Aurcana Silver Corp (fka AUNFF)

[basserdan]

Aurcana: A Billion Dollar Valuation for La Negra

By Christopher Wood
Saturday, 10 November 2012

Summary

Based on a plan of increasing grades a the La Negra mine and by analysing projected earnings that could result, we ascribe a value of $2.14/share to Aurcana based on the La Negra mine alone; read on if you are interested to see how we arrived at that number.


Review

In our last post, we presented one possible option for increasing production at the La Negra mine. It is simple plan: increase grades by mining the Negra ore body instead of the lower grade ore bodies currently being mined. Currently, Aurcana is mining ore that grades ~80g/t. If instead they were to mine the Negra ore body, it would provide ore grading 169g/t. At a processing rate of 3000 tonnes/day (which the mill will be capable of in Q1-2013), the Negra ore body has enough high-grade ounces to feed the mill for 10-15 years. We showed that if this plan is implemented, La Negra could produce the following on an annual basis.

Continued at:

http://www.investmentrevaluationcatalyst.com/2012/11/aurcana-billion-dollar-valuation-for-la.html