Tara Minerals Corp. (TARM.OB)

Posted: Wed Oct 28, 2009 9:50 am

Tara Minerals Corp. is a US-based resource company mainly focused on searching, acquiring, exploring and developing high-quality non-precious metals and minerals projects with potential for economic commercial value. Currently, the company has a 100% interest in the Pilar de Mocoribo, Don Roman and Lourdes, Centenario, and Las Nuvias mining properties. All of Tara Minerals’ properties are located approximately 25 kilometers from the town of Choix, Sinaloa State, Mexico.

Expecting to generate a net profit of US$200+ per tone, Tara Minerals is moving towards producing 450 tonnes per day. The company is in a strong position to acquire additional opportunities due to its established office and relationships in Mexico. Tara’s management has proven its ability to recognize value early, gain access and acquire projects on favorable terms. Tara Minerals is currently engaged in discussions regarding such possible opportunities.

Additionally, the company recently discovered a high-grade gold vein and is in the process of bulk sampling it. Tara Minerals anticipates having the results by the first week of next month. Work to date has outlined the known vein to approximately 850m strike length and approximately 400m in vertical height. The vein remains open both laterally and at depth. Channel samples returned results ranging from 28 to 41g gold per tonne. Trenches ranged from 4 to 6g gold per tonne. The company anticipates processing the gold at its mill in November.

Tara Minerals is undervalued from a fundamental view (expected earnings per share), a blue sky view (exploration results to outline resource) and has a great share structure with less than 10 million shares in the float (Tara Gold owns approximately 32 million shares of Tara Minerals). The company is also covered by S&P which allows brokers in a majority of the US states to legally recommend the stock to their clients. Overall, shareholder value is positioned for growth as Tara Minerals starts production, increases cash flow and outlines resources through drilling.