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Silver Stocks--Comparative Valuations - Weekly Report # 27

By: Jason Hommel, Gold Is Money

-- Posted 20 March, 2004 | | Source:

FRIDAY, March 19th, 2004

This week's report lists 98 silver stocks.  There are 31 silver stocks that list reserves, resources (and exploration potential.) which I calculate by using my "ounce in the ground" forumula.  There are 45 explorers.  There are about 22 additional "silver" stocks with incomplete information. Additions & Changes from last week are in bold. 

If this is the first time you have seen this report, please try to read the entire report before sending me an email.  This report goes out now to 7245 investors each week in email, and I do not have time to respond to all the questions from new readers--questions that are already answered in this report.  After you have read the report, I would be more than happy to try and answer your question, as it may help me to provide additional commentary on the silver market.  (I'm not the person to ask about any specific stock.  Contact the company, not me.  I will not answer questions about why I buy or sell--I buy when I think cheap, and I sell when I either think expensive, or that I feel that cheaper opportunities exist elsewhere.)

If you are an Accredited or Sophisticated investor and want information I may find out about private placement opportunities in some of the very best silver stocks in my opinion, (This is not a solicitation for any stock, and I'm not brokering any securities) email me with PP in the subject field:   (As of this week, for the first time in a while, I know of no private placement opportunities at the present time that are not already oversubscribed.  But I do know of a few potential opportunities that may be available in the near future.)

I can't tell you exactly which silver stocks to buy several reasons.  First, I'm not your broker.  Second, too many people ask.  Third, if I told you what I was buying as I was buying it, you'd buy, and push the price up against me.  If this sounds wrong, it's not.  It's common sense, and it's how the market works.  People bring what they have to sell to the market place and advertise it.  That's capitalism and the free market at work. If you tell me about a silver stock not on this list, I expect that you would have invested in it first.  I wouldn't want to put your recommendation on this list, and drive up the price of your hot undervalued silver stock before you buy your great tip!  So, buy it first, and then tell the world what you did and how smart of an investor you are and how much homework you did to find your favorite unknown silver junior.

So, because I have a market reach, I also receive a lot of tips about silver stocks.  And thus, I may have invested in some of the best ones that came my way.  If you believe I may have an edge based on my work and position... then the best way for me to share this with you is to is tell you where I put my money.  It's not investment advice.  I offer a monthly "look at my portfolio".  Try it for a month, and see if it works for you.  I do not issue recommendations, and I don't list number of shares or the size of my portfolio, but I will show the top investments in my portfolio, by rank, updated monthly.

Price: $29.95/month or Price: $295.00/year
To order: Click here 

To read about my religious bias, see my other website, There are two essays near the top of the page that explain why I believe the entire world will return to using gold and silver as money again before the end times.  Hint, see Ezekiel 38.  To read more about my religious bias when it comes to investing, see my new essay, Biblical Guidelines for Managing your Money

If you want to receive an email notice of when and where this FREE weekly report is published, sign up at   Anyone who signs up will also get a FREE e-book that explains the bullish case for gold and especially silver.  If you have studied the silver market at all, then the time has come that you ought to be a teacher, and you ought to explain the silver story to all who will listen. is designed to help spread the word. I suggest you email the link to your address book.

Kitco reports silver at $7.53 as of Friday, 2:45 PM West Coast US, which was used to calculate the following figures. The CAN $ / US $ conversion factor is .7495.  I will use .75 for ease.  Because silver rose so much this week, and many of the silver companies did not rise by an equal percentage, then, in terms of silver, their prices were "down".

How to read the following table:
Stock Symbol that works at Yahoo! Finance (Company name) / Silver oz. "in ground"** for 1 oz. silver's worth of stock. / valuation price change since last week relative to silver price change (and stock dilution, and resource changes, if any) /  additional comments (EXPT is "exploration potential")  
  1. HL (HECLA MINING CO)                                .42 up --current producer (gold bonus) cash rich.
  2. ABX (BARRICK)                                            1.1 even  --infamous hedger (18 mil oz. gold hedged, 3 yrs production)
  3. CDE (COEUR D'ALENE)                                 1.2 down --current producer, (gold bonus) in debt.
  4. IPOAF.PK (INDUSTL PENOLES)                    1.8  down --current producer, mostly family owned.
  5. SIL (APEX SILVER)                                        3.4 down  --large zinc bonus, low grades, cash rich--$345 million! in debt
  6. CFTN.PK (CLIFTON MINING)                        3.8 down -- (94 EXPT) (colloidal silver patent bonus)
  7. ECU.V ECUXF.PK (ECU SILVER MINI)            3.9 down --(13 EXPT)  --50% gold bonus
  8. MFN MFL.TO (MINEFINDERS)                       4.3 down  --significant gold bonus, $35 mil cash on hand.
  9. KBR.V KBRRF.PK (KIMBER RSCS)                   4.8 down  A one property company, high grades, with exploration potential.
  10. PAAS (PAN AMERICAN SILVER)                     5.1 down  --current producer, in debt.
  11. GRS GAM.TO (GAMMON LAKE)                     5.2 down --current producer, owns 26% of Mexgold
  12. HGM.V  HOGOF.PK (HOLMER GOLD)            5.3 new --silver project in cuba, large gold project bonus.
  13. WTZ WTC.TO (WESTERN SILVER)                 5.5 up   -- (24 EXPT) large mine development cost.
  14. FSR.TO FSLVF.PK (FIRST SILVER)                 5.6 up  --current producer, (not profitable '03 3rd q.) unhedged
  15. SSRI SSO.V (SILVER STD RSC                      7.0 down --multi-property company, understands silver story
  16. CZN.TO CZICF.PK (CDN ZINC)                        7.1 down  --large zinc bonus, high grades, low start up costs, great EXPT
  17. * TM.V TUMIF.OB (TUMI RSCS)                      7.3 down -- (15 EXPT) recent bonanza grade silver discovery
  18. ORM.V OREXF.PK (OREMEX RES)                   9.7 down  (40 EXPT)
  19. MGR.V MGRSF.PK (MEXGOLD RSCS)             8.8## down (##exploration target) -- bonanza grade discovery on Jan 13th
  20. SRLM.PK (STERLING MINING)                       11.8 down --(32 EXPT) acquired the Sunshine in Cour d'Alene
  21. FAN.TO FRLLF.PK (FARALLON RSCS)            14 even  --(24 EXPT) low grades, silver 1/3; also gold & zinc bonus.
  22. EXR.V EXPTF.PK (EXPATRIATE RECS)           16 down  --significant zinc bonus 60% zinc, 25% silver
  23. * SVL.V STVZF.PK (SILVRCRST MINES)         18 even  --(33++ EXPT) --(Silver in Honduras) ++ acquired silver props.
  24. RDV.TO RDFVF.PK (REDCORP VENTURE)       20 down --60% gold bonus
  25. ADB.V ADBRF.PK (ADMIRAL BAY RSCS)         20 down --actively expanding resources. (Huge gas bonus)
  26. HDA.V (HUSIF?) (HULDRA SILVER)                 20 down   --very tiny, no debt, zinc bonus, low start up costs.
  27. GGC.V GGCRF.PK (GENCO RESOURCES)        23 down
  28. CHD.V CHDSF.PK (CHARIOT RSCS)                 23 even   (explorer, with inferred resources)
  29. * MGN MNMM.OB (MINES MGMT)                  23 even  --60% copper bonus (low grades), start up cost ~ $250 mil
  30. ASM.V ASGMF.PK (AVINO SILV GOLD)           24 down --owns 49% of the Avino+ 4 other silver props. (silver bonus)
  31. UNCN.OB (UNICO INC)                                     58 up  --lease expiring on largest property, June 1 2004.
* = I own shares

Explorers (by market cap):
  3. CDU.V  CUEAF.PK (CARDERO RSCS) 45-77 "exploration potential"
  4. AOT.V ASOLF.PK (ASCOT RSCS) -- owns percentage of Cardero, CDU.V
  6. TVI.TO TVIPF.PK (TVI PACIFIC) --current producer of a dore silver bar 96% silver, 4% gold
  7. * FCO.TO FCACF.PK (FORMATION CAPTL)  Cobolt (and Sunshine silver refinery)
  8. IAU.V ITDXF.PK (INTREPID MINRLS) 7 "exploration potential" 
  11. MAI.V MNEAF.OB (MINERA ANDES)      (gold bonus)
  12. * NPG.V NVPGF.PK (NEVADA PAC GOLD) 36-183  "exploration potential"  (owns 1 silver property, 10 gold properties)
  13. * MMGG.OB (METALLINE MINE) --zinc/silver (historic high grade silver) (low cost revolutionary oxide zinc process)
  14. * OTMN.PK (O.T. MINING)  very large exploration potential
  15. * FR.V FMJRF.PK (FIRST MAJESTIC)  -- Bought a former silver producer. Acquiring silver properties.
  19. * EDR.V EDRGF.PK (ENDEAVOUR GOLD)  A PRODUCER (I could not yet find a listing of resources or reserves)
  20. DNI.V DMNKF.PK (DUMONT NICKEL)            exploring Clifton's property
  22. NBG.V NBULF.PK (NEW BULLET GP)  37 - 105 "exploration potential"
  24. * CBE.V CBEFF.PK (CABO MINING) --Historic Silver and Cobalt district
  31. GNG.V  GGTHF.PK (GOLDEN GOLIATH)  --Historic silver district in Mexico
    * = I own shares
    ** = "in ground" counts all "silver oz. in the ground" as the same, but they are NOT EQUAL.  Some are more certain and others are more speculative.  Some are higher grades, some are lower grades.  They range from most certain to least certain such as: "proven & probable reserves," "measured, indicated, inferred resources."  This single number next to each stock symbol above represents the approximate number of ounces of silver in the ground you are buying title to when you invest the equivalent of one ounce of silver by buying shares in the company at current prices.  (It does not include zinc, or copper, or lead, but it does include gold at a 1:10 ratio of gold:silver.)  At, they add 100% of proven & probable reserves, but only 70% of measured & indicated resources, and only 50% of inferred resources.  I don't do that.  I count them as all the same.

    To quickly "tab" down to the company you are interested in, note the symbol. Then hit "control-F" to "FIND" the symbol below.

    WEEKLY COMMENTARY (All new in this section):

    Out of the mouths of babes.  This week, an 11-year-old who I will call Jed wrote:  "I think people should buy silver because they might be rich in the future.  They might be rich because we might change back to using silver.  Also if people don't start buying silver they might be poor in the future." 

    That says it all, doesn't it?  What an incredible introduction to an essay on silver!  Even an 11-year-old can understand and express the essential fundamentals of the silver market--perhaps more simply and eloquently than I can.  Silver is real money, and paper is not!  The wisdom of Jed continues:  "But also there's a downside if you buy a lot of silver right now you might be poor right now so don't buy as much as possible.  When I got my first [batch] of silver I thought that I should sell it all.  I sold [half] of it but then I realized how much more money it is than a green piece of paper.  So now whenever I get money I buy silver."  I love it!  Jed recognizes that becoming rich requires saving money, and that requires you to not spend recklessly, and he understands that saving in silver is best! 

    Jed concludes:
      "I think people should buy silver right now because it isn't that much money.  And in the future it will be a lot of money.  I think silver will be at $13 in the next year.  I think it will be that much money because more and more people are starting to realize that silver is worth a lot so the price will go up."

    I think Jed is a very bright kid.  And I also think that his wisdom and market commentary is far superior to most of the market commentary you will ever read on silver.  His commentary even included a price prediction, followed by a solid reason why that price should be reached!  Thank you Jed! 

    In the interest of full disclosure, Jed has been investing in silver since $5.25/oz. a few months ago, and he's been watching the price rise since then.  Before he wrote his commentary, I told Jed, "The better you write, the more you will be paid."  The ultimate test of the value of Jed's commentary is your feedback.  Therefore, I have decided to do the following:  I did not tell Jed this, but I have decided to pay Jed one silver quarter (worth about $1.35) for every positive email I receive (minus one silver quarter for each negative email) in the next week that mentions Jed by name.  Send your comments, rebukes or encouragement for Jed, to

    I believe Jed's commentary was far superior to the silver analysts quoted in the mineweb article this week, "Silver set for a fall?"

    For example, let's examine the lunacy of several statements by the "respected" analysts in the above article: "...
    analysts predict the metal’s stay at the top will be short-lived as its fundamentals remain suspect."  First of all, the article was written on Monday, March 15, and by Friday, March 19th, we see that $7 was not "the" top, since silver hit $7.72 only a few days later, on Friday.  Second, the statement clearly shows that analysts don't understand the first thing about the fundamentals of the silver market, because they apparently have no clue about the differences and similarities between silver and paper money.

    Here is another foolish statement by an analyst quoted in the mineweb article:  "
    Philip Newman, an analyst at consultancy GFMS, says $7/oz was reached because of the poor liquidity in the Silver market. He said any transaction, however small, could cause the large price fluctuations. Newman said it was difficult to justify the current price..."  Obviously, if the silver market is small, and the paper money market is huge, then this implies something very special and that something tremendous is about to happen.  But it does not mean the change in valuations is unjustified.  On the contrary, it means the change in valuation is very justified!  Lots of paper money, and very little silver left... an 11-year-old can understand the obvious implications of that, but an experienced analyst does not understand!

    Next, another analyst,
    Michael DiRienzo Acting Executive Director and Secretary at the Silver Institute, thinks that "the big question for the silver market" is "demand for the silver enriched photographic paper."  Excuse me, but the 11-year-old and I disagree.  The big question for the silver market is how much paper money there is, and how little silver is left. 

    Let me open up and be as truthful with you as I can be.  It's all I can do.

    In January, 2003, I wrote one article on silver and Cardero Resources.  I received positive feedback and I got a few silver stock tips in email, which I acted on slowly and then more quickly as time went by.  It was hard to buy a few of them, because as I bought, the stocks that were so cheap (and it seemed, priced near bankruptcy) moved up in price strongly.  It was hard to buy them without moving the price.  And the stocks were not liquid at all.  Part of me wanted to keep it a total secret, and another part of me wanted to tell the world of the amazing investment opportunities I'd found.  But realistically, the last thing I wanted to do was write about the companies that I thought were great buys--because I was still struggling to buy them at great prices!

    Finally, about 6 months ago, I wrote my first of what would be these weekly articles... and I was very nervous about writing.  I was nervous because I felt that if I let the information out, the opportunities would be lost.  After all, the prices of my favorite stocks that I was buying would take off. 

    The results 6 months ago after my first weekly silver report were astounding.  The stocks that I thought were undervalued on the list all exploded in price, and the overvalued ones all dropped.  I was astounded, and the results continued to amaze me for weeks!  And this list of stocks grew in number, and more people signed up to receive it.  I had no idea it would be so popular, and have such a positive effect.  Soon, based on the crushing load of incoming email, I became more bullish on silver than ever before, because so many people would write and tell me that they were going to be buying many of the silver stocks on my list, and/or buying silver bullion.  And they still write.  If the email to me is any indication, this silver bull market is really just barely getting started, and nobody knows where it will top. 

    We are nowhere near a top, in my opinion, based on my unique experience doing this.  My perspective is fresh, because I'm young and I don't have the long time experience.  I'm 33, going to be 34 in April. 

    So, how do I make money by producing and giving away this list for free?  Several ways.

    1.  The biggest money maker, by far, is capital appreciation of my portfolio.  People like my overall viewpoint, they learn about silver stocks they otherwise might not know existed, and silver stocks in general have been rising rapidly.
    2.  The next biggest money maker is through private placement finder's fees.  This is much, much less, but it's certainly worth it.   You, too, can make between 3% and 15% finder's fees if you let wealthy investors know about private placements that are taking place. 
    3.  The third way I make money is through signups to, and this is not a big money maker compared to the finder's fees.  This third way pays for the webmaster team that handles and hosts, and it pays for the advertising to expand my market reach.

    I'm sharing this with you to help you become more successful investors, and to help out the entire silver market.  You can do the same things I'm doing, and become your own focal point for a group of investors.  Although initially, I didn't want to tell anyone that I was buying silver stocks because I didn't want the prices to move up against me, it greatly helped me when I did, because I became aware of other silver stocks in the process, and I learned a lot more.

    If you had any hesitation about telling other people that silver is real money, and that paper money is fraud, please realize you will be better off if you spread the word.  It boils down to this:  Do you want to help the world return to honest money, or would you rather the fraud of paper money continue? 

    Part of me wants to keep it quiet about how easy it is to make money from finder's fees from private placements.  I don't want the competition, obviously.  But another part of me realizes the truth, which is this:  I know that if lots of people can be motivated by the truth about money, and by the finder's fees, to go out and convince wealthy investors to invest in silver stock private placements, then it will help silver and silver stocks.  Here's now.  First, wealthy investors will become educated about silver.  Second, wealthy investors will invest in silver stocks.  Third, as wealthy investors make money from silver stocks, they will be even more attracted to silver and silver stocks.  Fourth, any new silver that is produced by investing in silver stocks will increase world silver production by a small amount that will still be miniscule compared to monetary demand. 

