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27/10/2010 12:21:00 AM - Shareholders Letter
Mr. Fredy Salazar reports
SALAZAR RESOURCES LTD: PRESIDENT'S LETTER
Dear shareholders and friends:
As president, chief executive officer and founder of Salazar Resources Ltd., I am pleased to provide an update on the company's activities.
With the support of our shareholders, the company's exploration activities over the past three years have resulted in the successful discovery of a major copper-zinc-gold-silver deposit and possibly a new volcanogenic massive sulphide camp in Ecuador. The recently released National Instrument 43-101 technical report prepared by the world-class consulting firm of Scott Wilson RPA reviews the results of our exploration efforts and presents a new mineral resource for the El Domo deposit. This report bolsters our confidence in the El Domo resource and lays out the challenges ahead to develop Curipamba into a world-class mining district.
The past 18 months have seen major events in Ecuador that have had a significant impact on our exploration progress. A new mining mandate introduced by the Ecuadorian government in April, 2008, resulted in a suspension of our exploration efforts for more than a year. While the company was unable to conduct exploration activities during this time, it took the opportunity to strengthen its ties with its host communities, as well as to continue environmental-related activities. The company also compiled its current geological knowledge and, in February, 2008, filed a comphrehensive NI 43-101 technical report that used the initial limited drilling information to report the company's first estimate of an inferred mineral resource at El Domo.
In June, 2010, permission to continue mineral exploration was granted by the government of Ecuador, and diamond drilling recommenced at El Domo. Shortly after, however, at the end of June, the B.C. Securities Commission conducted a review of the Feb. 8, 2008, technical report and brought to our attention a number of flaws in the report. The company was unable to resolve these issues to the satisfaction of the BCSC, and, on Sept. 10, 2010, we were served a cease trade order that would remain in place until a new mineral resource estimate and technical report had been submitted.
The company took immediate action, and a new mineral resource estimate was completed and released on Sept. 18, 2010. On Oct. 12, the new technical report was submitted to the BCSC for review and was accepted immediately, resulting in the CTO being lifted on Oct. 18. The complete technical report is now available for viewing on SEDAR.
As the president of Salazar, I wish to convey my sincerest appreciation to our shareholders and friends for their unwavering support and maintaining their trust in our project, particularly during the difficult and regrettable circumstance over the past few weeks. I would especially like to thank our shareholders who participated in our most recent financing which closed on Sept. 10. Despite the fact that we offered all participants in this financing the right of rescission, we still closed on the whole $5-million. It should be noted, however, that our exploration activities have continued uninterrupted during the past four months, and approximately 5,000 metres of diamond drilling at El Domo have been completed this year.
Some of the prominent drill results from the Curipamba project in 2010 are:
Curi-56: 15.95 metres of 11.32 grams per tonne gold, 195.31 grams per tonne silver, 3.75 per cent copper, 0.93 per cent lead and 8.19 per cent zinc;
Curi-60: 32.36 metres of 3.75 grams per tonne gold, 39.18 grams per tonne silver, 3.67 per cent copper, 0.11 per cent lead and 1.44 per cent zinc;
Curi-10-64: 8.85 metres of 5.83 grams per tonne gold, 179.62 grams per tonne silver, 8.07 per cent copper, 0.85 per cent lead and 6.33 per cent zinc;
Curi-10-67: 12.95 metres of 2.04 grams per tonne gold, 69.50 grams per tonne silver, 1.91 per cent copper and 6.81 per cent zinc;
Curi-10-68: 14.37 metres of 5.94 grams per tonne gold, 69.65 grams per tonne silver, 2.74 per cent copper and 4 per cent zinc.
Also worth mentioning is the solid support the company has received from the local communities in the Curipamba project area and the government of Ecuador, which have assisted us in overcoming any inconveniences generated by anti-mining groups that operate in Ecuador and, in general, in Latin America. This support has made it possible to continue our efforts, and we look forward to taking part in responsible mining in Ecuador with all stakeholders benefiting.
Now that we have a solid resource base at El Domo, we will be expanding our exploration activities to include the testing of the numerous existing exploration targets adjacent to El Domo. Under the guidance of Jim Mayor, the company will reactivate field exploration in areas outside of the Las Naves concession with the introduction of a second drill rig.
In closing, Salazar looks forward to an exciting 12 months ahead. Upgraded resource definition at El Domo will coincide with an intensified regional exploration effort to discover several more deposits in the potential Curipamba mining district.
On behalf of the board of Salazar Resources,
Fredy Salazar, president and chief executive officer
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