I've been a shareholder for over two years on this roller coaster ride. Here's my understanding of things...
SLTA could not raise exploration financing in late 2008 when the world fell apart. Not only couldn't they explore this obviously gold-rich property, they couldn't cover the filing costs for the exchange.
They fell from the OTC Bulletin Board to the Pink Sheets by being late three times with filings to the SEC back in 2008. (Remember the SLTA.E name change for a while there? The "E" stands for extension as in deadline.
They tried to get financing throughout 2009 to no avail. The Caveat Emptor status was then put on them for being over 12 months late on SEC filings. They ran out of money and for too long just treaded water - the slow death of many an exploration company.
The pps fell to 5 cents and stayed there throughout this 'hibernation' period of over a year and a half. They batoned the hatches, dropping their two Mexican properties but managing to make all payments to keep exploration rights over El Torno and Eureka in Argentina.
Realizing that financing was not available anytime soon, not wanting to lose this war of attrition, they decided to go for immediate small-scale gold production to get out of the situation.
If you read the past news release you will see that what's happening now is Fabio Montanari managed to negotiate with the titleholder of El Torno to assign to Soltera surface mining rights over the gold-rich alluvial section of the gold vein, and 100% control of the gold processing gravity concentration plant which the titleholder was working himself up until 3 years ago when his health failed him. (In essence SLTA has ownership of this gold processing plant since they get it if/when production stops or does not proceed.) The photos you referred to are of this plant during test runs of the system back in April.
The titleholder gets 10% of the gold output from this plant. Also in the deal, Soltera managed to extend their exploration rights over Eureka. Pretty good negotiating if you ask me. To get assigned mining rights without having to go through the usual years of licensing procedures is pretty cool. I guess both being Italian they did it over some very good red wine. But if you look back at how long ago this was mentioned in releases you will see that it took more than just good red wine - it took patience, for us shareholders that are still holding on.
So we now look forward to Soltera starting up alluvial surface gold production to the tune of conservatively $200,000 per month sometime soon. With this income they will never again have the prospect of running on empty, and they can get to all those filings which they intend to do as soon as financing and/or gold revenues allow since they remain a fully-reporting issuer (albeit late!) and will work on re-listing on the Bulletin Board.
It's been a long time coming, but this El Torno is an amazing gold property; that's why a top-draw economic geologist who has worked with majors for over 25 years is living with his young family on the property for almost three years. This is his Eldorado.
It really can't be called a "prospect" since we know already from Penoles/Puma work it has a minimum 500,000 oz in a tiny section and potentially 2M oz according the world's largest silver miner. It includes 1000m of historic shafts dating from the Incas to the Jesuits. It has an alluvial operation working up to 2 years ago and conservatively capable of producing 200 oz/month. It includes two huge and very strong gold geochem anomalies that have already been stated as potential open-pit mines; and that coming from Fabio Montanari who basically wrote the book in Italy on modern geochem techniques.
If you read the full El Torno Report they have on their homepage you can see all of this in one document. Also, I call their 800# (it's on the site) every now and then and usually get someone to bring me up to date on things.
I think this is a golden opportunity like no other out there. The timing and price are perfect to get in now (or one month ago when it was still 5 cents). I first got in at 40 cents and have since added more at 5 cents and again at 15 cents. My average price now is around where it is now 20 cents. I now look forward to making some money as they start to generate revenue, news and secure financing for future exploration of this, our Eldorado.
JP-II
