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Gold/Mining/Energy : Aurcana Corporation - AUN.V -- Ignore unavailable to you. Want to Upgrade?

To: Sultan who wrote (48)	8/30/2012 3:01:19 PM
From: basserdan	Respond to of 300

Stonecap Securities boosts price target for Aurcana following La Negra resource update by Deborah Sterescu Wed 9:21 am, 2012 Stonecap today maintained its "outperform" rating on Aurcana, and increased its price target to $1.50 from $1.20 previously Stonecap Securities has raised its price target on Aurcana Resources (CVE:AUN; OTC:AUNFF) by 25 per cent Wednesday, a day after the miner announced an increased resource for its La Negra mine in Mexico. The updated NI 43-101 compliant resource consists of around 27 million tonnes in the measured and indicated categories, a "massive increase" over the 1.3 million tonnes from the previous estimate, and the 6.6 million tonnes that Stonecap was previously modeling, the capital markets firm said. The new resource, which follows the successful expansion of milling capacity to 2,500 tonnes per day at La Negra, lifted Stonecap's modeled mine life to 20 years from 7 years. Stonecap today maintained its "outperform" rating on Aurcana, and increased its price target to $1.50 from $1.20 previously. "Assuming no throughput expansion beyond 2,500 tonnes per day, the 27 million tonne resource could feed the mill for around 30 years, however we only model out to 2032 due to the diminishing NPV [net present value] arising from discounting beyond that time," Stonecap's analyst Christos Doulis said in his report. As a result of the increase in mine-life at La Negra, Stonecap has doubled its net asset value for the mine to $440 million, or 90 cents a share, from $218 million, or 45 cents a share. "With a theoretical mine-life now in excess of 30 years Aurcana can begin evaluating options to potentially increase throughput beyond 2,500 tpd at La Negra," said Doulis. (bolded for emphasis) Contained silver ounces in the measured and indicated categories increased to 115 million from 7.5 million, while silver grade was higher at 131 grams per tonne (g/t) from 105 g/t silver previously. The La Negra mine was discovered and developed by Industriales Peñoles S.A. de C.V. The mine started production in 1970 and produced until the mine was put on care and maintenance in 2000. In 2006, a joint venture between Aurcana Corporation and Reyna Mining & Engineering S.A. de C.V. acquired the property from Peñoles, and placed it into production in June, 2007 at a rate of 1,500 tonnes per day. In 2011, Aurcana increased its interest to 99.86 per cent. Aurcana is a silver-focused mining and mineral exploration company with a producing operation at the La Negra Mine in Queretaro State, Mexico and the Shafter Mine in Presidio County, Texas. The company's share price closed Tuesday at $1.05 and its stock is up almost 11 per cent in the last three months. http://www.proactiveinvestors.com/companies/news/33983/stonecap-securities-boosts-price-target-for-aurcana-following-la-negra-resource-update-33983.html Dan