Updated message from El Jefe:
President’s Message
To Our Valued Shareholders:
I’m pleased to report Oro Gold enjoyed another exceptional year in 2009. In fact we reported some of the best drill results of any exploration company in Mexico. We surpassed our key objectives, raised a significant amount of cash for exploration and laid the groundwork for a year of rapid growth.
Our success in 2009 was defined by three key events:
1) Exploration drilling on our wholly-owned Trinidad property near Mazatlan continued to generate outstanding assays over long intervals. The success of this program in 2009 will contribute to an increase in the company’s gold resource base.
2) We raised nearly C$15 million to fund aggressive exploration in 2010 and beyond.
3) Consolidated a strategic, contiguous property position along a northwest-trending structural corridor, which has the potential to host significant new gold discoveries. The total land package now exceeds 2,500 square kilometres, and is wholly-owned by the company.
Outstanding Drill Results at Trinidad
The 2009 drill program produced a number of high-grade intervals, including:
• Hole 15: 5.3 g/t gold over 65.9 metres
• Hole 16: 3.4 g/t gold over 60.6 metres
• Hole 19: 6.3 g/t gold over 30.0 metres
• Hole 20: 5.3 g/t gold over 13.4 metres and 4.1 g/t gold over 13.0 metres
• Hole 22: 8.6 g/t gold over 20.9 metres
• Hole 25: 3.6 g/t gold over 81.8 metres
• Hole 27: 5.2 g/t gold over 18.7 metres
• Hole 34A: 8.7 g/t gold over 34.5 metres
Towards a Million Ounces
Our primary goal at Trinidad is to bring the property’s resource to the million ounce mark. We’re presently focused on the Taunus target, where drilling continues to expand multiple gold zones. The Longitudinal Section outlines these zones, their key drill intercepts, and targets to be further tested. The most significant zone to date is the HS, which has generated the highest gold grades over long intervals. This zone is interpreted as an oxidized, clay-rich breccia horizon containing an abundance of free and fine gold.
For 2010: Follow-up at Trinidad and Making New Gold Discoveries
Our 2010 program calls for at least $6 million in exploration. We plan to drill a minimum of 10,000 metres with the objectives of 1) substantially increasing our gold resources, and 2) making new gold discoveries in other areas along the 125-kilometre-long northwest trending corridor. The Trinidad district hosts multiple gold-bearing targets outside of Taunus that are awaiting drill exploration. The San Cristobal target will be one of the first areas we will be drilling in 2010 with drill holes already planned. (Click here to see the Trinidad South District Map Exploration Targets)
Gold Demand and Producers Hungry for New Reserves
Despite record-high prices for gold, world gold production is slowly declining. At the same time, the world’s biggest gold companies are growing bigger through consolidation, and they need vast amounts of new gold reserves to continue growing. Consequently, these mega-producers are hungry for high-quality properties—particularly in jurisdictions like Mexico where they can count on relatively stable political, regulatory and economic environments. Gold-rich properties become even more desirable when they are located in major gold camps and near good infrastructure. The Trinidad property meets all these requirements, and as the property’s resource grows it will attract even more attention of the major gold producing companies.
Anticipating a Landmark Year
Oro Gold’s success in 2009 has positioned us solidly for a year of significant growth in 2010. In fact we believe this will be a landmark year for the company. The targets planned for drilling could not only expand resources, they may also open up discoveries that take Oro Gold to a whole new level of potential. Our highly-experienced geological team has developed a long-term, strategic and very intelligent approach to the exploration of Oro Gold’s Mexico projects. I believe this strategy will continue to generate outstanding results through 2010 and beyond.
In closing, I want to express my gratitude to all of Oro Gold’s employees, board members, advisors and, most of all, shareholders. I’m continually inspired by the way everyone has taken a team approach to accomplishing this company’s ambitious goals. I look forward to sharing continued good news in 2010.
Yours truly,
Darren Bahrey
President and Chief Executive Officer
orogoldresources.com |
