Base metals better fly I own MMGG and POM. <g>
Here is good news on one I do not own but seems to be the least expensive by far of the Mexican silver producers:
Aurcana starts mining at La Negra
2006-10-10 16:13 ET - News Release
Mr. Ken Booth reports
AURCANA CORPORATION: MINING COMMENCES AT LA NEGRA
Aurcana Corp. has commenced mining at the La Negra mine, Mexico. Approximately 1,350 tonnes of ore was extracted from an area consisting of nine production drill holes with historically reported grades of 230 grams per tonne silver, 0.91 per cent zinc, 2.1 per cent copper and 0.78 per cent lead in a bench on the fully developed 2,125 sublevel in the Alacran zone. Historically reported proven reserves in the Alacran zone grade 131 grams per tonne silver, 1.31 per cent zinc, 1.39 per cent copper and 0.45 per cent lead. The reader should be cautioned that the historic reserve does not conform to National Instrument 43-101 requirements for reporting purposes; as such the company is not treating these historic estimates as current reserves or resources. These estimates should not be relied upon until they have been verified by further due diligence and by the company's qualified person.
The commencement of mining at La Negra is a significant milestone as the company prepares to bring the La Negra mine into full production in the first quarter of 2007. The ore mined by Aurcana will be added to an existing stockpile that, with the continuation of mining over the next two to three months, is expected to reach 50,000 tonnes to 60,000 tonnes by the end of this year. The stockpile will be used to restart the mill allowing it to ramp up to the planned capacity of 1,000 tonnes of ore per day. The reader should be cautioned the company has not completed a feasibility study confirming the projected production capacity and there is no certainty the company's plans will be economically viable.
Aurcana will continue to mine the Alacran orebody (one of 23 existing mineralized zones), which Industrias Penoles S.A. de C.V. had fully developed. This zone includes full access ramps from the 1,980 level to the 2,150 level, and the development and preparation of several of these sublevels for immediate blasting. The advantage of this previous work will allow for easy access and relatively low-cost mining using sublevel stopping.
Refurbishment of the mill, based on a total re-engineering plan is progressing well. Both the primary and tertiary crushers have been repaired, including a new grizzly and apron feeder at the primary crusher and a new liner in the tertiary crusher. The ball mill was inspected and found to be in good condition and is ready to operate. Steelwork has been completed to allow for higher capacity conveyors as well as new conditioners, flotation cells, thickeners and filters for more efficient recoveries of silver, copper, lead and zinc. Steel has also been ordered for new larger thickener tanks for both copper and zinc. All the work on the mill is being done to provide for an efficient planned start-up in the first quarter of 2007.
Geologists at the mine are making good progress inputting historical data into Surpac mining software. To date, 423 holes representing 40,050 metres of diamond drilling with 8,225 assays have been entered into the program. This information is providing the geologists and engineers at site with a very powerful database to be used for mine planning and exploration. In addition, geologists have identified several prospective exploration targets in the mine area, which are currently being mapped and sampled.
Ron Nichols, PEng, is the company's qualified person who has reviewed the contents of this news release.
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