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West Timmins Mining Inc. (WTM) September - 2008
Dear Shareholder, Broker, Investor:
I have recently joined WTM in the capacity of Manager, Investor Relations and will be your primary investor contact here at the Company. It is my intention to be available to speak with you during market hours and well after the market closes. Our individual shareholders are our strength and we invite all of you to call us so that you can protect your investment in WTM by being fully informed.
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The recent uncertainty in the financial markets is making it increasingly more difficult for the individual investor to "make sense" of it all. Extreme levels of volatility are present in virtually all markets - even those that were considered "stable" in the past. The hard hit commodities sector, of which we are a part, continues to decline toward its 52 week low as measured by the Reuters/Jeffries CRB Index.
What does this mean for WTM and what steps is management taking to protect your investment?
Our management has taken the view, supported by many leading experts, that the losses in the U.S. financial sector which prompting the unprecedented scale of the intervention in the financial markets by both the US Treasury and Federal Reserve has only temporarily stalled our mining sector. The multi-year advance of the commodity markets, underpinned by steadily increasing global demand, should resume.
The current market volatility, which is having an adverse affect on the share price of resource companies, is, we believe, largely a consequence of the unwinding of leverage in the commodities markets by hedge funds and institutional investors.
We continue to believe that the global demand for commodities will continue to increase - although the rate of increase may slow - and the underpinnings of the commodities bull market remain in place. In order to protect and increase shareholder value, WTM intends to focus on increasing our inventory of gold, silver and copper with the view that these metals represent the "intrinsic value" of real assets.
Where is the value in WTM shares and how will this value continue to grow in the future?
The value of WTM shares is directly linked to the strength of our management team and their ability to increase the number of ounces of gold in the ground on our Canadian gold projects, and to the success of our Mexican exploration efforts.
CANADA
Our Thunder Creek joint venture with Lake Shore Gold in Timmins, Ontario is fully funded for the next 12 months. Recent drill results indicate the presence of high-grade, well mineralized gold zone at Thunder Creek that is growing in size and which enjoys logistical advantages over almost any other new gold discovery in North America. The adjacent Golden River Zone is also continuing to grow and a new resource update, which will incorporate the results from an additional 156 drill holes, is due before the end of 2008.
MEXICO
In Mexico, we have established the presence of a large porphyry copper system on our Montana de Oro project which we are currently drilling at 250 to 300 metre centres. Copper deposits of this type are the elephants of the exploration business and have the potential to add tremendous value. Next month, in October 2008, we are scheduled to commence drilling on one of North Americas' highest grade historic gold producers - our 100% owned Lluvia de Oro Project.
Summary:
Over the next 6 to 8 quarters we expect to experience "organic growth" as our gold and base metal resources increase in size through ongoing drill programs. WTM will remain focussed on expanding our current "ounce count" - increasing the underlying value of your investment in the Company.
We invite you to visit our website for more specific information on each of our projects and I look forward to your calls and emails as we continue to build our future together.
Sincerely,
John Toporowski
Investor Relations
Toll free: 1 866 685 8311 E-Mail: jtoporowski@westtimminsmining.com
Tel: 604 685 8311
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