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Monday, August 15, 2016

How to break bad news...

What happens if you are a mining company (I use this term loosely) and you loose your only producing mine, do you:
  1. Inform your shareholders and the exchange where you are listed that you are having issues and request a trading halt
  2. Don't say anything
If you went for (2) then you will love this gem from Aurcana informing the world that they lost their only producing mine, La Negra to Orion Mine Finance.

How did they show this

The PR from the January 5th, 2015 (link) had this at the end:

About Aurcana Corporation
Aurcana Corporation is a primary silver producing company with two properties: the La Negra Mine in Mexico and the Shafter Silver Project in Texas, US. The latter was put on care and maintenance in December 2013, in part due to depressed silver prices.


and from the PR dated 7th Jan - yes, 48 hours later (link), the about section was:
About Aurcana Corporation
Aurcana Corporation owns the Shafter Silver Project in Texas, US. The Shafter Silver Project was put on care and maintenance in December 2013, in part due to depressed silver prices.


They were so transparent about announcing the bad news I had to call them up to confirm that they were no longer operating (or owning) the La Negra mine.

Can we call that burying some bad news.

I'm learning some really good tricks here.....

You may be wondering why I'm putting out this post - and it is basically a quick ask for help, but I'm building up a database (that will be in future post) of the lowest grade mines in the world to basically give you a guide to quickly see how the resources for your favorite project compare against operating mines.

I'm not sure if I should include La Negra as the mine is closed.

This is what I have so far:

Gold Silver - Open Pit
  • Rochester Mine, NV - Coeur Mines - 0.093 g/t Au, 16.5 g/t Ag

Copper - Open Pit
  • Aitik, Sweden, Boliden Mines - 0.15 g/t Au, 1.3 g/t AG, 0.23 % Cu
  • Sierrita, AZ, USA - Freeport - 0.24% Cu,1.4 g/ Ag, 0.03% Mo

Base Metal
  • La Negra, Mexico, Aurcana - 55 g/t Ag, 0.24% Pb, 0.98% Zn - closed, lost to Orion Mine Finance
  • San Jose, Mexico, Arian Silver - 119 g/t Ag, 0.38% Pb, 0.85% Zn - closed, lost to Quintana Resources
If you can help and send me info on crap mines (that are currently operating) that would be greatly appreciated.

I know that mining depends not just on grade, but also costs and recovery rates. For the post I just want to keep it simple.