Soho Resources Corp. - (TSX-V:SOH - News) ("Soho" or the "Company") is pleased to announce that its 100% owned subsidiary, Samarkand de Mexico, S.A. de C.V. ("Samarkand"), has entered into two option agreements to explore and acquire 100% of four mining concessions and one application for a mining concession (the "Concessions") together occupying 1,668 hectares located in the State of Sinaloa, Mexico. In addition, Samarkand has acquired by staking one additional concession covering 2,664 hectares which surrounds the concessions mentioned above. All of the above concessions cover a cumulative area of 4,332 hectares comprising the "Jocuixtita Project". The Jocuixtita Project is located approximately 120 km north of the city of Mazatlan.
The Company entered into one agreement with Esteban Hernandez Rodriguez and Erelinda Acuna Acuna (the "Hernandez Option") and the second with Luis Saul Quintero Triana (the "Quintero Option"). Both agreements grant Samarkand the right to explore and acquire a 100% interest in the respective concessions. In order to maintain the right to explore and exercise the Hernandez Option and Quintero Option, Samarkand must make cumulative payments totaling US$1,000,000 (US$800,000 over a period of six years in the case of the Hernandez Option and US$200,000 over a period of three years in the case of the Quintero Option). Up to a maximum of US$372,666 of the option payments may be made by payment of Soho shares. To date, the Company has paid the vendors US$60,000 (US$50,000 under the Hernandez Option and US$10,000 under the Quintero Option). Under the terms of the Quintero Option, Samarkand is further contractually obligated to issue Soho shares valued at US$10,000 to the vendor. For the Hernandez Option, the vendors maintain a 2% NSR royalty on the applicable concessions. Samarkand may acquire 50% of the NSR by making a cash payment of US$ 350,000 to the vendors of the Hernandez Option. For additional details on the schedule of payments please visit the Company's website at www.sohoresources.ca.
The Jocuixtita Property hosts a number of northwest and cross cutting northeast trending epithermal vein structures mineralized with silver, gold, lead and zinc. The principle structure hosting the El Carmen - La Salvadora - El Eden historic mine workings has been traced over a minimum of 3 km of strike length. During a due diligence site visit, the Company observed exposed mineralized zones within this principle structure ranging from four to ten metres in width. Highlights from El Carmen and La Salvadora sampling completed by the Company include:
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Sample Au Ag
Sample Vein Type Width Kg g/t g/t Pb% Cu% Zn%
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5704 La Salvadora Channel 1.00 2.11 1.920 610 8.11 0.170 23.70
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5706 La Salvadora Channel 1.20 2.72 0.698 126 0.52 0.048 5.84
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5712 La Salvadora Channel 1.30 3.90 0.584 205 2.92 0.119 12.05
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5714 La Salvadora Channel 1.00 4.00 1.315 345 2.46 0.096 13.25
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5721 La Salvadora Channel 1.30 3.77 1.110 867 2.36 0.137 4.53
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5722 La Salvadora Channel 2.00 2.83 0.529 427 5.87 0.184 9.92
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5727 El Carmen Channel 1.00 1.91 0.138 335 0.84 0.041 1.30
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A complete list of sample locations and results can be viewed at the Company's website. These figures are conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource. The Jocuixtita Property has not been explored using modern exploration methods. The main mines within the project have been historically mined on a very small scale by previous owners.
Soho intends to commence a $300,000 to $500,000 exploration program on the project in late 2009 after the rainy season has ended which would likely be focused on exploring the main zones and include detailed geological mapping and sampling, geophysics and a 10 - 15 hole diamond drill program to test continuity of several of the main zones both along strike and down dip.
"I consider the Jocuixtita Property to be a premier unexplored silver project within the Sierra Madre Occidental. Road accessible, near coastal infrastructures and within 40 km of San Ignacio, the project is close to all necessary infrastructures for successful development," states Mr. Ralph Shearing, President and CEO of Soho Resources Corp. "Based upon our initial site visit and historic records, this project has excellent potential to develop into a significant silver project and will hopefully be a large contributor to the Company's current resource base contained within our flagship Tahuehueto Project."
Ralph Shearing is the Company's Qualified Person under NI 43-101 for the technical disclosure contained in this news release.
On behalf of Soho Resources Corp.,
Ralph Shearing, President & CEO
If you would like to receive information on Soho Resources Corp. and its exploration projects please contact the Investor Relations Department by email or phone or visit our website at www.sohoresources.ca for the most up to date information and results. Other historic information and mandatory filings are available online at www.sedar.com.
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.