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Aurcana Corporation

Mining Companies - Silver Companies

User Rating: / 11

Junior Producer: Ag

Aurcana Corporation is a Canadian junior mining company that is striving toward mid-tier status. The Company owns 92% of the operating La Negra silver-copper-lead-zinc operation. The La Negra Mill, located in Queretaro State, Mexico, was expanded to 2000 tonnes per day, It produced over 1 million ounces Ag in 2011. Exploration drilling at La Negra has identified 28 ore bodies, 3 of which are currently being mined.

The company wholly owns the Shafter silver mine/mill (under construction), which are located in Presidio County, S.W. Texas. The operation is expected to reach its 1500 tpd capacity beginning in mid 2012. Shafter has an NI 43-101 silver resource of 24.6 million ounces Measured and Indicated (2,900,000 tons @ 8.48 opt), 22.8 million ounces Inferred (2,167,000 @ 10.52 opt) and a pre-feasibility completed.  Production is forecast at 3.8 million ounces silver for the first two years. The Company is listed on the TSX Venture Exchange under (AUN) and the OTCQX, under (AUNFF).

Annual Trading Range

.55-1.10 trading on 8 Feb 2012 @ .84

Share Structure


Issued and Outstanding


















































Stock Options






































































• $10m / 3% Convertible Debenture




Convertible@ $1.51 - July / 11



Fully Diluted









Q3 2011

Cash and Equivalents 8.1M

Total assets 14M

ST Liabilities 7M

Revenue 12M

Profit 6.8M

Cash Burn Rate 2.4M

Quarterly gain (.01)


La Negra

The La Negra mine was discovered and developed by Industriales Peñoles S.A. de C.V. The mine commenced production in 1970 and produced until the mine was put on care and maintenance in 2000.

In 2006: The entire three stage crushing circuit has been refurbished and the ball mill is fully operational. New floatation tanks have been delivered and were in the process of being installed. Foundations for new 30 meter diameter thickener tanks for both copper and zinc were constructed. Reyna Mining and Engineering, who are oversaw the refurbishment of the mine.

La Negra is on track to complete the ongoing mill upgrade to 2,500 tpd in Q1 2012, a 60% increase from the current milling capacity. This added capacity will allow completion of the 2012 mine plan of 2,000 tonnes per day and its planned increased output for 2013 without further capital expenditures.

La Negra Highlights

Aurcana continues to produce record results. Q4, 2011 silver production was the largest silver volume in Aurcana history producing 265,230 ounces of silver.

28.3% increase in silver equivalent produced to 1,737,203 ounces in 2011 compared to 1,354,315 ounces in 2010.

20.2% increase in silver equivalent produced to 463,843 (Oz Ag Eq) in Q4, 2011 compared to 385,942 in Q4, 2010.

52% increase in mineralized materials stockpiled from beginning to end of 2011, with the total stockpile now standing at 101,038 tonnes.


The 100% owned Shafter mine is planned for silver production start up at 3.9 million ounces in each of the first two years. The mine contains an estimated measured and indicated resource of 24,600,000 ounces of silver and an inferred resource of 22,800,000 ounces of silver. Aurcana has fully committed its proven construction and operating team to commence operations at the Shafter mine.

With a relatively low capital cost, the Shafter mine represents a low-risk project. Due to the advanced stage of development at site, the project can be rapidly moved to production. The deposit and contained resources are well identified and quantified. Metallurgical testing indicates that a high recovery is probable.




Lenic Rodriguez MA

President, CEO and Director

Mr. Rodriguez is a Mexican businessman residing in Vancouver. He is involved in International Finance and was instrumental from day one on the acquisition and financing of the La Negra mine for Aurcana. He is a Magna Cum Laude Honors Business graduate from one of Mexico's top Universities, Universidad IberoAmericana. Private. Jesuit. He holds a Masters Degree in Science and a BA in Business Administration. He has over 15 years experience in top management with one of Mexico's 10 largest corporations.

Andy Nichols PEng

Vice President, Operations

Andy Nichols, a graduate of Camborne School of Mines, has over 35 years of underground mining experience in Canada, Africa, Asia and Latin America, including Cominco Ltd.'s Sullivan Mine, Breakwater's El Mochito Mine and Denison's Elliot Lake Mine. He has worked in mining operations and in management, supervision, project and engineering roles. Most recently Mr. Nichols was Chief Mining Engineer at Wardrop Engineering, where he was responsible for feasibility studies and detailed engineering that included mine design, stoping method determination, scheduling, cost modelling and financial evaluations for underground and open pit mines.