    You, too, can help your investments do well by telling other people about silver, and silver stocks.  You should do what you can to spread the word about your investments.  You will be rewarded, just as I have been.  Your investments will do better, and you will learn more about the importance of being an advocate for truth.  It's very rewarding, both monetarily and spiritually!

    If you are young, then do as I did, and spend your time relentlessly convincing your family to invest in silver and silver stocks.  If you have family that is wealthy, then pound away at them, again and again, until they see why silver is such a great investment.   You owe it to your family to sound the alarm loud and clear.  Convincing your family is a sale that you cannot afford to lose.  When hard times come, I'm sure you will be greatly rewarded.  Perhaps they will put you in charge of managing their full portfolio after they see some astounding initial results. 

    For me, the hardest part about deciding to write about silver and silver stocks was not the risk that I'd be wrong, after all, I believed I was right.  The hardest part was my fear that I would positively influence the market, and that my investment opportunity would be gone.  I think I was right in that I have positively influenced the silver market, but the investment opportunities are not gone.  Today, I see more opportunities in silver stocks than ever before.  So many of the best silver stocks have only moved up 3-4 fold and they have room to move up 30 fold or more from their initial levels due to the insanely low price that silver had been for so long.

    Let me tell you one very encouraging thing about wealthy investors, and how you can earn some good money with finder's fees.  Wealthy investors are generally very, very arrogant.  They believe they own the world.  And generally, they do.  (But God really owns it, of course).  They also believe that if there is money to be made in a market sector, that people will be forced to come to them to ask them to help fund development.  This is also generally true.  Therefore, the arrogant wealthy investors are just waiting for someone to come along and educate them about silver and silver bullion.   So, wise wealty investors are surprisingly willing to listen when you tell them about the 300% plus gains for silver stocks for 2003.  They will want a piece of the action.  Many will want a piece of the action in a very desperate way.  Eventually, they will panic, and will look directly to you for advice if you have been the one feeding it to them about silver and silver stocks.  In this way, you will easily earn your finder's fees by telling rich people that you know about silver, and silver stocks, and private placements when you find out about them.  This is my open invitation to compete with me now.  Take advantage of it.  Let's go make some money and help to change the world in the process.

    I'm an optimist.  I believe that all paper money world wide is dying, and as it dies, I will make a bundle in the process, and the economy of the USA and the rest of the world will be greatly improved by that.  When frauds collapse, and debt slavery is destroyed as precious metals prices head to the moon, boom times are sure to follow, as they always do.

    Trust no man.  That's why you buy silver.  It's payment in full.  Silver is not a promise to pay that can be broken.  90% silver bullion cannot be counterfeited.  Coining counterfeits is not worth the effort.  But do check your bags to make sure they are real silver, and not clad coin bags, which sometimes appear.

    Oh yes, you don't have to trust me about silver.  Read this article:
    Is Silver Scandal On the Horizon?
    Posted March 16, 2004
    By Kelly Patricia O Meara

    The claims by the COMEX in that article are ridiculous.  The CFTC source lied when he said, "The hypothetical [that longs would request their silver] has never happened, so the amount of deliveries are always a small number relative to the size of the amount of positions traded."

    That's a total lie, because in 1980, the event that never happened, did happen.  The longs were asking for delivery, and the shorts could not come up with the silver, and that's why there were limit up days to $50/oz., and rule changes, and specific requests by the exchange to the Hunts that they do not request delivery of silver.  The hypothetical happened again when Warren Buffet bought silver in 1997, when his order for silver was not all filled with physical, and the shorts were screaming bloody murder and market manipulation by some large mysterious longs.  It took Warren Buffet's announcement that he was the one buying silver to shut them up.  The hypothetical has happened, and will happen again. 

    Furthermore, position limits are already an ongoing market default, because it shows that they cannot honor agreements to deliver silver in size.  Think about that.  Position limits!  If you can't buy what you want to buy with your money, then your money is no good!  The dollar is already no good when it comes to buying silver in size.  What would be the point of having position limits unless the shorts already lacked the ability to deliver silver in size?

    So, not only is the CFTC statement a lie, "The hypothetical [that longs would request their silver] has never happened,"  but their argument is irrelevant.  It's like saying, "we have not yet defaulted (the lie), so therefore, a default is impossible".   Isn't that crazy? It's ridiculous, and totally irrelevant!  Arguing about the likelihood of a default, is pointless after the default!!!  The entire purpose of the discussion of the chance of default is to determine whether default is imminent, and what can be done to prevent it.  And preventing such defaults is the whole reason for the existence of the CFTC to begin with.  They are so stupid they probably don't even know they got themselves into trouble at this point.  These CFTC clowns are crooks, idiots, scammers, and liars.  Mice in charge of the cheese.  They should be prosecuted to the fullest extent of the law today, for obstruction of justice, issuing false statements, and negligence of duty! 

    But before spending money to insure the prosecution of such criminals, it's best to obtain money while it's cheap.  Buy silver today, prosecute for delivery failures tomorrow.

    Ted Butler had some very positive comments to say about some of my efforts on behalf of silver.  Ted was writing that silver miners should either buy silver, or withhold silver from the market.  Go see what what Ted wrote in his weekly commentary, "A Modest Proposal" at or An exerpt:

    To be fair, similar solutions have been suggested before by others. For instance, Jason Hommel made a recent suggestion that the silver miners should invest all, or most, of their corporate cash in real silver. This was too radical an idea for the miners, although it should be pointed out that had they followed his suggestion, immense profits would have resulted. And since then, the silver companies have raised staggering amounts of new corporate cash.

    On November 26, 2003, when silver was about $5.25/oz., I wrote the article in which I suggested the miners invest their cash in silver bullion before it hit $7/oz.:

    I have no way of knowing whether any of the large cash rich silver companies have actually bought silver bullion yet.  For all I know they are buying bullion, but not telling, because they are trying to buy silver in secret, and plan to announce it after the fact.  This would be the wisest course of action.  I do know that nearly all the cash rich silver companies received my article, not only from me, but also from many of my readers.  So they are aware.  And now, they are either painfully, or profitably, aware of the recent price rise in silver, based on what they did.

    The two biggest objections I have heard about my suggestion are these:

    1.  "It is not the job of the silver mining company to "speculate" in silver bullion and play the role of a bullion bank."  --But on the contrary, it is also not the job of a silver miner to speculate in paper dollars, and play the role of a patsy and customer of their mortal enemies, the banks that issue paper money that competes with silver money.  Every investment carries risk.  The least risky investment is the default investment that says "I'm not investing in anything right now," which is not cash, but gold and silver bullion.  You own real money, gold and silver, when you refuse to invest in anything else.  And that's my suggestion... go back to using gold and silver as the "default" position.  Use it as you would use cash.  Cash is too risky, because it can go to zero value, but bullion cannot go to zero value.  Silver miners ought to at least keep their cash in the form that is most appropriate to their investors, which can only be silver--not gold, and not the Canadian dollar, not the U.S. dollar, not the Argentine dollar, nor any other paper currency!  This is not a complicated issue!

    2.  "It is too risky to invest in silver bullion, because the price may go down."  --On the contrary, if silver bullion is too risky, then nobody should be investing in silver mining stocks at all, because the mining stocks are always more volatile than silver bullion, which is the safest investment that exists.  If a silver miner thinks silver bullion is too risky, then they should close their doors, abandon their mining claim, and walk away, and let others take over the risks of mining!

    My idea is not "radical," it's rational.  Unfortunately, in a world awash with lunatics and insane persons, the rational ideas are too radical to accept.  But at least now, anyone can see the wisdom of my idea.  As Ted wrote, "had they followed his suggestion, immense profits would have resulted."

    In the real world, companies that produce a product actually pay people to endorse their products.  Shoe companies like Nike and Reebock pay high profile athletes to wear their shoes and appear in commercials.  Ski companies pay top racers to ski on their skis and hold them up in the finish line high over their heads to make sure everyone can see the skis they are using. 

    In the real world, silver investors and stock holders are the owners of production of silver.  Silver investors should expect our representatives, the silver mining companies, to endorse silver as a product, and we should expect them to use silver in the best way that silver can be used, which is as money.  If they refuse to use silver as money, and if they refuse to endorse our product, they should be fired!  Company executives should be fired, and silver stocks should be sold in preference for companies who do endorse silver as money, and who use it as money.

    Therefore, at the present time, I do not own any of the large, paper money cash rich silver companies.  I only own silver exploration companies.  Exploration companies do not really have a choice to hold cash as silver, since they hold so little cash.  And they could not hedge production and lock in low prices for silver even if they wanted to, because they are not yet producers.

    I'm not even asking that silver miners spend money on ads to promote using silver as money (I'll do that myself).  I'm merely asking that they, themselves, walk the walk, and actually use their own product, and use silver as money.

    Next week, I will be spending plenty of money on some major internet ad campaigns to help promote the silver story.   Hopefully, ads will run at cnn, forbes, and perhaps nasdaq soon.  These are not the type of ads that would be "indicative of a top".  If the ads run, it will be because they "snuck through" any systematic efforts to keep the masses in the dark about silver.  I'm saying this because I know that very long term silver investors tend to think that any mainstream ad should somehow mean it's a top.  I do not believe that will be the case here.  Thank you for all of your support.

    Regarding the arrogance of wealthy investors.  Those who are short silver right now are mostly the "commercial" dealers, most likely bullion banks.  They have more dollars than almost anyone else in the world.  I do not think they are yet engaging in any panic short covering yet.  Maybe one of the largest dealers has been exiting, and that's about it.  The reason I believe there is not yet a panic to buy silver among the short sellers is that physical silver is still not yet declining from the 52.5 million oz. in the registered category at the COMEX.  That 52.5 million ounces has remained remarkably constant for months now.  This means they are somehow able to maintain that silver even as physical demand and investor demand is increasing, which is pushing up prices from the $5/oz. level.  They may feel that silver is their "ammunition" to be used in case they need to push silver prices down.  That pile of silver, the 52.5 million oz. represents about 10% of their paper contracts.  As their experience as bankers shows them, less than 1% of depositors ever demand their money, and less than 1% of futures contract holders ever demand delivery.  Therefore, they may still feel safe.  Also, they likely are on the receiving end of physical silver that was locked in at much lower prices.  Therefore, they are making money on the difference in the physical market.  The ones who are hurting badly are the miners, like Penoles, who locked in low prices by hedging.


    Recently, I have been raising money for two private placements that I just bought into.  I also sold a bunch of stocks in my portfolio, in order to buy into these two private placements.  To see which stocks these were, you have to sign up for a "look at my portfolio", which is produced monthly, and the next look will be released on, or just after April 1. 

    Price: $29.95/month or Price: $295.00/year
    To order:

    If you have any questions about billing or order fulfillment, you need to contact my support staff at and not me.

    General Commentary on Silver (slightly modified from last week):

    See my new article: Biblical Guidelines for Managing your Money

    As the New York Times, January 11, 1859, page 2 said---
    "It is well known that the most colossal fortunes the world ever saw have been based on silver mines..."
    --quote found by Charles Savoie

    For news on the New Hampshire Sound Money Bill, that proposes to use U.S. Treasury minted Silver Eagles and Gold Eagles as money see:  

    Current status of the NH bill:
    The bill will live until the November elections. It'll have a different #,
    but we now have 6 months or so to get EVERYONE we need on board.

    Thanks to you for your efforts. Now, the fund raising part begins
    so we can take it to the other states !  More on that later.

    For now - V I C T O R Y  is in sight !

    The following dealers generally have, or regularly keep, over 100,000 oz. silver bullion in inventory: (These are generally not places to call for small retail orders.  For smaller orders, call Greg Westgaard,  1-800-328-1860 Ext. 8889, and tell him Jason sent you.) 

    Northwest Territorial Mint
    1-800-344-6468 (also sells palladium 1 oz. bars!)

    American Coin and Vault
    5523 North Wall Street
    Spokane, WA 99205
    (509) 326-7512

    California Numismatics (will accept small retail orders)
    Richard Schwary

    Engles Coin Shop
    Minimum order: 100 oz. gold or 5000. oz. silver.
    (317) 875 0614
    3520 Founders Lane,
    Indianapolis, IN 46268

    Miles Franklin Ltd.
    St. Louis Park, Minn.
    Bob Sichel  1-800-814-3224
    They believe their exclusive wholesaler is one of the top 5-6 wholesalers in size in N. America.

    If there are any silver bullion dealers who have at least $500,000 worth of silver bullion in inventory on hand, please contact me , and I will give you a FREE AD, like the ones above, in each week's silver stock report.

    The easiest way to buy Comex Silver is through a precious metals brokerage firm such as HSBC bank, or that charges around 1% commission, plus delivery fees of about 2-3% depending on how far to ship.  Or you could open a commodities trading account with any of the major brokerage houses who are most likely the bullion banks, and take delivery of your contract.  There are several problems with this method.  First, is the most obvious.  These are the paper contracts that are controlling and suppressing the price, that I believe must one day default.  Second, the bullion banks, since they are the ones who are likely short silver, will try their hardest to talk you out of placing an order.   I have actually had several bullion banks turn me down, and not open a commodities trading account for me when they heard I was going to take delivery of several futures contracts!  Their hypocritical excuses are amazing!   They will say on one hand that their comissions are too low, and thus, it's not worth their time to open the account for you.  And then, they will turn around and also say that you don't want to order silver bullion because the commissions will kill you!  Unbelievable hypocrites those shorts!  They will also try to scare you with "assay fees" that will be assessed if you try to return 1000 oz. bars to the exchange!  But they won't tell you what those fees may cost!  I've heard the assay fee is FREE if you use Brinks in LA! 

    My 2004-2009 price predictions for gold and silver:
    2004: $595/oz. gold,  50:1 ratio = $12/oz. silver
    2005: $1011/oz. gold,  30:1 ratio = $34/oz. silver
    2006: $1719/oz. gold,   10:1 ratio = $172/oz. silver
    2007: $2923/oz. gold,  5:1 ratio = $ 585/oz. silver
    2008: $4,969/oz. gold,  1:1 ratio = $4969/oz. silver
    2009: $8448/oz. gold, 5:1 ratio = $1698/oz. silver
    2010+: infinity dollars/oz. gold, infinity dollars/oz. silver.

    I calculate the gold price rise by guessing that by 2009, M3 will have a "gold-value" like it did in 1980, which is to say, M3 was worth 2 Billion oz. of gold or less.  It also assumes M3 will about triple in that time.  These figures are conservative, because I see no reason that M3 should be valued more than the gold the U.S. actually holds, which is a mere 261 million oz., not billion.  Today, the M3 value is $8870 billion / $425/oz. = 19 billion oz. of gold M3 could buy in theory.  The silver:gold ratio is also a very, very vague guess, reflective of monetary demand chasing silver, which is more scarce than gold in above ground, refined form. I have no idea when the ratio of 15:1 will be exceeded, I'm just totally guessing.  I suppose it could happen this year or next month for all I know.  Of course my real price targets are infinity dollars per oz. for both gold and silver when all is said and done, I just don't know how long that will take, nor what year it will be.  But my point in producing the price predictions is to show my bullishness for silver and gold.

    Let me say how important it is for silver stock investors to own physical silver.  There is $ 334 million dollars worth of silver in the registered category available for delivery at the COMEX.  The 59 silver stocks on my list, for which I have information available to calculate market caps, add up to $7090 million as of Dec. 5th, 2003.  If silver stock investors move 5% of their silver stock holding to physical silver in the next few weeks, that would be $350 million dollars worth of physical silver, and thus, the silver price would probably hit $10-20/oz. within a few days.  And if silver stock investors try to move 20% into physical silver, the silver demand will end the COMEX manipulation tomorrow.  We don't need anyone other than ourselves to make "the big breakout" happen at this point. 

    I wrote an article predicting that Silver Companies will buy silver, and urging Silver Companies to buy silver with their cash, to use silver as money, and sell silver as needed for expenses.  See

    That article is now having an effect!  It is being discussed by several large "cash rich" silver companies, who are seriously considering the idea of holding their cash in the form of silver. 

    A great overview on silver: Douglas Kanarowski's 78 Approaching Forces For Higher Silver Prices

    See also Douglas Kanarowski's article:  What Impact Will Digital Photography Have on Silver?

    See the 600 year silver chart to see how undervalued silver really is:

    Look at the summary of the world silver survey by GFMS Limited on behalf of The Silver Institute :

    Note, there is virtually no monetary demand. Note, the 2002 mine production (585 mil oz.) is greatly exceeded by industrial, photo, and jewelry demand. (838 mil oz.).  Note the chart on page five, "Supply from above-ground stocks".

    The difference between mine supply and industrial demand was met by a combination of three factors: 1.  Government selling, 2.  Private selling, 3.  Recycling

    U.S. government selling is ending, as their stocks have run out, or will run out.  This factor will reverse, because the U.S. government will need silver to continue their coin program, and/or need silver when they wake up and decide they need to replenish their strategic stockpile for domestic security.  Silver is a war material.  China's selling of silver will also likely turn into buying, as China will need silver for continued industrial development, or when they also lose faith in the U.S. dollar.

