PRESIDENT’S LETTER TO SHAREHOLDERS
Vancouver,
BC, December 12, 2007; On behalf of the Board of Directors, I am pleased to report that
Soho Resources Corp. has significantly advanced its cornerstone Tahuehueto
Project in Durango State, Mexico. While 2007 was an eventful and exciting
year for the Company, it was also marked by a series of challenges, notably
delays associated with a helicopter-supported drilling program and the
release of the first National Instrument (NI) 43-101 resource estimate for
the poly-metallic (gold, silver and base metals) project.
Soho has
since resolved the mechanical problems that interrupted its 3,000-meter,
helicopter-supported drilling program, and subject to delivery of replacement
parts will resume helicopter-supported drilling after the Christmas Break. The
Company also expects to receive its first formal NI 43-101 compliant resource
estimate for Tahuehueto from Mine Development Associates of Reno, Nevada, in
early 2008, paving the way for subsequent pre-feasibility and scoping
studies.
Soho
Resources has completed more than 31,000 meters of
drilling in 170 holes to define priority zones occurring within a
district-scale epithermal system traced for at least six kilometers at
Tahuehueto. Along with the balance of the helicopter-supported drilling
program, the Company has entered into a diamond drilling contract with Falcon
Perforaciones Mexico S.A. De C.V., a Mexican subsidiary of Falcon Drilling
Ltd. of Prince George,
B.C., for at least 5,000
meters of core drilling (see press release Dec.5/07). In early December one of
Falcon’s drill-rigs was mobilized to Mexico, with drilling to start
with the arrival of the rig to the Project site immediately after the
Christmas Break. A second Falcon rig is intended to be mobilized to the site
in early 2008.
The bulk of
2007 drilling was focused on resource definition within five priority zones
and totaled more than 15,500
meters. The ongoing 3,000-meter, helicopter-supported
program is testing critical areas where major structures intersect but are
largely inaccessible by road because of steep terrain. Some of the best assay
results for both precious and base metals were returned from the edges of
such areas, notably the El 1225 Clavo and Level 8-9 Clavo. The Company has
completed four drill holes originally targeted for helicopter drilling, one
with the helicopter drill, and three with a skid-mounted drill where drill
sites were able to be accessed by explosive blasting to establish skid roads.
Results from these first four holes within the helicopter-supported drilling
area will be released as soon as possible in early 2008.
Tahuehueto
covers 9,081
hectares of prospective ground and hosts at least one
dozen mineralized zones within a structurally controlled epithermal system. Exploration
to date has focused mostly on four zones — El Creston, Cinco de Mayo,
El Rey and Santiago — situated within or related to the large,
continuous Cinco De Mayo-Perdido-Santiago Structure. The recently discovered
Catorce Zone in the central part of this large structure has evolved into an
important high-grade exploration target (see press release Sept 27/07).
The results of exploration to date have led to an improved understanding of
the geological model and structural setting of Tahuehueto, which is situated
in the central portion of the Sierra Madre Mineral Belt hosting most of
Mexico’s historic and producing mines, mineral deposits and active
exploration projects. Hall Stewart, Vice-President of Exploration and Development,
has extensive experience in this prolific belt, where he helped discover and
define resources totaling 6.98 million gold-equivalent ounces at three
separate projects.
Geological
mapping and sampling programs have revealed important new targets at
Tahuehueto. Geologists have identified surface expressions of the Texcalama
Structure over at least 1,800
meters of strike length. Additional work to test this
promising target is planned for 2008.
Soho
Resources intends to initiate a drilling program to collect a mini-bulk
sample of mineralized zones to submit for metallurgical testing in order to
determine optimal processing methods and projected recoveries of gold, silver
and base metals. Because of the coarse-grained mineralization and lack of
deleterious elements, the Company is optimistic that results will be
favorable. This program will include a series of flotation and leaching tests
as well as ball mill work index tests and detailed mineralogical
determinations. The potential for acid generation and environmental issues
will also be assessed as part of the environmental planning process.
Infrastructure
planning is also under way with the Company agreeing to a cost-sharing
initiative with both State and Municipal governments to upgrade the access
road to the site and also provide improved access to nearby communities,
including El Purgatorio, Arroyo Hondo and Las Cruces. This project will start
in December of 2007 and is expected to be completed by the end of February,
2008.
Soho
Resources has prudently managed its financial resources, including the net
proceeds of two separate private placement financings that raised $12.2
million in April of 2007. At November 30, 2007, the Company had working
capital of approximately $6.5 million dollars.
Soho has
established an in-house Investor Relations Department, headed by Manager Glen
Sandwell, in order to improve communications with shareholders and the
investment community. Toward this end, this team and senior management
representatives will be attending a series of important industry conferences
in early 2008, including the PDAC Convention in Toronto in early March and
the Cambridge Conferences in Vancouver (Jan. 20-21), Phoenix (Feb. 9-10) and
Calgary (April 12-13). Other initiatives to raise the Company’s
industry and investor profile include a recently published analyst report by
London-based Objective Capital (click here for a full PDF version) and a newly produced corporate
video to be released shortly.
Mineral
exploration and development is a challenging yet ultimately rewarding
enterprise, as the past year has shown at Tahuehueto. We appreciate the
patience and support of our shareholders and the skills and dedication of our
Mexican and Canadian exploration and management teams. We look forward to an
exciting and productive year ahead, and to ultimately becoming a mineral
producer in Mexico.
Sincerely,
Ralph
Shearing, P.Geol.
President and Chief Executive Officer
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.
The TSX Venture Exchange has not reviewed and does not take responsibility
for the adequacy or accuracy of this release