Soho Advances Toward a Production
www.sohoresources.ca
Decision in Mexico
Ralph Shearing
President
Soho Resources President, Ralph Shear-
ing is venturing to estimate a production
decision on the Tahuehueto Project in
the Durango district of Mexico within the
next two years. He tells ResourceINTEL-
LIGENCE that a mine on the property
could end up with a mine life of between
eighteen and forty years with current
resources…and all of that while making
significant development contributions
to the local Mexican people living in the
area.
R
esource Intelligence: The Tahuehueto Project
currently has a resource of nearly 13 million
tonnes. Any projections of when your cur-
rent resource will be advancing to higher categor-
ies of indicated and measured, and what are your
chances of increasing the overall resource?
Ralph Shearing: The Tahuehueto Project currently
has a 12.3 million tonne resource outlined from
our drilling program with about 40,000m drilled
to date. Of that, 60% of the resource is in the
measured and indicated categories with the re-
mainder in the inferred category. The grades for
the measured and indicated are higher than the
grades for the inferred but we’re very confident
that we’ll be able to move the inferred grades up
with closer spaced drilling, moving the inferred
into measured and indicated. We are also ex-
tremely confident that we will add more tonneage
to the current resource as we continue to explore
along strike and down dip on structures hosting
the resource as well as stepping out to explore on
other parts of the project where we know there are
mineralized structures. Really, I don’t think we’ve
Free Revolutionary Online Investment Calculators and all 43-101 data with sources and project values www.resourceintelligence.net
touched more than 20% of the deposit. It’s a
polymetallic project so we’re going to get excellent
credits from the base metals. About 40% of the
value of this project is in the gold and the rest is in
the other metals.
RI: Are you expecting to release any new reports in
the near future?
RS: We are conducting metallurgical testing right
now. We expect to have news to the market on
metallurgy within three weeks to a month. All
the recoveries we are getting are quite good so
we expect the report will support previous stud-
ies that were conducted by a Mexican government
organization in the 1970’s where 90% plus recov-
eries were obtained for gold, silver, lead and zinc.
We are also receiving proposals from engineering
firms for a preliminary economic or scoping study
style assessment of the project. We’re hoping to
be able to deliver this economic study report to
the market in the next three to five months and
then we’ll have a preliminary economic assess-
ment done.
RI: Any idea when investors might be able to ex-
pect production to take place?
RS: Well our best guess is a production decision
within a couple of years, and it’s a year to two
years to build so, probably three to four years.
RI: What about infrastructure at the Tahuehueto
Project?
RS: We currently have access out of a town called
Tepehuanes 185km away on reasonable logging-
style gravel roads for the first 100km or so and
then quite poor access from there on. However,
the Mexican government is actually building a
highway to the south of the Tahuehueto Project
that will connect northwestern Durango through
to Tamazula connecting through Culiacan and
providing us with future access to the deep sea
ports of either Mazatlan or Topolobampo. This
new access route will allow us to sell future min-
eral concentrate at world market prices to any
buyer in the world rather than having to sell to the
Penoles smelter in Torreon. We will have about
18km of new road to build and about 25km of
existing road to upgrade to connect through to
the new highway. We also envision accessing elec-
trical power along this route.
RI: How much property do you own in this area?
And what is the ownership structure?
RS: Our total area is just over 9,000 hectares on
Tahuehueto. We control 100% of the project
through a 99.4% ownership in a Mexican subsidi-
ary company.
RI: How is Soho Resources involved in promoting
development for the Mexican people living in the
Booth # 3304
604.684.8071
area?
RS: Our project is near a little community of eight
to ten families near the resource with other fam-
ilies spread out within the concessions. We em-
ployed all of the able workers in the area. We built
a school for the children. We built a clinic and
hired a doctor to be there on a full-time basis dur-
ing our drilling program. We improved sanitation
for most of the locals within the resource area by
supplying running water, flush toilets and showers
into their homes. We’re very conscious of the
people’s well-being and recognize how important
they are to us, not only as a human resource, but
they’re absolutely necessary to make the project
flow smoothly and go forward.
RI: A symbiotic relationship.
RS: Absolutely, yes.
RI: Soho acquired the Jocuixtita project in July of
2009. Could you tell us a little about what is excit-
ing about that silver project?
RS: We think it has the potential to be a similar
sized project to Tahuehueto considering the big
long structures and the strength of mineralization
seen at the Jocuixtita with the main difference be-
ing that Jocuixtita is predominantly a silver pro-
ject with base metals while Tahuehueto is a gold
project with base metals.
RI: Next steps?
RS: Once we’ve established access to the project site
we will commence underground sampling in the
existing exploration adits, surface sampling, sur-
face geological mapping after which we intend to
go very quickly into a preliminary drill program.
RI: How is the cash flow situation and how much
cash does Soho Resources have in the bank?
RS: We’ve got about $350,000 in the bank. We’re
intending to get back to the market in the next
couple of months to raise additional operating
capital.
RI: How should investors evaluate Soho Resour-
ces?
RS: Soho has to be considered an advanced-stage
explorer with a premier project that is fairly close
to a production decision. We’re highly under-
valued. An evaluation by London Based Objective
Capital clearly demonstrates this giving Soho Re-
sources a valuation of about thirty-five cents per
share in August 2009. Currently, we’re trading
at around seven or eight cents due to the market
conditions. So investors should view us as a huge
opportunity to get involved with an advanced
stage exploration project that I’m convinced will
make a mine in the near future.
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