Aurcana to Join GDXJ Index; Grants Stock Options
MarketwirePress Release: Aurcana Corporation – 9 hours ago



finance.yahoo.com/news/aurcana-join-gdxj...rants-132000691.html



VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 11, 2012) - Aurcana Corporation ("Aurcana" or the "Company") (AUN.V)(AUNFF)(AUNFF) has granted options (the "Options) to purchase 6,325,000 common shares to various Directors, Officers, Employees and Consultants of the Company, exercisable for up to a period one to five years at a price of $1.02 per common in accordance with the policies of the TSX Venture Exchange (the "Exchange") (the "Options"). Certain Options are subject to vesting provisions over 12 and 24 month periods.

The Options have been granted in accordance with the terms of the Company's Fixed Number Option Plan approved by the Directors of the Company on June 29, 2011 and accepted by the Exchange on August 9, 2011.

The Company further advises S&P and Market Vectors have announced the addition of Aurcana to the GDXJ Index effective June 15, 2012.

Corporate

The Company's shares are now also traded in the United States on OTCQX under the symbol "AUNFF". Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.

About Aurcana Corporation:

Aurcana has forecasted its Shafter Silver Mine to produce 3.8 million ounces of silver in the first full 12 months of operation. It has an NI 43-101 Measured and Indicated Resource of 24.6 million ounces of silver and an Inferred Resource of 22.8 million ounces of silver using a 4.0 ounce per ton cut off. The 99.9% owned La Negra silver-lead-zinc-copper mine produced over 1 million ounces of contained silver in 2011 and 287,486 ounces for Q1 2012.The reader should be cautioned that the Company has not completed a feasibility study to confirm the projected production capacity for La Negra and there is no certainty the Company's plans will be economically viable.

ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION

Lenic Rodriguez, President & CEO

NR-12-11

This news release contains certain forward-looking statements, including statements regarding forecast silver production, silver grades, recoveries, potential mineralization, exploration result, future plans and objectives of the Company and the business and anticipated financial performance of the Company. These statements are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.

Exploration results that include geophysics, sampling and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classified as a category of mineral resource. A mineral resource which is classified as "inferred" or indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or does not expect", "is expected", anticipates" or "does not anticipate" "plans", "estimates" or "intends" or stating that certain actions, events or results " may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.

Actual results may differ materially from results contemplated by the forward-looking statements. Important factors that could differ materially from the Company's expectations include, among others, risks related to international operations, unsuccessful exploration results, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf. Accordingly, readers should not place undue reliance on forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Thanks for the news Earl!

There are two types of such announcements: announcing that a miner has been added to an INDEX; and announcing that a miner has been added to a FUND.

BOTH are good news for these miners. However, I personally like THIS type of announcement better, since there doesn't seem to be any down-side. The problem with the miners getting a new LISTING on an index is that MOST of the time it's a U.S. index which it is being added to - which INCREAES the potential for market manipulation.

In this case, being added to the GDXJ fund adds additional demand, without seeming to produce any UNDESIRABLE consequences.



P.S. Note that this is also validation for Brian's analysis of this company: you don't get ADDED to a fund unless you've been IMPRESSING people with what you've done, OR where you're going...

Jeff,

I've been very impressed with GDXJ since you first mentioned it. It's not only a great place to start a basket, but it can be such an anchor to a portfolio like SLW, EXK, etc..

I have often thought that holding that fund is such a balanced basket. The management is always prompt to reply to questions. It truly justifies Brian's analysis of Aurcana. It really brings the community "full circle", when a fund like GDXJ does their DD quite well and selects a junior minor that Brian and yourself brought forth to our BBC Forum.

Thank You
Earl

Earl wrote:
Jeff,

I've been very impressed with GDXJ since you first mentioned it. It's not only a great place to start a basket, but it can be such an anchor to a portfolio like SLW, EXK, etc..

I have often thought that holding that fund is such a balanced basket. The management is always prompt to reply to questions. It truly justifies Brian's analysis of Aurcana. It really brings the community "full circle", when a fund like GDXJ does their DD quite well and selects a junior minor that Brian and yourself brought forth to our BBC Forum.

