HDA.V - Huldra Silver Inc

This may be another interesting company....

common shares issued: 7,724,519
outstanding options 100,000 exercisable at $0.40 (CDN) expires May 2010
warrants exercisable 400,000 exercisable at $0.75 (CDN) expires April 30, 2007

http://www.huldrasilver.com/brochure.pdf

The reserves to date are 164,000 tons grading
25.3 oz. silver per ton and 10% combined lead-zinc, and
180,000 tons potential within the partly explored mine area.

EarthMonkey comment: Very high grade ore!! This 161k ton reserve contains:
4.12 mil ounces of Silver;
at least 14.6 mil lbs of lead (Using MD&A Aug 14 Sedar report older data - 146,600 tons grading 4.53% lead)
17 mil lbs of Zinc (Using MD&A Aug 14 Sedar report older data - 146,600 tons grading 5.29% zinc)

During the reporting quarter (Six Month Period Ended June 30, 2007) Entech Environmental Consultants commenced permitting related field work.

The Company’s main objective is to qualify the Treasure Mountain Project for a 36,000 tons per year mine/mill permit.

Silver production pa: 36000 * 25.3 = 910,800 ounce
Lead Production pa: 36000 * 4.53% = 3,587,760 lb
Zinc Production pa: 36000 * 5.29% = 4,189,680 lb

At todays metal price ($13.5 silver, $1.5 lead, $1.3 Zinc) total revenue pa would be:

(910,800 * $13.5) + (3,587,760 * $1.5) + (4,189,680 * $1.3) = $12,295,800 + $5,381,640 + $5,446,584 = $23,124,024

There are currently sufficient historic resources (not NI 43-101 compliant) for a mine life of four years - 147,000 tons grading 25 oz /t silver and 10% combined lead-zinc – with an open exploration potential laterally and to depth.

Base on the company calculation on total cash cost of $5.396 mil pa and winter shut down cost pa of $220k (Sedar.com Dec 12, 2006 report)

And a 95% silver recovery can be achieved through conventional concentrating. http://www.huldrasilver.com/brochure.pdf

Therefore annual cash flow at todays metal price would be around: $17,508,024

Per share cash flow (excluding first year of pre-stripping activities etc) for 5 years of production:

$17.5 mil / 8 mil shares = 93 cents per share.


Anyone interested in finding more about this company? I know the mine life is kind of short, it seems to me there is a great protential to prove up more reserve with an open exploration potential laterally and to depth.

Bull, studbrk, what do ye think?

More info on Capex requirement (Dec 12, 2006 sedar.com report):

Mr. Beaton’s research shows that the capital requirements, including a working capital of
$1,500,000, for a 36,000 tons per year (150 tons per day for 8 months of the year) operation
would be $9,715,000.

First thought is, for very little money, relatively speaking, we could decide the fate of this company. We could make Studbkr or Henk CEO.

Serioulsy, I like it it. I have mentioned as much in the JH forum. I think I need to look closer. Maybe even visit the management and get a first hand look at the workings. As silver keeps going up and eventually into mania stage, this companys share price could skyrocket way past its intrinsic value because of the high grade.

Did you notice the company brochure is dated 1989 ??
The potential here is too small to mess with imho.
unless I am missing something.

CEO ? KARL

*****************************

Note the Share Capital Structure
authorized: 50,000,000
common shares issued: 7,724,519
outstanding options 100,000 exercisable at $0.40 (CDN) expires May 2010
warrants exercisable 400,000 exercisable at $0.75 (CDN) expires April 30, 2007
Cusip No: 44473J
Share Listing: The TSX Venture Exchange symbol "HDA"

Nice Pic of "Ruby Silver"! Scroll down about 3/4 of the page.

I wonder how much of this stuff HDA has.

Huldra doesn't answer the phone. They don't even identify the company on the answering machine. Not what I like to hear. I wonder what they are doing to proceed from here.

Well, they are working on the mining permits. With the ore grade averaging 25.3 ounces per ton, they only need a few truck loads here and there and they pay off their office expenses easily and have quite a extra $$ put in their pockets.

Note that in 1988, they only drilled a very small portion of and in the centre part of the known mineralization. They only drilled all the way down up to 350 meters from the tip of the hill. They hit high grade silver all the way down.

Their 1988 technical report said they have another 180k tons potential. I am specualting that this 180k tons may contain another 4.5 mil ounces of silver.

But the story did not end there may be of similar grade going both East and West direction and deep down). So, I specualte that there may be a total of 25 mil ounces of silver in the ground.

With only approximately 8 mil shares (after all warrant and options exercised) outstanding, if I own the company, I will keep the mine for myself. I drill whenever I like to get some cash out.

It would be great if we can involve in PP somehow as the ore is so rich. However, they may not need to raise money.

EarthMonkey, do you which smelter they send ore to, or if they are right now?

I forgot which one they sent the ore. One of their document mentioned the smelter location. I can go dig up the info again.

No big deal, just thought I'd call the smelter and see if Huldra had been shipping at all.

They sent the ore to Cominco and Asarco for smeltering.

Bull, it may not worth our time to find more details of this company if their operation is so secretive. It reminds me of companies like ABI.V, RMK (family businesses). Share price of these 2 companies are forever depressed.

Bravo EarthMonkey! Good point. NJMC.OB also fits that description. Aloha liked it for awhile...