UC Resources Mill Update and Invests in Sprott Silver Trust
February 07 2012 - 8:30AM
Marketwired Canada
UC Resources Ltd. ("UC" or the "Company") (TSX VENTURE:UC) is pleased to provide
this information update to its shareholders, stakeholders and interested
parties.
The company has completed the planned review of operations at La Yesca milling
facility which has culminated in approval from the board of directors for a 2
phase upgrade program designed to enhance throughput and recoveries leading to
commercial production declaration. Phase one has already begun and should be
completed within 3 months at a budget of $300,000. Phase 2 is planned from the
increased revenue for phase one and will require an additional $200,000
investment. It's expected down time at the mill will be minimal during these
upgrades having little impact, if any, on present quarterly revenue from
operations.
The company has also recently acquired for investment purposes $1,500,000 of the
Sprott Physical Silver Trust(i) (NYSE Arca:PSLV) representing a portion of its
available free cash. The board of directors approved this investment for the
following reasons: enhance return on present cash since presently holding cash
vehicles provides negative returns when inflation adjusted; investing in the
industry the company is involved in and seeks to grow in from both a production
and exploration perspective; good liquidity; enhance shareholder value from
further increases in the price of silver; our way of responding to the call to
action of Eric Sprott for precious metal companies to retain some production as
savings. It was felt the best course of action for UC was to invest in a true
physical silver vehicle and the Sprott silver trust was selected.
With the focus on Mexico the company believes that excellent project/property
opportunities will arise. We are currently evaluating new projects. UC Resources
will have sufficient capital reserves to be able to selectively choose those
opportunities that will best suit the company and its plan to acquiring near
term production assets and grow shareholder value.
UC Resources is an active explorer and producer of precious metals in Mexico.
On behalf of the Board of Directors,
Gary Monaghan, CEO
(i) see for full details, http://www.sprottphysicalsilvertrust.com
We seek safe harbour.
Investors are invited to visit the UC Resources IR Hub at
http://www.agoracom.com/ir/UCResources where they can post questions and receive
answers or review questions and answers already posted by other investors.
Alternatively, investors are able to e-mail all questions and correspondence to
UC@agoracom.com where they can also request to be added to the investor e-mail
list to receive all future press releases and updates in real time.
This news release includes certain forward-looking statements or information.
All statements other than statements of historical fact included in this
release, including, without limitation, statements relating to the potential
mineralization and geological merits of the La Yesca properties and other future
plans, objectives or expectations of the Company are forward-looking statements
that involve various risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from the Company's
plans or expectations include risks relating to the actual results of current
exploration activities, fluctuating gold prices, possibility of equipment
breakdowns and delays, exploration cost overruns, availability of capital and
financing, general economic, market or business conditions, regulatory changes,
timeliness of government or regulatory approvals and other risks detailed herein
and from time to time in the filings made by the Company with securities
regulators. The Company expressly disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result of new
information, future events or otherwise except as otherwise required by
applicable securities legislation.