A 2010 report from mining advisory firm Behre Dolbear ranked Mexico as the world’s fourth-best investment destination for mining and first for its fiscal regime.

Despite current headline risks regarding drug-related violence in the country, Soho’s projects are in considerably safer areas of the country, with a relatively low risk of effects from criminal activity, Herrick said.

Shares in Soho Resources were flat at $0.08 cents Tuesday afternoon.

The preliminary engineering assessment, conducted by Knight Piesold Consulting, involved geotechnical and water/waste management design studies.

The results were intended to help in the recommendation of a base case site layout for the presfeasibility study, as well as to identify opportunities for improvement in the mine development concept, including the development of an open pit at the Cinco de Mayo deposit, and alternate waste rock dump layouts.

Knight Piesold has submitted a recommended mine development concept for the pre-feasibility base case design, based on a preliminary economic assessment and the findings of Knight Piesold geotechnical site review, Soho said.

This concept envisions a combined tailings and waste rock dump that integrates waste rock and tailings management. The co-disposal facility has been sized to store 35 million tonnes, in excess of the calculated total volume required, giving it the potential to expand capacity.

Knight Piesold also identified several other areas that could potentially improve mine economics, including the development or partial development of the Cinco de Mayo zone by open pit methods, and the creation of a plant site and dry stack tailings storage facility on the ground to the west of Cinco de Mayo.

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 company said.

"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," said president and CEO, Ralph Shearing.

"We are very pleased that the project continues to improve during our prefeasibility data collection phase."

The consulting firm also provided preliminary recommendations for open pit slopes at the Cinco de Mayo zone, based upon findings of initial field inspections. Additional geotechnical data collection and further slope stability analyses will be required during the phase two program to confirm these recommmendations, Soho said.

Soho Resources is an exploration and development company focused on gold, silver and base metals in the prolific Sierra Madre Belt of Mexico. The company holds 99.4% of its Mexican subsidiary company that maintains 100% ownership in the 9,081 hectare Tahuehueto property, an advanced stage gold and base metal project.

The company also holds an option to purchase a 100% interest in the 4,332 hectare Jocuixtita silver project, where it is currently conducting a first stage exploration drilling program.

The conference will be held from September 11 to 13, with Soho's presentation to take place at 9:10am EDT on September 13, in the Dillon Suite at the Waldorf Astoria Hotel in New York City.

A link to the live webcast of the presentation can be accessed at  http://www.wsw.com/webcast/rrshq20/soh.cn or through the company website at www.sohoresources.ca.

Investors who wish to meet with Soho's management during the conference may contact Rodman & Renshaw or Soho's U.S. representative, Mr. Barry Clark, at (406) 471-4514 or barry@sohoresources.ca

Vancouver-based Soho sold 13.59 million units for 10 cents per unit. Each unit consists of one common share and one half of one share purchase warrant of Soho Resources.

The warrants are exercisable for an extra share for a period of one year, until August 09, 2012, at a price of 13 cents each, and for a second year, until August 09, 2013, at a price of 17 cents each.

Proceeds will go toward funding pre-feasibility data collection at its flagship Tahuehueto project, as well as exploration activities at the Jocuixtita silver project, and for general corporate purposes, including continued marketing of the company within North America and abroad.

European gold and silver precious metals funds participated in the private placement, Soho said.

A cash finders’ fee of $78,000 was paid out, and the company also issued 480,000 finders units.

Soho is primarily focused on the Sierra Madre Belt of Mexico, where it holds interests in two projects with principle commodities of gold, silver, lead, zinc, and copper located in Durango State and Sinaloa State in western Mexico.

Each unit will be comprised of one common share and one half of a two year transferable share purchase warrant, with each whole warrant entitling the holder to purchase an additional share at $0.13 within one year, and at $0.175 within the second year following closing.

The company  said it also reserves an over-allotment option of up to 3.75 million units, being 25% of the offering. Finder's fees will be payable on portions of the placement.

Proceeds will be used mainly to fund continued pre-feasibility data collection at the company's flagship Tahuehueto gold project in Mexico, as well as to expand the current drilling program from 2000 metres to 3000 metres at its 4,332 hectare Jocuixtita silver property.

