Animas Resources

The following is extracted from the February 2008-1 Issue

Animas Resources (ANI-TSXV; C$1.40) has completed compilation of historic data at its Santa Gertrudis project in Sonora state, Mexico. The historic data outlines several un-mined deposits containing non-compliant historic resources that add up to roughly half a million ounces of gold. Animas is continuing to consolidate its property interests in the Santa Gertrudis district. Drilling is about to get underway in a program designed to validate the historic deposits, seek extensions of those known zones and to test other target areas. Building on a solid base, Animas is in a position to quickly add value over the coming months.

Animas is beginning to attract the investor attention it deserves. The company, which started trading as a public company in July, has an impressive management and geological team. The primary focus is a district-scale property package in Mexico that incorporates two past producing gold mines.

Gold was produced at Santa Gertrudis from open-pit heap leach operations in the 1990's. Previous exploration in the district was restricted to a cursory search for leachable gold at surface. Animas consolidated an extensive property position and compiled the historic data for the district. They are now beginning the first comprehensive exploration program in the district.

The company has an excellent starting position to build gold ounces, as the previous operator had outlined a half million ounces that was not mined. Numerous high potential targets at surface were not followed up in the past, as the gold in those areas was not amenable to heap leaching. Testing by Animas suggests that the gold could be recovered by other methods, making those targets worth pursuing. The potential for high-grade deposits at depth is very real and was not previously tested.

Animas plans to begin drilling in January in a program with several objectives. First, they intend to verify and then expand the known leachable deposits. Secondly, other known gold bearing zones at surface will be tested for the presence of gold. At the same time, the geological team will be evaluating other exploration targets that could turn up new discoveries.

In short, Animas has a very capable and experienced geological team. Starting with a half million ounce historic estimate, they are well positioned to quickly build a substantial resource. The district-scale project has potential to turn up one or more large prizes that could generate big payoffs for investors.

Animas Resources is a precious and base metal exploration company with a strong geological and management team. They have compiled an extensive property package in Mexico surrounding two past-producing gold mines. The Animas team is expanding the known deposits and pursuing new discoveries in a highly prospective district that has seen only limited modern exploration. Animas is led by Gregory McKelvey, president, who has 40 years of experience in the mining industry. He held geological and management positions with several majors including Kennecott, Cominco, Homestake and Phelps Dodge. The potential for a large-scale discovery on the Animas property attracted Mr. McKelvey to Animas. The company and its prospects also attracted a truly impressive group of directors and advisors, who bring outstanding experience and contacts to this company.

Animas' Santa Gertrudis gold project is located in Sonora State Mexico, north of the city of Hermosillo. The Santa Gertrudis open-pit mine produced 560,000 ounces of gold at a grade of 2.1 grams per tonne in the late 1990's. The Animas property also includes the Amelia Mine, which produced over 1 million tonnes of gold at a grade of 2.9 grams per tonne. Another deposit on the property was outlined, but not yet mined. Animas has consolidated the district and is conducting the first comprehensive district-wide exploration program.

Animas has compiled considerable amounts of historic data for the Santa Gertrudis property, including results from 120,000 meters of drilling, thousands of surface samples as well as other data including geophysical surveys. The earlier work was shallow and limited primarily to the area near the mine.

An historic (non-compliant) estimate of roughly half a million ounces remained at Santa Gertrudis when production ceased in 2000 due to the low gold price. One of the first priorities will be to verify and expand the known deposits.

Historically, exploration at Santa Gertrudis property only targeted near-surface oxides that could be mined from open pits and heap-leached. Other gold-bearing zones on the property were not followed up and many exploration targets in that highly prospective gold-bearing district remain to be investigated.

A second project, the Shirley gold project, is located just 25 kilometers northeast of Santa Gertrudis. A significant geophysical anomaly on the property has similar characteristics to the anomalies of nearby producing mines. That property has not seen modern exploration approaches and Animas will be assessing it over the coming months.

The gold deposit already outlined at Santa Gertrudis provides a tangible base of shareholder value, with big upside potential as exploration programs begin to generate results. Animas only recently began trading as a public company. Few investors yet appreciate the strength of the management team and the potential of its district-scale property holdings. Shares of this company will almost certainly react as the company begins to attract shareholder attention in the coming weeks.