Junior Silver Producer

Aurcana owns and operates two high quality producing silver mines located in favourable mining jurisdictions: La Negra mine located in Queretaro State, Mexico and the Shafter silver project located in Presidio County, southwest Texas.

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Message: Questions also sent to Aurcana headquarter...

Questions also sent to Aurcana headquarter...

posted on Oct 20, 2007 08:06AM

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               S E N D    A    M E S S A G E
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TO:   Aurcana Administrator <info@aurcana.com>
cc:  

Reference Number: J0B.3XP.Z60.YW1
Date: Sat Oct 20, 2007 at 8:48:28 AM Pacific Time
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FROM: Name     [  ]
      Company  [ Questions for Aurcana (Ken and Ron)... ]
      Email    [  ]

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with: ADNET Primary Server Grid
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Messages, Questions and Comments:
:
:  Questions for Aurcana (Ken and Ron)...

:  Dear Aurcana,

:  Please  find below the  questions  I plan  to ask  Aurcana
:  executives  when I attend the Toronto  Resource Investment
:  Conference this weekend.

:  1. Why was production in the  most recent quarter only 60%
:  of the  forecasted  440  tonnes/week? Your production  was
:  270t X  12  weeks  = 3240 tonnes of concentrate,  when  it
:  should  have  been  440t X  12  weeks  =  5280  tonnes  of
:  concentrate. Was this due to  reduced  grades,  lower than
:  expected   recovery   rates,   or   reduced   (less   than
:  1000tpd)throughput  in   processing??   Are  you  actually
:  processing at 1000tpd, and if so, since when?

:  2.  If the lower than projected  production of concentrate
:  was only temporary (due possibly such things as processing
:  lower  grade material), then why is the forecasted  annual
:  cashflow only $20 million ($.21/sh)? You  report that your
:  costs  are  inline with  projections, and steps are  being
:  taken to lower them further,  so based on  your forecasted
:  concentrate  production  of 440  tonnes/week, should  your
:  annual cashflow  not  be  closer  to double  what you  are
:  forecasting, i.e., 35-40 million?? The bottom line is that
:  20  million projected annual cash flow is much lower  than
:  expected  and  is dissapointing. Can  you  provide updated
:  figures  for  your rock  value/tonne  and  you  production
:  cost/tonne?

:  3. Do  you have  any  professional  Canadian  or  American
:  mining engineers on staff, or on  the board, and if so why
:  not? You  are now a mining  company with producing  mines,
:  and with all due respect, geologists should not be running
:  mining and processing operations.  Do  you not think that,
:  at minimum,  an  audit  of  your  mining,  processing, and
:  maintenance methods by a Canadian mining engineer with 20+
:  years experience with  similar  types of  operation  is in
:  order? It  is often the case that significant improvements
:  in operations  effciency  can  be found  in these areas by
:  highly experienced 'outside' mine engineers/managers.

:  4. It is my opinion that there has  been serious disregard
:  for maintaining shareholder value through the promotion of
:  the  compnay  and   its  operations  to   the  appropriate
:  investment/analyst  community  (Bay   St.  fund  managers,
:  etc.).  The  addition  of Jack Barnes to  manage  investor
:  relations,  and your attendenance  at this conference, are
:  certainly steps  in the right  direction, but  how do your
:  respond to these concerns, and what actions, specifically,
:  do  you  plan  to   undertake  to  correct   this  serious
:  definciency/oversight and repair the  serious  damage that
:  has been done to shareholder value? Furthermore, when will
:  be there analyst coverage of Aurcana, and  when will there
:  be an organized analyst tour of operations in Mexico?

:  5. When will  be you finalizing an agreement with Agoracom
:  for their services, to supplement and/or compliment the IR
:  operations  of  Aurcana Management.  Agoracom will conduct
:  and  post  interviews with  company executives, spam Black
:  Berry's,  Yahoo Finanace and other  news  media  with your
:  news  releases,  thereby  exposing the  company to  a much
:  broader  'audience'  than  it currently retains.  Agorcaom
:  will also manage  a  monitored investors  forum as part of
:  the Aurcana hub that it would create, which be a  one-stop
:  location  for  all  company  news, interviews,  and  other
:  company  information.  I  know  you  have  received  their
:  proposal and are  aware of the services they can  provide,
:  so when will you be acting on it?

:  6.   Finally,  when  will   the  first  43-101   compliant
:  resource/reserve be  completed and  made public?  This  is
:  desperately  long overdue  and Aurcana,  in  terms of  its
:  market  capitalization, has  been a  slowly  sinking  ship
:  without it.

:  Sincerely,


:  =============================================================
The user followed the following path through the website:
071020.084446.4sDz50 http://www.aurcana.com/s/Home.asp
071020.084453.4sG1Ws http://www.aurcana.com/s/ContactUs.asp
071020.084500.4sG4Vw http://www.aurcana.com/s/SendMessage.asp
071020.084828.4sHlml http://www.aurcana.com/s/SendMessage.asp
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