Highlights of the results include 6.3 metres at 246.47 g/t silver, 0.63 g/t gold, 1.02% lead and 5.44% zinc; and 4.6 metres at 238.40 g/t silver, 0.64 g/t gold, 0.67% lead and 3.51% zinc.

Other notable results included 1.75 metres at 134 g/t silver, 1.22 g/t gold, 0.69% lead, and 5.05% zinc.

"I am excited to deliver these assay results to our shareholders as they confirm that the La Salvadora Zone is strongly mineralized with high grade silver and significant gold, lead and zinc, mineralization over good widths," said president and CEO Ralph Shearing.

"With the diamond drill now on site and commencing core drilling operations, we will soon understand the depth and strike extension of this strongly mineralized zone."

The company said the sampling results represented a series of either, channel samples cut with a diamond saw, or continuous hammer chip samples, collected across the Salvadora Zone. Individual samples were not more than 1.75 metres in width and where necessary, up to five individual samples were collected along a single sample line.

In all cases, sample lines did not represent the full width of the mineralization, as all individual samples at both ends ended in mineralization.

The 4,332 hectare Jocuixtita property hosts a number of northwest and northeast trending epithermal vein structures, mineralized with silver, gold, lead and zinc. The La Salvadora and El Carmen Zones are separated by approximately 700 m of strike length, and both zones contain historic underground workings. Soho plans on tracing the mineralization between these two zones, and thereafter, along strike.

Soho is focused on exploring for gold, silver and base metals in the prolific Sierra Madre Belt of Mexico.

The company is trading on the OTCQX International tier, under the ticker "SOHFF".

Investors can see real-time stock quotes for the company on OTC Markets' website at www.otcqx.com and www.otcmarkets.com.

Merriman Capital will serve as Soho's American liason, responsible for providing guidance on OTCQX requirements.
Soho Resources is focused on exploring for gold, silver and base metals in the prolific Sierra Madre Belt of Mexico.

Currently, the company is conducting an exploration and drilling program to expand and upgrade resources at its main Tahuehueto project in Durango State.

Harry: Hello, I’m Harry Norman and welcome to another Proactive interview. Today is the 19th of April 2011 and I’m talking with Ralph Shearing, President, CEO, corporate secretary and director of Soho Resources. Listed on the TSX Venture Exchange: Mining Sector. Stock ticker SOH, share price 10 cents Canadian, market cap 14.52 million dollars Canadian. Web address: www.sohoresources.ca. Ralph, thank you very much for joining us for this interview. 

Ralph: Harry, I appreciate the opportunity to tell our story. 

Harry: Just give investors a brief introduction to Soho Resources and the company’s business strategy. 

Ralph: Soho Resources is a junior exploration company exploring for precious metals and base metals in Mexico. We are listed on the TSX Venture Exchange under the symbol SOH. Our business strategy is to explore projects towards production decision, taking them right through pre-feasibility, feasibility and possibly into production. 

We are also open to joint venture situations if the terms of the joint ventures would be attractive to the shareholders. 

We have two projects that we’re exploring in Mexico, one is advanced stage, the other is a brand new silver project we’re bringing to the market.

Harry: What is the current state of resources and reserves at Soho Resources Tahuehueto project in Durango State, Mexico?

Ralph: On our main project Tahuehueto we have 12.2 million tonnes that we have outlined by spending around 20 million dollars. We have 665 thousand ounces of contained gold.  If you include the silver and equate that to gold equivalent, including the gold and silver only, we have just over a million ounces of gold equivalent. If you add in the base metals you will just about double that resource so we have a lot of value in the base metals as well. 

Harry: The preliminary economic assessment for the Tahuehueto project, published in October 2010, was described as ‘strong’. Please would you talk investors through the salient points of this preliminary economic assessment Ralph?

Ralph: Certainly, the preliminary economic assessment was prepared by Snowdon Mining Consultants, they are world renowned and a very reputable engineering group. The preliminary economics outlined a potential partial open pit mine and an underground mine. The economics were quite robust with a Net Present Value of 110 million dollars discounted at 5%, Internal rate of return was 31% with a 27 month payback. That was using 3 year rolling average prices as of August of last year. Using current metal prices, we did a run on the economics on February 16th, and came up with 56% internal rate of return and 300 million dollar net present value discounted at 5%, 18 month payback with 480 million net cash flow. It’s a very robust project, we’re quite happy with the way it’s coming together and we’re pushing it forward. 

