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TSXV: UC
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Chart 3 years
UC RESOURCES LTD: RETURN ON CAD 10,000 INVESTMENT |
Purchase Date | No. of Shares | Purchase Price | Cost (CAD) | Price Today | Value Today |
January 26, 2006 | 55'000 | 0.18 | 9'900.00 | | |
Total | 55'000 | 0.18 | 9'900.00 | 0.54 | 26'400.00 |
Profit | | | | | 16'500.00 |
Profit (in %) | | | | | 166% |
SHARES OUTSTANDING / FULLY DILUTED | MARKET CAP |
56.8 million / 87.7 million | CAD 28.1 Million |
52 WEEK LOW / HIGH | AVERAGE VOLUME TSXV |
CAD 0.105 to 0.70 | 417,000 (200-day) |
RECOMMENDATION | RISK RATING |
BUY | HIGH |
AN EMERGING GOLD AND SILVER PRODUCER IN MEXICO
Business Summary
UC Resources Ltd. is an emerging producer of Gold and Silver in Mexico. The Company's goal is to combine both cash flow from production along with a significant exploration upside from its mining assets.
UC Resources has made several significant corporate achievements of recent and is aggressively moving ahead with its 100% interest in the 64,000 hectare (640 sq km’s) historically productive Gold and Silver Copalquin Project in NW Durango, Mexico.
Mexico is the number one producer of Silver in the world, and remains a most favourable environment for mining and investment. Copalquin is located in the heart of Mexico’s prolific Sierra Madre Mining belt and is the flagship property. It has returned both high-grade Gold and Silver results from recent drilling in Phase 1 exploration program in early 2005.
UC Resources Ltd. has a 100% interest in the Copalquin Property which is located in Mexico’s Sierra Madre mineralogical belt. Historic, high grade production at Copalquin has been estimated at over 250,000 ounces of gold and 11 million ounces of silver from just 336,000 tonnes – with most production occurring prior to the 1910 Mexican Revolution.
Previous drilling in 1998 by Bell Coast Capital (BCC) in 1998 (31 holes) returned promising results at El Cometa – with both high and low grade Au-Ag mineralization found throughout an extensive flat-lying quartz breccia with local vertical expressions.
Drilling by UC in late 2004 and early 2005 focused on confirming and possibly expanding upon the high grade results of BCC at El Cometa. However, it has since been noted in a careful review of the data by UC that many of the mineralized intervals reported by both UC and BCC actually represent only the highest grade sections within much wider zones of lower grade mineralization.
As reported in early 2005, Phase 1 drilling at Copalquin in 2004 and early 2005 intersected wide zones of gold and silver mineralization at two prospects referred to as El Cometa and El Refugio.
The Phase II exploration program at Copalquin is progressing according to plan. The Company has currently completed 3,000 metres of drilling, out of a total planned 10,000 metre program. During this round it is targeting discovery holes where no previous drilling activity has occurred, as part of the first modern, systematic exploration program to focus on the entire district. The information gained from this round will be of value for interpretation into the exploration model, as the Company works to define the discovery of a large epithermal system of lower grade, continuous mineralization that it believes lies at shallow depths across much of the property holdings.
The goal is to prove up a resource that would be suitable for a large scale, open pit mining operation.
Recent News: UC Resources Ltd. Intersects High Grade Gold and Silver Upon Completion of Phase II Drilling at Copalquin |
Management has provided assay results for DDH 06-07 from the Copalquin Property in Durango State, Mexico.
As reported June 27, 2006 DDH 06-07 was designed to test whether or not the mineralized zone that was developed by the former La Soledad Mine (circa 1900) continues at depth below the existing mine workings. DDH 06-07 is the first drill hole ever completed below the mine workings at La Soledad and no attempt has ever been made to test potential strike extensions of the zone.
The drill hole, which is believed to have been drilled approximately 15-20 meters below the existing mine workings, encountered a 5.15 meter wide mineralized zone containing quartz, silicified andesite breccia, native gold and acanthite (silver sulfide mineral).
The mineralized zone averaged 44.6 g/t of gold (1.43 ounces/tonne), and 1,564 g/t silver (50.29 ounces/tonne). Within this zone there is a 1.75 meter wide section that averaged 112.8 g/t gold (3.63 ounces/tonne) and 4,337 g/t silver (139.45 ounces/tonne). The true width of the mineralized zone is believed to be approximately 95% of the reported interval.
Assays from within the mineralized zone are as follows:
Depth (meters) | Gold g/t | Silver g/t
|
111.60 to 112.78 | 7.4 | 209 |
112.78 to 115.00 | 2.8 | 100 |
115.00 to 115.50 | 86.7 | 2,500 |
115.50 to 116.00 | 199.0 | 7,820 |
116.00 to 116.75 | 94.5 | 3,240 |
Management is awaiting results from holes DDH 06-04, and DDH 06-05 to complete its summary report of the program. Upon receipt of these results, management will evaluate all of the data it has at its disposal and will prepare a budget and exploration plan for Phase III of its program. Drill crews are being assembled at this moment to man the two drills that the Company recently purchased, and drilling is expected to resume in late August or early September of this year.
Results from initial drilling clearly demonstrate that the mineralized zone at La Soledad continues below the existing mine workings. Based on results of this stage of exploration, management has approved expanding the proposed Stage 3 program at Copalquin to include extensive additional drill testing at La Soledad.
Fundamental Considerations
Should the company continue to come up with drill results as the ones recently reported (The mineralized zone averaged 44.6 g/t of gold (1.43 ounces/tonne), and 1,564 g/t silver (50.29 ounces/tonne).), investors will indeed start making comparison with major deposits already discovered (as listed above) in the vicinity of the Copalquin project.
