Friends of Big Bend National Park
Big Bend Conservancy

Over-estimating your experience or under-estimating the terrain in a place like Big Bend can result in serious injury or death. Use the information and advice found here wisely. Climb/Hike/Camp/Drive at your own risk.

+-Calendar for sale

 2019 BigBendChat Calendar on sale now!


Shafter Silver Mine Purchased

  • 17 Replies
  • 12320 Views
*

BigBendHiker

  • Guest
Shafter Silver Mine Purchased
« on: May 04, 2008, 08:55:28 PM »
This may be old news, but if not, it looks like the silver mining activity at Shafter may be re-starting:

http://www.miningweekly.com/article.php?a_id=130517



BBH

*

SHANEA

  • Guest
Re: Shafter Silver Mine Purchased
« Reply #1 on: May 04, 2008, 09:49:40 PM »
BBH - I couldn't get the story to come up - had to do a search for it and then it still would not come up. 
Website might not like FireFox...

Anyway, here is the little bit I got...



Quote
Aurcana snags near-production Texas silver mine.  Vancouver-based junior miner Arcana has agreed to buy the historic Shafter silver mine, in south-west Texas, from Silver Standard Resources, the firm announced on Thursday. The Shafter mine produced silver from 1883 to 1942, and most of the...

Here is the news release from Aurcana

21 million oz @ 10.06 oz per ton Measured and Indicated
20 million oz @ 12.83 oz per ton Inferred
2.6 million oz per year

Silver closed Friday @ $16.58 - but I don't know if that is in Troy ounces and if the information from Aurcana is in Troy ounces or not.

But, assuming they are in the same units-of measure...
21 million oz @ ~ $350 million dollars
20 million oz @ ~ $330 million dollars
or $43 million a year.

Of course, no telling what the processing costs are, ramp-up costs, etc.  With the price of electricity and oil... 

WOW!  Someone should open up a gas station / grocery store / diner in Shafter...  Probably too late to buy any other silver mines in the area.

*

Offline Roy

  • Mountain Lion
  • *
  • 1529
Re: Shafter Silver Mine Purchased
« Reply #2 on: May 04, 2008, 10:05:29 PM »
They may have waited a bit too long;  precious metals are down app. 20% over the last 2-3 weeks.  (Of course, if bin Laden farts loudly, they'll go right back up again)

*

Offline presidio

  • Soaptree Yucca
  • Mountain Lion
  • *
  • 3431
Re: Shafter Silver Mine Purchased
« Reply #3 on: May 04, 2008, 11:31:21 PM »
I don't know if that is in Troy ounces and if the information from Aurcana is in Troy ounces or not.

Precious metals always are in troy ounces.
_____________
<  presidio  >
_____________
Wendell (Garret Dillahunt): It's a mess, ain't it, sheriff?
Ed Tom Bell (Tommy Lee Jones): If it ain't, it'll do till the mess gets here.
--No Country for Old Men (2007)

*

BigBendHiker

  • Guest
Re: Shafter Silver Mine Purchased
« Reply #4 on: May 05, 2008, 06:18:55 AM »
Here is the article:
Quote

Aurcana snags near-production Texas silver mine
Text Size 
By: Liezel Hill
Published on 3rd April 2008
Vancouver-based junior miner Aurcana has agreed to buy the historic Shafter silver mine, in south-west Texas, from Silver Standard Resources, the firm announced on Thursday.

Aurcana will pay Silver Standard approximately $42,6-million, comprising $23-million in cash; 15-million in Aurcana shares; and a $10-million convertible debenture, paying a 3% coupon with a three-year term and convertible into 6,62-million Aurcana common shares.

The Shafter mine produced silver from 1883 to 1942, and most of the necessary infrastructure remains place, including a major power line and paved highway crossing the property, an electrical substation on site, a 320-m shaft serviced by a 80-t/h hoist, 1 555 m of underground development and an 800-t/d conventional mill that was moved to Shafter in 2003.

Aurcana, which plans to assemble the mill and restart production as soon as possible, estimates that output could resume at Shafter in little more than 15 months' time.

The price of silver, which has both industrial and fabrication uses, has risen significantly over the last couple of years, and touched $21,35/oz, its highest point since March 1980, last month.