    Private selling has been rapidly shrinking and is now almost ended, and should turn into buying, and become monetary demand.  Monetary demand is everything in the silver supply / demand situation.  It's not now.  Now, it's nothing.  But it will become something incredible, because the dollar is dying.

    The following is a "must read":  Ted Butler's best ever explanation of how silver is manipulated lower than it should be.

    Sign the silver petition to stop the manipulation at the COMEX:

    Ted correctly points out that a lower price creates excessive demand from consumers.  However, Ted Butler does not point out, and neglects to mention, that a perpetually low price also creates lack of demand from investors who are "trend investors". 

    I think most silver experts over-analyze all the supply and demand factors of the silver market.  No factor is more important than monetary demand.  The force of photographic demand is like a light breeze compared to the hurricane or tornado of monetary demand.  Monetary demand is everything.

    Consider the gold market for a moment:  Even short selling at the COMEX is nothing compared to monetary demand.  The short position most certainly helps to depress the price of gold as the short position is growing larger.  However, it adds fuel to the fire if there is short covering, and thus, it can boost the gold price later.  But the commercial short position on the COMEX is next to nothing compared to the non-reported "over the counter" trading that is done that does not appear on the COMEX.

    (Numbers in metric tonnes, 32,152 oz. per tonne.)

    870 tonnes -- the paper position at the COMEX, 280,000 contracts for 100 oz. each.
    5,000 tonnes -- the official number admitted that the central banks have sold.
    15,000 tonnes -- the number GATA research shows that central banks have sold / or leased.
    30,000 tonnes -- the number of official central bank gold, minus either the 5000 or 15,000 tonnes.
    145,000 tonnes -- all the gold mined in the history of the world.
    2,600 tonnes -- annual mine supply
    4,000 tonnes -- annual demand

    And all of that is nothing compared to the amount of dollars out there that exist that could buy gold. $20 trillion bonds, $9 trillion M3 = $29 Trillion.  A mere 1% is $290 Billion, which, at $500 /oz. is a massive demand of 18,039 tonnesDo you understand what that means?  That means that far, far less than 1% of dollars, in either bonds or M3 can buy gold, because there simply is not that much gold available. 

    Long before 1% of U.S. paper dollars tries to buy gold, gold will be going up well over $1000/oz., and silver will be headed up over $50/oz.

    To scare away investors--that is the entire reason gold and silver are manipulated in the first place.  Only the trend investors can be deceived.  The problem is that nearly everyone is a trend investor.  So few investors understand value.  If people knew the facts and used their brains, the available above-ground refined silver would be gone by tomorrow, and the price would be well over $20-50/oz.  But don't trust me, follow the urls and check the numbers:

        1,000,000,000,000: 1 Trillion dollars
              1,000,000,000: 1 Billion dollars
                    1,000,000: 1 Million dollars
    $33,000,000,000,000: World bond market yr end, '01:
    $20,200,000,000,000: U.S. bond market, yr end, '02:
    $11,700,000,000,000: U.S. stock market, yr end, '02:
     $11,038,000,000,000: U.S. annual GDP, 3rd q.'03 est.
      $8,879,000,000,000: M3 (money in the banks) Nov. '03
      $7,001,312,247,818: US debt, 12-31-'03
      $2,360,000,000,000: U.S. annual budget 2004
      $1,860,000,000,000: World gold, 145,000 T @ $400/oz.
         $554,995,097,146: U.S. budget deficit, ending fiscal year, 09/30/'03
         $272,000,000,000: Market Cap of Microsoft (03-2004)
         $180,000,000,000: debt of Ford Motor Co. (03-2004)
         $104,400,000,000: US gold, 261 mil oz., @ $400/oz.
         $100,000,000,000: all the world's gold stocks (estimated?)
             $7,090,000,000: all the world's silver stocks (59 of them on this list, as of Dec. 5th, 2003)
                $395,000,000: 52.5 mil oz. of registered COMEX silver @ $7.53 /oz.

    So, what do all those stastistics mean?

    For a while I was using M3 and dividing that by the US gold (261 million ounces), which implies the us dollar is 84 times more valuable than it should be, and that gold should hit $34,000/oz. after the fraud is destroyed.  Today, I realize I need to add in the Bond market, because bonds are an asset class designed to siphon away and replace real money, which is to say, gold.  This gives a price of about $111,111/oz. for gold.  At $ 430/oz, this implies that US bonds and paper currency are 258 times more overvalued than gold.

    Gold is overvalued relative to silver, because at current prices, it takes 59 ounces of silver to buy 1 ounce of gold.  Historically, this ratio was 15 or 16.  Given the silver shortage, this ratio will hit 10:1 or 5:1, or even 1:1.  Thus, gold is perhaps 66 times more overvalued than silver.

    Silver is overvalued relative to certain select silver stocks, perhaps by a factor of 3 or 10 or 20 to one.

    Thus, if you multiply all those numbers, 258 x 59 x 10,  You will see that bonds and currency are overvalued relative to select silver stocks by a factor of 152,000 to one. In other words, if silver stocks reach their true value, and paper currency disappears as it always does, then you might expect certain silver stocks to go up in relative value by a factor of 152,000 times more than they are worth today.  By that time, you should definitely sell the silver stocks, and buy gold.

    Can silver stocks really appreciate so much? Is there historical evidence for such a crazy thing?  Yes.

    "CDE rose from penny stock status (.02 in 1967) to an NYSE-listed, $60 per share stock in 1980. In fact, the average share on the Spokane Stock Exchange rose in value nearly 16000% (yes, sixteen THOUSAND percent), as America could not get enough of silver and silver stocks."

    CDE rose by a factor of 3000, or 300,000%, and by 1980, the metals boom was stopped short, and paper money's death was postponed.  If paper money dies a death that lasts a generation world-wide, then even greater gains should have been expected.

    For this reason, a wise silver stock investor should NEVER sell silver stocks for paper cash.  A wise silver stock investor who looks for value would never sell a fairly valued silver stock for an overvalued silver stock that traded for hundreds of thousands of times more value than it should be.  Likewise, there is no excuse for a silver stock investor to have any cash or money market or bonds in his portfolio for any reasonable length of time, except for when selling one silver stock to raise the cash for another silver stock, or for when you need to raise the cash to buy silver, or a private placement in another silver stock. 

    So, if you want some fairly liquid alternatives to cash, in case you don't know what other silver stocks to buy at the time, here they are:
    1.  Buy silver.  You can hold silver in an IRA.
    2.  Buy CEF.  Central Fund of Canada, ticker symbol CEF.  It's gold/silver bullion fund.  It has 50 oz. of silver for every 1 oz. of gold.  The fund is fairly liquid, you can buy it as easily as any other stock, and is a good cash substitute.  Unfortunately, given the current ratio, about 60% or more of the value is in gold.
    3.  Buy a fairly large cap silver stock, with fairly large volume, that is still fairly cheap on the list.  SSRI is probably the best candidate.


    The sheer stupidity of big money not recognizing the value of the world's remaining silver is utterly shocking to the rational mind.  Clearly, bond holders are utterly deceived, and totally unaware of the situation.  All my readers should understand and know that bonds were originally invented to suck the capital and money (gold and silver) away from the people.  Bonds today are a paper promise to repay paper.  What a con game!  Are bond holders conservative and safe?  No, they are fools!  There is nothing safe about holding a paper promise to receive more paper when we have been experiencing hyperinflation for the past two and a half years! 

    See my prior essay, " Inflation & Deflation During Hyperinflation "

    And the fund investors who buy paper silver futures contracts instead of real silver are a very odd bunch of fools, for they should realize that nobody can deliver the 800+ million ounces of silver promised in the paper contracts and options that does not exist.  It's like the paper longs are betting on the bank run happening, but they all are making sure they get at the end of the long line.  Instead, they could go front and center, where there is an open window available where you can go and get physical silver, and nobody is there.  Idiots!  If you know a bank run is going to happen, and you are actually willing to bet on it, then go and withdraw your money before it is too late!  Don't bet on it happening, which, if it does happen, your contracts will be defaulted on!  Amazingly blind idiots.  Wake up!

    See also my prior essay, "The Moral Failures of the Paper Longs"


    How bullish am I on silver?  Here's an interesting way to put it: "59 times infinity" dollars per ounce.

    I believe the dollar will eventually be destroyed, likely within my lifetime, hence the "infinity" part.  I believe the ratio of silver to gold may be equal during a spike, when the market realizes that above-ground refined silver is more rare than gold.  Thus, silver may outperform gold by a factor of 59 times better.  Currently, the ratio is 59 ounces of silver can buy one ounce of gold or 59:1.

    I may end up selling silver for gold, some at the 10:1 silver to gold ratio, some more at 5:1, and I would sell any silver remaining at a 1:1 ratio, that we may hit during a supply/demand crunch during a paper money collapse.

    How we can tell if silver is leading gold, or if gold is leading silver?  IE, which is going up more, faster than the other?  The way you can tell is by looking at the ratio.  If the silver:gold ratio is going up (say, from 60:1 to 80:1), then gold is moving up faster (because it takes 5 more silver oz. to buy an oz. of gold.  If the ratio is going down (from 60:1 to 40:1), then silver is moving up faster.  So, keep an eye on the ratio.
    For a list of bullion dealers:

    For a list of Brokers that handle Canadian issues and/or pink sheets:

    To track the 150 ticker symbols of the 100 stocks on this list at yahoo:  (Updated on Jan 30th)

    To learn All about Canadian law, 43-101, about reserves and resources:

    A good website that hosts posting boards for many of the smaller canadian stocks (that Yahoo! finance does not have boards for) is
    Click on "Bullboards".

    This is a list of primary silver stocks. 

    I count a company's ounces of gold as 10 oz of silver. Why? Because I have a very strong positive bias in favor of silver over gold.

    Given my bias in favor of much, much higher silver prices, then, to me, the grades of silver are far less important than buying more oz. in the ground.  More oz. in the ground at a lower cost is the most important consideration for me. 

    My method is simple. Cost per ounce in the ground. How much do you get (silver reserve totals), and how much does it cost (market cap)? The cost is the market cap divided by the silver reserve totals. Cheaper is better. Buy low, sell high.

    Disclaimers, Warnings, and Advice: I have gathered the information below over the course of several months. I believe it is accurate to the best of my ability. I may have made mistakes. I probably did. I'm human. I have collected the information from public sources such as company web sites and public information found at to get the stock prices. This report in no way guarantees the accuracy of the information below, since the information may change at any time. The number of outstanding shares can change as a company engages in new share issues to raise more capital through private placements, or if outstanding warrants (and options) are exercised and converted into shares, or if shares are bought back. Shares can be consolidated, or split. The number of ounces of silver in the ground can also change, as these are often only estimates. The number can also change up or down, depending on drilling results.

    This report is not investment advice.  This report contains information that may or may not be up to date, and may be inaccurate.  I urge you to contact the company and do your own research to verify the information contained in this report.

    This report is not an offer to buy or sell any securities.  I am not a broker.  Only your broker can buy or sell securities for you.

    I urge you to consult with your investment advisor to determine whether these kinds of investments are right for you. 

    I also caution you to be aware of your investment advisor's advice, they are sometimes paid to push things like mutual funds, bonds and other securities that may not be in your best interest to buy.  Some investment houses are short physical metal, and thus, they may attempt to strongly discourage you from buying precious metal or precious metals investments.  I believe that the propaganda machine in support of frauds such as bonds and the dollar is so strong, that they may even believe what they say when they give bad advice to avoid the safety and protection of precious metals.  It is most likely that they simply do not understand the precious metals market as well as you do.

    All total estimates of "ounces in the ground" can vary widely. There are "proven and probable reserves" which are the highest category of certainty which is obtained through many drill holes, and then at the least accurate, there are "inferred resources" which are hardest to estimate. Additionally, every miner always has "more silver properties that need to be explored, which probably contain more silver". For the purposes of this report, I have added all those numbers together. It is believed that all these "ounce in the ground" estimates can be profitably mined at $5-6 per ounce silver, or lower. Thus, I believe that when silver trades for $15/oz. or above, that all of these ounces can be mined at a substantial profit.

    I may be wrong. (I probably make mistakes in every article, and there have been updates and corrections made each week, especially as prices change.)

    Mining is a risky business. You need to be willing to sustain a total loss of your investment for various unforeseen accidents. Silver stock companies can do stupid things to shareholders such as take on debt, or issue more stock at too low prices which reduces the percentage of the company you may own (dilution). Yet, they need to issue shares to raise capital for drilling, and then an even bigger dilution to build a working mine. They may sell YOUR silver too cheaply, or worse, hedge the price of YOUR silver just as it begins to go up if they lock in a price which then proves to be too low if the dollar is destroyed. Mining is a risky business as estimates of assets in the ground can change. There is political risk and environmental risk. They can't franchise the business, are stuck in one location, are subject to government confiscation, or taxes, or union wage negotiations, and corporate looting.

    Do your own research.  Be responsible for your own investment decisions.  Again, please, before investing in a mining company, call up the company, and speak either with the CEO or the Investor Relations contact person.

    So, at the very least, check the company web site, read the annual reports, check my numbers, check my math, and email the company. That's what they are there for, to answer your questions, and to speak about the opportunity of the company. Don't trust everything you read over the internet. I am a biased source. I own silver mining stocks. And I'm not a broker, nor an investment advisor. I'm just a private investor trying to make sense of this crazy world, and sharing my information and thoughts on silver companies.

    Surely, there are scammers in the mining industry in the past, and there will be scammers in the future.  Remember the fraud of Bre-X.  The new 43-101 compliance laws put in place after Bre-X will not prevent a "certified" geologist from lying if he feels lying will create a better payoff.  The Bible warns, "trust no man", yet at the same time advises us to "cast our bread upon the waters", and to not issue "false allegations" against others.  Physical gold and silver provide the "payment in full" as long as the coins or bars themselves are genuine and not fake.

    This report may be copied, and transmitted by other people, and may become outdated by the time it reaches you.

    I can't tell you how you should invest your money, of course. The reason is that I don't know how convinced you are of the silver bull market, nor do I know how soon you will be needing the money back, so I don't know how long you can wait to see results, nor do I know how much liquidity you need. Nor do I know the size of the money you have to invest. It is very hard to invest large quantities of money in a small market cap stock.

    That being said, my investment strategy seems to be working for me, so far. And so, here is how I have valued the following silver companies to make my own investment decisions.

    (Market cap is always converted to US dollars and denominated in US dollars because I divide by ounces of silver, which are also denominated in dollars)

    The Market Cap is the usual tool to value a company.  It is what the company "costs to buy" if you could buy the entire company, all the shares, at the latest share price.  It is calculated by multiplying the share price, by the total number of shares that the company has issued.  In reality, you could almost never buy an entire company at the price of the Market Cap, but only a small portion.  Usually, even small buying pressure, such as trying to buy 1% of a company, can push up the price of a stock by up to 10-50% higher.  In my reports, I list Market Cap in terms of millions of dollars as "$75 mil MC".

    To calculate the Market Cap, I try to get and use the number of "fully diluted shares".  A company creates shares when they sell them to investors in what are called "private placements", or "initial public offerings" (IPO).  A private placement is done usually before there is ever an IPO.  These usually consist of shares and warrants, sold for cash that the company will need to grow and expand.

    The "outstanding shares" is the number of shares that exist out there if you count them all, and it does not count the warrants, which are like options. The investor can "exercise the warrants" which is a right, but not an obligation, to buy more shares from the company at the set price of the warrant.

    If the company does well, and the stock price moves up, all the warrants will be, or should be, exercised and converted into shares, especially if they become "in the money", and the warrants are significantly cheaper than the stock price.

    Now, "fully diluted shares" is the total number of shares, plus the warrants, counting warrants as if they were all exercised and became fully trading shares.  I think "fully diluted shares" is a better number to use to calculate market cap than by using "outstanding shares" as most do.

    Finally, I go beyond valuing a company based on Market Cap alone; instead, I value a company by dividing the Market Cap by the assets of the company, which are usually the silver reserves in the ground.  Thus, I can get a sense of what you are getting for what you are paying.   And then, I denominate the whole thing in terms of silver, and not dollars, to get a more constant measure.

    (These first three companies, BHP, GMBXF.PK, and BVN  produce a lot of silver, but are way to expensive to buy for the silver exposure for your portfolio.)

    BHP Billiton Ltd (BHP)
    --'produces 40 mil oz. silver annually from one mine'
    Additional comments:  unfortunately, BHP has a 53 Billion market cap, so we can't buy BHP for the silver exposure.  IE, $53 Billion / oh, say, 1000 million?????= $53/oz.

    Dear BHP:  By all means, keep mining the silver if you want the silver exposure, and want to be in the silver business.  But don't sell the silver.  Keep it.  Let the profits of your entire company accrue as an increasing physical supply of physical silver.  In fact, do as Buffett did, and buy more silver if you can.  It would be infinitely easier for you to buy silver from yourself than it would be to buy 40 million ounces of silver from the COMEX, which, today, might be impossible. 

