averaging down works great if you believe that there are billions in resources (eventually reserves) i gave this example previously: if you bought 10,000 shares at .30 (cost $3000) and if you bought 100,000 shares at .03 (cost $3000) your avg cost per share would be .054545.... and if you were smart enough to buy a lot more at .03 let's say twice as much 200,000 shares at .03 (cost $6000) your avg cost per share would be .033333