1 / 29

The Next Primary Silver Producer Positioned for Growth September 2009

The Next Primary Silver Producer Positioned for Growth September 2009. TSX.V - AUN. General Disclaimer:

takoda
Download Presentation

The Next Primary Silver Producer Positioned for Growth September 2009

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Next Primary Silver Producer Positioned for Growth September 2009 TSX.V - AUN

  2. General Disclaimer: Aurcana Corporation "Aurcana", has taken all reasonable care in producing and publishing information contained in this presentation. The material may contain technical or other inaccuracies, omissions, or typographical errors, for which Aurcana assumes no responsibility. Aurcana does not warrant or make any representations regarding the use, validity, accuracy, completeness or reliability of any claims, statements or information in this presentation. The information is not a substitute for independent professional advice before making any investment decisions and Aurcana recommends seeking independent professional advice before making any investment decisions concerning Aurcana. Furthermore, you may not modify or reproduce in any form, electronic or otherwise, any information in this presentation, except for personal use unless you have obtained our express permission. . Forward-Looking Statements: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this presentation. This Presentation includes certain “forward-looking statements”. All statements other than statements of historical fact, included in this release, including without limitation statements regarding potential mineralization and resources, reserves, exploration results, and future plans and objectives of Aurcana, are forward looking statements that involve various risks and uncertainties. The mineral resources estimates contained here are only estimates and no assurance can be given that any particular level of recovery of minerals will be realized or that an identified resource will ever qualify as a commercially mineable or viable) deposit which can be legally and economically exploited. In addition, the grade of mineralization ultimately mined may differ from the one indicated by the drilling results and the difference may be material. The estimated resources described herein should not be interpreted as assurances of mine life or of the profitability of future operations. There can be no assurance that forward looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Aurcana’s expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future commodity prices. Although Aurcana has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: These tables use the terms “Measured”, “Indicated” and “Inferred” Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.

  3. Reasons to own Aurcana Pure Silver Leverage: The next primary silver producer If Shafter was in production today it would be the12th largest primary silver mine. Robust Economics: $39.9 Capex, 44% IRR $14.55; 18 month payback Growing silver production 1.25 M Oz in 2010 to 5Moz in 2012. Compelling valuation

  4. Projects • Shafter (100% - Texas) • Pure Silver • Resource • 24.6 million oz @ 8.48 oz/ton • Measured &Indicated 22.8 million oz @ 10.52 oz/ton • Inferred • La Negra(92% - Mexico) • Silver-Copper-Lead-Zinc Mine

  5. La Negra Mill Mine 5

  6. La Negra - Highlights • Silver-Copper-Lead-Zinc Mine. • Increasing throughput by 50% to 1,500 tpd at minimal cost to substantially improve mine profitability • Offers excellent leverage to increasing silver, copper, lead and zinc prices. • 23 ore bodies outlined to date. Accessible through over 50 km of underground development on five main levels • Over 10 year projected mine life 6

  7. La Negra - Highlights Peñoles Production from 1970 to 2000 6.6 million tonnes 36 m oz Silver @ $15 = $540 million 161 m lb Lead @ $0.90 = $145 million 323 m lb Zinc @ $0.80 = $260 million 70 m lbs Copper @ $2.50 = 175 million Totals over $1.1 Billion Production focused on lead-zinc-silver since Peñoles could not treat copper concentrate in its smelter. 7

  8. La Negra – Mine Skarn deposits with pipe and manto mineralization - 23 identified ore bodies 8

  9. La Negra - Mine -Long hole open stope mining -Room and Pillar mining • Multiple mining faces • -provides flexible mining plan • -allows mine to target higher • grade ore and higher • priced metals. 9

  10. La Negra - Mill 150 tonne / hr crushing capacity avoids peak power rates 2008 Production -300,000 tonnes ore Average Mill Head Grades Silver 74.0 g/t Copper 0.77 % Zinc 1.08 % Lead 0.30 % Year end operating costs – U.S. $35/ tonne 10

  11. La Negra Proven and Probable reserves stated by Penoles at time of acquisition showed 1.2 million tonnes. After 2 years of mining Proven and Probable reserves have increased to 2.1 million tonnes 11

  12. La Negra Reserves and Resources Recently updated Reserves and Resources (43-101 compliant) (1) 43-101 reserve calculated by Wardrop Engineering (January 2008) (2) 43-101 Measured and Indicated resource calculated by GeoSim Services Inc. (March 2008) 12