Harry: What steps are you taking to improve the economics of Tahuehueto as a mining project, and how do you see the timescale to production at Tahuehueto Ralph?

Ralph: Well to improve the economics we have a number of ways to attempt to do that. One is the metallurgy, we’re working on metallurgy, trying a few different things to try and improve the already quite good recoveries. The recoveries that we’ve had so far are built into the economic study so those numbers have come up fine but we believe there’s room for improvement. 

We are hopeful that we can pull in a second open pit mining area called Cinco de Mayo. If we’re able to do that we will be very much improving the economics. What we have to do is some stability engineering work on some cliffs to make sure they are stable as they are above the area we’re intending to open pit mine. So if this study is positive we can do much, much better with the economics.

The final way would be to discover more ore which is a very good possibility in both the existing structures that we have drilled which contain our current resource as well as many other unexplored structures that are well mineralised. One of those unexplored structures could develop into a similar resource as that which we have outlined to date.

So we’re hopeful that we can continue on the project, possibly double or triple the resource going forward and continue to move this resource we have now towards production. 

Harry: The Tahuehueto project covers 9000 hectares, what exploration potential is there on this license beyond the immediate considerations of moving the current project to feasibility and mining?

Ralph: Well there is an excellent upside exploration potential on the whole project. In the small area that we’re working on, maybe 200 hectares in area, we have many structures. We have drilled off on one and a half of the structures that contain our resources. There’s about 7 other structures that we know of that are mineralised on the surface. We need to explore those and we are quite confident that any one of those could return similar resources to what we have already outlined on the two main structures that we’ve explored so far.

If you go outside of that 2 to 300 hectare areas we have 9000 hectares that control the bulk of a mineralised district. I would say we own probably 90% of the ground within that district. Our only competitor is Peñoles, a large Mexican mining company. So the upside of the whole district is good and we want to eventually get to it, but right now we are concentrating on the internal area. 

Harry: What can you tell investors about Soho Resources Jocuixtita silver project, which is in Sinaloa State Mexico, and what work is being done on this project?

Ralph: Well the Jocuixtita project is a young unexplored project which we brought into the company last year. It’s a very well mineralised project, primarily in silver. It contains a bit of gold and good silver grades and good base metal grades in lead and zinc. What attracts us to the project is the principle structure which appears to be over 3km long, and up on the North-western part of that structure there’s two zones that we have sampled and performed a small amount of exploration on. They are very well mineralised, up to 10 metres wide carrying potentially half a gram to a gram and a half of gold, silver results are 81-867 grams per tonne silver, and combined lead zinc from 5-25% in the underground samples that we’ve taken so far.

But we’re now embarking on an exploration programme, it’s underway. We have a drill lined up to get onto that project in the first week of May. We will be drilling it primarily in those two zones that are separated by 700 metres. We’re expecting to hit good mineralisation so long as the mineralisation we see on surface and underground continues to depth. If we are successful then we’ll continue to drill and to connect up those zones and continue to explore along the larger 3km long structure and various mineralized cross structures. 

So we are quite excited about this project, we believe we’ll be able to deliver a new silver project in the company to our investors. 

Harry: Soho Resources raised 3 million US dollars in February, where does this leave the company’s financial situation going forward Ralph?

Ralph: That raise was a small raise to get us going back on the projects and get us marketing again which we are successfully doing. We will need to raise more money, we are planning on raising more money within the next two months that will continue to add the cash we need to work through the pre-feasibility at Tahuehueto and to expand the preliminary exploration programme should we get the results we expect at Jocuixtita. So we would envision a very active year, we plan on moving Tahuehueto through the pre-feasibility stage, into feasibility by the end of the year, then working on the full feasiblity study early next year, subject to us securing the necessary cash to do the work. 

Harry: What can investors expect from Soho Resources over the next 12 to 18 months Ralph? 

Ralph: Well Soho is going to have a very active time over the next 12 to 18 months. We are initiating an infill drilling programme on Tahuehueto to increase the confidence of our inferred resource up to measured and indicated to support pre-feasibility studies. We are underway in mapping and sampling at Jocuixtita and we are anticipating a drill programme starting in the first week of May. Based on the success of that programme we are expecting to go into a continual drill programme throughout the rest of the year and into next year. Back to Tahuehueto we are hoping to deliver a pre-feasibility study towards the end of this year, early 2012, working towards a full feasibility study in early 2012 and the production decision late 2012. 

