soh
Hot Stocks: Soho Resources
We’ve been following Soho Resources’ progress on its Tahuehueto Project in northeastern Durango, Mexico since CEO Ralph Shearing fired up the engines again with a positive PEA on the project in October this 2010.
Tahuehueto hasn’t seen a lot of work since the recession put the brakes on the project. Now with a $3 million private placement almost put to bed (and it’ll probably be oversubscribed) expect work to recommence toward production here imminently.
Recall that PEA? The deposit (Au, Ag, Cu, Pb, Zn) would have a net cash flow of $185 million for capital investment of $89 million. The 11 year, maximum 1,000,000 tpa mine would process 9 million tonnes total with the present resource estimate, but ongoing drilling will doubtless add some of the remaining inferred ore and possibly additional ore from several extensions to existing ore bodies on the project.
Also worth mentioning, the company has a new project under option, which at first glance appears to have the potential to become an attractive silver play. The Jocuixtita project is located in Sinaloa, Mexico, a stone’s throw from the famous San Dimas mining district where Goldcorp operates three mines today. Previous artisanal mine workings here follow over 3km of strike length, never explored with modern techniques. Viva Mexico, huh? Soho is planning a $400,000 initial exploration program to include 6 to 10 drill holes.
I recently talked to Ralph Shearing, CEO, who said, “You know, with the release of the robust Tahuehueto PEA and the closing of our private placement, we’re ready to start up operations again at Tahuehueto collecting data in preparation for pre-feasibility and feasibility studies, and a production decision.
“At the same time, we have allocated funds towards an initial exploration program, including drilling, at our new Jocuixtita silver project. With those results coming in, I expect to deliver a new high-grade silver project to the market and our investors in the New Year.
“Additionally, with our private placement completed, we’ll begin a marketing program within North America and Europe as well, which will communicate to investors just how much value there is in these two projects–and in Soho Resources as a company.”
If Soho Resources can build and maintain momentum with this new injection of cash, there’s a lot of upside potential. The present value per share is $1.18 (based on projected net cash flow); the company is trading at
.14 per share.