Metals & Minerals Digest is pleased to bring to your attention what appears to be an extremely undervalued advanced stage development and exploration company; Soltera Mining Corp. (OTCBB: SLTA) is an exploration stage company primarily focused on the exploration of its El Torno project in the province of Jujuy, Argentina. Soltera’s El Torno Project has a gold-rich quartz vein up to 14 km long and 14 m wide where highly qualified opinion (non 43-101) backed by historic exploration is that characteristics for 2M ounces exists in just one small section of the vein.
We have had the good fortune to interview mining expert, Mr. David Bond, who has recently returned from a tour of Soltera Mining Corp.’s El Torno project. David is an award winning journalist, he is a regular contributor to Kitco, is an expert in the gold and silver mining industry, and he publishes a web site "Silver Valley Mining Journal" which can be found at silverminers.com.
Of Special Note: David recently went to press for the benefit of his readership at the Wallace Street Journal about his site visit to Soltera’s El Torno gold project. A copy of his article is available at the following URL:
http://www.silverminers.com/publications/showpub.aspx?id=7931
Interview with David Bond
Metals & Minerals Digest: David you were recently in Argentina and had a chance to meet the people directly involved in Soltera’s Mining’s El Torno project, perhaps you can tell us what makes it such a compelling story.
David Bond, Mining Expert: Well it’s compelling for two reasons; number one, it’s a good exploration play, also it’s a very good production play. The mine has historic (non NI43-101) numbers, … Peñoles drilled the thing out ten years ago, they found at minimum a half a million ounces of gold – projecting strike and the depth of the vein there – you’re probably looking at a world class deposit. For a company with a market cap like $20 Million you just can’t lose.
Metals & Minerals Digest: Parts of El Torno was mined in spots by the Incas, Spanish, and the Jesuits back centuries ago using highly primitive means. It has only been recently that Puma and Peñoles went in and used modern exploration methods, they pulled out extremely good drill results, results that if replicated and enhanced upon would certainly warrant mine production.
David Bond, Mining Expert: You know they produced good drill results right from the surface and what company President, Dr Montanari is envisioning is a ramp down a little bit to follow the decline in the vein. If they do that - and again this is free gold, its combined with quartz, you have to crush the quartz to float the gold out of it, but it’s a very off the shelf conventional one – there is nothing exotic about it but our requirements very well - It’s a no-brainer.
Metals & Minerals Digest: Infrastructure there, what was apparent from what you had seen?
David Bond, Mining Expert: I was surprised at the quality of the roads, the power lines are close by – they are not right up in line with it; but can be brought in very inexpensively – they’re generating electricity with diesel right now but they can bring power lines through. The Province and the Federal Government are very very supportive of mining and so is the population.
Metals & Minerals Digest: In some photos we have seen, one photo specifically, you were walking through the stock work I guess, through the tunnels that were built, what were your observations through there?
David Bond, Mining Expert: What impressed me was what confident ground it was. This is very solid ground, it very good ground, the air is good, in other words its not going to be a hassle to mine – you get into some places where you have water issues, you have ratty rock confidence – that’s not the case here.
Metals & Minerals Digest: With the technical leadership that Soltera has, Company President Dr. Fabio Montanari is the Geologist, I understand he’s located near to the property and is conducting preliminary exploration. You had a chance to meet with Dr. Montanari, any comments from him that might be of interest to our listeners (readers)?
David Bond, Mining Expert: Well he’s written most of the economic geology text books, they are required reading if you study geology in Europe. He’s one of the brightest guys out here, he knows the country, and best of all he has a good relationship … He loves what he does. This guy – I wish we had him up here in Idaho, he’s a bright guy.
Metals & Minerals Digest: From what we know about the recent drilling by Puma and Peñoles; Impressive historic numbers were recorded by Puma minerals back in I believe it was the late 90s and their gold values from the main vein were between 5 g/t and 37 g/t and the stockwork system showed up to 23 g/t gold accompanied by silver in the ratio of 1:1. Subsequently Peñoles re-interpreted the Puma Minerals drill data and after further aforementioned work estimated (non 43-101 compliant) that a 1.3 km length of the vein would have the potential for more than 500,000 ounces of gold to a depth of 100 m and that a 2 to 2.5 km length to a depth of 400 m would have potential for more than 2 million ounces (assuming a grade of 10 g/t). I understand the current titleholder had also within the last year mined parts of the upper 2 to 3 m of parts of the El Torno vein and an alluvial deposit near to the vein … now I read “the gold was recovered as particles and micro-nuggets”, can you explain that to us?
