VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 2, 2010) - 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 (~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:
Metal Selling Prices
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.
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