EXM-v progress reportNice program success
Exmin proudly sponsors its summer exploits
Exmin Resources Inc (C:EXM)
Shares Issued 77,532,048
Last Close 9/19/2007 $0.42
Thursday September 20 2007 - Shareholders Letter
Ms. Mary Ryan reports
Investors and potential investors
Given the large amount of work Exmin Resources Inc. has completed this summer, we thought a synopsis might make it easier to understand the shareholder value our company has created over this period. Weakness in the precious metal mining shares has clearly affected Exmin, and we view the current share price as an extraordinary value. Here are some of the key things we have accomplished this summer.
Inaugurated the Moris mine
Our 30-per-cent-owned Moris mine project commenced production on schedule in August, with the first gold pour anticipated in October. When fully ramped up, likely by year-end, Exmin's share of production will generate cash flow of approximately $300,000 (U.S.) per month, based on annual mine output of about 36,000 ounces of gold (Au price $650 (U.S.)) and 150,000 ounces of silver.
Continued drilling at the Moris exploration project
In July, we reported solid drilling results at Moris with our joint venture partner, Hochschild Ltd. of Peru, including an intercept that cut 17.05 metres of 1.05 grams per tonne gold. In July, the second significant drilling program commenced at Moris, with a third program potentially commencing in the fourth quarter.
Created a significant partnership with Hochschild
In July, we announced that Hochschild participated in a $4.5-million private placement with Exmin. Under its terms, Exmin's debt to Hochschild was cancelled as well, in exchange for shares that effectively raised its stake in Exmin to approximately 17 per cent. Additionally, Hochschild will work more closely with the company on project generation and obtained the first right of offer on many of Exmin's available projects.
Commencement of second-stage drilling with Industrias Penoles
This week, we announced that the second major drilling program at Maguarichic will commence in early fall: a 3,000-metre program with very high potential. Prep work has been completed, and initial sampling is very promising.
Continued developing drill targets at our joint venture with Yale Resources
Last week, Yale renewed its earn-in JV agreement with Exmin for the Urique project, entering the second year of the five-year term. First-year work was very successful, with one large drill-ready target defined and several other promising targets being explored.
Received favourable drilling results from our 100-per-cent-owned Horcon project
In August, we published initial drilling results from Horcon, including cuts of 1.12 g/t Au over 13.7 metres with about one ounce silver per ton and almost 2 per cent combined lead and zinc, and 2.88 g/t Au over 3.6 metres with about two ounces of silver per ton and 5 per cent combined lead and zinc.
Made a significant acquisition
In August, we acquired the high-grade Pino silver project in the Sierra Madre Occidental of Durango state. This project is located near several other projects being explored or mined by Canadian junior resource companies, including Guanacevi (Endeavor Silver), Topia (Great Panther Resources) and Tahuehueto (Soho Resources). We view this project as having excellent discovery potential, either as a 100-per-cent-owned or joint venture property.
Created our fifth joint venture
This morning, Sept. 20, 2007, we announced in Stockwatch a new joint venture with Canarc Resources to explore the Santiago project on our Batopilas concession. This five-year agreement represents are fifth joint venture, with Canarc being the fourth company to become a partner of Exmin.
We are very proud of these accomplishments and look forward to adding further to shareholder value in the near future. Management works for you and all Exmin shareholders. We encourage and welcome your questions, criticisms and praises and are here to answer your calls or e-mails at any time.
© 2007 Canjex Publishing Ltd.