Soho Resources Corp. (CVE:SOH) (OTCQX:SOHFF) reported Thursday positive results from the first phase of a two-phase engineering assessment program on its Tahuehueto project in Durango, Mexico, designed to support a pre-feasibility study.
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.