Aurcana Silver Corp V.AUN.H

Talked to Ron Nichols

[Banman17]

I managed to get through to Ron Nichols today and he briefed me on the direction of things briefly.  Next NR will be on the 43-101 scoping study which will detail the capital cost outlay required for starting up the Shafter mine, and should be out by the start of '09.  This report is quite detailed as you can imagine, and will therefore take quite a bit of time to nail down all the details.  Also the tailing dam permitting is underway and will take some time still since the design still has to be completed.  They're also talking about putting in a horizontal shaft down to the ore bodies which is larger, and as they do that, they will be intersecting mineable ore bodies above the water table.  This means that they will possible be able to have cash flow before the de-watering is done in the lower part of the mine by mining those ore bodies  first.  So overall, progress is going along well and they are hoping to have Shafter up and running just as the prices for silver start to turn around and be able to take full advantage of the silver upside move in the near future, and for years to come.  I also got through to Ken Booth, and asked him is he was taking any action in opposition to the naked shorts and he said he discussed this already with Jack Barnes. They didn't see any direct benefits of pursuing things now, and also not knowing how much cost was involved, if it would be worth pursuing.  I did send him the link to the cbc special "Who's Guarding Your Money" and he said he'd forward it to the company's lawyers, but he didn't look into joining the Chamber of Mines outlined by Jim Sinclair.  I wish he would pursue that line of action also, but with the other problems of keeping the company afloat in this environment, I'm sure his hands are full right now as it is.  Overall, the outlook stil appears positive though.