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Re: momentum74 post# 7799

Thursday, 05/26/2011 4:16:12 PM

Thursday, May 26, 2011 4:16:12 PM

Post# of 45069
Very respectable results from the drilling program, nice size mining claim, and in relatively stable and mining friendly Mexico.

The only thing I don't like about exploration stage companies is they have no income, and thus must sell shares to fund ongoing operations.

They are most likely years away from building a Mill (if they ever intend to), and more drilling may be required to prove up reserves sufficiently to attract a JV partner.

Those are some of the factors I look at. I didn't research them beyond looking at the Press Release, so share structure, management experience, and proximity to a mill plus other infrastructure should also be considered.

Good luck with them. I don't invest in exploration stage companies as a rule but perhaps somebody else could jump in and give another opinion.

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