Thank You
Earl

Thanks for the feedback Earl!

When I first did a write-up on this fund, I expressed the hope that this fund would be a very good investment vehicle for newer investors to these miners - for precisely those reasons. Indeed, buying into a smaller-cap fund like this is almost like adding some "training wheels" to your portfolio.



While it's always dangerous to talk about "can't miss" prospects with junior miners, we do find companies which seem obviously headed for success - barring some unforeseen stumble. When we think we have found such a company, that does NOT mean that we forget about our "basket" and load-up on one or two such companies.

Rather, when we see a company which SEEMS like a "no-brainer" we maybe buy SLIGHTLY more heavily than we would normally AND assign this to the "low risk" portion of our profile. In other words, the advantage of identifying a few companies which we consider "safe" is that it then allows us room in our portfolios to add some companies which are perhaps more speculative - but with even bigger upside potential.

Thanks for the honorable mentions guys.

Hi Brian,

This stock is on my watch list. It appears to be really bucking the trend. I am not sure whether there is a logical reason for this (down substantially these last two days). As I read the report everything looks rosy, even a decrease in production costs. Do you see any reason for the decrease in SP or is this simply a "your guess is as good as mine" situation



Aurcana Reports Record Results for Q2, 2012

www.aurcana.com/s/NewsReleases.asp?ReportID=542761

Mon Aug 20, 2012
Aurcana Reports Record Results for Q2, 2012
Aurcana Corporation ("Aurcana" or the "Company") (TSXV: AUN, OTCQX: AUNFF) today is pleased to report its unaudited financial results for the second quarter ending June 30, 2012. The summary of the selected financial information should be read in conjunction with the unaudited financial statements and the related management's discussion and analysis dated August 17, 2012 together referred to as the "Financial Statements", which have been filed on SEDAR (www.sedar.com) and the Company's website (www.aurcana.com). All figures are in US dollars unless otherwise noted.

The Q2 2012 Earnings Conference Call has been scheduled at 2:00 pm Eastern Time (11:00am Pacific) on Monday, August 20, 2012. See bottom of press release for details. "We are very pleased to report to investors record results for the second quarter of 2012 The results achieved this quarter highlight the success of the Company in building La Negra into a profitable producing mine. They are a clear testament that Aurcana is well on its way to becoming a mid-tier silver producer and the progress to date has been outstanding. The commissioning and testing of the mine at Shafter is making continuous progress." said Lenic Rodriguez, Aurcana's President & CEO

The significant operating highlights for Q2, 2012 related to the Company's ongoing mining operations at La Negra were:

7% increase in net revenues to $13.3 million compared to $12.4 million for the second quarter of 2011.
4% increase in earnings from mining operations to $5.5 million compared to $5.3 million for the second quarter of 2011.
50% increase in net income to $3.4 million for the first six months of 2012 compared to $2.3 million for the first six months of 2011.
106% increase in operating cash flow before movements in working capital items, to $4.7 million compared to $2.3 million for the second quarter of 2011.
18% increase in milled tonnes processed for a total of 307,161 during the six months ended June 30, 2012 (2011: 260,931); of which 15% (45,588 tonnes) were mined from NI 43-101 Measured and Indicated resources and 85% (261,573 tonnes) were mined from new discoveries.
23% increase in silver ounces sold for the second quarter of 2012 to 323,307 (373,037 ounces produced) from 263,357 silver ounces in 2011.
Metal prices were a significant factor in revenues of the Company. Due to a general economic slowdown, average silver prices in the second quarter of 2012 were $28.51 compared to $36.86 per ounce in the second quarter of 2011.
52% increase in silver equivalent ounces produced to 690,162 in the second quarter of 2012 (2011: 455, 516).

Earnings

The Company had earnings from La Negra mining operations of $5.5 million for the quarter ended June 30, 2012 (2011: $5.3 million); income before taxes of $2.0 million (2011: $1.7 million); a net income of $1.4 million (2011: $1.6 million). For the six months ended June 30, 2012 the Company had earnings from mining operations to $11.0 million (2011: $10.7 million); income before taxes to $4.6 million (2011: $3.3); a net income of $3.4 million (2011: $2.3 million).
The increase in earnings from La Negra mining operations was mainly related to increased volumes sold and the increase in the higher grades of the metals in the concentrates produced by the Company, in spite of lower metals prices.

