Sunset Cove Mining Inc. (SSM-TSXV)

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April 29, 2011 Issue

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With their Carolay Silver Polymetallic Property in Peru, Sunset Cover Mining Inc. is Looking Forward to Drilling and Proving Up More Positive Results in 2011

Lorne Woods

President and Chief Executive Officer

Lorne has 15 years of experience in the financing and mining industries, he has participated in raising over $145 million in the past 5 years.

Company Profile:

Sunset Cove Mining Inc.) is a junior mineral exploration and development company dedicated to driving shareholder value through the acquisition and exploration of silver and copper properties in proven Latin American locations.
 

The company’s strategy is to build value through the acquisition, exploration and development of precious and base metal properties with excellent value potential to the point where they become attractive acquisitions or joint venture targets.
 

The company was founded in 2008 by Lorne Woods and Marc Blais to take advantage of mining and exploration opportunities available to them in Peru. Their background makes them ideally suited for the task.

Together they have 35 years of experience in managing mining companies and in the financing of private and public companies. Woods and Blais have access to a hand picked international network of private investors, brokers, portfolio managers and institutional funds.

Sunset Cove has built an impressive team to implement this strategy. They include an in-house mining engineer who has worked with international mining companies for fifteen years and now leads our aggressive subsidiary in Peru, Minera Sunset Del Peru S.A.C.

Together they have access to an established network rich in local knowledge and experienced in Peruvian production mining and exploration.

The company has a portfolio of two properties, which it has signed agreements for and another in advanced negotiation. Its flagship property is the Carolay Silver Polymetallic Property where advanced drilling is taking place during 2011. The Company’s 43-101 Technical Report on the Carolay Property, which totals over 2,700 hectares, demonstrates an economical grade of silver ore at 269g/t Ag.

There are also indications of a disseminated copper ore body on the property, potentially a porphyry type. Porphyry deposits are the single largest source of copper in the world and are also major sources of silver and gold.

All of Sunset’s properties are located near existing significant mining or exploration projects.

Resources
Silver, Precious Metals and Copper Exploration
(SSM-TSXV)

Sunset Cove Mining Inc.
50 Richmond Street East, Suite 101

Toronto, ON, M5C 1N2
Phone: 1 (877) 234-0692; Ext 250
 

Interview conducted by: Lynn Fosse, Senior Editor, CEOCFOinterviews.com, Published - April 29, 2011

CEOCFO: Mr. Woods, what is the grand picture at Sunset Cove Mining?

Mr. Woods: Sunset Cove Mining was established to take advantage of mining opportunities in Peru, which is very underdeveloped from a mineral resource exploration point of view. My business partner Mark Blais has been in Peru for sixteen years and has a very well established network of contacts that allows us to review and complete due diligence on a variety of exploration properties.

CEOCFO: What do you like about the geology and the country of Peru, and why do you think it has been overlooked?

Mr. Woods: Honestly, I am not sure why it has been overlooked. Peru is third in the world for reserves and resources, so obviously there is a significant amount of production, but most of the production comes from a very small percentage of the country that has been developed. We like Peru because it is very mining-friendly. The people in the mining center are very well trained, very well taught, and are excellent people to work with.
 

Exploration in Peru is something that is usually done very easily. There is a very well developed road system, there is hydropower and the one thing that would be needed for a company that was looking to get a project into operation is water, our property is close to two rivers. If we were to find something of substantial size that would be of interest to somebody to purchase, they would have all the infrastructure necessary close by.

CEOCFO: Would you tell us about your projects?

Mr. Woods: We have two projects under contract. One of them that we are doing all of our work on currently is called Carolay Polymetallic Silver Property. It is located in La Libertad Province, which is the northeast of the country. We have a 43-101 technical report on the property that shows economic grades from samples that were taken in an underground adit of about 6 ounces per ton of silver, .8 zinc, .8 led and .3 copper. What we have done in the past year by spending almost $1 million in exploration and drilling work is proving there are at least two anomalies on the property that we have started drilling program on last December. We have drilled two holes and are waiting for assay results from those two holes right now. We have identified two anomalies as I have said, one is 200 meters in width and the other is over 600 meters in width, so we are looking forward to drilling and further exploration on those properties this year.

CEOCFO: Do you own the properties 100%?

Mr. Woods: We have option agreements to purchase 95% of the property for $800,000 payable over five years.

