President’s Letter - May 17, 2012President’s Letter - May 17, 2012
In recent months the media focused on speculating how high gold might go in this bull market cycle. The media trend has shifted to the correction in the public markets, and now media is speculating over whether the resource boom has ended. How does this affect Tiger International Resources? Relatively little.
The Company is focused on its Philippine gold and silver project outside Baguio in the north of the main island of Luzon. An established mining area, our project has identified gold veins that were created in a halo effect from a copper porphyry and now research is focused on locating the porphyry and whether it lies on our property or an adjoining area.
Regardless of the copper potential, the gold and silver potential is exciting. When we first became involved with this project gold had moved from $225 oz to $250 oz, and we felt it may have been profitable at that level. Whether gold is $1500 or $2000 an ounce will influence profitability, but those levels will provide profitability and that’s what counts.
It’s valuable for shareholders to understand that infrastructure is existing. Roads, water, power, and phone are all available to the edge of the project. Housing is available nearby, as well as an excellent local labor supply. The capital cost savings is considerable and the money saved can be invested productively in drilling and proving up the potential ore bodies on the project. The Philippines is a low cost country, and while mining costs have risen throughout the world the Philippines is still a low cost environment and with high gold prices management is strongly enthusiastic about the potential profitability of the project. Work to date has involved data collection and field surveys.
We have a high level of confidence in the underlying asset of the company, being the Itogon Gold and Silver Project. While public market conditions are important, shareholders might consider the low cost environment, relatively low capital costs compared to other countries and regions, and the potential of the project to graduate to be a gold and silver, and perhaps copper, producer.
Sincerely,
Tiger International Resources Inc.
Patric Barry
President, Tiger International Resources Inc.
E-Mail: 26981@sbcglobal.net
(949) 362.1600