Aurcana Corporation

Website: www.aurcana.com
Primary ticker: TSXV:AUN, OTCQB:AUNFF
Stage of development: Development
Commodity: Silver
Project to promote: Ouray Silver
Project location: USA
Company presentation: Click here

Live financials

Cash: CAD$9M
Debt:
Nil

Major shareholders:
Lascaux – 46%
Peter Beck Performance – 3%
Palisade Gold – 3%
Phoenix – 3%
Management Ownership – 51%

Aurcana Corporation is a Vancouver-based company whose shares are listed for trading on the TSX Venture Exchange.
Aurcana acquired Ouray Silver Mines Inc. which owns the Revenue-Virginius polymetallic mine in Ouray, Colorado in December, 2018. A new mill was built in 2011 and the mine was last operated in 2015 before being placed on care and maintenance. Since 2015 more than $20 million has been invested in technical work on the asset. In June 2018 and updated feasibility study was completed and the mine is fully permitted for immediate production. Aurcana is now focused on securing the required financing to put the Revenue-Virginius mine back into production.
Aurcana also owns the Shafter silver project, located in Presidio County, southwest Texas. The Shafter project was advanced and substantially built prior to being placed on care and maintenance in December 2013. In September 2018, the Company also revised the Preliminary Economic Assessment for Shafter and the project is fully permitted.

Management Profile

Kevin Drover – President & CEO

Mr. Drover has more than 40 years of both domestic and international experience in operations, project development, management and process re-engineering, with both developing and producing companies.

Mr. Drover was the Chief Operating Officer of Glencairn Gold Corporation, responsible for two gold mining operations located in Latin America. Prior to joining Glencairn, he was the Vice President of Operations for Kinross Gold Corporation, overseeing six operating mines located in various parts of the World. He has considerable experience in turning around challenging projects and has worked in operations located in Canada, Russia, Peru, Nicaragua, Costa Rica and the USA.

During his career, Mr. Drover also worked for Oracle Mining, Black Hawk Mining, Lac Minerals, BP Canada Resources, Noranda Mining, Dome Mines and The Iron Ore Company of Canada.


What is your rationale for attending 121 Mining Investment?

Market Support – as we move into production late Q4 2020 early Q1 2021


What recent news would you like to highlight to investors attending?

Raised over $12m USD recently in equity. Finalizing $25-30 million debt as we prepare to go into production late 2020 or early 2021


What are your key goals for the next 3, 6 and 12 months?

3 Months:
Finalize debt facility, continue mine development

6 Months:

pre-production and finalize mine development, upgrade mill

12 Months:
stabilize production


What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

prepping for production


What do you think makes your company such a compelling investment?

2 properties fully permitted, both with mills that operated for about a year. Colorado and Texas properties

Analyst Insight – provided by Independent Investment Research

Aurcana Corporation is a TSX-V-listed company that is focused on silver production in the USA.

Aurcana acquired Ouray Silver Mines, which owns the Revenue-Virginius polymetallic mine in Ouray, Colorado during December, 2018. A new mill was built in 2011 and the mine was last operated in 2015 before being placed on care-and-maintenance. Since 2015 more than $20 million has been invested in technical work on the asset. During June 2018, an updated feasibility study was completed and the mine is fully permitted for immediate production. Aurcana is now focused on securing the required financing to put the Revenue-Virginius mine back into production.

At the end of the third quarter 2019, all preparatory and rehabilitation work on the 7,600 ft Revenue Tunnel was completed, including the replacement and upgrades of rail sidings, track and switches. In addition, Aurcana is initiating the planned vertical development to access the 1500 level in the Monagnahela area of the mine. Once the vertical access is completed, it will be in a position to sample and assay along the 1500 level in conjunction with the planned lateral development.

Aurcana expects its sample and assay program will provide information that may allow resources that are currently classified as inferred to be converted to a minimum category of indicated, thereby also allowing conversion of these resources to reserves after a review of the economics of the mine plan. The current mine plan is based on the 2018 feasibility study prepared in accordance with National Instrument NI 43-101 – Standards of Disclosure for Mineral Projects, demonstrating an economic restart of the RV Mine. The FS mine plan directly passes by the potential stopes on the 1500 level. Ultimately, the company believes the resource conversion of the 1500 level – if successful – has the potential to materially increase mine life with a commensurate uplift in net asset value.

Aurcana also owns the Shafter silver project, located in Presidio County, southwest Texas. The Shafter project was advanced and substantially built prior to being placed on care and maintenance during December 2013. In September 2018, the company also revised the Preliminary Economic Assessment for Shafter and the project is fully permitted.