UC is undervalued big time based on cash flow from La Yesca mill alone. In addition, there's excellent potential at Xora which is close to the mill. Let's not forget that UC had gotten paid by the Mexican government to drill on UC's own land at Xora. The drilling last year didn't hit bulls eye, but the next round may very well do that. With cash from La Yesca, Jim can potentially drill sooner and drill where he thinks has the best potential, and would no longer be bounded by the Mexican Government's schedule and plan. A good result near the surface at Xora could easily produce ore that can be process at La Yesca mill at a much higher recovery rate. This could very well happened this year and double/triple current cash flow estimates.
And then there is McFaulds. With MAJORITY ownership of one of the largest claims in Canada's next largest mining centre, the potential value is huge. Although UC hasn't hit the rich Chromate deposits like it's neighbours, the known copper deposits near the surface at McFauld's #3 is probably minable when road is built into the area. Then there is greater potential deep down under McFauld#3. As we can see in the struggle between Cliffs and KWG over Big Daddy, the party with majority ownership calls the shots. The fact that UC has majority ownership is a HUGE advantage, making it an attractive candidate for acquisition or simply call the shots when opportunities arise. Ring of Fire has been quiet for a while because the government can't get there act together. But if there is an announcement of road/power project into RoF, all the RoF player would appreciate tremendously. Last time when NOT was riding high most people don't even know UC is associate with the Spyder/KWG claim. When the next tidal wave comes rising all player at Rof, UC will front and centre.
The first shot has already been fired with breakeven of the La Yesca mill, and a turnaround in the share price. The double barrel of Xora and McFaulds are now loaded ready to send UC sky high. Can't wait to see what this year could bring.
LD
