TSXV:AUN.H - Post by User
Post by
bot_feederon Sep 13, 2010 12:33pm
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Post# 17441270
back in for a bit
back in for a bitI think I owned some of this two or three years ago.
With silver strong and potential set for a rocket ride, I figured it was time to revisit my old "cheap silver" plays and see if any look good.
Aurcana looks pretty good to me. I like the high grade of the Shafter deposit. Moderate sized silver or gold deposits can be iffy, you can be eaten alive by capital costs without being able to "make it up in volume" in the future. But the fact that we are talking about an existing mine where the projected capital cost to production is quite modest, it seems like a promising mine.
I know that starting up new mines can be a nightmare. Still, there aren't many low-priced silver plays out there anymore. My main one is Genco. I took profits on Minco but thinking that may have been premature. Aurcana seems like a good low-cost silver play that is worth putting a few bucks in.
If it were a pure exploration play at a low cost per ounce I would be a lot more attracted. Sabina Silver was such a company and they have gone from a low of the 0.3x range to over $4.00.
But the horse is out of the barn on that one and I really don't know any remaining pure exploration dirt cheap silver plays. So, if silver is at the beginning of a golden age then it would seem the best opportunity out there right now are the good values in the smaller producers, companies like Aurcana.