UC silver .50 my one green today on the following NR, might be a good speculative silver entry junior-thye bought a mill, so are planing production. I like these kind of stocks.
UC Resources Ltd (C-UC) - News Release
UC agrees to buy Minera Silver Creek from Canmex
2006-04-20 10:49 ET - News Release
Shares issued 47,819,029
UC Close 2006-04-19 C$ 0.495
Mr. Richard Hamelin reports
UC RESOURCES LTD. ANNOUNCES LETTER OF INTENT TO PURCHASE MINERA SILVER CREEK S.A. DE C.V., CONSISTING OF HIGH YIELD TAILINGS, MINES, AND MILLING FACILITY
UC Resources Ltd. has signed a letter of intent to purchase all of the outstanding shares of Minera Silver Creek S.A. de C.V., a company incorporated under the laws of Mexico, from Canmex Capital Corp. The principal asset of Minera Silver Creek is the La Yesca mining project located near the town of La Yesca, in the state of Nayarit, and is located approximately two hundred kilometres west of Guadalajara, Mexico.
The project consists of a 600-hectare mining concession which includes two previous producing mines. The project also includes a modern milling facility capable of milling 200 tonnes per day of feed. Approximately 200,000 tonnes of tailings are available to process immediately, with the tailings containing good grades of both gold and silver.
The acquisition will be paid for in both cash and shares. The details regarding the terms and cost of the acquisition will be released once the final purchase contract has been finalized.
The company has spent much time on due diligence since it began negotiations three months ago in January, 2006, and part of the DD included the processing of a large bulk sample, which yielded high recoveries for both the gold and silver components contained in the tailings, using a copper thio sulphate extraction process.
The mill will be upgraded and slightly modified to add significantly higher recovery rates principally for the extraction of silver, and the expected start-up time for the mill will be approximately three to four months. Production will originally be derived from the existing tailings, and will be followed by ore that will be processed from existing stockpiles. An assessment as to the size of the stockpiles is currently under way. Work on the existing mines will begin immediately, with the start of a drilling program in September, with the objective of mining in the first quarter of 2007. The company will issue progress reports in a timely manner, and as work progresses.
States Richard J. Hamelin, president and chief executive officer of UC Resources: "This acquisition represents significant upside for our investors in that there is considerable exploration potential along with a quick to production element that will see us generating cash flow within the near future. La Yesca represents the type of acquisition that UC Resources is focused on in Mexico. The company will continue to search for additional quality assets that will allow it to fast-track its growth in Mexico."
Completion of the due diligence is currently under way, beginning the week of April 17, and is under the direction of Jim Burns, a qualified person under the meaning of National Instrument 43-101, who is currently on the site.
UC Resources has made several significant corporate achievements of recent and is currently under way on phase 2 of the exploration program on its 100-per-cent interest in the 19,269-hectare (192-square-kilometre) historically productive gold and silver Copalquin project. The Copalquin mining district is located in the northwest corner of the state of Durango, Mexico, and is centrally positioned within Mexico's prolific Sierra Madre mining belt. Copalquin, the company's flagship property, has returned both high-grade gold and silver results from recent drilling in phase 1 exploration program in early 2005.
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