The Sundar Group is honored to introduce you to our new feature client, Golden Peaks Resources Ltd. (GL:TVX / GDPEF:PK). This international exploration and resource company is focused on the discovery and
development of gold deposits in Argentina, where it holds over 385,000 acres and has five projects with significant
potential. This includes a recent discovery at Golden Peaks’ La Fortuna prospect in Patagonia, as well as a joint
venture in La Rioja with Peruvian-based Minera Hochschild SA, one of South America's oldest and most established
mining groups. The company’s senior management also boasts former executives from majors Cameco Corporation
and Homestake Mining. Our decision to work with Golden Peaks is based on what we view as a very rare
opportunity to participate with a highly credible mining group just as they appear to be making a massive
multi-million ounce gold discovery.
While we must caution these are early days, and that considerable work remains to be done, the initial results have
been exceptional. Golden Peaks’ Fortuna gold discovery, though 150 miles south, is in the same geological setting as
the giant Navidad and Esquel gold and silver deposits. The Fortuna prospect contains five extensively mineralized gold zones with multiple high grade gold outcrops. Drill testing of these dozens of exceptionally
rich gold outcrops has just started and the results have been immediate. The first shallow seven hole “reconnaissance” program resulted in a discovery at the T-11 where an initial approximately 240,000 ounces is
expected to be blocked out. It remains open to depth and strike.
The Company subsequently drill-tested a poorly exposed mineralized structure in an area called the Amphitheater,
roughly one kilometer to the northwest of the T-ll. It was here that they made a second gold discovery. The
Amphitheater consists of a mineralized zone on the side of a hill two square kilometers in size. Golden Peaks has already found 10 high grade gold outcrops within this zone. The Amphitheatre also lies at the intersection of
two multi-kilometer long gold zones. One of these contains an old gold mine, with the potential that the
Ampitheatre is at the source of a giant epithermal gold system. The Company is methodically drill-testing the area's
gold outcrops and the latest results are the second and third outcrops to be drilled. (The first was the T-11.)
Drilling at the second outcrop intersected a world-class 65 meters grading 5.72 grams gold per ton (214 feet of 0.2
oz/ton gold). This zone, of just under two meters, averaged over 6 oz/ton of gold and 4.5 oz/ton silver. A second hole
tested a nearby two meter wide high-grade gold outcrop and intercepted it roughly 30 meters below with an
average grade of 3.65 grams per ton over 2.4 meters. Considering the limited amount of drilling thus far, this is an exceptional start and indicates that their property's many high-grade gold outcrops should lead to a significant gold resource. The Company has yet to establish the actual source of all these high grade gold outcrops
and drilled zones. Clearly, judging from the extensive mineralization, a major geologic event and source is
responsible and its discovery could translate into a huge gold resource. In the meantime, if they can keep drilling off
intersections similar to those just reported, it will not take long to establish a million ounce or so gold resource.
Following the initial T-11 gold discovery, Golden Peaks worked with London-based Ocean Equities to privately place
$8.7 million of its shares to some of Europe's most respected financial institutions, including Rab Capital PLC, which
manages one of the world's top performing resource funds. We are further reassured by the fact that Golden Peaks'
management also participated in the financing. Combined with the recent exercise of warrants, Golden Peaks
currently has $20 million cash, which is more than enough to fund their planned exploration and development of the
Fortuna Project.
Shortly after this financing, the highly respected Zurich-based research group Equity Research (www.equityresearch.li) initiated coverage. The group is known mostly for its analysis of major market trends,
and in-depth analysis of resource frontiers from Africa's Congo to Caracas in South America. Its coverage is mostly on
large-cap companies. Only very occasionally does it recommend small-caps such as Golden Peaks. It has initiated
coverage at the onset of some of the last two decade's largest energy and gold developments. Included with this
letter is the latest Equity Research quarterly report. An article regarding Golden Peak's discovery is on page 19.
While we are encouraged that a Swiss-based research group thinks Golden Peaks has made a major gold discovery,
we also are very impressed by the calibre of the Company's management. This includes Golden Peaks President and CEO Kieran Downes a Ph.D., Geologist and former Senior Exploration Manager for Cameco. Likewise, Director Gillyeard Leathley was the driving force behind the development of some of America's premier mines including the Jolu, Eskay Creek, Santa Fe and Ruby Hill mines. Finally, Chairman Scott Emerson assisted in the financing of the Jolu project in association with Ingot Management, a private venture
capital firm. He has been with Golden Peaks since its founding in 1993.
Having followed this Company closely for over five years, we now believe that it possesses all the key attributes to
warrant a strong recommendation, particularly given the continued rise in gold prices.
Of course, there is a great deal more information to share about Golden Peaks Resources. For details about the
company, you should review their recent 8-K filing on the SEC's website, including details about the company’s
financial information and risk factors. Given our considerable expertise and exposure to emerging companies on
markets worldwide, we have hopes of Golden Peaks becoming an industry leader in the years to come.
Before making an investment, we recommend you discuss it with your registered investment advisor. If you have any
further questions about Golden Peaks or if you would like to receive a free investor package, I invite you to contact
me directly. It would be my pleasure to provide any further information in person.
Sincerely,
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Jason Sundar, President
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