David Bond, Mining Expert: Well micro particles would be detached from the quartz, it’s a free gold cyst, which means the gold is imbedded in the quartz, you have to brush up the quartz – you have to crush it and then float it to get the gold out. Not a difficult thing metallurgic, but you pick up a flight rock you don’t realize what you’re holding might be gosh … quarter ounce of gold … you just don’t know. The preliminary work done by Peñoles and by the others, you have to remember was done at a cut off rate based on 2001 prices and gold was $300 - $280 an ounce.
Metals & Minerals Digest: And today we are talking $850+ an ounce.
David Bond, Mining Expert: These guys did good geological work, they didn’t abandon the project because they thought it was a bum deal, they just neglected to make a deal with the properties.
Metals & Minerals Digest: Very good. Anyone mining in that neighbourhood, any recognizable names that are close by that you are aware of?
David Bonds, Mining Expert: Yes, Cardero Resources Corp. (TSX:CDU)(AMEX:CDY), Peñoles, … all those guys are in the neighbourhood, and remember were just 3 KM from Bolivia where Apex Silver Mines Limited (AMEX:SIL) and Coeur d'Alene Mines Corp. (NYSE:CDE)(TSX:CDM) are - were into the majors.
Metals & Minerals Digest: Very interesting. And Yamana Gold Inc. (NYSE:AUY)(TSX:YRI) I understand is just south of the El Torno project as well.
David Bond, Mining Expert: Yes I believe you are right; they’re in elephant country – no question.
Metals & Minerals Digest: Can you tell us David, anything about the culture of mining in the government of Argentina from your experience?
David Bond, Mining Expert: Well, yes I can. I am citing from quotable sources, CIA handbook, other people; Argentina is a remarkable country. They have the highest literacy rate in South America, their GDP has rivalled China since the 2001 currency debacle down there where they had to disentangle themselves from the US dollar. It’s labour laws are friendly, its tax laws are very very friendly to mining companies. It’s a good place to do business, they have a constitutional history going back to the 1870s, 1880s, that secures the property rights of mining owners and gosh if I were going to put a mine some place in South America that’s where I would like be.
Metals & Minerals Digest: Again one of the photos we’re looking at there is a gravity concentration plant, did you have an opportunity to look at that plant?
David Bond, Mining Expert: Yes I did, that is a plant that appends to a neighbouring project where they are just refining gold on one chute, just out of flotation getting huge results.
Metals & Minerals Digest:. Is there anything else that you might be inclined to tell us that would be of interest to our listeners?
David Bond, Mining Expert: Well, sit down with your home calculator and figure $20 Million market cap and a potential 3 million ounces of gold, do the division.
Metals & Minerals Digest: With the calibre of Soltera’s management and property it certainly seems it would be a rather attractive opportunity for those looking to invest in early stage gold exploration companies.
David Bond, Mining Expert: Yes, and at 50 cents what have you got to lose. ###
Metals and Minerals Disclaimer: The information contained herein is believed to be accurate but this cannot be guaranteed. The analysis does not purport to be a complete study of securities mentioned herein, and readers are advised to discuss any related purchase or sale decisions with a registered securities broker. Companies featured herein are often at very early stages of development and can therefore be subject to business failure, and are to be considered speculative and high risk in nature. Reports herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. The author may or may not hold a position (long or short) in the securities mentioned herein. This is a journalistic article and the author is not a registered securities advisor, and opinions expressed should not be considered as investment advice to buy or sell securities, but rather opinion only. The publisher may make take journalistic liberties employing the use of pseudonyms as reference contacts and accepting information at face value from what it believes to be credible sources. The author does not receive compensation for this article. Comments are welcome at editor@geologist.com.
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