Mostly: Classical

[Andy R]

You make very good points re. my post. Kinda new at posting and as soon as I pressed send I realized that my generalities/etc were misleading.

Have been burnt enough times in the resource market I am quite gun shy with my investing dollars. I have trading dollars as well but I do not worry about fundamentals as much but try to keep my trading as much as possible in what I consider the 'safest' geographically. Say NG versus CDE.

To me South America is a big new economic risk at present, one of the reasons metals should remain strong, but I digress. Problems in peru, bolivia, venezuela, ecuador. I also worry wrongly or rightly that the immigration issue could spill over into greater problems between US and Mexico. These are historic times, China is on the US doorstep signing 25 year contracts/leases. Chavez and his petrodollars, long term abuse economically. Yet many miners in this sector have assets there so exposure hard to avoid.

I would have to check my figures to be exact but I think Hecla produces about half its silver production in Alaska (600 thou ozs. per q., and the other half in Idaho and that by mid 2006 production will increase by 400 ou ozs per q. in Idaho.

Venezuelan production is only about 35 thou ozs of gold, while in Mexico they are still exploring/no mine.

I really like the fact most production is done using US dollar to pay for costs, max., benefit from the falling USD. May actually start making some serious money, longer term chart quite reassuring, was a $9 stock two years ago at much cheaper silver prices.

I guess we disagree on Putin and Mexico but I also am aware of the history there and share your concern. So I agree with you on BGO. More important/interesting to me is your take on the stability of Mexico. Something like NG appears better for junior investment purposes, canadian, gold/copper, potential large new producer.

Yes QEE is almost bankrupt at this rate but sure looks as if NEM or the like will buy it and run it properly (NEM has power plant just down the road, sending ore to QEE mill. Looks poorly run, geologist in charge so operations poor, good reserves and property, kinda place where the gold is there so just drill as you go. This is the kinda company that NEM etc can make money on buying by improving operations and driving down average cost while also accomplishing synergies. So yes a real dud from a conservative standpoint but a small speculative position looking for $1 per share or 60% if bought. Any thoughts on this?? also trades nicely in percentage terms.

As for suggestions on silver equities I am looking for others opinions also as rising production costs and changing geopolitical risk is narrowing the field, but I am all ears.

For a pure play on Silver going forward I like SSRI,EDR and also BGO.

SSRI producition in mainly 'safe' countries. Also made a big gamble on future silver prices and leveraged to take advantage of it. Really see it as a potential blue chip here, especially loved by Canadian investors. Chart is very strong IMO.

EDR IS in Mexico. Very small and volatile, good exploration program ramping, first production, no debt, unhedged, 18 million in working capital and 38 million shares.

I like BGO more as a trading play but also see good prospects for KUPOL mine (silver), but as with QEE and KGC a poorly run company, PETREX fiasco, many earnings misses, derivative losses etc. But with Refugio they have KGC so maybe better. Now don't laugh!! Refugio adds a good jump in producition.

To be honest I know little about the hedging operations of Cambior but like it strictly at this point as a trading vehicle. Will do a little digging after the weekend.

I don't know of ECU mining and see that yahoo carries little info, a pink sheet and hard to follow.




Have a great weekend everyone