    Grupo Mexico SA de CV (GMBXF.PK)
    651,646,640 shares (2002 annual report)
    @ $4.00/share
    $2606 mil MC
    "Grupo Mexico ranks as the world's third largest copper producer (copper at $1.24), fourth largest producer of silver and fifth largest producer of zinc."
    They produced 28.2 million oz. of silver, worth $129 million, in 2002.  (P. 5, annual report.)
    Total value of produced metals: $2527 milllion. (but the company lost money in 2002).  They mainly produce copper, 900,000 tons worth $1.5 billion in 2002.  Thus, silver, at 2002 prices, is only 5% of their production value.  Silver is a by-product for them, not a main product.
    I don't have silver reserve figures, nor do I see any need to find them or add them, since they are not a primary silver producer, and I don't think anybody would be buying them for the "silver exposure".
    If we assume 280 mil oz. of silver (ten years reserve for production), then we still don't have anything exciting for the silver alone.
    $2085 mil MC / 280 = $7.45/oz. cost.

    Compania de Minas Buenaventura SA (BVN)
    Minas Buenaventura
    - Peru´s largest publicly traded precious metals company
    --produces over 10Moz of silver per year
    --looks way too expensive for the silver alone: 3.6 Billion market cap.
    -------------- -------------- --------------

    HL (HECLA MINING CO) (208) 769-4100
    115 mil shares
    @ $8.00/share
    $924 million Market Cap (MC)
    near zero debt, cash: $123 mil (Feb., 2004)
    (est. 2003 production 9 mil oz. silver)
    (the La Camorra gold mine, 412,000 oz gold.) ... (x 350/5 = 28 mil silver equivalent oz.)
    San Sebastian silver mine, (proven & probably reserves) 8.7 mil (produced 3 mil)
    the Greens Creek silver mine (proven & probably reserves) 31 mil (produced 3 mil) Hecla owns just under 30% of it!
    the Lucky Friday mine (proven & probably reserves) 14 mil. (produced 2 mil)
    Total silver = 32 million oz.
    Plus 412,000 oz. gold x 10 = 4.1 mil oz silver equiv.
    Total silver equiv. reserves = 36 mil oz.
    (Since my method values silver in the ground as a key asset, I should also value the cash as a "silver asset" which will be "marked to market" if silver goes up, and cash goes down.  If HL is smart, they should be able to turn the cash into increased "silver exposure" either through buying silver properties, silver equities, or physical silver.)
    ($123 million cash / $7.53/oz = 16 mil "silver equiv" oz.)
    16 + 36 = 52 mil oz.
    $924 mil MC  / 52 mil "oz." = $17.77/oz.
    You get "approx" .42 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments: HL has more oz. than listed in the "proven & probable" category used in this calculation. Vein mining makes reserve calculations difficult, and HL has rarely had more than about a 3-4 year picture of reserves ahead of them in 100 years of production.  

    I have been counting their papar cash as if it could be silver, but it still does not help boost their valuation much.  They are still the most expensive company on the list in terms of cost per oz. of silver in the ground.  But if HL bought 18 mil oz. of physical silver, they might end the silver manipulation, and significantly boost their own profitability.

    Earth to Hecla:  Is silver useful as money, or not?  It's a simple question, and your actions speak volumes. 

    HL was downgraded Jan 6th by CIBC Wrld Mkts from Sector Perform to Sector Underperform

    Some have noted that HL stock is now lagging the silver price.  Sometimes, they use this as an indicator that the silver price might not continue upwards.  I think that's hogwash.  I think HL stock is lagging because it is the most expensive silver stock on my list that I know of, the most expensive by far, whether you value by PE ratio, or by resources in the ground.  Therefore, the lagging share price for HL may reflect not an anticipation that silver is headed down, but rather, the realization among market participants that HL is overvalued relative to all other silver stocks.  After all, that's what that means when HL was downgraded from Sector Perform to Sector Underperform, which happened on Jan 6th by CIBC, which was about the peak on the HL price chart.

    Under-priced silver stocks continue to outperform in a shocking way, as share prices of silver juniors skyrocket.

    I believe silver bullion will continue to skyrocket, and I expect silver bullion to continue to outperform HL stock at these prices.

    ABX (Barrick)
    535 million shares
    @ $22.23/share
    $11,893 million Market Cap
    5.5 million oz. / year gold production.
    --production hedged out for 3 years, or about 18 million oz.  (most notorious hedger of the industry, the "leader")
    --price of hedges locked in near the market lows, perhaps $340/oz. on average, nobody knows for sure, because Barrick will not say
    --reportedly, Barrick is trying to "unhedge".
    --reportedly, they plan to deliver 1/3 of production to hedges, which means they will be hedge free in about 10 years.
    --the size of the hedge, 18 mil oz. gold, at $400/oz., would be valued at $7.2 billion dollars.  At $500/oz, it's $9 billion.
    --but they claim to be "debt free", if you ignore the gold they owe for delivery, at locked in, low prices.  (only true if gold is not money)
    --cash "rich" of about $1 billion dollars.
    Silver Reserves reported to be 850 million ounces! 
    Gold Reserves reported to be 86 million oz.  (x 10 = 860 mil oz. + 850 silver = 1710 mil oz. "silver equiv."
    $11,893 million Market Cap / 1710 mil oz. = $6.95/oz. silver
    You get "approx" 1.08 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments:  Over the years, Barrick has hedged their production, which many claim has helped to depress the price of gold and silver, by artificially adding to supply.  (Barrick's promises becoming the extra supply.)  The declining price of the precious metals has put other miners out of business, which Barrick has acquired at low prices.  If Barrick goes bankrupt due to their hedges, and rising gold and silver prices, then perhaps Barrick's many properties will, once again, be sold at distressed prices. 

    Barrick boasts a "cash cost" of $189/oz., for gold for 2003, yet their cash has dropped from $2 billion down to $1 billion.  It could be due to the hedging, locking in precious metals prices at low prices, and/or hedge covering that explains the monetary loss in the light of their low cash costs.

    I believe silver bullion will continue to skyrocket, and I expect silver bullion to continue to outperform ABX stock at these prices.

    CDE (COEUR D'ALENE) (208) 769-8155 or (800) 624-2824
    213 mil shares (Issued 32 mil new shares late Oct. 2003)
    @ $6.82/share
    $1454 mil MC
    cash $38 mil (I think this is an outdated cash figure)
    San Bartolome (Bolivia) reserves 146 mil silver
    Silver Valley Silver reserves 32 mil silver
    Rochester reserves 43 mil silver
    Cerro Bayo reserves 3.7 mil silver
    Total: 224.7 mil silver
    (to Produce 14.6 mil oz. silver in 2003)
    $1454 mil MC / 225 mil oz = $6.46/oz.
    You get "approx" 1.2 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments: A few weeks ago, CDE announded their intention to try and raise $150 million in the capital markets by issuing shares.

    The first week of January, CDE announced a deal for $160 million in convertable bonds!   Beware of debt!

    CDE continued to lose money in third quarter 2003, a loss of 10 cents/share, and they realized low prices for silver sales, $4.77.  I believe they have hedged their gold production at low prices. 

    CDE looks like they owe both gold and dollars.  A double debt warning for CDE investors!

    Again, their listing of ounces is in the "reserves" category (more certain) not the "resources" category, which is less certain.  They may have "resources" but like HL and Industrias Penoles, they give no estimates.

    I believe silver bullion will continue to skyrocket, and I expect silver bullion to continue to outperform CDE stock at these prices.

    397.5 mil shares outstanding (2002 annual, unchanged since 2001)
    @ $4.55/share
    $1,808 mil MC
    419 proven and probable reserves of silver (from 2002 annual report on website)
    $1,808 mil MC / 419 oz. silver = $4.32/oz.
    You get "approx" 1.75 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments:  Industrias Penoles is the world's top producer of refined silver.  They actually derrive more revenue from silver than any other source.  But they lost money in 2002. 

    The word late Feb. is that Penoles has hedged several year's worth of silver, that is, they have locked in contracts at set prices.  Set when prices were lower.  How much lower, and at what price, is anyone's guess.  As reported at, "We know the market is so tight even the world’s largest silver producer, Mexico’s Penolas, wasn’t thrilled about supplying 1 million ounces for a special project with ECU Silver, led by their extremely able CEO Michel Roy."

    78.5 million oz. silver refined by the metals division in 2002, and 1 mil oz. gold.
    They probably refine almost all the silver that comes out of Mexico.
    They probably produce about 34 mil oz. of silver from their mines annually, and they have expansion plans. 

    I've heard this stock is tightly held, most is family owned. 

    Their oz. numbers are "proven & probable reserves", which is much more certain than most of the others which are mostly "inferred and indicated resources."  They undoubtedly have "inferred and indicated resources" in addition to the "proven & probable reserves," I just could not find any info on that at the website or in the annual report.

    Given the report that Penoles has hedged silver for two years, I believe silver bullion will continue to skyrocket, and I expect silver bullion to continue to outperform IPOAF.PK stock at these prices.

    SIL (APEX SILVER) (303) 839-5060
    45,023,760 ordinary shares outstanding. (Jan 30th press release)
    @ $22.36/share
    $1006 mil MC
    cash on hand: $350 million after Jan 30th share offering, and March 16th convertable debenture.
    San Cristobal (Bolivia) (proven & probably reserves) 454 mil silver
    (forecast capital costs for construction to total approximately $435 million)
    (Produced zero silver in 2002)
    7.8 billion pounds of zinc, and 2.9 billion pounds of lead
    $1006 mil MC / 454 mil oz = $2.22/oz.
    You get "approx" 3.40 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments:  March 16th, Apex raises $144 million in a convertable debenture deal to help finance the development of San Cristobal.  They now have 350/435, or 80.4% of the capital costs needed for construction.  Raising the last bit should now be very easy to do.  If, while raising money, they held their cash in the form of silver bullion, they would probably not need to raise any more cash at this point, since silver has moved up over 50%.

    Apex is now the most cash rich silver stock on the list.  About $350 million!  Amazing.   Their plan, as they have stated all along, is to wait until higher silver and zinc prices to develop their deposit.  I wonder if they will be smart, and hold their "cash" in the form of silver bullion while they wait for silver bullion to go up in price?  Seems so basic even a child could understand it.  One key problem standing in the way is that there are position limits on paper longs, and thus, APEX could not probably not buy that much silver bullion even if they wanted to.  Ironic, isn't it?  It is the most natural and sensical thing for Apex to buy silver while they wait for higher silver prices, and doing so would push up the price, but they likely will not act, and almost cannot act due to the problem of scales of size.  This, to me, is so bizzare, I cannnot fathom it.  I think I understand a lot, but this.... it is simply mind boggling.  It's the result of a system so out of balance, it's insane, and the rational mind has no answer for the bizzare things we see today.

    Look, COMEX is the last place on earth to buy silver now, in any really big size.  Reports are coming in from all over that there is no bullion in significant size for sale available anywhere. 

    My advice to Apex would be to buy every bit of silver they can get.  Even hold out a sign, put up a website, hire people to take the orders, and start buying silver, in all forms, at 10% and even 15% above the spot price.  Just make yourself become the "market maker" and start buying silver from all over like a sponge soaking up water.  Let the silver find you!  In the long run, a 10-15% commission is nothing when the trade is this good.  There may be position limits at the COMEX, but it's not illegal to offer to pay what you are willing to pay to the free market.  Forget the COMEX, and make your own market!

    Apex silver primarily has institutional investors. 

    Apex has a lot of zinc. That's an added bonus that is not factored in to my method of valuation. Zinc prices have been heading up soon, so that's another bonus. Plenty of zinc is especially good if zinc is moving up in price.  Zinc is now up to $.51/lb., from a low of about $.35/lb. For zinc prices, see

    And, they are not mining now, but are waiting for higher silver prices. That's also a plus. The management also seems to understand that silver will move upwards a lot. Another plus. Finally, George Soros, Billionaire, owns a bit of this one, just under 10% I read recently. That's another plus, in general, for the silver market if Billionaires are paying attention to it.  There are several other zinc / silver plays on this list that investors might also consider: CZN.TO, EXR.V, MMGG.OB (I own MMGG.OB, but not SIL.)

    I do not have an idea on whether or not SIL will out perform silver bullion or not.  It's hard to say, because of that huge zinc bonus.  I expect most of the other stocks on this list to outperform or significantly outperform silver bullion in the long run from today's prices.

    CFTN.PK (CLIFTON MINING) 801-756-1414   (303) 642-0659 Ken Friedman
    45 mil shares fully diluted  (Oct. 2003)
    @ $1.85/share US
    $83 mil MC   --source of 100 mil oz. resources est.
    "A previous geologist has talked about a possible resource of 1 billion oz. of silver, and 5 million oz. of gold."
    100 mil oz. silver
    +500,000 oz. gold x 10 = 5 mil oz. silver equiv.
    = 105 mil oz. silver.
    up to 1000 mil oz. silver "exploration potential".
    Clifton has a complex JV agreement with Dumont Nickel.  In sum, here is what Keith Moeller VP, Clifton Mining Company wrote to me:  "If Dumont produces a positive feasibility study on an individual property piece, then they gain a 50% interest in that piece alone, not in the rest of the property.  If they spend more than 5 million dollars (US) on any one piece and they produce a positive feasibility study on that piece, then they will gain a 60% interest in that one piece of property, not in the rest. If they stop at any time or fail to produce a positive feasibility, then they will gain no interest in any of our property.  Right now we have around 7 different pieces of the property that have "Stand Alone" mine potential.  If Dumont stakes or purchases any property within five miles of the joint venture property, then we automatically receive a 50% interest in that property."
    My problem is how to quantify that.  First, there is the range of potential silver resources.  Second, there is the range of potential ownership, which is highly variable, and not subject to the entire property, nor necessarily subject to spending by Dumont, but subject mostly to Dumont doing a positive feasibility study on each of many properties .  At the extreme ranges, the values are:
    40% to 100% of 105 = 42 - 105 million oz.
    40% to 100% of 1000 = 400 - 1000 mil oz. "exploration potential"
    $83 mil MC / 42 mil oz. = $1.98/oz.
    $83 mil MC / 1000 mil oz. = $.08/oz.
    You get "approx" 3.80 ounces in the ground for 1 oz. silver.
    Exploration Potential: 94

    Additional comments:  Note the "exploration potential" is very large.

    For more info on what's going on with Clifton, see , JV partner. 

    Clifton has 25% ownership of a biotech firm that makes a colloidal silver.  The biotech firm has a patent on a "super" colloidal silver solution made with 10,000 volts that adds oxygen that gives it more powerful antibacterial properties, and is safer since it uses less silver, which would prevent "blue skin" argyria.  Normal colloidal silver that you can make at home with 30 volts works to kill bacteria by disrupting the oxygen metabolism of the cell wall, killing bacteria with oxygen.  The market for safe antibiotics is in the multi Billions of dollars. 

    See the human study data released on their colloidal silver product:
    Clifton Mining Company - New Human Study Data Released

    ECU.V ECUXF.PK (ECU SILVER MINI) (819) 797-1210
    fully diluted shares = 103.3 million (6 January 2003)
    @ $.59/share Cdn x .75 US/Cdn = $.44
    $45.7 mil MC
    See the url above for the numbers from the company's website, which are:
    Proven & Probable & Possible: 7.6 mil oz silver, 93,000 gold. = 8.5 million "silver equiv" using my method of counting gold as 10:1
    "Potential" total: 21.2 mil oz silver, 221,000 oz. gold.
    According to my valuation method, that's 2.2 mil oz. of "silver equiv" for the gold, plus the 21.2 mil oz. silver, for a total of 23.4 mil oz.
    Exploration potential:
    page 6 (or 8), the company says:  "Exploration will mainly be targeted to verify the silver-bearing potential of certain properties, in line with the objective of increasing our reserves from 37 million to 100 million silver-equivalent ounces."  (note, the 100 mil oz. "silver equiv" spoken of by the company undoubtedly counts gold as silver at the normal ratio, not my 10:1 ratio.  Therefore, my 23.4 mil oz. re-calculation is 63% of their 37 mil oz. number, and so, likewise will I count 63% of their 100 mil oz. target)
    ECU.V is also exploring other gold properties.
    $45.7 mil MC / 23.4 mil oz. silver equiv. = $1.95/oz.
    $45.7 mil MC / 63 mil oz. silver equiv. = $.60/oz.
    You get "approx" 3.86 ounces in the ground for 1 oz. silver's worth of stock.
    Exploration potential = 12.55

    Additional comments:  Although ECU stopped trading this week, it's most likely nothing to worry about.  Simple reporting requirements or concerns that will probably be resolved soon.

    See also regarding ECU's exploration potential:
    ECU recently recovered title to properties that were in dispute.  See:

    Shares Fully Diluted 34.1 mil (Late 2003?)
    @ $9.95/share
    $339 mil MC
    Cash on hand, Fully Diluted: C$34 million
    "over 3.5 mil ounces of gold resource and 160 mil ounces of silver" --Dec. '03
    silver conversion = 3.5 x 10 = 35 mil + 160 mil oz. silver = 195 mil oz. silver
    At 70:1 ratio, 3.5 x 70 = 245 "silver equiv" of gold, and 160 mil of silver = 405.
    245/405 = 61% of the mineral value is in the gold, 39% silver.
    At 10:1 ratio, 35/195 = 18% of the mineral value is in the gold, 82% silver.
    "In addition to the resources already drilled, Minefinders controls a strong portfolio of properties in Nevada, Arizona, and Mexico which have the potential to host new multi-million ounce discoveries over the next few years."
    $339 mil MC / 195 mil oz. = $1.74/oz.
    You get "approx" 4.33 ounces in the ground for 1 oz. silver.

