VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/19/13 -- Oracle Mining Corp. ("Oracle Mining" or the "Corporation") (TSX: OMN)(OTCQX: OMCCF)(FRANKFURT: OMC) is pleased to provide an update to its shareholders for our Oracle Ridge copper project ("Oracle Ridge" or "Oracle Ridge Project"), located 24 km northeast of Tucson, AZ.
Dear Oracle Mining shareholder,
We wish to thank you as a loyal shareholder of Oracle Mining for your support during the year. These are challenging times in the mining sector in both the financial markets and with mining project cost escalations. While we have no control on the markets and the price of commodities, general cost escalation in the mining sector is something management has actively been battling since the Oracle Ridge Project was acquired two-and-a-half years ago. To put it simply: as experienced mine builders and operators, we will not accept inflated capex estimates.
Our belief in the strength of Oracle Ridge is reinforced by the disclosure of a resource estimate along with a technical report we filed in April. The scale of Oracle Ridge and established infrastructure have always set Oracle Ridge apart favourably when compared to larger greenfield projects and the resource estimate confirms our belief that we can continue to work towards a feasibility study. While we have experienced delays, our commitment to Oracle Ridge being developed responsibly has meant that we have never strayed from our targets. It is for this reason that we have significant support from our largest shareholders RK Mine Finance (19.9%), RichStone Mining Investment (15.9%) and our directors and officers (16.6%).
We are also very pleased to be writing to you following our recent announcement of our partnership with JDS Energy & Mining Inc. ("JDS") to provide engineering services and produce a feasibility study in accordance with NI 43-101 (the "Feasibility Study"). JDS and the Oracle Ridge team have initiated the ground work and are working on the drilling plan and feasibility study timeline. JDS is well-respected for their innovative and cost-effective approach to mine development of projects on the scale of Oracle Ridge and we are confident they can produce a feasibility study for Oracle Ridge on-budget and on-schedule. Unlike most engineering firms, JDS has operated projects on the ground as well as provided technical expertise; we think this entrepreneurial approach is the right fit for Oracle Ridge. If you are looking for evidence, I would encourage you to look at the success stories on their website, from running drilling programs to feasibility studies to mine construction in harsh environments.
A short anecdote about our first meeting after we advised JDS we were interested in receiving a proposal: We called their CEO on a Wednesday afternoon; by Thursday, they had flown a five-man team to meet with us on the ground at the mine site in Arizona and started work on a new outline for a scoping proposal. We had the completed outline a week later and soon after that, a final services agreement. That is a process that would take most large engineering firms weeks, if not months, to conclude.
We look at a number of ways to measure the performance of our team and the level of success over the past year, specifically in the areas of permitting and finance, and how we've overcome any barriers to achieving our goals in either area.
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