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UC Resources Ltd.: Mining In
Resource Heavy Mexico
by Glenn Wilkins - AllPennyStocks.com News Reporter
May 11, 2006 (AllPennyStocks.com Media, Inc.) - "All that
glisters is not gold," William Shakespeare taught us. But even
the Bard would agree that having at least a little of it in
your purse, particularly in the volatile times in which we
live, is a good thing. Gold, and silver, the other precious
metal, appreciate during political or economic uncertainty.
Investors can benefit from the current bull-run in these
precious metals by investing in those rare gold & silver
companies which are aggressively growing, and have secured
large land packages with mineral riches, and are moving into
production.
One such firm is Vancouver-based UC Resources Ltd.
(TSX-Venture: UC), an emerging producer of silver and gold
in Mexico. UC's goal is to combine cash flow from production
with a significant exploration upside from its mining assets.
This unique approach is a reflection of the strategic business
acumen of President and CEO Richard J. Hamelin, whose mining
career began with Kidd Creek Mines in Timmins Ontario, in
1974. For 12 years Richard Hamelin had a broad range of
functional responsibilities, encompassing production, research
and development and engineering, before leaving to join the
financial services industry, a career which culminated at the
helm of Canaccord Capital for all of Quebec. Prior to joining
UC Resources, he was a senior Vice President of ECU Silver
Mining Inc.
(TSX-Venture: ECU), an emerging Mexico silver Producer.
Mr. Hamelin, who now lives in Torreon, Mexico, located on the
edge of Durango, heads up the all operational activities in
conjunction with UC Resources' Canadian office in Vancouver,
BC Canada.
Mexico is the world's largest silver producer, and industry
experts remain bullish on both gold and silver, which are
hitting new historical highs. Investors who have gotten in
early into other emerging Mexican silver and gold producers
have been handsomely rewarded with significant stock
appreciation. With its qualified international management
team, large land package, production assets, and bonanza grade
exploration results, UC Resources is set to follow a similar
trajectory that others have realized in the rich Sierra Madre
mining belt.
In particular, UC Resources is aggressively moving ahead with
its 100-per-cent interest in the vast gold and silver
Copalquin Project in the Northwest corner of Durango in
central Mexico. The Copalquin Mining District is reputed to
have produced at least 250,000 ounces of gold and 11 million
ounces of silver. Last month, UC began Phase Two drilling in
Copalquin, following-up on Phase One Results, which netted a
wide zone of epithermal style mineralization, and Bonanza
grade silver and gold. Phase One drilling intersected wide
zones of gold and silver mineralization at two prospects
called El Cometa and El Refugio. These two zones initially
were considered separate, but drilling results indicated a
much more extensively mineralized zone than first thought.
Phase Two surface sampling, trenching and satellite imagery
significantly improved the understanding of the structures and
other new anomalous targets, leading management to implement a
major exploration program. Results from Phase Two drilling,
which has just recently begun, are expected in Q2 2006.
In addition to its exploration activities, UC is moving
forward aggressively on its stated goal to become a producer
of gold & silver. On May 9, UC Resources announced a Letter of
Intent to acquire the production assets of a 100 hectare
mining concession, called the MAR Mining Project, which
contains an ore dump that can be processed immediately and a
self-contained and modern PORTABLE 100 tonne per day milling
facility. This latest announcement builds upon the news
release announcing a Letter of Intent to acquire the La Yesca
mining project, located approximately 200 kilometers west of
Guadalajara. This exciting project consists of a 600-hectare
mining concession, including two modern previous historically
producing gold & silver mines. As well, La Yesca consists of a
200 tonne per day milling facility and 200,000 tonnes of mine
tailings, with good grades of gold & silver, with processing
expected within 3-4 months, catapulting the company into the
category of producer. UC Resources intends to bring these
historic mines back into production as quickly as possible and
as well expand milling capacity.
Based in Mexico, Richard Hamelin is able to review several
acquisition proposals on a weekly basis, and choose only the
best proposals for acquisition by UC Resources and its
shareholders.
The Company intends the MAR and La Yesca to be two of many
new production acquisitions in 2006. Given UC's success in
acquiring major exploration properties and production assets,
the company will have two wholly owned Mexican subsidiaries:
one focused on production and the other on exploration.
Astute investors and institutions have picked up on the UC
opportunity. Its recent private placements have been
significantly oversubscribed, and its stock is one of the more
active TSX-Venture stocks with average daily volume above
500,000 shares. It recently is trading at around 55 cents.
With just over 47.3 million shares issued, this gives UC a
market capitalization of just over $26 million.
With concerns about inflation, weakness of the US dollar,
and world events, more people are looking to precious metals
not only as a store of value but for significant capital
appreciation. This boom in precious metals will put a shine to
companies, such as UC Resources, which are focused on becoming
emerging producers with a large exploration upside.
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