    Additional Comments:  At 70:1 silver to gold ratio, over half of MFN is in gold, so consider this a significant gold bonus. MFN also now lists their resource figures on their website's main page.  I'm sure investors appreciate this.  I do. 

    KBR.V KBRRF.PK (KIMBER RSCS) (604) 669-2251
    31.2 mil shares fully diluted (Jan 20, 2004)
    @ $2.40/share x .75 US/Cdn = US $1.80
    $56 mil MC
    30 mil oz. silver resources Measured & indicated, plus inferred
    540,000 oz. gold x 10 = 5.4 mil "silver equiv."
    $56 mil MC / 35.4 mil oz. = $1.59/oz.
    You get "approx" 4.75 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments:  A one property company.  The Carmen gold-silver deposit on their Monterde property in the Sierra Madre belt of Chihuahua State, Mexico.  Significant exploration potential.

    It was reported by a press release that 16%-17% of KBR.V is owned by silver bull Jim Puplava of, which I think is a rather solid endorsement of the company.

    PAAS (PAN AMERICAN SILVER) (604) 684 -1175
    58.2 mil shares fully diluted. (Sept. 2003)
    + 3.33 mil share financing (Feb 27)
    61.5 mil shares fully diluted (Feb 27, 2004)
    @ $17.78/share
    $1093 mil MC
    10 silver properties (3 in production)
    produced 7 mil oz. silver in 2001:
    Reserves & Resources through Dec. 11th, 2003 from
    743.2 million total
    $1093 mil MC / 743.2 mil oz. = $1.47/oz.
    You get "approx" 5.11 ounces in the ground for 1 oz. silver's worth of stock.

    Additional Comments: Pan American Silver Announces US$55 Million Common Share Financing

     Pan American of Canada buys Morococha silver mine in Peru for US$35 million

    This $35 million acquisition is a great deal for PAAS, and a minor help for PAAS shareholders.  According to the press release above, the silver mine produced 3.5 million ounces of silver a year, at a cash cost of $3/oz., which is great!  At $6.50/oz, that's $3.5 x 3.5 mil oz. = $12.25 million per year profit after cash costs!  That gives the acquisition a P/E ratio for the mine's acquisiton cost of under 3!  What a deal! 

    Unfortunately, PAAS shareholders are paying way above that when they buy the stock today.  After this acquisition, PAAS should have a "2004 silver production forecast to 13 million ounces from 10.1 million ounces and will reduce forecast cash costs to below $ 3.50/oz, bringing anticipated total costs to less than $4/oz for the year."  Now, at $6.50/oz, that's $2.5 x 13 mil oz. = $32.5 million per year profit, after cash costs.  That gives a P/E ratio for PAAS of about $1000 / $32 = 31.  Therefore, considering the two P/E ratios, 31 compared to under 3, PAAS stock is over ten times overvalued compared to other silver mining opportunities that exist in the market, such as the property they just purchased.

    I believe PAAS is one of two silver companies on the list today that is significantly in debt (the other is now CDE).

    What if your silver company decides to lock in silver prices at $8, and hedge years of production to "protect the shareholders and provide exposure to the high $8/oz. price," only to watch silver prices head past $25 and past $50/oz?  Your stock could get wiped out in bankruptcy, and your investment could go to zero value!  This is the danger of stocks!  Your investment is subject to the whims of management!

    WARNING: PAAS says at their website that they will hedge silver, in order to finance mine construction.
    "Pan American is loath to give away the upside on any of its silver production, especially at current low metal prices, and will do so only to the minimum extent required as a condition of prudent mine financing."

    My opinion is that it is NEVER prudent to go into debt, or lock in silver prices to finance a mine.  If PAAS cannot raise capital on the markets by issuing shares, then they should not be financing new mine construction.  If the market will not support new mine construction, then the market does not need more silver.  PAAS and CDE should learn to trust the free market process, and avoid debt. 

    GRS GAM.TO (GAMMON LAKE) (902) 468-0614
    Fully Diluted 58.7 mil shares (Nov 30, 2003)
    +3.33 mil special warrant financing (Feb 27th, 2004)
    Fully Diluted: 62 mil shares (Feb 27th, 2004)
    @ $5.37/share
    $333 mil MC
    Total Ocampo Inferred: 1,124,000 oz. gold,   50,438,000 oz. silver
    Silver equiv = 11.24 mil oz. + 50.44 mil oz. = 62 mil oz.
    Total Ocampo Measured & Indicated   2,207,800 oz. gold,  108,438,000 oz. silver
    Silver equiv = 22 mil oz. + 108 mil  oz. =  130 mil oz.
    Total Ocampo Measured & Indicated plus Inferred = 182 mil oz.
    Gammon owns 26.3% of Mexgold, MGR
    Since Mexgold owns 185 mil oz. of "target exploration potential", 26.3% of that is 48.6 mil oz.
    182 + 49 = 231 mil oz.
    $333 mil MC / 231 mil oz.= $1.44/oz.
    You get "approx" 5.22 ounces in the ground for 1 oz. silver's worth of stock.
    **Note** most of Mexgold's oz. that are added in are an "exploration target" not yet "inferred resources".

    Additional comments:  Drill results released Jan 7th:
    At current prices of a 64:1 silver:gold ratio at $425/oz gold and $6.60/oz silver, the resources are worth $1048 million of silver, and $1411 million worth of gold.  Cash cost is $85/oz.  Life of mine is 7 years. 

    1-877-859-5200 ask for John Robinson, or George White
    39.4 mil shares
    @ $.425/share Cdn x .75 US/Cdn = $ .32 US
    8.9 mil oz. silver resources in cuba, according to final feasibility study.  Short mine life.
    $12.6 / 8.9 mil oz. = $1.42/oz.
    You get "approx" 5.30 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments: silver in cuba. (final feasibility study completed by Rescan-Hatch) gold in Timmins, Ontario. 
    Most of the value of Holmer is in the gold property in Timmins. 
    final approval by the Cuban Govt. is expected within few weeks. 
    --Capital needed for the silver project, approx. $6 million.

    (formerly western copper) --And copper prices are headed up, too, (copper at $1.30) now. Jay Oness Toll Free: 1-888-456-1112
    40.1 mil fully diluted (After Dec. 16th 2003 financing)
    @ $7.92/share
    $318 mil MC
    (not actively mining)
    $14 million Cdn in cash in the till (2 mil + 12 mil financing) no debt
    From the "SNC Lavalin Resource Calculation" March, 2003.
    Indicated 158.8 mil oz. silver
    Inferred   54.6 mil oz. silver
    Total 213.4 oz. silver.
    Total 1.94 oz. gold x 10 (at 10:1) = 19.4 silver equiv.
    The capital cost to get the mine going is estimated to be US $148 million
    Penasquito silver/gold.  213 mil oz silver.  just over 2 mil oz. gold. from Chile/Colrado zone. 
    Brechia zone will double the numbers, and infilling inferred to indicated: probably in Jan will have 500 mil oz. silver, 5 mil oz gold.
    Exploration potential: 500 mil oz. silver, 5 mil oz. gold, from
    Two other zones that could each duplicate the success of each of the other two. So up to a Billion... oz. of silver as "exploration potential"!
    Feasibility: 2006-7 production timeline.
    $318 mil MC / 233 oz. = $1.36/oz.
    $318 mil MC / 1000 oz. = $.32/oz. --exploration potential
    You get "approx" 5.54 ounces in the ground for 1 oz. silver's worth of stock.
    Exploration Potential = 24

    Additional comments:  Western Silver was formerly Western Copper... Copper now at $1.35/lb!

    Note the capital cost to get the mining started: $148 million dollars.  
    WTZ also has the following other metal resources:
    3.73 billion pounds of zinc x .50/lb = $1865 million
    673 million pounds of copper x $1.30/lb = $874 million
    1.3 billion pounds of lead x .40/lb = $520 million

    FSR.TO FSLVF.PK (FIRST SILVER) (604) 602-9973 or (888) 377-6676
    38.6 mil shares fully diluted (Jan 2004)
    @ $1.95/share Cdn x .75 US/Cdn = $1.46 US
    $56 mil MC
    From the Company's main page at their url:
    "As at December 31, 2001, First Silver's mineable reserves were 12 million ounces of silver and inferred resources totaled 30 million ounces of silver. The mine is developing a 1000 plus meter exploration drift to upgrade currently identified inferred resources to mineable ore reserves and to discover new reserves."
    12 + 30 = 42 mil oz.
    $56 mil MC / 42 mil oz. = $1.34/oz.
    You get "approx" 5.60 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments: This is a high grade, producing miner.  The high grades, about 300g/ton, are a plus.   They are also actively exploring, another plus.

    3rd quarter, 2003, FSR.TO produced 389,154 oz. silver, and 604 oz. gold. and revenue was $2.09 million for the 3rd quarter.  They produced at a loss, (a penny per share).  They are unhedged, and remain committed to remaining unhedged.

    SSRI SSO.V (SILVER STD RSC) (604) 689-3856 or (888) 338-0046
    45.4 mil shares (or more), Jan 19th, 2004 (after recent PP)
    @ $16.40/share
    $745 mil MC
    debt free, cash: $Cdn 60 mil
    not mining or producing
    15 silver properties
    measured and indicated resources totaling 300.4 million ounces of silver
    plus inferred resources totaling 366 million ounces of silver = 666 mil oz.
    2.2 mil oz. gold. Silver equiv = 22 mil oz. silver. (22+666=688 mil oz.)
    $745 mil MC / 688 mil oz. = $1.08/oz.
    You get "approx" 6.96 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments:  Silver Standard Defines Second Silver Zone at La Pitarrilla-Significant Silver Grades up to 46 Oz./Ton Over 123 Feet

    SSRI really is the "silver standard".  SSRI has the largest market cap this far down the list, which makes it a more attractive target for people with larger amounts of money to invest.

    SSRI continues to add to reserves, either through exploring, or through acquisitions.  This company seems to really understand the silver story, and helped to educate me as an investor. 

    I attended a two hour SSRI presentation after the Gold show in SF in late November.  For the most part, their properties are very well drilled, and they have a fairly solid idea on how much silver oz. in the ground they have.  They started their plan to acquire silver properties and become a "silver company" in about 1993, which explains why they have such a large market cap, and so many good properties with so many ounces of silver. 

    Some investors like SSRI because of the diversification --SSRI owns many silver properties.  I say you can get a similar kind of diversification by owning stock in many silver companies.

    CZN.TO CZICF.PK (CDN ZINC) 1-866-688-2001
    67.3 mil shares fully diluted as of Dec., 2003 (as stated in the proxy, p.8)
    80.2 fully diluted shares as of Feb 2, 2003
    @ $1.24/share Cdn x .75 US/Cdn = $.93 US
    $75 mil MC
    $13.5 million cash, Cdn, no debt.
    not mining ($20 mil needed to finish & start the mine) ($100 mil worth of mining infrastructure in place!)
    ~70 mil oz. (IN ZONE 3 only!! of 12 zones! This company seems to be greatly under-reporting their silver reserves. Their 18 year mine plan consists of zone 3 only, but there are 12 mineralized zones on the property.)  Really, perhaps well over 100 mil oz. silver.
    $75 mil MC / 70 mil oz. = $1.07/oz. 
    You get "approx" 7.07 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments:  The share price of CZN has really taken a beating on very high volume, over a million shares a day for a few days recently.  On no news.  I suspect it's because the people who participated in the private placement at 50 cents Cdn 4 months ago are selling out.  I suppose it makes some sense for a few of them to sell out, because 100% gains in 3 months is hard for big money to turn down.  If you can do that 3 times in one year, you've done very well.  I believe this may be is an indication that CZN priced the share offering too low at 50 cents, which was my opinion at the time.  Although I could not participate in the CZN PP, I decided to join the selling, and try to get out of the way of this stampeed.  I may have waited too late to sell.  My guess is that there will be a good re-entry point soon, if not already.  An indication of a turn around low price may be when volume drops low, and/or if you find it very difficult to buy in size without moving up the price.  The recent high was $2.04/share, Cdn, recent low, about $1.12 Cdn. 

    The volatility of some of the silver shares has taught me that it may be best to try and sell some shares at new highs, and buy other silver shares that have lagged or dropped in price.  Long term, I'm bullish on CZN.  The market cap is less than the replacement costs for the existing infrastructure, which means you are buying in at a good price.

    That the price was up 7% on Friday was a bit of a concern to me, as the bottom may have been reached, although I made more on IMR.V which was up 17% on Friday.  As they say, the bull tries to buck you off, and I may have been bucked off of CZN.  However, there are plenty of silver stocks in the world, and it's not good to marry a stock or fall in love with it.  Business is business.  But I will continue to keep a very close watch on CZN.

    The additional cash from the recent private placements means that CZN will now be able to drill and explore more of their property.  CZN likely has much more silver in the ground, and has good profit potential. 

    I would like the company to privide an estimate of the silver on the rest of their properties, but their mine plan consisted only of zone 3 at the moment.  The rest must remain "exploration potential" for now. 

    To get the mine up and running, they might be able to pay back such debt within 2 years, but I would hope they would avoid debt, and raise the capital in additional financings.

    I note several very, very positive things about this company.

    1. This was the mining operation set up by the Hunt brothers, the major silver investors in the silver spike to $50/oz. in 1980 who were bankrupted by their own debts and margin calls as a result of the COMEX rule changes and silver short sale manipulation. The Hunts spent $50 million building infrastructure to build the mine. They were 90% complete when bankruptcy hit. The value of those buildings is now $100 million, and the mine only needs about $20 million (CAN) ($15 mil US) to get the mine up and running. That's much cheaper than other cost estimates of other operations.
    2. The 70 million oz. of silver estimate is for zone 3 only. But there are 12 zones on the property. The zone 3 estimate is for a 10 year mine plan that involves mining zone 3 at current metals prices.
    3. High Grade ores: 
    12% zinc/ton; = 240 lbs. zinc/ton x 50 cents/lb. = $120/ton for the zinc.
    10.1% lead/ton = 202 lbs. lead/ton x 40 cents/lb. = $80/ton for the lead.
    6 oz. silver/ton x $6.95/oz. = $42/ton for the silver.
    0.4% copper/ton = 8 lbs. copper/ton x 1.30 cents/lb. = $10/ton for the copper.
    Total: $249/ton!  (Prices have been moving up!)  Prices accurate as of Mid Feb., 2004
    4.  My method of valuation:  I'm really counting only the silver, not the base metals in my "oz in the ground" valuation.  So consider a significant "zinc bonus", and "lead bonus".
    5.  Zinc and base metals prices are moving up strong.  50 cents/lb. for zinc!  Check for updates.  

    * TM.V TUMIF.OB (TUMI RSCS) (TUY Frankfurt Exchange)  (I own shares) Nick Nicolaas IR (604) 657 4058
    23.7 fully diluted shares (Dec. 2003)
    @ $1.46/share Cdn x .75 US/Cdn = $1.09 US
    $26 mil MC
    20 mil oz resource up to 50 million oz. silver potential but needs to be explored and drilled.
    500,000 gold resource x 10 = 5 mil oz. silver equiv.
    Debt free, 2 projects in Mexico.
    Raised $2.7 million Nov. 14, 2003
    $26 mil MC / 25 mil oz. = $1.04/oz.  ***I'm using this number***
    $26 mil MC / 50 mil oz. = $.52/oz.  (exploration potential)
    You get "approx" 7.25 ounces in the ground for 1 oz. silver's worth of stock.
    Exploration Potential: 14.5 (likely plus more after bonanza silver discovery late November, 2003.)

    Additional comments:  Tumi soared in late November, after the company announced a bonanza grade silver discovery after drilling.  This should significantly increase the numbers for their "exploration potential", but no word yet on the increase.  It takes time for the geologists to estimate all of that, but investors went crazy over it immediately. 

    Tumi is focused on becoming a "premiere junior silver explorer."  It's good to see the focus is in the right metal.  Doing active drilling to prove up their projects and increase "resources".  Nick Nicolaas really understands the silver story, beliving silver has much greater appreciation potential than gold.

    Look at: Tinka TK.V (tumi's sister company)
    A pretty big gold/copper property in Peru (Tumi owns 30% of it)... 
    That could mean significantly increased assets for Tumi.

    I own shares of TM.V.

