Taipan Investor

Tirex Resources is a junior mining company that has a most interesting exploratory drilling program going on in the Mirdita district of Albania. Judging from the following letter from their CEO they must be disappointed that their interesting prospects have not been reflected in the value of their stock.

Judging from the asset reports emerging from their drilling operations it does apprear that Tirex has a valuable holding that one day will provive the company with highly profitable results. The problems, of course, are the current stock market environments around the world and the considerable amount of time and money that it takes to develop mining properties.

Still, at some point Tirex Resources is a company that the patient investor may do well with. As always you should conduct your own research to determine if Terex is for you. The company letter follows:

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Overall equity markets have obviously been very volatile (and extremely weak) as of late, and we at Tirex haven’t been immune to this overall equity market downdraft.

I think it is important to remember, in times of fluctuations like this that seem inevitable in equity markets, that what we are dealing here with a “company” and NOT a “stock”. That said, I know how painful it is to watch the fluctuations on the downside, so I wanted to remind you of a few key points in relation to Tirex and the market we are within. I can’t tell you whether or not this a good opportunity to buy more shares of Tirex at these levels as only you and your Investment Advisor can decide on that conclusion. Here are a few facts and comments for your consideration:

1.) Tirex has exposure to a basket of metals rather than an individual metal

Copper – Tirex has the heart of the traditional Albanian copper mining District. Based on what is currently known about the District, copper is the key base metal within the Mirdita District. Currently, Tirex is drilling at Gurthi Central, which was the last producing copper mine in production in Albania. As per our July 9th News Release, historic data indicates that Gurthi Central consists of two deposits, both open for expansion. The first deposit was in production when copper mining operations in the country ceased while the second deposit was being prepared for production. Former copper miners report that this copper mine was shut down in 2000 due to political and metal market factors and not lack of mineral.

Zinc – the opportunity at Mirdita existing for Tirex on the zinc side of things is that zinc was completely ignored by the Albanian state-run mining operations as copper was the sole focus. While there was significant information regarding historically zinc-rich deposits at Mirdita, zinc was never mined by the Albanians, reportedly due to lack of processing facilities within the isolationist state-run mining industry within Albania. There is significant, and previously undeveloped, potential for zinc at Mirdita.

Gold – as you can see by analyzing our drill data from Koshaj and our selected samples noted within the Technical Summary Report on the property, gold will be a big focus for Tirex going forward due to the grades we have seen thus far. Before Tirex started exploration operations in Albania, gold potential in that country was largely unknown. After Tirex pulled the first hole out of Koshaj (described in the March 3rd, 2008 News Release) which had 65 metres (213 feet) core length of 2.7 grams per tonne gold (in addition to high base metal values), people started to take notice that Albania might be highly prospective for gold. Gold values in past state-run mining operations in Albania were largely guarded as a state-secret, so we have been very pleasantly surprised thus far with our findings since working in the country. There are a lot of people very excited by gold fundamentals right now, and we couldn’t be more pleased with our “first-mover” status in terms of exposing Albania as having great gold potential.

Silver – silver was never assayed for in Albania during state-run exploration; therefore we have, again, been very pleasantly surprised by the good silver numbers in our assay results announced to date.

2.) A District of Projects rather than an individual project

Tirex is not a one project company. We have had excellent initial success in the field in our first target areas of examination, but this is just the start. We have 17 known historical deposits (9 of which were formerly in production) and 102 geophysical targets generated by flying the country’s first ever airborne geophysical survey. The opportunity exists here because we will be conducting the first ever large scale and modern exploration in this District’s history. In addition to our goal of defining and expanding known deposits through the use of modern technology and modern geological interpretation, we also have the opportunity for pure discovery though drilling many of these geophysical anomalies that have had zero previous exploration work.

3.) Funding

Tirex has completed two secondary private placements since our Initial Public Offering, both above $2.00 per share and both with no warrants. This has put us in a solid financial position to ramp up and intensify our exploration program. We are now adding a third drill to the already large program.

4.) Technical Team and Management Team

We have a first class management team leading our corporate operations and a first class technical team in the field leading our geological program. For those of you who haven’t done so already, I encourage you to visit our website at Tirex Resources to take a look at the history of success the individuals on our team have had within the mineral exploration and development industry in their careers.

Lastly, after discussing some of the fundamentals, I make note of the share price dynamics of this company:

1.) Tirex traded to a high of $4.17 per share, during the last 10 months

2.) Since that time, Tirex has put out further excellent assay data and has financed at $2.10 and $2.75 per share to intensify the district-scale exploration program

3.) Tirex has traded well in excess of its entire float over $2.00 per share since the Initial Public Offering

4.) Tirex is now ramping up onsite at Mirdita with a very busy summer schedule including the drilling of a major target, Gurthi Central.

Thank you, again, for following the progress of Tirex at this early stage. I trust that you will find the above compelling and look forward to keeping you abreast of our progress as news flows from Mirdita.

Regards,

Bryan Slusarchuk
CEO

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Tags: Albania, copper mining, gold mining, Mirdita, silver mining, Tirex Resources