Shareholder update...I've been following this company since it started and I'm shocked at: 1) how quickly they have been able to do things and 2) how the market hasn't reacted to the story. This really could be 'lightning in a bottle' when they put out the moly numbers and Red Hills supports a production decision. But read for yourselves - this is the corporate update that they put out yesterday.
Dear Shareholder,
I would like to give you an update on what the Company has achieved since February of this year, towards the goal of being a producer. I have put this in bullet form as we are
moving quickly at Red Hills. By year end we expect to have an updated resource on the near surface Copper Blanket, an Inferred Resource on the Molybdenum deposit whichunderlies the Copper blanket, a better understanding of the High Grade Copper Zone and a Pre Economic Assessment of the Copper Blanket; the first step towards a production
decision. As of July 29, 2011 cash and cash equivalents including prepaid expenses and retainers in the Company’s accounts was $3,509,502 in US and Canadian funds.
February 22, 2011, the Company signed a letter of intent to acquire a 100% interest in an
advanced stage Molybdenum-Copper project known as “Red Hills”, located in Presidio County, Texas. As a component of the planned exploration program at the property,
he Company established a wholly owned Texas subsidiary, Red Hills Mining Corp.
March 3, 2011, Dr. Sadek E. El-Alfy PhD, (Mining), BSC (Eng.) was appointed Chairman and CEO of the Company. Dr. El-Alfy replaced Ron Shenton. Mr. Shenton continues
to act as President of the Company. Dr. Sadek El-Alfy is a professional Mining Engineer with 35 years’ experience in underground as well as open pit mining operations on several
continents. Recently he was involved in managing and leading Engineering Studies on several major mining projects and the completion of Bankable Feasibility Studies, Environmental
Impact Studies as well as Socio Economic studies on those projects.
March 30, 2011, the Company issued 15,024,499 common shares for a private placement for cash proceeds of $5,250,000.
April 06, 2011 the Company completed the legal and technical due diligence on the Red Hills Molybdenum-Copper project and signed a formal agreement to purchase the 100-per-cent ownership of all mineral and surface rights of the property.
April 12, 2011, the Company announced the appointment of Dr. David Stone, MBA, P.Eng. as a director. Dr. Stone has over 30 years of providing engineering and
financial consulting experience to underground and surface metal mines worldwide. He has managed and led multidisciplinary project teams through pre-feasibility
and feasibility level evaluations of development-stage projects, and has contributed to the engineering, design and
construction of several mines.
May 04, 2011 The Company announced a drill program designed to:• Verify previous drilling within a near-surface copper blanket and to collect representative
samples for metallurgical recovery test work;
• Carry out a preliminary assessment of a high-grade Copper zone discovered by previous
operators;
• Drill deeper holes, adjacent to a number of short historical drill holes that ended in strong
Molybdenum mineralization;
• Test for extensions of the Molybdenum system.
The Company also engaged the services of Mine Development Associates of Reno, Nev. for the resources estimates, M3 Engineering of Tucson to prepare the PEA and
the subsequent pre-feasibility study, Metchem of Tucson to conduct the metallurgical recovery test-work and Golders Associates of Tucson to provide the lead in the
Geo-Environmental aspects of the project.
May 20, 2011 the Company obtained a listing for its common shares on the US OTC QX
exchange under the symbol TSMNF.
May 26, 2011 The Company announced the start of the drill program, designed to explore the high grade zone, verify the historical data from the shallow Copper blanket
and test the underlying Molybdenum deposit
July 18, 2011 The Company reported first results of the Phase One Drill program:• 70 feet of 6.71% Cu including 26 feet of 14.1% Cu in the high grade zone.
• 50 feet of 0.45% Cu in the Copper blanket validating the historic results from this site
• Started Phase Two of the drill program
Phase Two Drilling is currently underway with assays pending from Phase One that will be released as soon as they become available.
The majority of the first 6 drill released holes were designed to obtain additional data on the High Grade Copper zone, located outside of the near surface Copper Blanket.
While some high grade numbers were announced (70 feet of 6.71% Cu) more drilling needs to be done as the geometry of this zone is still not understood.
The next set of drill holes will provide data that should verify the historical work done on the Copper blanket as per hole 6 just released (0.45 per cent Cu over 50 feet).The near term goal of the Company is to produce Copper from this copper blanket, providing the results of the upcoming metallurgical test-work as well as the PEA are positive.Cash flow from this area would allow further development of the Molybdenum deposit located beneath and less dilution to our shareholders.
The upcoming assay data will also provide additional information on the Molybdenum system underneath the Copper blanket. This system is thought to be significant in size and like the overlying Copper blanket, could be mined by an open pit given its relatively shallow depth.
Please feel free to call us if you have any questions,
Thank you,
“Ron Shenton”
Ron Shenton, President