The Richmond Club

Mining

Aurcana hits the ground running
in 2020

By Galit Solomon and Annemarie Brissenden for The Richmond Report

March 24, 2020

4 min. read

Here's what you need to know

  • The Revenue-Virginius Mine is production ready – Aurcana owns 100% of the mine. It is a past-producing silver-gold-lead-zinc mine with a strong social license and it is fully permitted and ready to produce.
  • A 2018 study shows the mine is expected to be profitable – The NI 43-101 Feasibility Study shows reserves of 21.2 million ounces of silver equivalent at 36.9 oz/short ton, and all-in sustaining cost of U.S. $8/oz silver after by-product credits over the life of mine.
  • The Revenue-Virginius current mine life stands at 6.5 years – This number is based on only one third of one vein out of five.
  • Aurcana also owns the Shafter Mine in Texas – This mine is on care and maintenance, with a PEA that also has significant blue sky potential.

Vancouver-based Aurcana Corporation (Aurcana) hit the ground running in 2020. The mining company owns two fully-permitted primary assets – the production-ready Revenue-Virginius Mine outside Ouray, Colorado, and the Shafter Mine in Texas. “Revenue-Virginius is our flagship mine,” says Kevin Drover, Aurcana’s President and CEO. “It is a production-ready sliver, gold, led, zinc operation.”

The mine has a bankable feasibility study that was completed in July 2018. “The study shows 37 grams per ton hit grade fee to the mill all in sustaining cost of $8 per ton on a by-product credit to cost basis.” At this time, Revenue-Virginius has six and a half years of mine life with reserves on approximately three of the five primary veins. “The cleanest, highest-grade, primary vein is the Virginius vein. This is where we intend to begin production.”

“With silver prices trending above $17 ounce, companies that can produce high grade silver at a low, all-in-sustaining cost have an opportunity to create significant value for shareholders.”
Greg Beckett, Senior Analyst and Chartered Investment Manager for the Richmond Club

We’ve raised the equity portion of the pre-production capital

This is also the reason why, says Drover, there is no better time than the present for investors to get in on Aurcana’s stock. “We’ve recently hired a number of people and we’re starting  development on the mine. We’ve raised the equity portion of the pre-production capital. We are now looking for the debt component.”

The mine ran continuously from 1876 to 1912 and during that time it was always profitable. “We believe there is significant potential to add to our resource and to replace the metals that we mine, as we mine.”

Drover has been working on the operations side of mining for nearly 50 years.

Drover has been working on the operations side of mining for nearly 50 years. “I’ve worked with companies such as BP and Kinross Gold. The Revenue-Virginius mine is a truly intriguing asset. I had looked at a large number of different assets around the world over a period of time to bring into Aurcana and this is by far the best I had seen.”

In addition to the Revenue-Virginius Mine, Aurcana also own the Shafter mine in Texas. “It’s currently on care and maintenance. It’s PEA level. Plus, it has a 1500 ton a day processing facility,” adds Drover.

“With silver prices trending above $17 ounce, companies that can produce high grade silver at a low, all-in-sustaining cost have an opportunity to create significant value for shareholders,” says Greg Beckett, Senior Analyst and Chartered Investment Manager for the Richmond Club, who picks stocks for the Richmond Club Index. The index has averaged a return of 20.4% per year over the last 15 years.

 

Beckett’s reasons for investing in Aurcana:

  • The Revenue-Virginius Mine is production ready – Aurcana owns 100% of the mine. It is a past-producing silver-gold-lead-zinc mine with a strong social license and it is fully permitted and ready to produce.
  • A 2018 study shows the mine is expected to be profitable – The NI 43-101 Feasibility Study shows reserves of 21.2 million ounces of silver equivalent at 36.9 oz/short ton, and all-in sustaining cost of U.S. $8/oz silver after by-product credits over the life of mine.
  • The Revenue-Virginius current mine life stands at 6.5 years – This number is based on only one third of one vein out of five.
  • Aurcana also owns the Shafter Mine in Texas – This mine is on care and maintenance, with a PEA that also has significant blue sky potential.

Contact Gary Lindsey, Director Of Investor Relations, Aurcana Corp.

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