“We went down there almost 8 years ago and put together this land position, tying up the north end of the Mulatos Gold Belt in Sonora, Mexico. We’ve taken it from about a dozen rock grab-samples in our backpacks to the La India zone discovery, where in December we released a 43-101 preliminary economic assessment which shows 9 years of production at 92,000 ounces a year. It’s a 260-square-kilometre land package, and there’s two camps going now. One is doing prefeasibility work for a feasibility study in the fall on the La India resource. Last summer we went and drilled a property 10 kilometres to the north and made this Tarachi discovery. La India’s a high-sulphidation epithermal gold deposit; Tarachi is a gold porphyry system—it has a lot of similarities to the Maricunga Belt in Chile. With the footprint we’ve defined and the types of drill-hole intercepts we’re getting, this thing has the potential to be a very large discovery.
“We’re about 50 holes into the Tarachi area. It’s a 10-square-kilometre area that we’ve defined on surface and geophysics. So it’s early days. It’s a large low-grade area, with high-grade zones, typical of porphyries. The hole today tells us that we can trace one of the high-grade zones from surface for 200 metres vertically. The grades are good. That particular zone in that particular location is 90 metres to 100 metres true width. The other holes are telling us that we just need to keep persisting. We’ve got three drills turning on the property. And we’re just going to keep drilling.
“Hopefully we have the La India feasibility completed by Q1 2012, with construction and permitting over the rest of the year. Production in 2013.
“It’s a huge land package in a prospective belt in a politically stable, mining friendly country. We have three analysts that have formal coverage on us, that have price targets between $2.60 and $2.85. Ninety percent to 95% of their valuation is on the La India one-million-ounce scoping-study resource. We’re trading at $2, and we have this new Tarachi discovery, which has caught the world’s attention. We have a $180-million market cap. And we’re right beside Alamos Gold. They have a couple million ounces of mineable reserves left, producing 150,000 ounces a year. They have $2-billion market cap.”
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