Nils von Fersen PGeo

Vice President, Exploration

Nils von Fersen is a Professional Geologist with over 30 years of expertise in conducting and managing mineral exploration for base and precious metals in Canada, Chile, Mexico and Guatemala for major and junior mining companies. Mr. von Fersen spent 18 years with Kidd Creek Mines and Falconbridge in exploration and project evaluation in western Canada and internationally, including the exploration and feasibility phases of the world class Collahuasi porphyry copper deposit in Chile. Since 1999 Mr. von Fersen has been a consulting geologist with a focus on projects in B.C., Mexico and Central America.

Salvador Huerta, BA Accounting and Administration

Chief Financial Officer

Mr. Salvador Huerta has over 25 years experience as a CFO for international Companies in Mexico. Extensive knowledge in business, finances, manufacturing, planning, treasury and accounting, International joint ventures, mergers and acquisitions. Fluent in English and Spanish.

Terese J. Gieselman

Corporate Secretary/Treasurer

Ms. Gieselman has 22 years experience in the resource industry with several companies listed on the TSX,TSX-VE, OTCBB, NASDAQ and AMEX, as chief financial officer, treasurer and corporate secretary. Her experience includes an extensive background in financings, treasury, international corporate structures, financial reporting and compliance for Canada, the US, Mexico, Peru, Chile and Brazil.

Officers & Directors

Lenic Rodriguez President, CEO and Director

Andy Nichols Vice President, Operations

Nils von Fersen Vice President, Exploration

Salvador Huerta Chief Financial Officer

Terese J. Gieselman Corporate Secretary / Treasurer

Adrian Aguirre Director

Paul Matysek Director

Bob Tweedy Director

Ken Collison Director

Technical Advisors:

Jerry Blackwell

Dr. Peter Megaw



Corporate Presentation

Beacon Rock Analyst article

News Releases


January 12, 2012

Aurcana Reports: Record Silver Production at La Negra.

Comments (7)Add Comment
Jeff Nielson
written by Jeff Nielson, March 07, 2012
Thanks for that link (and presentation) Brian!

As a new shareholder myself, I was familiar with some of the present numbers, but didn't know the history here.

In particular, exiting their silver-stream agreement with Silver Wheaton and putting a new management team in charge of operations at La Negra are both HUGE changes - which seem to be paying direct and immediate dividends.

Add that to the expected growth profile on the production side, and it's hard not to get excited about where this one is going as soon as the market turns higher...
Brian Boutilier
written by Brian Boutilier, March 07, 2012
If you are following the progress toward production at Shafter and The Company becoming a mid-tier Silver Producer. Here's a recent article:
Brian Boutilier
written by Brian Boutilier, February 21, 2012
I'm glad you like Chris Barkers work. I find him the same way. We keep tabs on our favorite holding via phone and e-mail. I find that he's clear thinking and very approachable. One of the original metals guys at "The Fool"
written by Tim, February 21, 2012
Yes Endeavour. The interview with the CEO is on Motley Fool. Chris Barker is the only writer I read fro them. He seems sincere, enthusiastic and you can add a little glitter. But I find he's another source of input on the sector. The comments from other readers are really interesting. The articles come up on your yahoo stock watch lists. It's a short read.

Appreciate your response as always-

Thank You
Brian Boutilier
written by Brian Boutilier, February 21, 2012
She's on the move after yesterdays increase on ownership of LaNegra. Up 9 cents curretly to .97. I hope some of you had a chance at this one early. The fundamentals here are sound. Now management has to deliver on resource updates, and Shafter production. A significant growth sotry.
Brian Boutilier
written by Brian Boutilier, February 18, 2012
If you are speaking of growth for AUN? They had (last year) 1500 tpd at one operation. They are currently engineering their way to 2500 at La Negra, and at capable of 2000 TPD at shafter. The ore body at Shafter is high grade, so expect them to go from a 1 M Oz producer, to in excess of 4-5M Oz Silver producer. This is silver, they will have more with eqivalents. I would say that constitutes growth Earl. As for the other company, did you mean EXK, Endeavour?
written by Tim, February 17, 2012

I recently read Chris Barkers interview with the CEO. They mention the company got out of the SLW stream. SLW holds 10 million shares of the company and very happy with the deal. The focus is increase in production "ball mill" capacity 2500 ton and from what I took from it was they have two.
They were talking /comparing the capacity/output to EYK, with less shares.
What's your take on the company's on a 1 to 2 year growth prospects.

Thank You

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Disclaimer: is not a registered investment advisor - Stock information is for educational purposes ONLY. Bullion Bulls Canada does not make "buy" or "sell" recommendations for any company. Rather, we seek to find and identify Canadian companies who we see as having good growth potential. It is up to individual investors to do their own "due diligence" or to consult with their financial advisor - to determine whether any particular company is a suitable investment for themselves.

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