The O.T. Mining
Corporation
4333 Ste-Catherine St. West, Suite 610, Montreal
(QC), H3Z 1P9 Canada
Tel: (514) 935-2445 Fax: (514) 935-8161
E-mail: info@otmining.com Web site: www.otmining.com
June 9, 2009
Eighteen
Month Progress Update
As you may recall,
The O.T.’s mission, since inception, has been to explore for and identify a
mineral resource of such potential economic consequence that it would be sought
out by the major mining companies for acquisition.
2008 brought two of
the top five major mining companies to O.T.
Each signed a two year Confidentiality Agreement, visited the site and
performed in depth due diligence on O.T.'s exploration programs to date. Both companies have voiced high degrees of
interest in the 14.5 square mile Ruby porphyry copper/molybdenum system. The present world economic conditions have
stalled the process and O.T. has been advised to be patient.
O.T., as it has
every year, regardless of market and financing conditions, enhanced the
knowledge and value of the project. All
previous geophysical, geologic and geochemistry surveys completed since 1990 on
the Ruby were revisited in detail and compared to our recent (post 2004)
work. This resulted in an expansion
(almost doubling) of the key target area.
In addition, research was conducted that documented the similarities of
Ruby to other known giant porphyry systems worldwide.
The following
comparison of O.T.’s porphyry and the nearby Butte
porphyry system will provide a clear picture of why the major mining companies
knocked on O.T.’s door. Note that there
are only a handful of other great porphyry systems that have Main Stage Type
Veins similar to those described below. These
include Resolution Az., and Chiquicamata, Escondida, Rosario
and El Salvador in Chile.
The Ruby property
is located 14 miles north north east of the Butte Mining District (Butte Camp),
the second largest wealth creation mining district in the world. The major mining companies continually
monitor activity in these areas world wide as the old adage of “Where do you
find a new mine? Next to an old one!”
has for the most part proven to be a scientific fact. Regardless of the present economic
conditions, the major mining companies have to plan 25 years ahead to assure
that they have economically producible proven reserves to meet the ever growing
long term demand.
The Butte Camp
encompasses 27 square miles and is host to “The Richest Hill on Earth” (RHE),
encompassed within 2.45 square miles. The
RHE has produced almost $400 billion in metals since the 1860’s. Approximately 95% of this wealth was mined
from the “Main Stage Veins” in the RHE.
How does the O.T.’s
Ruby porphyry system compare to The Butte Camp?
The two porphyries are very similar.
They are the same age, hosted by the same magma body and occur along the
same regional fault zone. Both contain
potassic and phyllic alteration minerals.
They are similarly shaped (elongate east-west) and are both very large
systems. In fact, the ultimate size of
the Ruby porphyry is still unknown because it remains open for expansion to the
east, west, and at depth. The Butte
porphyry contains a large area of low grade copper (similar to that encountered
at Ruby to date) surrounding the Main Stage Veins.
Through the use of
modern proven technology and our recognized technical team, O.T. has identified
a two square mile area within the Ruby porphyry that has the geophysical and geochemical
characteristics expected of Main Stage Veins.
The area has seen very little drilling, and a series of angled core
holes are now required to test for these veins.
Environmental studies have been completed, drill sites have been
permitted and the project is ready to drill as soon as funding is available.
For the investors,
the leverage is potentially enormous as O.T. is a micro-cap that controls a
potential world class asset base. There
are only 11,398,303 common shares issued and outstanding.
Comments by the
accounting firms of Ernst & Young and PricewaterhouseCoopers are
attached. They explain the devastating
effects of this downturn in mineral exploration and development. They also describe why what O.T.’s management
has been saying regarding the coming scramble for metals supplies and
increasing metals prices.
It is O.T.’s goal
to raise the next round of financing of $15,000,000 in order to drill test this
two square mile anomaly. Management, the
technical team and third party advisor, believe the results of the program have
the potential to significantly enhance the project's value and cause many more
than the two majors to come to the table.
O.T. is presently undertaking a small private placement for working
capital purposes with accredited shareholders and is actively in contact with
qualified funding sources in the U.S. that are returning to the natural
resource marketplace after a two year hiatus.
The financiers are considering funding the O.T. because of its superior
potential as the host to economic deposits of precious – gold and silver –
and multiple base metals – copper, zinc, lead, and molybdenum. These metals are intricate ingredients of the
life’s blood of the industrialized world and emerging economies. These metals are among the commodities that
are recommended as hedges against inflation.
We believe that metals are the
most fundamentally basic commodities as without them the other commodities,
e.g.: food and energy, cannot be produced or distributed.
For further information, call the undersigned at (514)
935-2445 or e-mail at info@otmining.com
or visit O.T.'s web site: www.otmining.com
James W. Hess
President
JWH/nf
Disclaimer: This shareholder letter
contains forward-looking statements regarding the Company, within the meaning
of Section 27A of the Securities Act and Section 21E of the Exchange Act,
including statements regarding the anticipated timing, process and scope of
further exploration and drilling activities.
These statements are based on assumptions that the Company believes are
reasonable but that are subject to uncertainties and business risks. Actual results relating to any and all of
these subjects may differ materially from those presented. Factors that could cause results to differ
materially include economic and political events affecting supply of and demand
for base and precious metals, fluctuations in commodity prices, negative
results of environmental or technical studies, negative results of further
exploration, drilling programs, problems or delays in or objections to the
permitting process, failure or delay of third parties to provide services,
changes in the attitude of state and local officials toward the Ruby Project
and other factors. Additional
information is available at the Company’s website at www.otmining.com.
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