The Shafter mine has an estimated measured and indicated resource of 21-million ounces of silver and an inferred resource of 20,2-million ounces, Aurcana said.

The company plans to commission a NI 43-101 compliant technical report to confirm the resource estimate, it said on Thursday.

Editor: Liezel Hill

*

Offline okiehiker

  • Black Bear
  • *
  • 711
  • cryptantha crassipses
Shafter or... SHAFTED??
« Reply #5 on: May 06, 2008, 08:24:06 AM »
I assume "Vancouver-based" means Canadian, not Vancouver, WA.

I lived on the Alamosa River in Rio Grande National Forest, Conejos County, CO five months a year for 12 years. (1985-1996)  During that time a Canadian firm, "Galactic Resources" purchased the mine at Summitville, CO.  The purchase and operation were done through a shell corporation, Summitville Consolidated Mining Corporation. 

Among other things we ran a university field geology program and were a member of OBFS (the Organization of Biological Field Stations.)  My children played in the river literally every day.  Our two PhD geologists were convinced that the entire operation was a sham, designed to run up the stock price with no real chance of economically viable gold recovery.  They were right. 

They poured the concrete base and installed the liner during the winter of 1986.  It would snow 660 inches at Summitville that winter.  From its inception the mine was a disaster, but it was not until a disgruntled employee reported large-scale cyanide leaks five years later that anything became public.

The siting of this mine occurred shortly after Colorado's major "tax-reform" and in their wisdom with cash-flow short-falls, reduced the staff of the Division of Mines to five.  The mine was approved without anyone actually reading the application.  There was another provision that an application not reviewed in a timely fashion was granted, sort of a reverse-pocket-veto system. 

One year when I came out to the camp I felt like I had walked into a Rachel Carson novel.  There was no wildlife.  The deer, elk , beavers ,squirrels... everything was gone.  The larger animals simply found other places to water.  I am not sure what happened to the smaller ones.  On my birthday our faculty biologist took me to his favorite fishing hole, below Terrace Reservoir.  We fished for hours but didn't catch a thing.  It turned out that the mine had a cyanide spill that killed everything in the river clear down into the Rio Grande but failed to report it. 

When the state finally stepped in and required the filing of a site closure plan, the company filed bankruptcy.  The parent company filed bankruptcy the following day.  All assets had been looted.  Several years ago the clean-up cost had passed $200,000,000 making it the most expensive Superfund Project at that time.

Here is one 1996 article about the fiasco.

http://www.monitor.net/monitor/9612a/friedland.html

Here is EPA's link to the current clean-up status.

http://www.epa.gov/region8/superfund/co/summitville/

I don't know if this is still the costliest Superfund site (probably not) but there is a very  interesting economic dynamic at work here in the state of Colorado.

There is no questioning the fact that the mine generated about $200,000,000 in economic activity in the area.  Thus, it was a good idea for the state to permit it to operate.  Then another $200,000,000 was spent by EPA to clean up the mess SO... guess what there is TWICE AS MUCH BENEFIT in permitting a bad mine as there is a good mine! 

If the state, instead of the federal governement (funded by fees on the chemical and mining industries... ultimately YOU AND ME!) had to eat more of the cost they would be more careful. 

The thing that pisses me off about the whole thing is that my two youngest children were 4 and 7 and in the water constantly when the most serious pollution occurred.  Cyanide is not long-lasting in the environment, but the copper level in Terrace Reservoir when the USGS came in and started testing wass 300 ppm.  Remediation is called for under EPA rules at 1.7 ppm.  Metals content in the water were as much as 176 times the allowable levels. 

Anyway... if a Canadian firm comes in with the idea of recovering silver due due a spike in price, there a considerable chance that their goal is a spike in stock price and little concern about actually running an appropriate or profitable mining operation. 

END OF RANT...
Funny... I have a story about that...

*

Offline okiehiker

  • Black Bear
  • *
  • 711
  • cryptantha crassipses
I Lied...
« Reply #6 on: May 06, 2008, 08:34:08 AM »
One more bit...