In addition to that we’re working on a strong marketing campaign which is underway in the United States as well as Canada and Europe. We are seeking a listing on the OTCQX Exchange in the United States to allow better access for US shareholders and US investors to buy Soho stock. 

Efforts for the first property, its flagship Tahuehueto project in Durango State, have been focused on collecting data to support a pre-feasibility and feasibility study, as recommended to the company in a preliminary economic assessment report from October.

Drill road access and site preparation is now underway to prepare for drill rig mobilization, expected in the second half of May. The initial program will comprise 2,000 metres of infill drilling, designed to move inferred resources, which represent about 40% of the total resource, to a higher category.

The company also appointed Knight Peisold to initiate engineering work on the project, which began in late February. Studies will look at various mining options.

Work at the second project, the recently-acquired Jocuixtita silver property in Sinaloa, began in February, and has been focused on geological mapping. The company has now selected zones for drill testing, and surface and underground channel sampling is underway.

The drill rig is expected to arrive at the Jocuixtita site by the end of May, where an initial 2,000 metres of core drilling will take place on two zones.

Soho is also planning to list on the US OTCQX market by the second quarter of this year.

The Jocuixtita property hosts a number of northeast trending epithermal vein structures mineralized with silver, gold, lead and zinc.

The company has started road rehabilitation to prepare for the first phase of exploration, which will include geological mapping, surface and underground sampling, followed by drilling of the two main zones, the La Salvadora and El Carmen areas. These two zones are located approximately 700 metres apart on the same three km long structure.

As part of due diligence work on the project, Soho completed a chip sampling program of exposed mineralization within the two main areas. Gold samples ranged to as high as 1.9 g/t, while silver values were as high as 867 g/t.

In 2009, Soho signed two option agreements for 1,668 hectares of land at Jocuixtita and staked additional concessions surrounding the optioned claims covering 2,664 hectares.

Aside from the Jocuixtita project, Soho is in the process of completing an infill drilling progam at its flagship Tahuehueto property in Mexico, designed to expand and upgrade the resources at the site.

Soho is a Canadian based junior exploration and development firm, focused on gold, silver and base metal assets in the Sierra Madre Belt of Mexico. Soho controls 100% of the project, through its 99.4% owned Mexican subsidiary Sacramento de la Plata S.A. de C.V.

The Tahuehueto project is a 9,000 hectare property that lies within the Sierra Madre Mineral Belt, located in Durango State, Mexico. Mineralisation and geology on the project are consistent with the gold-silver metallogenic province of the Sierra Madre Occidental, which account for much of the historic gold and silver production from the province.

Specifically, Soho has identified at least 12 polymetallic zones hosted within a structurally controlled epithermal system, which they have traced for more than six kilometres.  Mineralisation at the project consists of epithermal, low-sulfidation, polymetallic gold-silver veins and breccias with associated copper, lead and zinc.

This latest economic assessment of the project, which used the past three year rolling average gold, silver and base metals prices, and considered a combination of open pit and underground mining operations, returned some very strong results and demonstrates the economic viability of the project. The report showed an expected mine life of 11 years from the current est. resource, estimated a net present value (NPV) of US$109.6 million discounted at 5%,, and an internal rate of return (IRR) of 31%.

Considering an expected capital and startup cost of US$89.1 million, the report suggested a payback period of 27 months, with a maximum processing rate of one million tonnes per annum (about 2,750 per day).

Snowden Mining Industry Consultants, who compiled the report, also completed a preliminary life of mine (LOM) schedule, which suggested there is potential for a life beyond ten years, with the mill operating at full capacity between years 2 and 8. It showed the underground aspect of the operation, at the Cinco de Mayo zone, will run throughout the current resources entire 11 year mine life, while underground operations at El Rey and Creston would be expected to commence in year six. The open pit aspect of the operation also in the Creston zone is expected to be mined between years 1 and 6.

As highlighted above however, this does not tell the full story, and indeed there are numerous aspects to the property that may allow improved economics all around in the not-too distant future. Firstly, and as is often the case in these times of ever increasing metals prices, the three-year rolling average metal prices considered in the PEA still fall short of current spot prices.

