Aurcana Starts Producing Silver - CEO Kevin Drover Tickers - OTCQX: AUNFF - TSX.V: AUN
For the first time in ages, a new American silver mine has started producing silver. It's been a challenge, but they've beaten the odds. Drover expects positive cash flow starting in October. Initial expectations are for approximately 270 tons per day of rock going through the mill and then rising soon to 500 tons per day. Due to inflation, cost per ounce is somewhat above the original estimate of $8, however the initial ore grades are coming in much higher than expected. If it continues this way, annual mine production and profit could increase substantially.
Getting the Texas based Shafter mine into production is next on Drover's list. When all is said and done, Aurcana could eventually be producing 8-9 million silver ounces per year, which would put it firmly in the mid-tier producer camp. He's also exploring a nearby acquisition candidate that includes another 500 ton per day mill. It's just a short distance from the now producing Revenue Virginius mine.
The company has made the transition to silver production. Now it's a matter of leveraging its current position to make sound acquisitions and to get the Shafter mine working. Aurcana's future has never looked brighter.
Coincidentally <g>, CEO Kevin Drover purchased $50K of Aurcana stock last week. Given he has greater clarity regarding the near term and longer term, that spells greater confidence in my investment in Aurcana.