Soltera Mining (OTCPK:SLTA) Locks In Gold Production Deal Offering Near-Term Revenues and Long-Term Opportunity

Soltera Mining (OTCPK:SLTA) Locks In Gold Production Deal Offering Near-Term Revenues and Long-Term Opportunity


Point Roberts WA, Delta B.C., April 15, 2010 - www.InvestorIdeas.com and its leading mining investor portals present recent commentary on Soltera Mining Corp. (OTCPK:SLTA) FRANKFURT:SN7), by Lisa Springer, CFA, equity research analyst and financial writer.

Soltera Mining Locks In Production Deal Offering Near-Term Revenues and Long-Term Opportunity

Lisa Springer, CFA

Equity research analyst and financial writer
During tough times, innovative approaches and smart deal-making can separate winners from losers, particularly in mineral mining, which is a notoriously capital-intensive business. Soltera Mining (OTCPK: SLTA), a junior gold mining company operating in South America, has acquired rights to mine gold-bearing surface deposits at El Torno that are both accessible and inexpensive to work and process. In return for a US$150,000 upfront payment and rental payments totaling US$200,000, Soltera gains access to gold-bearing deposits estimated to contain over half a million gold ounces by another major mining company and potentially worth over US$500 million at current gold prices. The cash flows Soltera generates from sales of surficial gold will enable the Company to fund further exploration and development of a potentially world-class gold resource beneath El Torno’s surface. In addition, the US$150,000 payment gives Soltera exploration privileges and right of first refusal to purchase Sur Eureka, an adjacent property the Company believes has significant copper-gold potential.



Located in northern Argentina near the Bolivian border, the El Torno property contains a 14 kilometer long gold-rich quartz vein, smaller veins of dispersed gold joined to the main system, and elluvial deposits embedded in gold- bearing bedrock distributed throughout at depths of 2-3 meters. These elluvial materials are particularly important to Soltera’s short-term business strategy, since these are inexpensive to mine and process. In fact, El Torno’s previous titleholder extracted elluvial material using a back hoe and a simple gravity concentration plant until ill health forced him to stop. In addition to mining, the agreement gives Soltera the right to process the gold-bearing materials it extracts at a nearby processing plant in return for paying 10% of produced gold to the titleholder. The mining agreement has a four year term, can be renewed for another four years, and awards Soltera ownership of the processing plant and equipment if production is halted for any reason.



El Torno had been mined by the Spanish and the Incas centuries earlier, but exploration by modern mining companies is recent. Penoles (BMV:PE&OLES), a large mining conglomerate whose shares trade on the Mexican Stock Exchange, estimated gold deposits of at least half a million ounces at El Torno and a resource potentially exceeding two million ounces based on drilling samples taken in the late 1990s, but was unable to secure mineral rights to the property. The presence of other majors with nearby claims – Rio Doce Argentina (CRVD owned), Cardero Resources (AMX:CDY), Coeur d’Alen Mines Corp. (NYSE:CDE) and Yamana Gold (NYSE:AUY) attests to the fact that many operators believe world class gold deposits can be found in the El Torno area.

Soltera plans to commence full production of elluvial gold from El Torno within two months and targets 2,000 ounces of production in its first year, potentially worth more than US$2 million at current gold prices. Assuming this level of production is achieved, Soltera could earn a very healthy return on a US$150,000 upfront payment, rental payments totaling US$200,000 (deductible from a final buy-out), and production costs estimated at approximately $350,000 annually. In addition, Soltera would be able to self-fund its surface mining operations while further investigating underground and open vein targets where the majority of El Torno gold is likely found. A producing mine also makes Soltera more attractive to financing partners. The tonnage and grade potential of El Torno surface deposits has not yet been established, but Soltera expects to begin generating revenues almost immediately from sales of fine gold left behind in mined rock, which it can recover using simple processing methods.

If Penoles’ 500,000 ounce resource estimate is correct, El Torno gold would be worth approximately US$550 million at current $1,100 per ounce gold prices. At Penoles’ 2 million ounce estimate, the potential value of El Torno gold rises to US$2 billion. Investors should be aware, however, that exploitable El Torno resources could differ materially from those indicated by drilling results and understand these and the other risk factors described more fully in the Company’s SEC filings if they are considering purchasing shares. Still, at even a fraction of Penoles’ lower estimate, El Torno’s value would far exceed Soltera’s US$5 million market capitalization and could immediately vault Soltera into the ranks of mid-tier mining companies.

In addition to El Torno, Soltera has mining rights at Sur Eureka, an adjacent property 5 kilometers from El Torno covering approximately 2,926 hectares. There are mine works already at Sur Eureka and exploratory drilling done previously by Soltera and a joint venture partner showed strong potential for copper and gold mineralization. Soltera has exploration rights to this property through the end of July and right of first refusal on Sur Eureka’s purchase for 3 years.

Soltera is led by a seasoned geologist, Dr. Fabio Montanari, who is located on-site at El Torno and brings more than 25 years of international mining experience to the company. Dr. Montanari has overseen exploration projects in Africa, Europe and the Americas for major mining companies such as Asarco (US), Golden Star (UK), ENI Group (Europe) and Normabec (Canada), and also served as a geological consultant to the United Nations. He holds a PhD in Economic Geology and authored a geology textbook used in a major Italian university.

Readers are advised that the above article is solely for information purposes and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. The views expressed herein are based upon the author’s analysis of the issuer's public disclosures, and assumes both their accuracy and completeness. The opinions and statements included herein are based on sources (including the companies discussed and public sources) believed to be reliable and in good faith, but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. The author has not independently verified the information contained herein. This information is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. You should review a complete information package on all companies, which should include, but not be limited to, the Company's annual report, quarterly reports, press releases and all regulatory filings. The foregoing discussion contains statements which are based on current expectations, estimates and projections, and differences from such expectations, estimates and projections can be expected.

The author, Lisa Springer, was compensated for writing this and doesn’t own shares of any of the companies mentioned in this article.

Lisa Springer, CFA

Bio: http://www.investorideas.com/About/Lisa-Springer-CFA/


Showcase Gold Mining Stock Soltera Mining Corp. (OTCPK: SLTA FRANKFURT: SN7):

Soltera Mining Corp. is a unique exploration company in the sense that it is following two distinct lines of action. The first is conventional, with exploration concentrated on two carefully selected gold and base metal projects in Argentina, particularly the large-scale El Torno gold project in Jujuy. The second, less conventional action is to finance immediate small-scale gold production from a specific section of the 14 km gold-quartz vein at El Torno.

Investors can view the full company profile for Soltera Mining Corp. at http://www.investorideas.com/CO/SLTA/


Visit the company website at http://www.solteramining.com/
Properties Page: http://www.solteramining.com/index.php?option=com_content&task=view&id=19&Itemid=74

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Soltera - Safe Harbor Statement: Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Information or opinions in this document are presented solely for informative purposes and are not intended nor should be construed as investment advice. We encourage you to carefully review the Company with your investment advisor and verify any information that is important to your investment decision



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