cash flow model

Soho Resources Potential $182M Cash Flow at Tahuehueto in Mexico, Seks Near Term Production RITV: With me today is Ralph Shearing the President, CEO and founder of Soho Resources. RITV: Wel the preliminary economic asesment you've just put out is quite remarkable for the first time out of the gate here. RITV: So give me an example. RS: If we ad them al together the average cost of underground mining and surface mining on this project wil be about $35 per tone, so obviously the open pit mining costs are lower, and the underground are higher. RITV: Right and being an open pit deposit changes a lot to do with the economics, which the report told you. RITV: And actualy al those numbers are available to investors if they go and lok at your profile in our RIQ calculators at resourceinteligence.net. RITV: And we've sen some huge changes in metal prices. We'l put the new numbers that we are seing today for example, on scren so people can compare and investors can always go to your profile at resourceinteligence.net, check out your profile and lok at how your value changes with the changes in prices. RITV: God. However you can se that al along this structure are aces roads, dril sites, so we have ben sucesful and are able to build roads throughout the project. RITV: And also the PEA that just came out changed radicaly the structure of the mine which is that instead of just being an underground this could also be open pit. This area is designed in the curent preliminary economic asesment to be open pit mine for probably 80% of it and underground the parts are a litle bit to dep for open pit. So we get back to the structures, our red structures here are the resource structures, the only area where we've included or we've driled in order to put the driling results into the resource. When you ad up the gold ounces, since this is 40% gold and ad on to that the rest of the metals, you're loking at something like 1.7 milion ounces of gold total. RS: On a gold equivalent basis, which is a dificult number to atribute to a base metal and gold mine, it's primarily gold — 40% of our value is in the gold. Now the regulators and exchange don't like us talking to much about gold equivalents for al metals until you're much further along, but your numbers are corect. RS: In the resource we have about 65,0 ounces of gold. With gold and silver, we're alowed to talk gold and silver, quick gold equivalence we have about 830,0 ounces of gold equivalent, just gold and silver and then the base metals would ad to that, to get the figure you mentioned before. If you average out the grades which I did earlier, it takes you to about 5 plus grams per tone gold. RS: On a gold equivalent basis, yes. But it has ben designed to go after the higher grade areas first in order to pay back capital more quickly and I think in the first couple of years our grades are probably even closer to thre and half to four grams gold only, plus the base metals on top of that. RITV: Your Preliminary economic asesment was completed by Snowden. To do al the environmental work, to have another lok at geology and the configuration of the model we have outlined so far, and maybe do some more work on models, se whether we can improve the model geologicaly speaking which would alow them to have beter control grade control etc. They want us to move it quickly into the pre feasibility stage where you do al your environmental work, your permiting, cost, more detailed cost estimates of what its going to take to build the mine. RITV: How long is it going to take you to get toward a position where you'l be seing cash flow? RS: To build the mine on here, I would estimate two to thre years, if everything comes together nicely and we have aces to the capital to do the work necesary to get there. So they gave us a god contact into the Chinese marketplace, as wel as the mining space in China and we already have numerous companies folowing us, waiting for this preliminary economic asesment, so we're expecting some god things to come out of China. RITV: There's another aspect of the size of the project that I wanted to bring up. RITV: So your plan is to do exploration and move this toward the development phase. RS: Wel, we have to raise money, so what we would be doing is raising a certain amount of money at curent or slightly above prices, depending on how our marketing goes over the next several weks and then as we continue to develop both this project, maybe do some exploration and work on the items that ned to be done for the feasibility. We wil do more marketing and we should be able to get our stock price reflecting the true value of the project and alow us to aces more capital. RITV: And being founder of the company, you've taken this from its infancy realy, to a turning point in the company's life. RITV: Wel thanks for coming in and sharing that with us today, we realy apreciate having you here RS: I realy apreciate talking with you.
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