Revenue

During the year ended June 30, 2012, the Company generated revenues from La Negra mining operation for the sale of 2,425 tonnes of copper concentrate (2011: 1,832 tonnes); 4,244 tonnes of zinc concentrate (2011: 2,667 tonnes); 945 tonnes of Lead Concentrate (2011: 846) and 323,307 ounces of silver (2011: 263,357 ounces) for total net revenues of $13.7 million (2011: $12.4 million).

The average price for sales of copper, silver, zinc and lead during the second quarter were Cu $3.52 (2011: $4.14) per pound; Ag $28.51 (2011: $36.86) per ounce; Zn $0.86 (2011: $1.02) per pound and Pb $0.89 (2011: $1.16) per pound.

La Negra Mine Production Highlights

32% increase in tonnes of ore processed during the second quarter of 2012 to 176,591 (2011: 133,700).
45% increase in silver ounces produced during the second quarter of 2012 to 373,037 (2012: 257,508).
44% increase in copper, zinc and lead concentrate produced during the second quarter of 2012 to 7,751 tonnes (2011: 5,391 tonnes).
Achieved 26% decrease in production costs per silver equivalent to $8.43 (2011: $11.47).
La Negra's production increase was supported by a continuous in-house diamond drilling program.

Mining operations and exploration drilling at La Negra continue to delineate additional mineralized zones, either between or as extensions of existing ore zones. These results have the potential to add to the mine life of La Negra. Drill crews have completed 5,968 metres of diamond drilling during the six months ended June 30, 2012.

La Negra mine completed its second consecutive mill expansion from a capacity of 1,500 tonnes per day (tpd) to 2,500 tpd on time and on budget in April, 2012. The planned milling rate is 2,000 tpd and La Negra continuously exceeded the planned rate in Q2, 2012, with a goal to grow up to 2,500tpd.

Shafter Silver Mine Updates

Commissioning and testing of the processing plant continues at the Shafter Silver Mine in Texas. As a result of the testing to date, two key areas have been identified for improvement; further mine development and the processing plant mill dewatering. In addition, during this testing phase we are continuing to upgrade and train the mining personnel at Shafter.
The underground production will be supplemented by a test open pit until the fourth quarter of 2012 as further development is required in order to sustain 1,500 tons per day. Further development of the underground mine is currently under review.
During the second quarter of 2012, the deferred stripping of a small test open pit was started. The mineralized rock is expected to be processed starting in late August 2012.
Resulting from the commissioning test in Q2 2012, the dewatering process of the processing plant is currently being re-configured. The processing plant continues testing to reach 1,500 tons per day as anticipated, and will be ready in the fourth quarter of 2012.

Summary

During Q2 2012 Aurcana completed the expansion of the La Negra mill capacity to 2,500 tpd. Production increases continued at La Negra and revenues increased even with the significant drop in metal prices. The Company continued to adjust its cost structure, both on the operational and administrative side. At Shafter the processing plant was commissioned in Q2, 2012 and testing continues with expectation of commercial production in the 4th quarter of 2012. Full capacity of 2,500 tpd will be achieved during 2013 at Shafter. Aurcana is prepared for significant increases in production and further growth in 2012 and beyond.

To read complete Financial Statement click on this link: www.aurcana.com/i/pdf/2012Q2FS.pdf

To read complete MD&A click on this link: www.aurcana.com/i/pdf/2012Q2MDA.pdf

Aurcana Corporation is scheduling a conference call to discuss the audited second quarter 2012 results at 1100 PST on Monday, August 20th, 2012.

