TAON - Monday Alert!

Tao Minerals LTD (TAON) is an exploration/mining company located in Colombia, specializing in Gold/Ore exploration. They currently own 2 properties ( with unbelievable potential that I will address in this email) but are also in the process of seeking key acquisitions of properties with potential for low extraction cost deposits.

Quick background on Columbia:

Columbia contains part of the Andes mountain range, which is well known for its precious metals. These mountains have seen major mining operations in many countries including Bolivia, Peru, Chile and Argentina, however the Columbia 'gold belt' is largely untapped primarily due to a previously unstable political environment and security concerns.

However, over the last few years Colombia has become a hotbed of foreign investment specifically in mining and exploration activity due to improved political developments; vaulting Columbia from a third-world status, to an up and coming nation rich in resources, and ready to be tapped!

Columbia is rich in Gold, Silver, Nickel Copper and Coal; and mining accounts for 20% of all Columbian Exports, over 5 Billion Dollars per year (USD).

The entire country is beginning to see a huge surge in foreign investment, up nearly 400% in the last 10 years, in spite of a struggling world economy.

An added bonus:

The current state of the world economy, and the recent volatility of the US markets, could not be a better situation for mining/exploration companies, especially those that specialize in Gold.

The future of Gold:

Demand for Gold is above the 100 Billion-Dollar mark (USD), for the second year in a row, due to turbulence in the financial and commodity markets. In the second quarter of 2009, gold was up 46% higher than it was the previous year as investors continued to demand investing in precious metals.

It's projected that China's demand for gold will DOUBLE in less than 10 years, making the country the worlds SECOND largest consumer of Gold after India.

Demand for Gold in India is nearly $20 Billion Dollars a year (USD) and almost all of it is imported from outside the country!

This increasing demand for Gold over the next decade is exactly what can fuel a company like TAON, because demand for Gold will likely continue to increase over the next decade.

I realize many of us think the economy is going to recover (and it will in due time) but we're talking about the world economy, not just the United States. The world economy will continue to be turbulent for the next decade, and when world markets are turbulent, demand for Gold increases.

Gold is the 'worldwide currency' and it is actually more accepted as a wealth preservation model outside the United States, than it is inside the US, even though demand in the US has increase substantially over the last few years.

Now, why TAON?

The company currently owns 2 properties, the Golondra property and the El Colmillo mine. The Golondra property has yet to start mining operations, but early estimates are projecting the property to have high-grade Gold deposits.

The El Colmillo property has immediate potential for providing strong revenue.

It consists of three identified veins, two of which have an estimated total Gold content of approximately 900,000 ounces! Gold is trading at over $1,100 per ounce currently!

This means that in just the 2 veins they've discovered, the estimated gross value of that ore is nearly 1.1 Billion Dollars! (USD)

I believe TAON has the potential to be the most profitable Gold mining and exploration company operating in South America in the next few years.

TAON hopes to follow in the footsteps of B2gold Corp, a successful Gold mining and exploration company that started in 2007 and has already has produced over 306 million tons of ore, in just 3 years!

TAON has already reached it's 'phase 1' goal of extracting 20 tons of ore per day, but major steps have been taken to increase extraction, and ramp up the exploration in the EL Colmillo mine, which has strong revenue potential in the short term.

TAON's next step will be to start exploration on the Golondra property that it has already acquired, and is projected to have several high-grade Gold deposits.

I think that these factors put TAON in a position to take advantage of the growing worldwide demand for Gold and ever increasing Gold prices. Columbia is a completely un-tapped region with proven precious metal reserves; and TAON is one of the few mining operations in the country that is currently in the exploration phase.

The company recently completed a restructuring to launch in to Phase 2 and Phase 3 of Ore production that I believe is going to catch the attention of investors when they realize the potential of this company.

TAON truly is a ground-floor opportunity due to its unlimited potential and could be an excellent play for PSP members over the next day or so.