Questions also sent to Aurcana headquarter...
posted on
Oct 20, 2007 08:06AM
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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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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Company [ Questions for Aurcana (Ken and Ron)... ]
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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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