Folks are confusing "watering" issues to mean the mine vs the mill. They are refining the dewatering in the MILL. This is of little consequence, however the message boards are beating it up anyway. Second issue, is that Shafter wasn't producing during the last quarter. We knew they had no cyanide curcuit, and wouldn't be producing yet anyway. However my expectation is that they are producing concentrate. Regardless, folks were looking for a big move, and know they will have to wait for another quarter. They are restless.
Regardless, the shorts are in control currently, and are looking to cash in on the confusion. I have shares, and am long. This one will pay off for the patient value investor. Not a buy rec... DYODD

Debsyl, it's great that Brian got into the details here -- to provide an actual explanation of the share price weakness. However I'm quite content to remain more focused on "the big picture" (as we all know).

And as you highlighted yourself, it was a steady stream of "increased..." this and "increased..." that. So when you ask yourself why is a Company which is performing brilliantly from an operational standpoint not seeing any positive traction for its share price, there are two answers to that question (apart from Brian's).

First of all, since we see similar IRRATIONAL moves in share prices across the board for these juniors; we can simply say that the drop in share price doesn't "mean anything" at all (other than the banksters are up to more of their shenanigans).

The other answer is to say that this is PRECISELY what we look for in the market as investors: mis-priced assets. No Company ever went out of business from being "too successful" and sooner or later these mis-priced assets move at least close to their fair market value -- as we saw with the rally in these miners between 2009 and early 2011.

One of the primary differences between SUCCESSFUL and UNSUCCESSFUL investors is that the successful investors look at what a Company like this is doing, see the share price going in the opposite direction -- and they LOAD UP.

How many people here ever go to a supermarket or department store and run away in fear because they're selling their goods too cheap???



Why do we never do this? Because we UNDERSTAND the actual value of the consumer goods we are purchasing -- and thus we react POSITIVELY to any/all "sales".

It's no different here. We KNOW what this Company represents: "increased..." this and "increased..." that. So could it possibly be worth LESS than it was last week, or last month? Of course not...unless you believe the price of silver will crash.




So (for anyone who is interested): Aurcana shares are "on sale".



[Disclosure: I'm a holder of Aurcana shares.]

Thanks, Brian and Jeff, I expect for some investors, it may be a good time to average down if they bought at much higher prices.

One needs to be careful that our baskets are not leaning to much in one direction though

I know all the miners are on sale now, any ideas of some that are having a REALLY GREAT sale?

I was too busy in the spring and now need to start doing some more DD on some new companies. I was able to add a few more dollars to invest. I am looking for a starting point once again

debsyl wrote:
Thanks, Brian and Jeff, I expect for some investors, it may be a good time to average down if they bought at much higher prices.

One needs to be careful that our baskets are not leaning to much in one direction though ...



Debsyl, I'll let Brian tell you which companies he thinks are ESPECIALLY "on sale" at the moment -- because with not much time to watch these companies inevitably my OWN holdings would be looking cheapest.



However, I will address your excellent point about "averaging down" -- and then ending up somewhat concentrated in a single holding. Indeed, that was precisely how Great Panther ended up as my "largest holding", since I think I set some sort of record for "most times averaging down."



There are basically two ways that investors can deal with this practical issue. We can either be EXTREMELY disciplined, and only allow ourselves limited capital for ANY "averaging down"; or we can allow ourselves to TEMPORARILY get "overweight" in a holding (or perhaps two or three) -- but with the EXPLICIT understanding that WHEN the sector starts to rally that the first place we'll go for "profit-taking" are those overweight holdings.

That's exactly what I did with GPR: trimming some of my holdings of GPR when the share price ran up -- and GPR thus became even more "overweight" in my portfolio. Thus even if we DON'T average down; if a holding simply runs up in value it can become "overweight" all by itself. So here too, if we're disciplined we start AUTOMATICALLY trimming our holdings as a particular stock outpaces the rest of our portfolio.

Note also the advantage in added flexibility as we build a LARGER collection of these companies (over time). If you hold 10 of these companies, you're going to want to try to keep them all fairly balanced, since the moment we start being more heavily concentrated we start to get vulnerable to an INDIVIDUAL holding. So if (over time) we end up owning 20 of these miners, then (on average) each would represent 5% of our holdings.

This means we would have (relatively) more flexibility to average-down (or simply allow the share price to rise) with a more broadly diversified "basket" of stocks than if we hold a smaller basket.