Company
SOHO RESOURCES CORP.
Building Resource Wealth in Mexico
Soho Resources Corp. is an exploration and mine development company strategically focused on gold, silver and base metals in the prolific Sierra Madre Mineral Belt of Mexico.
The Company has been conducting an exploration and drilling program to expand and upgrade its resources at its flagship Tahuehueto Project in Durango State.
On October 4, 2010 Soho announced the results of a Preliminary Economic Assessment ("PEA") completed by Snowden Mining Industry Consultants Inc. Key findings from the report included:
- Potential mine life of greater than 10 years, with mill operating at full capacity from Year 2 to 8
- Potential mill feed over Life of Mine of 9.0 million tonnes with average grades of 1.64 g/t Au, 28 g/t Ag, 0.18% Cu, 0.87% Pb and 1.64% Zn.
- Cinco de Mayo underground operates over the whole mine life with a steady production rate at or near 300,000 tonnes per annum
- Creston open pit is mined from Years 1 to 8
- El Rey and Creston underground operations commence in Year 6
- A substantial spike in the gold grade during Year 2 of 3.5 g/t
| Summary of PEA Estimates | |
| Net Cashflow | $US 184.2 million |
| NPV (5% discount) | $US 109.6 million |
| Internal Rate of Return % | 31% |
| Payback period | 27 months |
| Mine Life | 11 years |
| Max processing rate (per annum) | 1,000,000 tonnes |
| Capital and startup costs | $US 89.1 million |
| Calculations based on 3 year rolling average of metal prices as of August 2010 Gold - 965.81, Silver - 15.38, Copper - 2.92, Lead - 0.95, Zinc - 0.88 |
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The Tahuehueto Project is a classic epithermal system hosting multiple structures traced for up to six kilometers of strike length. The project area has geological similarities to nearby mines, notably La Cienega, a polymetallic deposit operated by Penoles, Mexico's largest mining company.
In July of 2009 the Company announced the acquisition of the Jocuixtita Silver Project in Sinaloa, Mexico. This property is located approximately 120 km northeast of Mazatlan with access to the property via highway between Mazatlan and Culiacan except for the last 67 kilometres which is over gravel road.
Soho recently completed a first phase exploration program on the property consisting of geological mapping, surface and underground sampling followed by a diamond core drilling program using a small drill rig drilling BTW thin-wall sized drill core. Thirteen drill holes were completed reaching their target depth. On September 13, 2011 the Company released the assay results from this program.
