VANCOUVER, British Columbia, Sept. 8, 2011 (GLOBE NEWSWIRE) -- Soho Resources Corp. (TSX-V:SOH) (OTCQX:SOHFF) ("Soho" or the "Company") is pleased to report that it has received initial results of Knight Piésold Consulting site visit and preliminary site engineering assessment.
Soho retained Knight Piésold in early 2011 to conduct geotechnical and water/waste management design studies to support a pre-feasibility study for the Tahuehueto Project in Durango, Mexico. The results received are positive and represent the completion of the first phase of Knight Piésold's two phase engineering assessment program.
Engineering work included,
- Geomechanical data characterization and slope stability assessment to develop preliminary recommendations for open pit slope design on the planned El Creston open pit.
- Sizing and layout development of waste management facilities described in Snowden Mining Consultants Preliminary Economic Assessment (PEA) for the project.
- Integration of mine components to develop a recommended base case site layout for the prefeasibility study.
- Identification of opportunities for improvement in the mine development concept for the prefeasibility studies, which includes the potential development of an open pit at the Cinco de Mayo deposit and alternate waste rock dump layouts.
Knight Piésold has submitted a recommended Mine Development Concept ("MDC") for the pre-feasibility base case design based on the PEA and the findings of Knight Piésold geotechnical site review. This MDC envisions a combined tailings and waste rock dump that integrates the waste rock management and the tailings management as shown on Figures 2 and 3 of their August 22, 2011 report to Soho, available for viewing on the company's website at, http://www.sohoresources.ca/pdf/Knight_Piesold_Report.pdf The co-disposal facility has been sized to store of 35 M tonnes (20 Mm3). This is in excess of the calculated total volume required and the additional volume provides expansion capacity.
Knight Piésold also provided preliminary recommendations for open pit slopes at the Cinco de Mayo zone, based upon findings of initial field inspections of the cliff faces and rock exposures in and around the Cinco De Mayo Zone. Additional geotechnical data collection and further slope stability analyses will be required to confirm this preliminary observation during the Phase 2 engineering study program.
During the development of the MDC, Knight Piésold identified several additional areas that could potentially improve the mine economics as follows:
- The development or partial development of the Cinco de Mayo zone by open pit methods.
- The development of a combined tailings/waste rock dump in the valley immediately below the El Creston pit. A preliminary storage capacity evaluation and layout has been completed. This preliminary analysis shows sufficient capacity exists in the valley to store the combined waste rock and tailings. The potential benefits of this relocation are a reduced haul distance for waste, a reduced watershed catchment area to be managed, and the containment of major surface disturbances to within one valley.
- The development of a plant site and dry stack tailings storage facility ("TSF") on the relatively flat ground to the west of Cinco de Mayo deposit. The capital costs at this site for mill and initial TSF construction are expected to be lower than the capital costs in the steeper slope area closer to the deposits. However, the operating costs are expected to be higher due to the greater distance from the Cinco de Mayo and El Creston deposits. A desktop trade off study to evaluate the impact of capital and operating costs should be completed to evaluate the economic value of a mill site located further from the deposit.
"The possibility of developing a 2nd open pit on the Cinco de Mayo zone plus the possibility of developing a combined waste rock and tailings storage facility right next to the deposit has the potential of significantly improving on the already robust economics of the Tahuehueto project," states Mr. Ralph Shearing, President and CEO of the Company. "We are very pleased that the project continues to improve during our prefeasibility data collection phase."
About Soho Resources Corp
Soho Resources Corp. is an exploration and development company strategically focused on gold, silver and base metals in the prolific Sierra Madre Belt of Mexico. The Company holds 99.4% of the outstanding shares of its Mexican subsidiary company that maintains 100% ownership in 9,081 hectare Tahuehueto Property, an advanced stage gold and base metal exploration and development project.
Soho also holds an option to purchase 100% interest in the 4,332 hectare Jocuixtita Silver Project where the company is currently conducting a first stage exploration drilling program.
At its flagship Tahuehueto Project in Durango State, Mexico the Company has embarked on a program of pre-feasibility data collection. Past exploration efforts Tahuehueto lead to the delivery, on October 4, 2010, of a Preliminary Economic Assessment ("PEA") completed by Snowden Mining Industry Consultants Inc. Key findings from the report included:
| Summary of PEA Estimates | |
| Net cash flow | $US 184.2 million |
| Net present value (NPV) 5% discount | $US 109.6 million |
| Internal rate of return % | 31% |
| Payback period (months) | 27 |
| Mine life (years) | 11 |
| Maximum processing rate (tonnes/annum) | 1,000,000 |
| Capital and start-up costs | $US 89.1 million |
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Note: Calculations based on a conservative 3 year rolling average of metal prices at the end of August 2010 - Currency US$ Gold: 965.81, Silver: 15.38, Copper: 2.92, Lead: 0.95, Zinc: 0.88 |
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The Tahuehueto Project is a classic epithermal system hosting multiple structures traced for up to six kilometers of strike length. Considerable upside exploration potential remains on the existing explored resource structures both down dip and along strike, as well as on numerous other unexplored mineralized structures known to occur on the property.
Qualified Persons
This press release was prepared under the supervision and review of Ralph Shearing, President and CEO of Soho Resources Corp., a Licensed Geologist, and Qualified Person as defined by NI 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS
(signed) "Ralph Shearing"
Ralph Shearing, Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release
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.