Soho Resources Corp.: President's Letter to Shareholders
December 12 2007 - 12:35PM
Marketwired
VANCOUVER, BRITISH COLUMBIA has significantly advanced its
cornerstone Tahuehueto Project in Durango State, Mexico. While 2007
was an eventful and exciting year for the Company, it was also
marked by a series of challenges, notably delays associated with a
helicopter-supported drilling program and the release of the first
National Instrument (NI) 43-101 resource estimate for the
poly-metallic (gold, silver and base metals) project.
Soho has since resolved the mechanical problems that interrupted
its 3,000-meter, helicopter-supported drilling program, and subject
to delivery of replacement parts will resume helicopter-supported
drilling after the Christmas Break. The Company also expects to
receive its first formal NI 43-101 compliant resource estimate for
Tahuehueto from Mine Development Associates of Reno, Nevada, in
early 2008, paving the way for subsequent pre-feasibility and
scoping studies.
Soho Resources has completed more than 31,000 meters of drilling
in 170 holes to define priority zones occurring within a
district-scale epithermal system traced for at least six kilometers
at Tahuehueto. Along with the balance of the helicopter-supported
drilling program, the Company has entered into a diamond drilling
contract with Falcon Perforaciones Mexico S.A. De C.V., a Mexican
subsidiary of Falcon Drilling Ltd. of Prince George, B.C., for at
least 5,000 meters of core drilling (see press release Dec.5/07).
In early December one of Falcon's drill-rigs was mobilized to
Mexico, with drilling to start with the arrival of the rig to the
Project site immediately after the Christmas Break. A second Falcon
rig is intended to be mobilized to the site in early 2008.
The bulk of 2007 drilling was focused on resource definition
within five priority zones and totaled more than 15,500 meters. The
ongoing 3,000-meter, helicopter-supported program is testing
critical areas where major structures intersect but are largely
inaccessible by road because of steep terrain. Some of the best
assay results for both precious and base metals were returned from
the edges of such areas, notably the El 1225 Clavo and Level 8-9
Clavo. The Company has completed four drill holes originally
targeted for helicopter drilling, one with the helicopter drill,
and three with a skid-mounted drill where drill sites were able to
be accessed by explosive blasting to establish skid roads. Results
from these first four holes within the helicopter-supported
drilling area will be released as soon as possible in early
2008.
Tahuehueto covers 9,081 hectares of prospective ground and hosts
at least one dozen mineralized zones within a structurally
controlled epithermal system. Exploration to date has focused
mostly on four zones - El Creston, Cinco de Mayo, El Rey and
Santiago - situated within or related to the large, continuous
Cinco De Mayo-Perdido-Santiago Structure. The recently discovered
Catorce Zone in the central part of this large structure has
evolved into an important high-grade exploration target (see press
release Sept 27/07).
The results of exploration to date have led to an improved
understanding of the geological model and structural setting of
Tahuehueto, which is situated in the central portion of the Sierra
Madre Mineral Belt hosting most of Mexico's historic and producing
mines, mineral deposits and active exploration projects. Hall
Stewart, Vice-President of Exploration and Development, has
extensive experience in this prolific belt, where he helped
discover and define resources totaling 6.98 million gold-equivalent
ounces at three separate projects.
Geological mapping and sampling programs have revealed important
new targets at Tahuehueto. Geologists have identified surface
expressions of the Texcalama Structure over at least 1,800 meters
of strike length. Additional work to test this promising target is
planned for 2008.
Soho Resources intends to initiate a drilling program to collect
a mini-bulk sample of mineralized zones to submit for metallurgical
testing in order to determine optimal processing methods and
projected recoveries of gold, silver and base metals. Because of
the coarse-grained mineralization and lack of deleterious elements,
the Company is optimistic that results will be favorable. This
program will include a series of flotation and leaching tests as
well as ball mill work index tests and detailed mineralogical
determinations. The potential for acid generation and environmental
issues will also be assessed as part of the environmental planning
process.
Infrastructure planning is also under way with the Company
agreeing to a cost-sharing initiative with both State and Municipal
governments to upgrade the access road to the site and also provide
improved access to nearby communities, including El Purgatorio,
Arroyo Hondo and Las Cruces. This project will start in December of
2007 and is expected to be completed by the end of February,
2008.
Soho Resources has prudently managed its financial resources,
including the net proceeds of two separate private placement
financings that raised $12.2 million in April of 2007. At November
30, 2007, the Company had working capital of approximately $6.5
million dollars.
Soho has established an in-house Investor Relations Department,
headed by Manager Glen Sandwell, in order to improve communications
with shareholders and the investment community. Toward this end,
this team and senior management representatives will be attending a
series of important industry conferences in early 2008, including
the PDAC Convention in Toronto in early March and the Cambridge
Conferences in Vancouver (Jan. 20-21), Phoenix (Feb. 9-10) and
Calgary (April 12-13). Other initiatives to raise the Company's
industry and investor profile include a recently published analyst
report by London-based Objective Capital (click here for a full PDF
version) and a newly produced corporate video to be released
shortly.
Mineral exploration and development is a challenging yet
ultimately rewarding enterprise, as the past year has shown at
Tahuehueto. We appreciate the patience and support of our
shareholders and the skills and dedication of our Mexican and
Canadian exploration and management teams. We look forward to an
exciting and productive year ahead, and to ultimately becoming a
mineral producer in Mexico.
Sincerely,
Ralph Shearing, P.Geol., President and Chief Executive
Officer
Shares Issued - 100,137,913
Last Close 2007/12/11 C$.195
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Contacts: Soho Resources Corp. Glen Sandwell (604) 684-8071 or
Toll Free: 1-800-685-0576 Email: gsandwell@sohoresources.ca
Website: www.sohoresources.ca
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