Friedland did end up paying $27 million towards the clean-up

Costs to date are probably between $190,000,000 and $200,000,000 and

Friedland is still heap-leaching stock profits out of marginal mining practices around the world...

http://www.jbholston.com/mtype/000376.html
Funny... I have a story about that...

*

BigBendHiker

  • Guest
Re: Shafter or... SHAFTED??
« Reply #7 on: May 06, 2008, 06:53:18 PM »

Anyway... if a Canadian firm comes in with the idea of recovering silver due due a spike in price, there a considerable chance that their goal is a spike in stock price and little concern about actually running an appropriate or profitable mining operation. 


You bring up a very good point. Mining operations tend to be rather unsafe, dirty and environmentally un-friendly.  One only has to read the stories of the mercury contamination that exists to this day at some of the now defunct gold mine operations in California (circa 1880's gold rush days).


BBH

*

SHANEA

  • Guest


*

SHANEA

  • Guest
Re: Shafter Silver Mine Purchased
« Reply #10 on: August 12, 2008, 03:25:39 PM »
Done Deal. Need to hurry and open up a combo grocery store, cafe, and petrol depot there in Shafter... Probably would be a wise investment to put in a trailer court also. Maybe a motel with a bar too. Is the worlds oldest profession legal in Presidio County? :icon_eek: Lots of "interesting" things you can do with the Shafter name... I'll leave it to your imagination as this is a family board. :icon_wink:


From the Marathon News Leader
« Last Edit: December 16, 2009, 11:08:42 PM by RichardM »

*

SHANEA

  • Guest
Re: Shafter Silver Mine Purchased
« Reply #11 on: September 05, 2008, 10:22:46 PM »
Aurcana posts loss in Q2 - Update

Quote
posted a net loss of C$962 thousand after non-cash items, or C$162 thousand before non-cash items, for the second quarter.
Quote
Aurcana said that its current development project is the Shafter Silver mine. Shafter is located in Presidio County, southwest Texas. Silver was mined in the region from 1883 until 1942, when the mine was closed by the War Act. Production during that period was 2.3 million tons of ore containing 35 million ounces of silver at an average grade of 15.24 ounces per ton.

AUN.V closed Thursday's trading at C$0.27, down C$0.04 on volume of about 109 thousand shares.

*

Offline Boojum1

  • Diamondback
  • *
  • 324
Re: Shafter Silver Mine Purchased
« Reply #12 on: September 08, 2008, 02:24:24 PM »
Seems like they could post an environmental bond for clean-up.  For too many mining companies bankruptcy is standard operating procedure for clean-ups. 

From the posted article, it stated an unemployment rate of 18% for Presidio.  Sheesh, why live there if there is no work?
Pithy quote free for years

*

Offline Roy

  • Mountain Lion
  • *
  • 1529
Re: Shafter Silver Mine Purchased
« Reply #13 on: September 08, 2008, 05:16:15 PM »
an unemployment rate of 18% for Presidio.
That doesn't take into account the smuggling, etc.

*

Offline jose

  • Kangaroo Rat
  • *
  • 5
Re: Shafter Silver Mine Purchased
« Reply #14 on: December 25, 2008, 04:40:13 PM »
This is interesting.  The mines were closed due to flooding back in the 1940's.  There is still probably a lot of silver there.  Back in the early 1980's, during the silver "boom" attributed to the infamous Hunt brothers, some South African company purchased the Shafter mines, brought over an expensive shaft sinking rig, and sunk one or two huge shafts to deal with the high-volume water problems.  Water ran continually down Cibolo Creek during this operation.  I think they only operated it for a year or two, as silver prices retreated to pre-lunacy figures.  I remember reading at the time that silver would have to be around $11.50/oz for those guys to continue operations.  That was in '81 or '82. 

That means silver would have to be worth something like $25.00 to $30.00 per Troy ounce in 2008 dollars.  Maybe they are just "speculating". 

 


©COPYRIGHT NOTICE

All photographs and content posted by members are to be considered copyrighted by their respective owners and may not be used for any purposes, commercial or otherwise, without permission.

+-Calendar For Sale

 2019 BigBendChat Calendar on sale now!

Powered by EzPortal

Facebook Comments