  13. La Negra –Exploration Ongoing underground drilling showing positive results • Most of the historic drilling has been incorporated into Surpac model • 100,000 m of drilling by Penoles identified targets 13

  14. La Negra - Alacran Exploration Four Holes 162 g/t silver 2.57% zinc 11.8 metre1.28% copper Length weighted0.43% lead Six Holes 207 g/t silver 2.75% zinc 8.58 m 1.75% copper Length weighted 0.71% lead 14

  15. Shafter 12th largest pure silver mine in world* • 24.6 million oz @ 8.48 oz/ton-Measured and Indicated22.8 million oz @ 10.52 oz/ton-Inferred *According to the Silver Institute 15

  16. Shafter - Highlights 12th LARGEST PURE SILVER MINE IN WORLD* • The Next Major Pure Silver Mine • Favourable location • Low Capex • Short time to production • No federal permitting obstacles. *According to Silver Institute 16

  17. Property Boundary Map

  18. Cross Section • Shafter deposit is the eastward down dip extension of the past producing Presidio Mine . • Past production – 35 million oz contained silver • (2.3 million tons @ 15 opt). • Ramp allows production of 1500 tpd with mechanized mining methods.

  19. Shafter Resource Table

  20. Shafter Silver Mine • Pre-Feasibility Highlights • Capital expenditure US$39.9 million • 3.9 M ozs silver production in each of the first two years (3.4M ozs LOM). • Total cash cost of US$7.50/oz in first two years (US$8.51 LOM). • Payback of under 2 years based on $13.55 silver • Favorable mining jurisdiction. • Most of the key infrastructure is in place. • Silver doré produced on site.

  21. Pre Feasibility Highlights (cont …)

  22. Industry Low CAPEX

  23. Shafter - Upside • Potential to double mine life through in-fill drilling of inferred resources. • Goldfields bulk sample indicated improvement in grade compared to drill hole results. • At $14.55 silver IRR is 44% and payback drops to 18 months (pre-tax). • Potential reduction in capital cost and lead time through advancing the project during an economic down-turn. • Leverage to the price of silver. Production could coincide with the next rally in the price of silver.

  24. Shafter - Key Aspects • All surface rights secured for mine, mill and tailings. • 80 ton per hour hoisting capacity for Eastern portion. • Four historical shafts and one production shaft. • Ample supply of water from underground workings. • Portions of historical development to be used. • Existing power line and electrical substation. • Paved highway through property. • Terrain good for construction. • Most major mill components on site. • Early production from the new decline.

  25. Aurcana Corporate Strategy • Fast track Shafter to production. • Increase production at La Negra to 1,500 tpd. • Maintain the La Negra operation as an option on the price of silver copper and zinc (targeting 0.9 M ozs Ag, 2,500 t Cu & Zn for 2010). • Continuing to seek future acquisitions • Look for strategic silver M&A opportunities to optimize shareholder value.

  26. Share Capitalization Issued and Outstanding 108,583,933 Warrants Nil Stock Options 11,070,000 1,800,000 @ $0.59 - Aug. /11 1,670,000 @ $1.50 - Mar. /12 150,000 @ $1.65 - Mar. /12 100,000 @ $0.64 - Dec. /12 150,000 @ $0.58 - May /13 2,475,000 @ $0.31 - Sept. /13 150,000 @ $0.16 - Oct. / 13 350,000 @ $0.13 - Jan. / 14 350,000 @ $0.11 - Mar. /14 3,875,000 @ $0.10 - Aug. /14 $10 m Deb @ $1.51 - Jn. / 116,622,517 Fully Diluted 126,276,450 26

  27. Aurcana Value Proposition • Note: • Assumes Shafter project financing can be achieved with no equity dilution • Total cash costs are net of base metal credits at current prices plus SLW off-take

  28. Why Aurcana? Proven Production Team Established Producer Pure leverage to silver Compelling valuation

  29. Officers & Directors Lenic Rodriguez President and Director Ron Nichols Senior V. P. & Director Andy Nichols V. P. Operations Nils von Fersen V.P. Exploration Chuck Jenkins Chief Financial Officer Ron Netolitzky Director Ken Booth Director Adrian Aguirre Director Salvador Huerta Controller Terese J. Gieselman Corporate Secretary / Treasurer Jack Barnes Manager, Investor Relations

More Related