    Fully Diluted:   24,012,928
    @ $1.03/share x .75 US/Cdn = $.77 US
    $19 mil MC
    Have $5 million cash in the bank as of Dec. 2003.
    holds the right to acquire a 100% interest in six mineral properties in Mexico.
    Oremex will focus on the exploration and development of the Tejamen Silver Property and the San Lucas Silver Property.
    They are hoping to explore for up to 100 mil oz. silver by drilling over the next year.
    --Experienced team of geologists and managment that have put other properties into production:
    Anthony R. Harvey, Chariman, has put 14 properties into production in his 40 year career.
    for an inferred resource of 8.4 million metric tons at a grade of 89 g/t Silver (2.86 opt) and 0.2g/t Gold (0.006 opt).
    2.86 x 8.4 = 24 mil oz. silver at Tejamen (one of six properties)
    $19 mil MC / 24 mil oz. = $.77/oz.
    $19 mil MC / 100 mil oz. = $.19/oz. --exploration potential
    You get "approx" 9.74 ounces in the ground for 1 oz. silver's worth of stock.
    Exploration Potential: 40

    18.7 mil shares outstanding
    + 22.5 mil unit financing (x 1.5) (1 unit = 1 share and 1/2 warrant at $2.50 Cdn)
    52.5 mil fully diluted
    @ $4.02/share Cdn x .75 US/Cdn = $3.02 US
    $158 mil MC
    inferred resource: 45 mil oz. silver + 1 mil oz gold.
    1 mil oz. gold = + 10 mil oz. silver equiv
    "The estimate does not address significant additional mineralized structures known to be present on the property, or the potential for large strike extensions of known high-grade zones."
    February Financing was for the El Cubo Gold-Silver Mine is located in the Guanajuato gold-silver district in the Republic of Mexico. Historical reports cite district production at 1.2 billion ounces of silver and over 4 million ounces of gold. With capital spending and upgrades, and expect to produce up to 100,000 oz. gold equiv/year at $190/oz. At $400/oz, that may mean $210/oz. net profit, or $21 million positive cash flow/year, and yet, the purchase price was $21.5 million.  Seems like they bought a mine, at a price, with a profit potential, of a P/E ratio of 1. 
    Target to expand the El Cubo project resource to over 2 million ounces of gold equivalent.  Given that historic production was 300 oz. of silver for each 1 oz. of gold, I think it's odd that they speak in terms of "gold equivalent".  Why not emphasize the silver???  Converting their target of gold back to silver, at their ratio of 65:1, gives 130 mil oz. "silver equivalent".
    55 + 130 = 185 "exploration potential"
    $158 mil MC / 185 mil oz. = $.85/oz.
    You have an "exploration potential target" of 8.81 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments:  In spite of the recent very large financing, which nearly trippled the market cap of the company with a very large acquisition, the stock price barly moved.

    Gammon Lake is a large shareholder, 26.3%. 

    Mexgold announced bonanza grade discovery on Jan 13th, 11 kilos per ton silver, over 2 meters.
    Part of a section of "25.5-metres grading 1.16 grams per tonne gold and 961 grams per tonne silver."
    The stock moved up strongly mid week, most likely in response to the news.

    SRLM.PK ( STERLING MINING) Ray DeMotte 208/676-0599
    just under 10 mil shares fully diluted (early Jan. 2004)
    @ $11.85/share
    $118 mil MC
    ~185 mil oz. reserves + resource, Sunshine alone
    Quote from:
    "The prior operator last estimated the mine reserves at 26.75 million ounces of silver, 10.36 million pounds of copper and 7.05 million pounds of lead (or approximately 28.85 million ounces of silver-equivalent), as well as an additional resource of 159.66 million ounces of silver. "
    ~100 mil oz. other properties: the 10 sq. miles around the 1/2 sq mile of the Sunshine (rough guess--needs to be explored)  even though--these extra 100 mil oz. are in the "explorer" category.  They need to be drilled and found, although I've heard of estimates as high as 400 mil oz. total for SRLM.PK
    $118 mil MC / 185 mil oz. = $.64/oz.
    $118 mil MC / 500 mil oz. = $.24/oz.  (exploration potential)
    You get "approx" 11.75 ounces in the ground for 1 oz. silver's worth of stock.
    (Exploration potential is 32. )

    Additional comments:  I wrote an article on SRLM in late Dec.  See: Sterling Mining

    Ray DeMotte really, really understands the silver story, and has been aggressively acquiring silver properties.   Sterling continues to consolidate its land position around the Sunshine mine. 

    Sterling Mining acquired the Sunshine mine. Sunshine was one of the big three: Hecla, Couer, & Sunshine. Sunshine went bankrupt. Sterling got the property a few months ago cheap, because they were quick & willing to pay cash. Other buyers wanted to do a full study before making an offer. This company's share price went ballistic as a result. But the company is still way undervalued. Just do the math, people. I own a substantial share of SRLM.PK There were a few great articles written lately for SRLM. See the company web site, above. The best factors, I feel, are as follows:
    1. The Sunshine mine is an existing mine that was mining at a profit. The company went bankrupt, not the mine. So there will be no great capital costs for start up, only minimal costs.
    2. The Sunshine sits on 1/2 sq. mile, and was never fully explored. Sterling Mining owns 10 square miles of property surrounding the Sunshine, right in the heart of silver country, the location of CDE and HL, the other two big companies at the top of this list.
    3. The management of Sunshine understands the silver story. They are on a mission to acquire distressed silver properties at today's cheap prices. See also: December 14, 2003: "In light of the continued low silver price, Sterling has this year begun holding back into inventory a portion of this year's silver coins minted."

    (604) 684-6365  Erick Bertsch
    73.8 mil shares fully diluted as of Oct 31, 2003
    @ $1.04/share Cdn x .75 US/Cdn = $.78 US
    $58 mil MC
    Exploration and development in Mexico.
    Run by (Hunter-Dickinson)
    On 4 sulphide deposits out of 16, 29 mil ton grading 89 grams silver/t and 1.57 g gold/t.
    Conversion: 89 grams x .0353 oz/gram = 3.14 oz.
    RE: those 29 mil tons, they "anticipate increasing resources to 50 mil tonne range..."
    3.14 oz. x 29 mil tons = 91 mil oz. silver
    1.6 mil oz. gold x 10 = 16 mil oz "silver equiv".
    Total: 107 mil oz. silver equiv.
    (Exploration potential = x 1.7 = 181)
    $58 mil MC / 107 mil oz. silver equiv.  = $.54/oz.
    $58 mil MC / 181 mil oz. silver equiv.  = $.32/oz. --exploration potential
    You get "approx" 14 ounces in the ground for 1 oz. silver's worth of stock.
    Exploration potential = 24

    Additional comments:  Nothing done or drilled on the property since 1999.  Why not?  Because of low zinc prices: 46% of the price of the metals was in the zinc before prices crashed...  The largest componant today is gold, which was surprising to Eric, the IR guy I spoke with.  About 1/3 is in silver now.

    At today's low metals prices: 
    2% x 2000 lb = 40 lbs zinc x $.42/lb =  $16.8 for the zinc  (.37 to .50 lb zinc.)
    3.14 oz. x $5.15 = $16 for the silver.
    .055421 oz. x $385/oz. = $21 for the gold
    (Assuming 100% metals recovery--which is not likely to be the case.  It may range from 60% to a higher percentage, depending on extraction methods used and the particular mineral targeted, which constantly change with technology advancements, and price changes in the metals.  By the time a mine like this gets running, perhaps in 5 years or so, things may change to allow even greater metal recovery.)

    Speaking with FAN.TO guys, they think reserves of ore could be 50 mil tonnes OR MORE, but that they really don't know, and want to issue conservative estimates.

    EXR.V  EXPTF.PK ( EXPATRIATE RECS) 1-877-682-5474 Dr. Harlan D. Meade, President and CEO
    85 mil shares fully dulted. (Feb, 2004)
    (+ 1.95 mil units (1.5 shares/unit) on March, 2004)
    88 mil shares fully dulted
    March, 2004
    @ $.485/share Cdn x .75 US/Cdn = $.36
    $32 mil MC
    $1.2 mil CAN capital in the til no debt.
    Mostly a base metals company:  Zinc.  Also has some silver & gold.
    Total metal content of the six projects with resources... "Using current metal prices, the gross metal value of Expatriate's interest in the base metals in the properties is approximately US$1.56 billion as compared to US$540 million for its share of the silver and gold."
    Metal:  Expatriate share of the project:
    Zinc      2.67 billion lbs.
    Copper  385 million lbs.
    Lead      202 million lbs.
    Silver     63.1 million oz.
    Gold       426,700 million oz.
    Gold x 10 = 4.3 mil "silver equiv".
    $32 mil MC / 67.4 oz. silver = $.47
    You get "approx" 16 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments:  Significant zinc bonus, about 3 times the silver value.  Smelter credits are estimated at about 60% zinc, 25% silver, 10% gold and copper, and the rest, other minerals.  My method of valuation puts a value on the silver only, not the rest, so this is a significantly better value than my number shows.

    If you call Dr. Harlan D. Meade, President and CEO 1-877-682-5474, ask him to send you an information packet on EXR.V.  It contains a good report on why he is bullish on zinc.

    42.7 mil shares fully diluted (Sept 2003)
    + 10 mil shares March PP (March 2004)
    52.7 mil shares fully diluted
    @ $.37/share Cdn x .75 US/Cdn = $.28
    $15 mil MC
    9 mil tonnes indicated and inferred at 107.5 g/t x .03215
    = 31 mil ounces silver (3.4 oz/ton low grade silver, with other minerals)
    (also have significant gold ($30/ton at $400/oz.) and zinc $60/ton at $.46/lb.)
    728,000 oz of Gold x 10 = 7.3 mil "silver equiv"
    = 38.3 mil oz. silver equiv.
    $15 mil MC / 38.3 mil oz = .38/oz.
    You get "approx" 20 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments:  RDV has a "gold bonus".  At $409/ gold, and $6.50/oz. silver,  it's about $300 million worth of gold, and $200 million worth of silver, or about 60% of the value is in the gold.  Since my method really undercounts the gold, this means there is a significant "gold bonus" here.

    Redcorp Ventures Ltd.: Brokered Private Placement Financing Closed ($3 million)

    ADB.V  ADBRF.PK (ADMIRAL BAY RSCS) 604 628 5642 -- Curt Huber-- Business Development 
    33.3 mil shares fully dilluted.  (March, 2004)
    @ $1.37/share Cdn x .75 US/Cdn = $1.03 US
    $34 mil MC
    They have $6 million cash.
    --owns an option to earn 70% interest in "Miera San Jorge's Monte del Favor property in Mexico"
    "An historical resource estimate based on underground sampling at Monte Del Favor is reported at 17 million tonnes grading 0.85 g/t gold and 224 g/t silver for a contained 123 million ounces of silver and 460,000 ounces of gold." "While this resource estimate is not fully 43-101 compliant, the Company considers that it provides a conceptual indication of the potential of the property."
    460,000 x 10 = 4.6 mil "silver equiv".
    127.6 mil oz. x 70% interest = 89.3 mil oz.
    $34 mil MC /  89.3 mil oz. = $.38/oz.
    You get "approx" 20 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments:  Prior grades hit 2-5 kilos silver/ ton. (2000-5000g/ton. 70-176 oz. ton)  Very high grades.  The project was never properly drilled with modern methods.

    Admiral Bay acquired this option to own a 70% interest in this silver property in June, 2003, and the acquisition did not impact their stock price at that time at all.  Previously, they were a gas company, and they still have this other gas project, which may be more than half the intrinsic value of the company according to Curt Huber, who understands the silver story as expressed by Ted Butler and David Morgan.  

    My valuation method, obviously, does not give any value for their gas projects, which therefore needs to be factored in as a significant "bonus".  Company goals for gas production are 2.5 million cubic feet/day by mid 2004, which at $5 would be $12,500/day gross, and target is 7.5 million cubic feet/day by the end of the year, again, at $5 would be $35,000/day gross, or $12.8 mil/year gross. 

    They are actively digging, drilling, and releasing results in press releases.

    * SVL.V  STVZF.PK (SILVRCRST MINES) (I own shares) (604) 691-1730
    25.1 million fully diluted Dec 31, 2003
    @ $1.65/share Cdn x .75 US/Cdn = $1.24 US
    $31 mil MC
    $3 mil cash in the til.
    Indicated resources of silver 30 mil oz.
    Projects in Honduras. 
    Silver totals are projected to be: 75 - 135 mil oz. (not 43-101 compliant)
    $31 mil MC / 75 = $.41/oz. 
    $31 mil MC / 135 = $.23/oz. 
    You get "approx" 18 ounces in the ground for 1 oz. silver's worth of stock.
    (Exploration potential = 33++ oz.)

    Additional comments:  ++Silvercrest just acquired two 100% owned silver projects; one in Mexico and one in Guatemala.

    I believe this is a great development. 

    The project in El Salvador is only 20 km from the property in Honduras, and the property in Guatemala is 15km away, so only one mill will be needed for the three when a production decision is made.

    They have been and will be acquiring more silver properties with the money raised in the late November 2003 private placement, which I think is an outstanding way to spend the money.

    I own shaers of SVL.V

    HDA.V (HUSIF pink sheets symbol?) (HULDRA SILVER)
    no website
    Phone: Magnus 1 (604) 261-6040
    6.924 million shares out (fully diluted) (Nov or Dec '03?)
    @ $.58/share x .75 US/Cdn = US $.44
    $3 mil MC
    no debt
    HDA's proven and probable reserves stand at 161,000 tons of
    ore grading an average 25.6 ounces per ton silver, and 10 percent combined
    lead/zinc -- 4.12 mil oz silver, not including the zinc & lead.
    According to Magnus, the indicated and inferred reserves total about 180,000
    tons at about the same grading -- in other words, a further 4 million ounces of
    ~8 mil oz. silver
    $3 mil MC / 8 mil oz. silver = $.38/oz.
    You get "approx" 20 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments:  There is a significant lead/zinc bonus.  "The property could be put into production at a capital cost of Cdn $3.5 million -- with payback of capital (when equity financed) within two years."

    ASM.V ASGMF.PK (AVINO SILV GOLD) 604 682-3701 -- David Wolfin
    10.9 mil shares fully diluted, Nov. 2003 (with the 4 mil new shares from PP)
    (proposed PP in late Oct 2 mil units at $1.27 (unit = 1 share + 1 warrant at 1.58)
    @ $1.99/share Cdn x .75 US/Cdn = $1.49 US
    $16 mil MC
    from: --in 1997
    "How Much Silver Does Avino Have?"
    "Operations at Avino's silver mine in Mexico are both open-pit and underground. I examined the reserves and interpolated the tonnage into silver ounces as follows: 28-million ounces proven; 50-million ounces probable and 27 million ounces possible." (Not all are 43101 compliant reserves & resources.--that is an old, third party report.)
    --focus is on being silver company. A plus.
    They actually have over five silver properties/projects.  I'm only have numbers to count for one, the "Avino mine". 
    = 28 + 50 + 27 = 105
    Avino owns 49% of that, or 51.5 mil oz. 
    -"not considered reserves under the new Canadian National Policy 43-101"
    $16 mil MC / 51.5 mil oz. = $.32/oz.
    You get "approx" 24 ounces in the ground for 1 oz. silver's worth of stock.

    Additional notes: There are 4 additional silver properties that I don't have numbers for.  Consider this a "silver bonus"!!!

    Mexican mining law once stated that a controlling interest had to be owned by Mexicans, which explains why they only have a 49% interest.  That they don't have a controlling interest is a minus. This law has changed. The mine was operational until the mine went into temporary closure in November 2001. So there is in place an existing mine, with working infrastructure, which is a bonus.  There is a need for drilling in order to test the potential that was stated in the feasibility study.

    IR: Rob Blankstein: 604-682-2205, or
    11.9 mil shares (Dec. 2003)
    @ $1.48/share x .75 US/Cdn = $1.11
    $13 mil MC
    484 x .03215 = (15.5 oz) x 2.3 mil t = 35.8 mil oz. silver
    2.00 x .03215 = 148,000 oz. gold x 10 = 1.5 mil oz. silver
    385 x .03215 = ... x 95k = 1.2 mil oz silver
    40+ mil oz. silver equiv. resources
    2002 production, 500,000 oz. silver, 9000 oz. gold
    $13 mil MC / 40 mil oz. silver = $.33/oz.
    You get "approx" 23 ounces in the ground for 1 oz. silver's worth of stock.

    45 mil shares fully diluted October 2003
    @ $.325/share Cdn x .75 US/Cdn = $.24 US
    $11 mil MC
    Cello Ccasa (1 project of 4) Resource Estimate - August 2002
    31.4 mil oz. silver, 134,000 oz. gold. (x 10 = 1.3) 32.7 mil oz.
    (Still much exploration work to do.)
    $11 mil MC / 32.7 mil oz. = $.34/oz.
    You get "approx" 23 ounces in the ground for 1 oz. silver's worth of stock.

    * MGN MNMM.OB (MINES MGMT) (I own shares) (509) 838 6050 Doug Dobbs
    11.7 mil shares fully diluted as of the March 4th 1.4 mil financing.
    @ $7.30/share
    $85 mil MC
    261 mil oz. silver resources.  Previous drilling spent over $100 million drilling the property.  
    $85 mil MC / 261 mil = $.33/oz.
    You get "approx" 23 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments:  MGN--new AMEX symbol will work next week.

