Updated: 2013-05-21 - 13:44:00
UC Resources Symbol: UC.V
The La Yesca tailings mill runs 24/7 and the company has come very close to having the ability to be able to claim commercial production, but then ran into equipment, temporary power grid and flooding issues and other ongoing plant flow issues. These issues have been addressed ongoing, but will be addressed substantially through the injection of capital required to augment the flow process at the mill to a more final production solution in the first quarter of 2012. Following this period, the goal of the company is to operate the mill at a consistent run rate of 200 + or - Tonnes per day, which will result in the type of long term revenue run rates that will assist the company in achieving a number of goals in a number of areas.
UC Resources immediate exploration focus for the build-out of the La Yesca project will be the La Colorada mine. This is a significant exploration asset located on the adjacent Xora concession with an inferred mineral resource of 11,730 tonnes grading 0.70 g/t gold and 619 g/t silver. La Colorado mine was a past producing gold and silver mine, tonnage mined is unknown. Lower grade gold and silver found immediately east of the La Colorada mine opening suggests that a zone of bulk mineable material may exist on the property, within which there may be additional high grade mineralization similar to the La Colorada vein.
The La Yesca mining district is underlain by Tertiary age andesite and rhyolite volcanic rocks that are part of the prolific Sierra Madre Occidental mining belt, which hosts numerous epithermal gold and silver mines and mineral occurrences. In the immediate La Yesca district there are at least 16 known gold and silver mineral discoveries, of which five are reportedly past producing mines. UC Resources is committed to a long-term plan for the district, and intends to significantly expand its land holdings .Management plans on using some of the funds generated by the tailings processing project will be directed to exploration of this project.