inferred

The Production
Start up at 3.2 million oz per year (in year one)
Average silver production 2.6mil oz per year
Over ten year mine life

Currently at La Negra they have a cash cost of $35 per ton if I am correct.
They plan to run Shafter at 1000 tpd for starters

If you take, say 8oz per ton grades thats 8,000 oz of silver produced daily at 1000 tpd correct ?
Lets say when shafter starts silver prices stay at $15 and their cost is around $40 per ton.

Therefore 1 ton at 8oz ag *$15 oz = $120 - $40 cash cost they should be making $80 per ton

If you multiply $80 * 1000 tons = $80,000 per day

and if you multiply that by, say, 350 days (lets take 15 days off for holidays etc.) you get $28,000,000 cash flow per year

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Lets say silver stays at $10.

8oz * $10 = $80 - cash cost $40 = $40 per ton

* 1000 tpd = $40,000 per day

* 350 days = $14,000,000 per year cash flow with silver at $10

So even if silver stays at $10,  $14mil cash flow per year on shafter alone is not that bad. If they increase mill capacity to 1500 tpd and silver goes above $15 those numbers will be much higher. It makes me think $0.08 for AUN is really cheap for what future holds! If silver turns around, Aurcana could easily be making $50mil to $60mil cash flow per year. Any comments ? I think I'll add some more on monday at $0.085. Sooner or later fundamentals will take over fear and people will see Aurcana in different light.

Art27