Dear Shareholder or Investor,
I am pleased to provide you with an update on Silvermex and it's advanced-stage, high-grade silver projects in Mexico.
Silvermex Resources Ltd. (TSXV-SMR) is a well financed silver exploration and development company focused on advancing economic silver resources to production. Silvermex?s advanced stage silver projects host high-grade, near-surface silver deposits. The company has an initial measured and indicated NI 43-101 resource of 32.7 million ozs silver and inferred resources of 9.6 million ozs silver. The newly acquired Rosario Silver Mine has historic reserves of approximately 5.9 million silver equivalent ozs (silver and gold).
With a current share price of $0.42 and a market capitalization of only $30 million, Silvermex is trading at an approximate in-ground resource valuation of $0.68 per silver oz, the lowest in its comparative peer group.
Advanced Stage Silver Projects
The company?s primary project combines the San Marcial Silver Mine with the past producing Rosario Silver Mine and is located in one of the most prolific mining districts in Mexico. The combined claim groups total 17,750 hectares (68.5 sq miles). The project hosts extensive infrastructure and upgraded facilities including; a tailings dam, water, water use permits, power, offices, shops, a 120 man camp, warehouses and metallurgical lab, along with surface rights, underground workings and miscellaneous mill equipment and vehicles.
Proven Management and Directors
Silvermex has assembled an impressive Board of Directors and Management team which include top current and past executives of Hecla Mining Company and Silver Standard Resources Inc. Management and Directors include:
Arthur Brown, the past CEO and Chairman of Hecla Mining as Silvermex's Executive Chairman,
Michael Callahan, the past President of Hecla Mining Venezuelan operations and VP of Business Development as Silvermex's President
Joe Ovsenek, Vice President of Silver Standard as Director
Ken McNaughton, Vice President Exploration Silver Standard as Director
Rob Fraser, the past manager of Exploration for Hecla Mining's Venezuela as Silvermex's VP of Exploration.
- Advanced silver resource base
- High-grade and near surface deposits are open along strike and at depth
- Extensive infrastructure in place, including; tailings dam, power, foundations, camp
- Detailed metallurgical and Scoping studies underway
- 24 month production horizon
- Insiders and Silver Standard Resources own approx 15%
- Well defined permitting path
- Surface rights and Ejido agreements in place for production at Rosario
- Aggressive resource and production growth profile
- Low market capitalization value per ounce silver ($0.68 per resource oz)
- High leverage/exposure per share to silver
- Lowest market capitalization of peer group ($30 Million CDN)
- Proven Management team focused on production
- Well financed with over $6 Million in working capital
Conclusions and Short Term Objectives
The company's objective is to become a mid-tier silver producer within 24 months while increasing shareholder value. The company has an aggressive development strategy to accomplish this goal. Q2/Q3 - 2010 planned programs include:
Detailed metallurgical studies,
Underground drifting program
Extensive definition and step out drill programs
Detailed mining plan
Mill design, engineering and equipment selection
Preliminary Economic Assessment study
Acquisition of all necessary environmental and operating permits.
If you would like more information, including a complete report click here or visit our website at www.silvermexresources.com . To view our on-line presentation, click here or contact me directly by phone at 604-638-8971. To unsubscribe please click here .
Silvermex Resources Ltd.