Axiom Gold And Silver Corp.

July 19, 2011 09:05 ET

Axiom Gold and Silver Corp. President's Letter

TUCSON, ARIZONA--(Marketwire - July 19, 2011) - Axiom Gold and Silver Corp. (OTCQB:AXIO)(Berlin:0X0) is pleased to provide its quarterly "President's Letter".

Axiom Gold and Silver Corp's first quarterly newsletter from its President is now posted at our website at The complete text is posted below:

Dear friends and fellow shareholders,

There is no doubt the world is in flux. The developed nations are recovering from the worst financial crisis since the 30's and strong, new economies are emerging among the developing nations. Many developed countries are debasing their currencies in hopes of stimulating exports, and the US Dollar, the world's reserve currency, is trading at historic lows against its trading partners. The outcome of this debasement is tremendous liquidity in the global markets as the world is awash in freshly printed money. The costs of housing have risen substantially in places such as Hong Kong and Australia, and this rise in price has also been felt in commodities, including food and metals. As a geologist, I am better to leave the discussions of monetary matters to those far more qualified than I am. I do understand, however, that much of the demand for gold (and the associated price rise) is being driven by China and India, where rising prosperity is making it possible for millions of people to buy gold in jewellery, coinage, and other forms.

In a recent study by the World Gold Council, it was estimated that Indian households own more than 18,000 tonnes of gold, the largest holding of gold in the world. As a comparison there is only 8,100 tonnes of gold a Fort Knox. This continued accumulation is evident as Indian consumers purchased an additional 291 tons of gold jewellery, coins and bars in the first quarter of this year. But India is not the only consumer of gold; it is expected that China will overtake India as the largest consumer of gold in the next few years.

Now, no one among us has a crystal ball. I believe that a further appreciation in the price of gold is possible this year, but even at the present value near $1,500 per ounce, new deposits of gold are extremely attractive. If a rise in price does occur, it is likely that the appreciation will reflect new global demand for gold in the developing world in addition to its traditional role in the central banking system.

Our Executive Team

We have put together a very strong management team to lead Axiom Gold and Silver. Not only does the team have extensive exploration experience, we also have business and cultural experience in running projects in Mexico and South America. Barry Quiroz is a Mexican National and Nivaldo Rojas is a Chilean National who has lived in Argentina for many years. This local knowledge is tremendously helpful, indeed fundamental, in dealing with individuals and businesses in Axiom's focus-countries. In addition, the management's experience in working for large mining companies gives us insight (and connections) for negotiating future deals with those companies.

Finance Capabilities Strengthened

Acquiring and developing precious metals projects takes money. I am thrilled to welcome Roman Friedrich to our team. Roman has a very strong background in corporate financing, having worked with many of the large investment banking firms in New York over the last 20 years. His experience and network in this arena will be of great benefit to our company.

Our Strategy

There are three main parts to our business strategy: 1. We will focus our dedicated search for properties in strategic areas of Mexico, Chile and Argentina. We will look in areas where mines currently exist, and focus on areas with good infrastructure and water; 2. We will seize upon opportunities that are presented to us. These opportunities may be outside of our focus areas and each will be evaluated on its own merits. 3. We will actively evaluate potential acquisitions. We are aware of exploration companies that have excellent properties, but lack either the capital or other resources to pursue them effectively.

Precious Metals Portfolio: Our Roadmap to Growth

Our goal over the next 12-24 months is to have a portfolio of 6 properties. Four of the properties will be of modest-sized potential with a view of putting them into production in a relatively short period of time. We currently have captured two projects in our portfolio: 1. the Aurora project, and 2. the Gavilan Project, both located in the northern State of Sonora, Mexico. Recent sampling on Aurora provided further evidence of a gold- and/or copper-gold-bearing porphyry system. The anomalous area stretches over 4,000 meters by 500 meters, and we expect to drill that property by year-end.

We will also pursue two large, "company-maker" projects (+1 to 2 million oz Au equivalent). These targets will require greater outlays of capital to pursue, but the rewards of a successful discovery mitigate the risks involved.

A Bright Future

We have accomplished a considerable amount in our first few months of operations. We have a formidable management team and, I believe, exceptional projects. Our focus and commitment to finding and developing our properties is at the forefront of our actions on a daily basis. I believe the ingredients for success are there, and I am excited at the prospects of reporting our progress to our fellow shareholders in the future.

Dr. John E. Larson, President

July 2011, Tucson, Arizona, USA

Forward Looking Statement:

This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends", "potential" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information included in this Press Release including such forward-looking statements.

Cautionary Note to US Investors:

The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "reserves", "resources", "geologic resources", "proven", "probable", "measured", "indicated", or "inferred" which may not be consistent with the reserve definitions established by Industry Guide 7. U.S. investors are urged to consider closely the disclosure in our filings with the SEC. You can review and obtain copies from the SEC website at

Corporate Headquarters

Axiom Gold and Silver Corp.
Dr. John Larson
1846 E. Innovation Park Dr.
Oro Valley, AZ 85755

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