    As copper moves up 5 cents/lb., it adds $100 million to the value of the deposit. 

    Mines Management owned 10% of the rights to their property in Montana. The other 90% owner, Noranda, simply gave up on the property and walked away from their mining claim due to "perpetually" low silver prices and political concerns.   That explains the rocketing share price.  So, the MNMM group got 90% of the rest of the property FOR FREE!--the value of which, and the nature of this transaction has just barely begun to be understood by the market, given the low relative price.

    Their property also has about 60% of the value (at current prices) in copper (copper at $1.35/lb.), 2 Billion pounds of copper, and 261 mil oz. of silver.  Doing the math:
    261 mil oz. silver x $6.70/oz. = $1.749 Billion.
    2 Billion lbs copper x $1.35/lb.. = $2.7 Billion.
    Total value of mineralization before costs to extract: $4.5 Billion

    Copper continues to move up.  It's (copper at $1.35/lb.). MNMM is both copper and silver!  (Also, consider Western Silver formerly Western Copper)  Someday soon, investors are going to rush into copper opportunities, if they are not already.  Mines Management will benefit from this.

    They do not have an active working mine--which is a minus.  They will need to raise capital to get a mine going.  Noranda had several estimates for the cost to build a mine and mill, around $250 million.  But it could be less depending on how economic they decide to do things.   They are working on a feasibility study, and avoiding excessive dilution, which is a plus.

    Regarding environmental concerns:  Noranda had a fully approved Environmental Impact Statement (EIS) that led to successful project permitting, so environmental concerns were not a factor in Noranda's departure of the project in 2002.

    For more on MNMM see

    I own shares of MNMM.OB. 

    Ray Brown, 530-873-4394
    70 mil shares
    @ $.091/share
    $6.4 mil MC
    Three main properties:
    Bromide-- 372,000 ounces of gold?
    Silver Bell--15 mil oz silver?
    Deer Trail --287,000 ounces of gold and 27 million ounces of silver... but the lease on the Deer Trail will expire June 1 2004, so they need to raise significant money in about 3 months.
    49 mil oz. total.
    $6.4 mil MC / 49 mil oz. = $.13/oz.
    You have an expiring lease on "approx" 58 ounces in the ground for 1 oz. silver's worth of stock.

    Additional comments:  They need $4 million to exercise their option to buy the "Deer Trail" property.   They are considering various options on how to do that.  Ray Brown has been in this business a long time, and is excited that he's got a bunch of younger guys working on the property now, and he's encouraged by the upward direction of the price of precious metals.

    Explorers deserve their own category, since they cannot be valued by my method of looking at reserves and resources of ounces of silver in the ground.  We do not know how many oz. they might have. They are exploring for that.

    This list, although at the bottom, in no way indicates that these companies are more highly valued than companies listed above. It is also difficult to categorize a company as an explorer, since all silver companies always hold more silver properties that need to be explored. 

    (The order is by largest market cap first, not by "comparative value".)

    I removed Imperial Metals because I could NOT see that they were a significant silver miner with significant silver resources.

    Fully Diluted: 224 million
    @ $.71/share Cdn x .75 US/Cdn = $.53
    $119 mil MC

    Additional comments:  Eurozinc really moved up in price after they announced a bid for the Neves Corvo mine in Portugal for 128 million Euros.

    Eurozinc has significant silver. 

    450 mil shares and options (Feb., 04)
    @ $.19/share
    $86 mil MC
    "Total Inferred Resource is 34.5 million ozs silver but the district is unexplored for epithermal silver and exploration to date suggests a district potential of 50 to 100m ozs Ag or perhaps much more." --"Macmin is a silver focussed company" The Texas Silver Project has in-ground resources of 44.5Moz of silver equivalent.  (They own some Malichite, MAR.AX)  Also, significant gold projects, perhaps several multi-million oz. potential projects.

    Price moved up significantly this week.  Perhaps this news article had something to do with that:
    News article in Australia on MCJAF

    Henk Van Alphen -- President (604) 408-7488 
    32 million shares fully diluted Dec. 11th , 2003
    @ $3.47/share Cdn x .75 US/Cdn = $2.60 US
    $83 mil MC
    ($10 million Cdn cash in the till after $5.9 mil private placement closed on Dec. 11th)
    Speculated resources, or "exploration potential":
    Providencia -- high grades, could have 100-250 mil oz.
    Chingolo -- Will finish drilling by secnod week in November -- Henk says, "may have 400-600 mil oz. "exploration potential" in 200-300 mil tons of rock."  They got 30-40 grams (1.23 oz.) on the first drill hole, but hope to find 2-3 ounces silver/ton.  Please note, "exploration potential" is a non quantifiable, non-regulated, unauthorized type of estimate.  It is not 43-101 compliant.  Trading decisions should probably not be made on these kinds of shaky estimates, which may be only hype and hope.  An investor who wants to be protected by US regulations should wait for geologists to pour over the drill results and produce numbers that comply with 43-101 regulations, that may one day appear in a company press release.  (Also, the first time Cardero issued drilling results earlier this year, the stock price was cut almost in half due to lower than expected results.  The stock price has since recovered.)  Nevertheless, here's how those "exploration potential" numbers work out if you do the math:
    $83 mil MC / 500 mil oz exploration potential = $.17/oz.
    $83 mil MC / 850 mil oz exploration potential = $.10/oz.
    Exploration potential:  you might get about 45 - 77 oz. silver for one oz. silver worth of stock.

    Additional comments: *** I wrote an article on Cardero in January, 2003.

    Cardero has three properties in Argentina; actively working on two:  Chingolo and Providencia.  Chingolo was just measured as twice as large as previously thought.  They are trying to prove up these properties.  

    Providencia also has potentially high grades in several very large conglomerate deposits that can be mined at a profit today.  Their property at Providencia was an active mine, but only a few tons/day.  But they hope to make a large open pit project out of the main deposit, processing perhaps a few thousand tons/day.

    High grades are very important in today's environment, especially if you can buy them cheaply.

    They are also acquiring more silver properties, which is another bonus.  This is an aggressive silver company.  More properties help to alleviate the risk of an explorer.

    1 604 684 8950
    39.7 fully diluted. (Nov 2003)
    @ $.42/share Cdn x .75 US/Cdn = .31
    $12.5 mil MC (US)
    Additional comments: They own 5.82 million shares and 388,000 warrants of Cardero at $.35, which usually a greater asset value than their market cap. Ascot's share price is typically around 80% of the value of their Cardero Stock.)

    (I'm listing this one out of order, not by market cap, and next to Cardero, because of their position in Cardero.)

    *IMR.V IMXPF.OB (IMA EXPL) (I own shares)
    43.4 mil Fully Diluted shares (May 1, 2003)
    @ $3.40/share Cdn x .75 US/Cdn = $2.55  U.S
    $111 mil MC
    Exploring in Argentina.
    $4.5 million cash

    Additional comments:  Positive drilling results are coming in.

    IMA's Drilling at Navidad Intersects 115 Meters Grading 454 g/t '13 oz/t' Silver at Galena Hill

    IMA Exploration Inc.: Drilling at Navidad Hits 20 Metres Grading 703 g/t - 20.5 oz/t - Silver

    I own shares of IMR.V

    Dianne (IR) Phone: (403) 265-4356
    = 344 mil fully diluted  Oct. 7th, 2003
    @ $.255/share Cdn x .75 US/Cdn = $.19 US
    $66 mil MC
    "The company has a policy of not hedging or entering into forward sales contracts."
    Cash flow positive. !!!  --> + 2.5 % royalty on "Rapu Rapu" that should be worth about $1 million per year starting within 9-12 months.  (a cash source for an explorer is a big plus)
    14 projects in the Philippines.
    Producing a dore bar of 96% silver and 4% gold from Canatuan project with the following:
    Total silver = 7.1 mil oz silver
    Total gold = 182,000 oz. gold x 10 (@10:1) = 1.8 mil oz silver equiv.
    Total silver equiv (Canatuan) = 8.9 mil oz.
    + they own a drilling company with 20 rigs.
    + they have a "foot in the door" in China.
    + many other promising exploration properties in the Asian Pacific.

    Additional comments:  This company exploded in price from 16 cents to 23.5 cents when they announced that they would be mining in China: "TVI Pacific Inc. Receives Landmark Approval for Wholly Foreign-Owned Enterprise (WFOE) Status From Chinese Government". see

    They are primarily a silver explorer.  The bonus is they are a producer, and are cash flow positive, which are both extremely rare for an explorer.  In fact, the other producers mostly all lose money!

    FCO.TO FCACF.PK (FORMATION CAPTL) (I own shares) 604-682-6229
    165 mil fully diluted, March 2004
    @ $.55/share x .75 US/Cdn = $.415
    $68 mil MC
    (Recently completed $10 million financing)
    Very large cobolt property: 1-3 million tons of 0.60% cobalt equivalent
    Cobalt prices are racing ahead, up to $25- $33/lb.  see
    2000 lbs/ton x 0.6% = 12 lbs/ton x $29.50 /lb. = $354/ton (rich ore)
    Cobolt is $29.50/lb. recently, up from $9/lb.
    Formation Capital owns the Sunshine Silver Refinery (near Sterling Mining), worth $50 million.
    Break even cost $5-6/lb cobolt.
    The Idaho Cobalt Project is projected to produce 1,500 tonnes of cobalt per annum.
    = 3,000,000 lbs. production x about $ 20/lb profit? = about $60 mil profit/year???
    FCO.TO also owns a few minor silver projects.
    The cobolt project needs more drilling, and with recent financing, things look bright.
    Formation capital will be re-starting the Sunshine Silver Refinery--expected in early June.

    I own shares of FCO.TO

    IAU.V ITDXF.PK (INTREPID MINRLS) Stephen Coates, Investor Relations (416) 368-4525
    40.3 mil outstanding shares
    50.6 mil fully diluted w/ Dec. 9 financing (good as of March 4,2004)
    @ $1.20/share Cdn x .75 US/Cdn = .90 US
    $46 mil MC
    $3.2 million cash from Dec. 9 financing.
    Company's exposure is about half to gold, half to silver in several projects.
    Joint Venture with BHP Billiton focused on "Cannington" style silver deposits using proprietary BHP Billiton data.
    (all figures are "exploration potential")
    El Salvador - 38.5 mil oz.
    Argentina - 6 mil oz.
    Total: 44 mil oz. silver
    Total gold: ~690k oz.  x 10 (10:1 ratio) = ~ 6.9 mil oz. "silver equiv"
    Total: 53 mil oz. "silver equiv". (exploration potential or indicated or inferred, not reserves)
    $46 mil MC / 53 mil oz. = $.87/oz.
    Hopefully, you get 8.67 ounces in the ground for 1 oz. silver.

    Additional comments:  More drill results released on March 3:
    Intrepid Intersects 10.3m (34ft) of 70.9 g/t (2 oz/t) Gold and 988 g/t (29 oz/t) Silver at Kamila, Argentina

    The stock price exploded, nearly doubling, in response to the news of the above drilling results.

    Since this company is about half gold and half silver, the 10:1 ratio really cuts down the "silver equiv" numbers, so keep in mind the "gold bonus" factor here.  But it's like that with a lot of the companies on this list, so keep that in mind, and do your own math if you want to use the 70:1 ratio.

    28 mil fully diluted shares (Nov. 19, 2003)
    @ $2.02/share Cdn x .75 US/Cdn = US $1.51
    $42 mil MC

    --"MAG Silver Corporation enters the silver market as a powerful force. MAG combines a seasoned management team with two drill-ready geological extensions of high-grade world class producing districts. MAG controls 100% of the Juanicipio property adjacent to the Fresnillo District in central Mexico, currently producing over 12% of the world's silver from high grade underground vein structures."

    The geologist, Peter K.M Megaw, is also working with  EXN.V, another high grade silver project.  Peter's philosophy was that it makes sense to go after very high grade silver projects that will be profitable regardless of the silver price. 

    Shares Outstanding - 180,721,142
    @ .23 at Yahoo!
    (Mining in China)
    It trades on the London Stock Exchange, under the symbol, CDN
    $41 mil MC

    * NPG.V NVPGF.PK (NEVADA PAC GOLD) (I own shares) (604) 646-0188 David Hottman
    = 43 mil shares fully diluted (Nov 26th, 2003 including recent PP)
    @ $1.28/share Cdn x .75 US/Cdn = $.96 US
    $41 mil MC
    (up to $10 million cash in the til from recent PP)
    Amador Canyon Silver Project: 50-250 mil tonnes
    silver grades average 4 oz. sil/ ton in the deposit
    = 200 to 1000 mil oz. silver????? --very speculative at this point. Drilling needs to be done.
    $41 mil MC / 200 mil oz. = $.21/oz.
    $41 mil MC / 1000 mil oz. = $.041/oz.
    The inverse: you "might" get 36 - 183 ounces in the ground for 1 oz. silver.

    Additional comments: Wednesday March 17: Nevada Pacific Completes Drill Targeting at Amador Canyon Silver Project

    The 200 to 1000 mil oz. of silver exploration potential estimate for the Amador Canyon project is based on the size of the area, which may provide between 50 and 250 million tonnes of ore, times a low grade of 4-6 ounce per ton. 50 mil tonnes x 4 oz/tonne = 200 mil oz., the low end of the target range.  250 million tonnes x 4 oz/tonne = 1000 mil oz., the high end of the range.  That target range is the expectation that the geologists are hoping the drilling will prove up.  It will likely take several rounds of drilling and analysis of drill results to get a proper resource calculation, and plenty of time. 

    NPG.V has 10 gold projects, and one silver-but it may be big.  The Chariman, David Hottman, says that 90% of the value of the company is in gold, NOT silver, and yet, I'm buying this company for the silver project of Amador Canyon only, and as if the gold componant was worth nothing. (The gold projects are a free bonus, in my book, and help to alleviate the risk of this explorer.)

    Explorer in Nevada. They do not really know how much silver they might they have in the Amador Canyon project.  They just did a $2.5 million private placement, and another $10 million private placement in late November.   On the website, for David Hottman's bio, it says he was a founding member of Eldorado gold. "During his tenure, Eldorado's market capitalization grew from Cdn $7 million in 1992 to a peak of Cdn $781 million in 1996."  Please note, exploration is risky, and costly.  

    Now that they are well-capitalized with over $10 million dollars, this company will likely do very well as they drill and prove up the deposits across all their properties.

    I own shares of NPG.V 

    * MMGG.OB (METALLINE MINE) (I own shares) Merlin Bingham 208-665-2002
    14 mil shares fully diluted (Oct 23, 2003)
    insiders buying on 9-10-2003 at about $1.30/share
    insiders buying on 12-01-2003 at $1.66/share
    @ $2.96/share US
    $41 mil MC

    Additional Comments:  Zinc & Silver in Mexico: Sierra Mojada.  Sierra Mojada is a Silver District!
    Silver: Historic production was 10 mil tons of high grade ore... historic silver production went right "direct shiped" to the smelter, non-milled.  It contained 500-1000 grams silver/ton, or 17.65 to 35 oz. ton.  This means 170-353 million ounces of historic "high grading," non-milled, production.
    (Who knows how much silver is left?)  That's the question with an explorer.

    Zinc: Very high grades: 11.8% zinc.  Potentially the lowest production cost in the entire zinc industry due to new "oxide deposit" chemical extraction process as revolutionary as "heap leaching".  Exploring for up to 4 Billion pounds zinc.

    Project ownership:  MMGG terminated the buy-in agreement with Penoles, who went into default, so MMGG now owns 100% of the project!  See

    I believe this is very good for MMGG, since the Penoles agreement made it more difficult to quantify the value the company.  Now, it is easier to value the company, and the existing shareholders will own more of the project and profits.  It is important to note that MMGG took the initiative to terminate the agreement.  Penoles did not issue a statement indicating any intent to walk away.  Penoles' delay or indecision caused them to lose the rights to their buy-in option agreement.  Just like if you have an "in the money" option, it's a mistake to let it expire.

    For more, see the research works article here:

    (Merlin of MMGG.OB, and Harlan of EXR.V (friends, actually) both have reports that will educate you on the bullish story for Zinc.)

    I own shares of MMGG.OB

    * OTMN.PK (O.T. MINING) (I own shares)  --The website has been updated. Jim Hess Tel: 514-935-2445
    8 mil fully diluted.
    @ $5.00/share
    $40 mil MC
    Historic silver production for the Butte district, from 1880 to 2000 was 714,643,005 oz. silver.
    They think their deposit may be bigger than "the richest hill on earth", which is located near their property, in the Butte district. 
    The exploration potential for this company is astounding, if they are right.

    Private Placement Closed.

