Commodities are a tough market to read, and heavily manipulated.  However, fundamentally, if silver holds up over 30 dollars/Oz, companies that produce silver efficiently will make money.  Aurcana is a profitable silver company, running its La Negra Operation in Mexico.  Now it has started production at Silver Mine in Texas.  If you wish to look over a company that is likely to produce 3x more silver next year.   Read on.  

Here's an article by Chris Barker at Motley Fool.  He's has done a couple of visits to the Shafter operation, and has a good feel for the operation, and management.

http://www.fool.com/investing/general/2012/06/04/aurcanas-silver-triumph-and-golden-surprise.aspx?source=iaasitlnk0000003

What we currently lack is baseline information to determine how efficient they will be.  What is the head grade, the reclamation rates, the mine and milling rates at Shafter?  We will need more that a quarter, because they will be drawing from the old works, instead of reserves right now.    Why is the sp range bound?  Because there is no good sense of forward movement yet. 

What is going right?  They are ramping up efficiency at the mill.  Why not use lower grade material?  Seems like a good choice.  Aurcana has met the goals ahead of timelines that they set forth to shareholders.  They are up and running Shafter.  They just put out information about doing open pit mining from the old Presidio works until there is sufficient underground development to gain access to high-grade ore.  In short, they just extended the mine life.   

The latest news:

http://finance.yahoo.com/news/aurcana-commences-open-pit-mining-160800935.html

http://finance.yahoo.com/news/aurcana-reports-record-2011-results-130000835.html

http://finance.yahoo.com/news/aurcana-commission-plant-shafter-mine-212300383.html

 

 Some baseline DD:

http://bullionbullscanada.com/mining-company-database/silver-companies/24020-aurcana-corporation


The company is admittedly diluted in its share structure for a junior, however they won't be a junior for long.  If you are a value driven investor, this company should be on your radar.   

Disclaimer, I have shares, but no affiliation with the Company.

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