Soho Resources Corp. SEDAR Files NI 43-101 Preliminary Economic Assessment Technical Report for Tahuehueto Project
02 November 2010 - 3:00PM
Marketwired
Soho Resources Corp. (TSX VENTURE: SOH) ("Soho" or the "Company")
has filed on SEDAR (www.sedar.com) a National Instrument 43-101
compliant Preliminary Economic Assessment Technical Report ("PEA")
for its 99.4% owned Tahuehueto Project in Durango, Mexico. The PEA
was prepared by Snowden Mining Industry Consultants Inc.
("Snowden") in accordance with the requirements of Canadian
National Instrument 43-101 "Standards of Disclosure for Mineral
Projects" ("NI 43-101"). The PEA contemplates the combination of an
open pit mining operation at the El Creston Zone along with
underground mining operations at Cinco de Mayo, El Creston and El
Rey, utilizing mechanized low-cost Long Hole Open Stope ("LHOS")
mining methods. The combined mining operation was modeled producing
at 1,000,000 tonnes per annum (approx. 2950 tonnes per day).
Metallurgical test work, as previously disclosed, indicates that
sulfide flotation methodology will produce separate copper, lead
and zinc concentrates.
Results from the PEA were previously announced on October 4,
2010. Highlights are as follows:
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Summary of PEA Estimates
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Net cashflow $US 184.2 million
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Net Present Value (NPV) 5% Discount Rate $US 109.6 million
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Internal Rate of Return (IRR) 31%
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Payback period (months) 27
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Mine life (years) 11
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Max processing rate (tonnes per annum) 1,000,000
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Capital & startup costs $US 89.1 million
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Metal Selling Prices
Metal Sell Price - $US Source
------------------------------------------------------------------------
Gold 965.81/oz London PM fix price (Centennial
Precious Metals, Inc. 2010)
Silver 15.38/oz London fix price (Silver Institute,
2010)
Copper 2.92/lb LME grade A cathode spot price, CIF
European ports (IMF, 2010)
Lead 0.95/lb LME 99.97% pure spot price, CIF
European ports (IMF, 2010)
Zinc 0.88/lb LME high grade 98% pure spot price,
CIF UK ports (IMF, 2010)
------------------------------------------------------------------------
Mr. Ralph Shearing, President and CEO of the Company states,
"The delivery of these robust Preliminary Economic Assessment
numbers is one of the most significant milestones in the history of
the Company and clearly demonstrates the potential economic
viability of the Tahuehueto Project. It is important to note that
this economic assessment was calculated from the resource as
outlined in the most recent 2009, NI 43-101 compliant mineral
resource. Very significant upside exploration potential exists
within the unexplored portions of the current resource structures,
both along strike and down dip, as well as in the many other
separate mineralized structures known to occur, but yet unexplored,
within the project concessions. Additional upside potential is also
contained within the difference between the three-year rolling
average metal prices used in the PEA and the current strong
precious metal prices for gold and silver. There is very little
doubt in my mind that with additional exploration and development
the projected 11 year mine life outlined in the PEA could be
dramatically extended."
The PEA developed a number of conclusions and recommendations
for future work. It can be concluded from the current study that
there is potential for a profitable project to be established at
Tahuehueto. An open pit operation is potentially viable at El
Creston, whilst resources with potential for economic underground
mining exist at Cinco de Mayo, El Creston and El Rey. Snowden also
concludes that there is the possibility for open pit mining at
Cinco de Mayo, however, until an assessment of the geotechnical
stability of the cliff face above the Cinco de Mayo zone has been
completed, the resource contained there has been excluded for open
pit mining and all material remains in the underground mine plan.
Metallurgical test work indicates that it will be possible to use
flotation to produce separate copper, lead, and zinc
concentrates.
It is recommended that Soho continues with its evaluation of the
Tahuehueto Project and progresses towards undertaking a
Prefeasibility Study to address the remaining material project
uncertainties.
With the release of the Preliminary Economic Assessment Soho
plans to advance the project through Pre- feasibility and
Feasibility toward production. In order to do so, the Company is
seeking to add experienced mining engineering and construction
personnel to its management team and Board of Directors. Given the
favorable results of this current economic assessment and the
upside potential contained within the future exploration and
development potential of the project, the Company is very confident
in its ability to locate and secure additional expertise, dedicated
to developing a profitable mining operation at Tahuehueto.
Qualified Persons
This press release was prepared under the supervision and review
of Ralph Shearing, President and CEO of Soho Resources, a Licensed
Geologist, and Qualified Person as defined by NI 43-101. The PEA
disclosed in this press release was prepared by Snowden Mining
Industry Consultants Inc. of Vancouver, British Columbia, under the
direction of Mr. Anthony Finch BEng, BEcon, MAusIMM, an independent
Qualified Person as defined by NI 43-101.
Definitions used in this release are consistent with those
adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum ("CIM") Council in December 2005, as amended, and
prescribed by the Canadian Securities Administrator's National
Instrument 43-101 and Form 43-101F1, Standards of Disclosure for
Mineral Projects. Mineral resources are not mineral reserves and do
not have demonstrated economic viability.
ON BEHALF OF THE BOARD OF DIRECTORS
Ralph Shearing, Chief Executive Officer
WARNING: The Company relies upon litigation protection for
"forward-looking" statements. This News Release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of up-coming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements address
future events and conditions and therefore involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements. Soho Resources Corp.
relies upon litigation protection for forward-looking
statements.
Shares Issued - 154,013,693
Last Close 2010/11/01 - $0.09
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Soho Resources Corp. Mr. Glen Sandwell (604) 684-8071
or Toll Free: 1-800-685-0576 ir@sohoresources.ca
www.sohoresources.ca
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