Aurcana studies optimisations at La Negra mine |
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TORONTO (miningweekly.com) – Vancouver-based Aurcana Corp is now running the La Negra mine, in Mexico, itself, and is studying the possibilities to improve the operation, it said on Monday.
Aurcana , which owns 92% of the silver/copper/lead/zinc mine, said in June it had decided not to renew an operating agreement with the contractor at the mine, in the hopes of lowering costs and increasing efficiencies.
Onsite personnel are now in control of all the daily functions of the mine operation, and plant optimisation studies are under way, focused on improving mill and flotation circuit performances, the firm reported on Monday.
Two new, large, flotation cells have been installed to replace a part of the old copper-zinc circuit and metallurgical tests are being conducted in Vancouver with the aim of producing a higher quality copper concentrate by gravimetric separation of the contained lead and associated silver.
“Initial results are encouraging,” the company said.
The addition of a lead-silver concentrate would result in an overall improvement in the recovery of the payable metals and a reduction of smelter penalties.
The mine, which struggled last year when metals prices dropped, has also completed renegotiations to spread out its payments with all of its major creditors, which will allow Aurcana to dedicate the additional free cash flow towards expanding and improving the operations, the firm said.
“A term sheet with market terms over a three year period has been negotiated with our concentrate buyer, Trafigura in order to settle the outstanding amount owing due to the negative price adjustments to the final concentrate invoices that resulted from the precipitous metal price drops of late last year,” it said.
The company is currently working with Trafigura to complete the definitive agreement.
Aurcana is also in discussions with silver-stream firm Silver Wheaton, which has the right to buy 50% of the silver produced at the La Negra mine, on an agreement that allows for delayed deliveries of silver from the mine.
During June, the La Negra mine achieved sales of $1,53-million, based on 90% of the value of the concentrate shipped.
“This is a 49% increase from the January to May, 2009, average sales of $1,03-million per month,” Aurcana pointed out.
Metal sales in June totalled 97 809 oz of silver, 281 657 lb of copper, and 250 666 lb of zinc.
Aurcana is also finalising plans for a 4 500-m underground diamond drilling programme, and is in the process of selecting a drilling contractor.
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