If current spot prices are sustained or even increase as the mine moves into production, the economics could improve significantly from the current figures published within the PEA. It is also worth considering that, naturally, the PEA only includes information on the current resource discovered to date. However, the mineralised zones are still open along strike and at depth, with a lot of potential to add resources going forward.

 In addition, Soho suggests that so far, only two structures have “really been explored with drilling”, comprising the main portion of the resource mineralisation considered in the PEA. However there are at least 7 more structures on the property that Soho already knows have good mineralisation, but so far have been unable to be explored by drilling due to a lack of time and funding.

The company is quite expectant that some of these zones may indeed prove to be high grade, which if that does turn out to be the case, could significantly add to the mine life and improve the economics in the early years of an operating line. Soho suggest that future discoveries could possibly even double or triple the 11 years currently assessed, as well as bring about a faster payback period and improving the overall economic numbers of the project.

There is another aspect that could improve the economics of the project even further, which is, that a portion of the Cinco de Mayo zone may in fact, be amenable to open pit mining.  The southern portion of the Cinco de Mayo zone is overshadowed by a large cliff face, which must first be proven to be stable in order to allow surface open pit mining methods to be conducted there.  In order to prove this the company must conduct geotechnical drilling to prove the cliffs stability. 

Speaking with Ralph Shearing, President and CEO of Soho, he is very confident that the cliffs above Cinco de Mayo will indeed prove to be stable. Having worked in the region for many years, and with an extensive knowledge of the geology and topography of the project, he suggests that the cliff face is made of a very hard welded rhyolite ignimbrite rock, very common in the Sierra Madres, and forming extensive sheer cliff faces throughout the Sierra Madre Mountains.  If geotechnical drilling proves the cliffs above Cinco de Mayo to be safe and stable it will certainly reduce mining costs and add value to this zone, and therefore improve the projects economic viability in and above the good economic numbers already achieved for the project.

Soho expects to launch a prefeasibility exploration program to investigate the geotechnical stability of the Cinco de Mayo cliff face, conduct a diamond drill hole program to increase the confidence of the resource from inferred to the NI 43-101 compliant measured and indicated categories, conduct new drilling in and along the resource structures to increase the overall resource tonnages and continue to collect baseline environmental and the geotechnical data necessary for mine planning. They estimate that conservatively, all relevant data should be collected to go forward with the pre-feasibility study (PFS) in the next 6 to 9 months, following which they expect to produce a full feasibility study and then build a mine.

There is one important aspect to note at this stage however, and that is the company’s need for financing. It is fair to say that during the global economic crisis, Soho in many ways ‘hunkered down’ and rode out the storm so to speak on a care and maintenance basis. With market conditions improving as they currently are, Soho is now confident in their ability to finance their planned exploration and technical works, and intend to secure an initial funding over the next few weeks.

This strong PEA has significantly reduced the risk factors associated with the junior explorer and puts Soho into the initial Development phase having strong indications of the economic viability of Tahuehueto.

Furthermore this property is still relatively unexplored leaving a lot of potential for further resources and improved numbers to be added as exploration continues on the project well into the future.  The potential to find more high grade mineralised zones on the current existing resource structures as well as the other unexplored mineralized structures, could dramatically buoy the initial mine life and payback period, improving the overall value of the property. 

If the geotechnical drilling work on the cliff face at Cinco de Mayo proves the area to be stable, as expected, this zone could be brought into open pit mining plans, further reducing mining costs and thereby improving the projects preliminary economics in and above the current studies robust numbers.

The value then is clear; Soho’s strong PEA results have the potential to be improved above and beyond the PEA’s current numbers released by the company on 4 October, 2010. 

Soho Resources Corp. currently trades on the TSX-Venture exchange under the symbol SOH and presents investors a potential undervalued situation within the precious metals and base metals exploration and development sector.

Soho is primarily focused on the Sierra Madre Belt of Mexico, a country where it holds interests in two projects with principle commodities of gold, silver, lead, zinc, and copper located in Durango State and Sinaloa State in western Mexico.

Its property portfolio comprises the advanced Tahuehueto project in Durango State and Jocuixtita in Sinaloa State, with the former at an advanced stage.