Esperanza Silver Corporation (EPZ-TSXV)
Interview with:
William Pincus, CEO and Director
Business News, Financial News, Stocks, Money & Investment Ideas, CEO Interview
and Information on their
gold and silver discoveries in Mexico.


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Esperanza Silver Corporation demonstrated their success by identifying over 250 million ounces of silver in the past decade

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Mineral Exploration

Esperanza Silver Corporation

570 Granville Street – Suite 300
Vancouver, BC Canada V6C 3P1
Phone: 604-685-2242

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William Pincus
CEO and Director

Interview conducted by:
Lynn Fosse, Senior Editor
October 20, 2005

William Pincus
CEO and Director

Mr. Pincus has over 25 years of industry experience. Most recently, he was the Vice President of Sunshine Mining Company where he oversaw the development of the 155 million ounce (measured and indicated resource) Pirquitas silver deposit. Previously Mr. Pincus was the Executive Vice President of the mining consultancy Pincock, Allen and Holt, Inc. Prior experience includes time with FMC Gold (now Meridian Gold) and Atlas Corporation where he was involved in the successful exploration and acquisition of various precious metal projects. He graduated from the University of Colorado with a B.A. in geology in 1975 and the Colorado School of Mines with a M.Sc. in geology and a M.Sc. in mineral economics in 1981 and 1986 respectively.

CEOCFOinterviews: Mr. Pincus, what was your vision when you joined the company, and how has that transpired?
Mr. Pincus: “The vision is to be a sliver exploration company, very much the prospect generator type company focusing on our areas of expertise, which are silver and exploration. The way that the vision has evolved is that we have a number of very good projects that are advancing forward. Ironically, we seem to be discovering more gold than silver. Through serendipities, we seem to be getting away a little bit on silver.”

CEOCFO: Do these skills and expertise in silver translate easily to the gold?
Mr. Pincus: “Oh absolutely. I joke and say that we are looking for silver but if we stumble onto a gold mine, we will not look the other way. They occur together often, so it is not unusual that we find gold. It is a pleasant turn of events.”

CEOCFO: Where are most of your projects located?
Mr. Pincus: “Our main project is in Mexico. We are doing a round of drilling on it. This was one that we were drilling silver, and we came up with some good gold values and had to reevaluate the whole prospect and now we recognize it as a potential large gold situation.”

CEOCFO: Where else are you looking?
Mr. Pincus: “We have a prospecting program (with Silver Standard in Peru). Essentially they are helping fund our prospecting activities and anything that is found is owned 50/50 and under certain conditions they can increase their ownership by spending more money.”

CEOCFO: How do you decide what projects you want to take on?
Mr. Pincus: “Esperanza project was our original and qualifying property when we were first listed on the Toronto Stock Exchange. We picked it up for what was a silver anomaly. It also had many qualities that were necessary for a qualifying project. That is why we acquired that one. We focused in Mexico and Peru because both countries are the two top silver producing countries in the world; they have been historically and they are today.”

CEOCFO: You have other projects in other places as well!
Mr. Pincus: “We do have one project in Bolivia that is on a wait and see basis. The two big projects are the one in Mexico and what has come out of the joint venture with Silver Standard. We just recently acquired a property with San Luis. It is early but we are into a high grade. By high grade, I am talking about samples up to 78 grams of gold and 1,855 grams of silver. That is as high grade as it comes.”

CEOCFO: Are there new technologies of which you are able to take advantage?
Mr. Pincus: “We spend a lot of time and effort interpreting satellite imagery, managing large databases of information, which include everything from geologic maps, structural interpretation, mineral occurring maps, sediment, geochemistry, and using modern software we are able to visualize this far better than we were ever able to do. Ultimately, the purpose of that is to focus on the areas where we want a geologist to get into the field. That is how discoveries are made. They are not made from the desk or the modern GIS software system. We want to figure out the best way to put our geologists so they can bang rocks in the field.”

CEOCFO: Tell us what you need to do with the local community and the importance of getting that area taken care of.
Mr. Pincus: “It is absolutely critical! If you do not have the community on your side, your life is going to be hell. There are enough examples of where it has gone wrong to make everyone a believer. It starts from the very first time that exploration geologists get to the field. We have to build that relationship with the community right from day one. The specifics of the agreement of the community of TETLAMA, the one that owns the land at Esperanza, we signed a long-term agreement for the exploration phase. We have paid them a certain rent, which is a reasonable amount. We also have agreed that based on necessity, we will be hiring people to work on the project, generally as labor. As the project advances more, the possibility of training is there, but at this point, it is too premature. We have agreed that when we get to the exploitation phase, we would have to renegotiate the agreement. We have a good relationship with them, we rent space in the community, and we hire local people and make sure that they are able to participate in the benefits as well.”

CEOCFO: What is ahead for the Esperanza?
Mr. Pincus: “By early november we hope to be drilling the Esperanza project. We are updating our permits and getting the community agreement as part of that. We have been doing a lot of surface geochemistry and geologic mapping and we are ready to drill. We are now contracting drill rigs. We have laid out the plans for the drilling, so it is a matter of getting the permits, and application will be in very shortly. I think it depends on what the drill results are but what we have been seeing is highly encouraging. Our target now is a million ounce plus deposit but that is just the target, I have to drill it. We will be starting that soon. That is clearly something to pay attention to. The high-grade project in Mexico is called San Luis. We will be doing more systematic sampling and with a prelude to drilling by early 2006 if the results are right. Three to four years down the line, I would like to have sold off our gold property. We do not want to develop it ourselves but as I can sell a million ounce resource for a very large sum of money. I would like to continue with our generative activities and I would like to see the projects like San Luis advancing towards resource definition.”

CEOCFO: Why should investors be interested?
Mr. Pincus: “Resource stocks have been a fairly steady market the past few years, but it has not taken off the way I think it can. Metal prices are high and they seem to be staying high for the foreseeable future. There have not been many large discoveries; everyone is waiting for the next Pierina or Argentina gold or whatever it may be. The market is primed for that. There has been one stock that has been quite successful called Bear Creek Mining. Two good geologists have worked hard; they finally have gotten some very good drill holes, and their stock has exploded. I think that is as much a reflection that the market is ready for success as it is the merits of the project in this particular case. I think the market is ready. In our specific case, I think that we have demonstrated that Esperanza is a legitimate million-ounce target. The only way to prove that is to drill it and I think that if we get some good drill results, I would hope that we would get a positive response to the market.”

CEOCFO: Do you have the funding necessary for the development?
Mr. Pincus: “We now have money in the bank but as part of this upcoming drill program and other activities, we will have to raise more funds and we will be looking to do that in late September. We have contributions from joint venture partners, particularly the project in Peru where Silver Standard is helping to fund. We are looking for a similar type of agreement with another company in Mexico that has a reasonable chance of coming to fruition and that will help fund more prospecting activity in New Mexico. It is a combination of joint venture partners and going to market.”

CEOCFO: In closing, what should potential investors know about the company that does not jump off the page?
Mr. Pincus: “I think it is the quality of the personnel involved, the management of the company and the geologic team. Our Board of Directors and advisors are all well-known, top-notch people who have a history of success and the quality of our properties. We have good, solid properties. Much like with the Bear Creek experience, experience will tell over time.”


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“We do have one project in Bolivia that is on a wait and see basis. The two big projects are the one in Mexico and what has come out of the joint venture with Silver Standard. We just recently acquired a property with San Luis. It is early but we are into a high grade. By high grade, I am talking about samples up to 78 grams of gold and 1,855 grams of silver. That is as high grade as it comes.” - William Pincus


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