CEOCFO: Would you tell us about your recent announcement?

Mr. Woods: In our recent Press Release we were describing in more depth the drilling that we started in December on the Carolay property; two holes that were drilled to 400 meters and the other one to 300 meters in length. We talked about the mineralization that we found in the core that was averaging between 50 to 75 meters in length and how promising it looked for our geologist, which is why they stopped drilling. They wanted to allow us to send the core quickly to the labs and that is the results we are waiting for in the next two weeks.

CEOCFO: Do you have another project on the back burner?

Mr. Woods: Yes, we have a project in the southeast part of the country, our Azulcunca Project. It looks to be copper porphyry property and we own 800 hectares. We have samples that were taken last summer by the independent geologist, the one who is working on a 43-101 technical report, which we should have shortly within two to three weeks. The samples that he took ranged between .19% copper to one of 8% copper, which is extremely high. It is obviously an anomaly that we believe that with a little bit more geophysical work this summer we will be able to drill this project by the end of May-June and have some what we think will be very positive results in August-September.

CEOCFO: Why do you like silver and copper today?

Mr. Woods: We did not go looking for silver and copper, we went looking for precious metals. The silver and copper properties that we purchased were the ones that made the most sense to us as a private company and linking to the purchase price as well as the potential. We would be very happy to accept a gold property if we found one that was available at a decent price, but with the price of the gold commodity, finding something at a decent price is going to be challenging. We are working with people who own properties in Peru that know my business partner Mark Blais very well. The two properties we own have been purchased from people that we know, one was a mining contractor and another is a geologist that worked for Mark during the past sixteen years that he has been in Peru.

CEOCFO: What is your take on the commodities market?

Mr. Woods: There is a lot of back and forth on the commodities sector where it is going. We deal with the mineral part of the commodities; we do not cover cotton for example. We believe that the demand that people discussed back in 2006 and 2007 for commodities, it was humming along and should have continued throughout 2008-2009, the drop in prices at that point in time I do not think were valid. This sector being hit by the financial sector more than anything else, we think that the demand for copper is something that is going to continue because the world is growing.

CEOCFO: What is the financial picture like for Sunset Cover Mining today?

Mr. Woods: Today we have about $1.3 million in the bank as we have just closed a financing. We are in the process of preparing for a listing on the Lima Stock Exchange, which is welcoming junior exploration companies, there are about twelve of them listed with twelve to sixteen looking to be lifted this year. It is a way for us to implicate ourselves more fully into Peru by accessing the capital markets better that are currently being developed down there for exploration.

CEOCFO: There are many companies to consider in your sector; why should potential investors consider Sunset Cove?

Mr. Woods: Sunset Cove is designed by Mark Blais and myself; neither of us are geologists or engineers. We are looking at running this company from a financial point of view. The money that we raised in the capital markets from our shareholders we believe should be spent in the ground, proving up quickly the potential of the property and if it is there rather than taking an extended period of time to get to that point. During which time you have to make more payments or larger payments to the landholders, and we believe that the landholders are our partners. As such, we start off with small upfront payments for the first couple years and put the money into the ground quicker than some other companies. Then we would be able to decide the true potential value of the property and joint venture it off or sell it off to a company that would put it into operations. Therefore, we are really working on the level of exploration to decision making, eighteen to twenty-four months of taking over a property, not three to five years.

CEOCFO: Final thoughts, what should people remember most about Sunset Cove Mining?

Mr. Woods: We think 2011 is going to be a very good year for Sunset Cove Mining. We have been public for less than a little over two months, as we went public last December 13, 2010. The shares outstanding of 35 million is not a lot, and we think that the potential for discovery in Peru using Peruvian approach with North American financial expertise, is strong.

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We have two projects under contract. One of them that we are doing all of our work on currently is called Carolay Polymetallic Silver Property. It is located in La Libertad Province, which is the northeast of the country. We have a 43-101 technical report on the property that shows economic grades from samples that were taken in an underground adit of about 6 ounces per ton of silver, .8 zinc, .8 led and .3 copper. What we have done in the past year by spending almost $1 million in exploration and drilling work is proving there are at least two anomalies on the property that we have started drilling program on last December. We have drilled two holes and are waiting for assay results from those two holes right now. We have identified two anomalies as I have said, one is 200 meters in width and the other is over 600 meters in width, so we are looking forward to drilling and further exploration on those properties this year. - Lorne Woods