Soho Resources (SOH.V) - new assays at Jocuixtita silver project

Comment by Objective Capital , Sep 20, 2011
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Soho has received assays from its Jocuixtita silver project near Mazatlan, Mexico. The project is secondary to the company’s Tahuehueto polymetallic project in northwestern Mexico, yet has significant merit.

Significant assays were received in 11 of the 13 holes drilled during June and July. An additional five holes were attempted but failed to reach the required depth due to difficult ground conditions for the small drill employed in the programme.

At JCX-09, a 10.8-metre interval graded 165.38 grammes of silver and 0.73 grammes of gold per tonne. A second, deeper interval averaged 295.63 grammes of silver over 5.4 metres. Of note, a 1.0-metre section of this lower interval averaged 1,500 grammes of silver per tonne.

Hole JCX-18 returned 350.84 grammes of silver and 0.41 grammes of gold over 5.25 metres while JCX-17 yielded 138.74 grammes of silver over 5.7 metres and a deeper zone returned 183.95 grammes of silver over 12.0 metres. At JCX-07, a 9.95-metre interval averaged 159.54 grammes of silver per tonne.

A second phase of drilling is tentatively planned.

Objective's view:

We view the assays from Jocuixtita as encouraging, although the early stage of exploration and the secondary priority of the project leave our most recent valuation of Soho Resources unchanged. Nevertheless, we believe the drill results provide added comfort that the company has substantial blue-sky potential, both at its flagship Tahuehueto property and beyond.