UC Resources 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* (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.