    I found a message board for O.T. Mining:

    I own shares of OTMN.PK

    * FR.V FMJRF.PK (FIRST MAJESTIC) (I own shares)
    15.8 mil shares fully diluted (Jan 30th, 2004)
    (+ 8 mil unit PP on March 15th) + 12 mil fully diluted shares
    27.8 mil shares fully diluted March, 2004
    @ $1.84/share Cdn x .75 US/Cdn = $1.38
    $38 mil MC
    Up to 80% ownership of the Niko project which is similar to the Naica Mine:
    The Naica Mine: 4.3%Zn, 5.5%Pb, 6ozAg, 0.01ozAu, 0.34%Cu
    (5 million tonnes reserves_
    = 6 x 5 = 30 mil oz. silver x .8 = 24 mil oz.
    The Niko project does not have reserves, it is similar to the Nacia, which has reserves.
    Also, First Majestic acquired the La Parrilla Silver Mine in Mexico, a former producing silver mine that closed in 1999 due to low silver prices.  They expect to re-open in 4 months, producing 175,000 tonnes a year at 300g/t silver, which means 1.8 mil oz. of silver produced per year.  The cost to mine is estimated at $25-30/tonne, and recovery is 85-90%.  Cash costs are expected to be $3/oz.  So, if silver holds at $6.95, then $4/oz. is profit, x 1.8 mil oz silver/year = $7.2 million dollars/year after cash costs!
    Do they understand the silver market?  I think so! They linked an excerpt from my free e-book from " 8 Reasons why silver is a better investment than gold! " see url here:
    $38 mil MC

    Additional comments:  The other benefit of FR.V is that the company is keen on acquiring new properties.  This is where the best money is made for a company in today's bull market in silver, in my opinion.  From the home page of the website:

    "First Majestic recently announced the acquisition of Le Parrilla Silver Mine, Mexico, which is anticipated to be the first of several acquisitions over the coming months."

    I own shares of FR.V

    7.4 mil shares issued
    + 7.5 mil units (x 1.5)
    18.7 mil shares fully diluted? March 2004
    @ $2.35/share Cdn x .75 US/Cdn = $1.76 US
    $33 mil MC

    Scorpio closes $16 million private placement, March 8th

    MAI.V MNEAF.OB (MINERA ANDES) (604) 689-7017
    73 mil fully diluted as of Nov. 2003
    @ share $.47/share Cdn x .75 US/Cdn = $.35 US
    $26 mil MC
    To raise $6.6 mil in recent financing.
    owns 49% of the resource: "55 mil silver equiv. oz. resource" back in 2001.  AT 60:1 silver:gold when gold was about $300/oz., about half/half silver and gold. 
    Estimated:  27.5 mil oz silver
    Estimated:  27.5 mil oz. "silver equiv" of gold.
    / 6 = 4.58 mil oz. silver equiv at 10:1 ratio.
    Total: 27.5 + 4.6 = 32 mil oz. silver equiv. (x .49 (they own 49%) = 15 mil oz.)
    They will be exploring for more: (The resources may be only 10% of the property.)
    2.2 km stretch, open another 2.7, plus 3 other vein systems.  significant high grade silver exploration potential.  7000 meters of diamond drilling.  Plus a copper project, billion ton ore deposit.
    $26 mil MC

    Additional comments:  About half is gold value, half is silver value at 60:1.  Minera Andes has several significant bonuses that my method is not valuing properly.  First, I undercount the gold, of course, so consider there is a "gold bonus" at current gold prices.  Second, they will be doing significant exploration work to increase their resources, and they have recently raised the money to be able to pay for that exploration work.  Third, they have a copper project, and copper prices are rising.  I moved MAI.V to the explorers list to be more fair to their valutation. 

    MMM.TO MMAXF.PK (MINCO MINING 1-888-288-8288
    23 mil Fully Diluted
    @ $1.82/share x .75 US/Cdn = $1.36
    $31 mil MC
    Located in China
    2 gold projects and 1 silver  (42% owned).  Explorer
    $31 mil MC

    119 mil shares fully diluted Sept, 2003
    @ .28 x .75 US/Cdn = $.21
    $25 mil MC
    American Bonanza Acquires High Grade Silver Property in Nevada & Goldcorp Exercises Warrants

    * EDR.V EDRGF.PK (ENDEAVOUR GOLD) (I own shares)
    Hugh Clarke, Investor Relations 1-877-685-9775
    14.8 million Fully Diluted  Jan 21, 2004
    @ $1.73/share Cdn x .75 US/Cdn = $1.30
    $19 mil MC
    --currently producing 600,000 oz. silver/yr.
    --expect to increase production to 4,000,000 oz. silver/yr

    I own shares of EDR.V

    DNI.V DMNKF.PK (DUMONT NICKEL)   (416) 595-1195
    56.4 mil shares outstanding
    @ $.44/share x .75 US/Cdn = $.33
    $18.6 mil MC
    Dumont still needs to raise and pay several million to clifton for 50%-60% of each property, and there are many properties.  (See Clifton for more specifics on the JV agreement.)  

    Additional comments:  Clifton's JV partner, doing active drilling work right now. And recent property acquisitions.  I moved Dumont to the explorer category, because I really don't have any idea what percent of Clifton's property they may acquire, which depends on Dumont completing a feasibility study on each property.

    There seems to be significant disagreement between Clifton's shareholders and Dumont's shareholders on which company has the better value.    On the one hand, Dumont is the aggressive partner, since they are the one doing the acquiring.  On the other hand, Clifton is the holder of most of the properties, and Dumont has to pay several million to acquire each of the many properties.  This is a very complex deal.  I do not like JV agreements due to the complexity of trying to determine ownership. 

    SML.V SMLZF.PK (STEALTH MNRLS) 604-306-0391 Bill McWilliam, Chief Executive Officer
    48 mil shares  (August 31- 02)
    @ $.51/share  Cdn x .75 US/Cdn = $.38
    $18 mil MC

    50 mil shares fully diluted (including 15 mil new PP)
    @ $.405/share Cdn x .75 US/Cdn = $.30 US
    $15 mil MC
    NBG.V has a gold deposit in Brazil that's bigger than the silver project in Mexico.
    " If the deposit extends to considerable depth, as do many of the silver deposits in the region, it is reasonable to assume a deposit of 300 million ounces of silver."
    Stroud Resources, JV partner, lists the deposit at 150-300 million oz.
    NBG.V partners with SDR.V
    NBG.V to get a 50-70% interest.
    50% x  150 mil oz.= 75 mil oz., 70% x  300 mil oz. = 210 mil oz.
    $15 mil MC / 75 mil oz. = .20 oz.
    $15 mil MC / 210 mil oz. = .07 oz.
    Exploration potential = 37 - 105 oz. per oz. worth of shares.

    SDR.V SDURF.PK (STROUD RSCS) (There is no PK symbol as yet) Mr. George E. Coburn, President Tel: 416-362-4126
    Fully Diluted 69,745,562
    @ $.21/share Cdn x .75 US/Cdn = .16
    $11 mil MC
    JV partner with NBG.V on Santo Domingo Silver Project in Mexico.
    150 to 300 mil oz. exploration potential of the deposit.
    ownership is between 30-50%, so... 30% of 150 mil oz.= 45 mil oz., and 50% of 300 mil oz. = 150 mil oz.
    $11 mil MC / 45 mil oz. =
    $11 mil MC /150 mil oz. =

    * CBE.V CBEFF.PK (CABO MINING) (I own shares) (604) 681-8899 John Versfelt, President
    Fully diluted subtotal, including shares needed to acquire two drilling companies, which is contingent upon a financing.
    = 18,880,436 as of February 9th, 2004 (Post-Consolidated)
    (Plus a proposed $5 million financing to acquire the two drilling companies.)
    @ $1.00/share Cdn x .75 US/Cdn = .75
    $14 mil MC
    Cabo Mining issued a 4 page press release on Jan. 5 detailing their contracts to acquire two drilling companies. 

    I wrote an article on Cabo on February 10th. 
    Market Perspective & Cabo Mining - Hommel

    Cabo announces Second $5 million private placement, at .83/share.

    Although I'm generally wary about excessive dilution, this second PP is well-needed.  The first $5 million PP was primarily for the drilling companies, and the second will allow the company to explore the Cobalt properties better. 

    Cabo has exposure to silver, cobolt, nickel, gold, diamonds, and drilling companies.

    Regarding the contracts to acquire two drilling companies in Canada:  With all the money raised lately by so many companies to do exploration work now that precious metals prices have increased, I think drilling companies will be very busy making money.  This will give the company positive cash flow after they raise the money to acquire the drilling companies.

    Cabo had a significant discovery, as indicated in a press release on Feb 4.  Some of their grab samples have very high percentages of Cobalt and Nickel.  One vein grab sample was almost 30% nickel, (2 over 20%), which is at $7/pound.  Three samples were over 3% Cobalt, which is at $30/pound. 

    To learn more about the mining camp town of Cobalt, there is a fascinating article detailing the history of the camp at

    I own shares of CBE.V

    87 mil shares fully diluted (Jan 9, 2004 press release)
    (Previously, I had listed a number of 114 mil shares, which was, apparantly incorrect.  I don't know how the mistake was made, or what my source was for the 114 mil shares.)
    @ $.255/share Cdn x .75 US/Cdn = $.17 US
    $15 mil MC
    indicated = 63,400 t x 2738 g/t x .03215oz./g = 5.6 mil oz. silver
    inferred = 2100 t x 1,433 g/t x .03215oz./g = .1 mil oz. silver
    "gross in-situ value of mineralization is $31.4 million."
    EXN to own 51% of the project.  Apex is the joint partner. 51% x 6.2 mil oz. = 3.16 mil oz.
    (Company expects 114 mil shares fully diluted after takover of Destorbelle, needed to bring project ownership up to 51%)
    $15 mil MC

    Additional comments: "Excellon exploring and developing".... "a Bonanza grade Silver deposit in Mexico."   The geologist, Peter K.M Megaw, is also working with MAG.V.  From J. Taylor's write up on 2002: "After subtracting capital cost of US $1.8 million, custom milling charges and operating costs, management believes this underground development mine can, over the next two years, generate US $15.8 million or nearly $8 million for EXN's 51% share." The company plans to use these proceeds to further drill and explore the property.  They believe the property may contain significantly more silver, as if what's known is only the tail of the tiger; furthermore, they believe they can fund exploration by mining the high-grade silver deposit that has been partly drilled.

    20 million shares fully diluted
    @ $.98/share Cdn x .75 US/Cdn = US $.73
    $15 mil MC
    "Esperanza Silver Corporation is solely dedicated to the identification, acquisition and exploration of new silver projects."   Looking for high grades.

    39.2 million shares fully diluted
    @ $.50/share Cdn x .75 US/Cdn = $.375 US
    $15 mil MC
    --About 6 properties in Peru  (I wonder if Peru presents a significant political risk, given what happened to MAN.TO, or whether that was an isolated case in Peru?  I don't know either way.)

    Fred or Grant Brackebusch
    21.3 fully diluted Feb. '04
    @ $.75/share US
    $16 mil MC
     New Jersey Mining Company (NJMC) is engaged in exploring for and developing gold, silver and base metal ore reserves in the Coeur d'Alene Mining District of northern Idaho also known as the Silver Valley - one of the world's richest silver districts.

    Bill Hoyt, 785-383-9246
    " 2.3 million shares outstanding, positive working capital and no debt "
    @ $5.00/share US
    $12 mil MC
    Historic estimate: "defined Conjecture mineral reserves of 706,000 tons grading 11.8 ounces per ton (oz/t) silver"
    -- the Conjecture Mine, with a lease-option agreement signed with Shoshone Silver Mining Company
    = 8.3 million ounces of silver (leased out)  Since Chester will be receiving royalties, it makes it harder for me to value this company.
    $12 mil MC

    KG.V KDKGF.PK (KLONDIKE GOLD) (I own shares)
    70 mil fully diluted (Nov. 2003)
    @ $.26/share Cdn x .75 US/Cdn = $.20 US
    5 year high .30
    $14 mil MC

    This company has many silver and gold properties.  Some of the people are also involved with GNG.V, Golden Goliath.

    Klondike has one silver property that could be producing within weeks.

    (I own shares of KG.V)

    32.4 mil shares fully diluted
    @ $.375/share Cdn x .75 US/Cdn = $.28
    $9 mil market cap

    Additional comments:  Silver Explorer in Mexico in the the Sierra Madre mountains: Uruachic.
    Doing active drilling on their silver property, Las Bolas, "in a month" (as of Oct. 7th).  They hope to take a collection of old silver mines and make them open pittable.  They have some very high grades from chip samples from the tunnels, ranging from 100g to 500g all the way up to around and over 1000g/ton of silver.

    25.6 mil shares outstanding (3q 2003 report June, 2003)
    @ $.485/share Cdn x .75 US/Cdn = $.36
    $9 mil MC

    * KRE.V KREKF.PK (KENRICH ESKAY) (I own shares)
    Toll-free 1-888-805-3940
    16 mil shares outstanding   Use "fully diluted" to be safe.
    @ $.78/share Cdn x .75 US/Cdn = .59
    $9 mil MC
    Adjacent to Barrick's silver property, Eskay Creek, which is "the fifth largest silver producer in the world".
    70% of The Property was once almost bought by Homestake (which was acquired by Barrick) for $35 million in 1996.

    I own shares of KRE.V

    Fred Davidson President (604) 681-9501
    16.8 million Fully Diluted  (June 30, 2002)
    @ $.75/share Cdn x .75 US/Cdn = $.56
    $9 mil MC

    Michael Townsend, President Toll Free: 1-866-669-9377 Richard one of the IR guys.
    38.7 fully diluted? (Jan 7, 2004)
    @ $.22/share Cdn x .75 US/Cdn = $.17 US
    $6 mil MC
    see also Teuton Resources Corp (TUO.V)

    Additional Comments:  --Bonanza grades.  Newmont called them, noticed the property.  Flew out a guy.  El Tigre in Mexico: gold/silver  bonanza style mineralization.  Top grades:  62g/T gold 15,500g/T  silver historic production, from trenching and surface sampling in late 90's.  Cash on hand: $500,000 CAN

    Bill Hoyt, 785-383-9246
    12 mil shares
    @ $.65 US
    $8 mil MC
    In Cour d'Alene, near CDE, HL, & SRLM.PK

    16.3 mil shares outstanding
    (fully diluted?)
    @ $.50/share Cdn x .75 US/Cdn = $.375 US
    $6 mil MC
    Bonanza grade "grab samples" in southern Argentina near IMA

    * AUN.V AUNFF.PK (Aurcana Corp) (I own shares)
    CEO Ken Booth 604-331-9333
    45 million shares (fully diluted) (March 2004)
    @ $.17/share Cdn x .75 US/Cdn = $.13 US
    $5.7 mil MC
    Drilling to commence on high-grade, gold-silver targets. (in Mexico)

    (I own shares of AUN.V)

    SRY.V (STINGRAY RSCS) (416) 368 6240
    5.9 mil fully diluted
    @ $1.05/share Cdn x .75 US/Cdn = $.79
    $5 mil MC
    - Current projects centered in the Sierra Madre Belt of Mexico

    66 mil fully diluted Jan, 2004 (From Dec 11, 2003 press release and 2002 report)
    @ $.15/share  Cdn x .75 US/Cdn = .11
    $7 mil MC

    17.2 fully diluted
    @ $.29/share Cdn x .75 US/Cdn = $.22
    $3.7 mil MC
    Silver projects:
    Yukon --grab sample of 611 g/t Ag
    Argentina --samples from 31 to 5640 g/t Ag

    Dino Cremonese, P.Eng. President (604) 682-3680
    20.6 mil fully diluted (July 28,2003)
    @ $.35/share Cdn x .75 US/Cdn = $.26
    $5 mil MC
    "Management of Teuton and Lateegra are highly encouraged by the prospective results from the Del Norte exploration to date
    located in the Eskay Creek region"

    2.75 million shares issued
    @ $1.50/share
    $4.1 mil MC
    Claim between CDE and the old Sunshine mine.
    JV with CDE subsidiary until 2017.  ASLM to receive 20% net royalty, & if silver prices reach $16.50 an ounce or above, the profit sharing goes to 40%. 
    Coeur d' Alene, Idaho

    14.3 mil fully diluted (July 15, 2003)
    @ $.20/share Cdn x .75 US/Cdn = .15
    $2.1 mil MC

    Guilford Brett, IR (604) 682-2421
    9.2 mil shares outstanding
    @ $.20/share Cdn x .75 US/Cdn = .15
    $1.4 mil MC

    Final Category: Silver stocks FOR YOU and I TO RESEARCH further:

    I strongly recommend you try to "get ahead of me," and research these stocks to see if I left out any great values.  I probably did.  I simply did not have time, or could not yet find information (without using the telephone) on all the two key figures needed to get the "price per oz." in the ground.  You need: 1.  The number of shares fully diluted x share price to get the market cap.  Then, 2., you need an estimate of the oz. in the ground.   Usually, I've been finding the oz. in the ground resource estimates right off the company webpages, and I get the number of shares by looking for it burried in the financial statements like the quarterlies or annual reports, which are also usually right on the company webpages.    Have fun researching for silver companies, and let me know if you find any good ones, and I'll add them to this list.

    Jay Oness Toll Free: 1-888-456-1112
    # shares uncertain.
    three main properties in North America
    @ $.???/share Cdn x .75 US/Cdn = $.53 US

    QTA.V is a Sister Company to Western Silver, WTZ above. 
    Planet Exploration Inc.
    Planet holds an option to acquire a 100% interest in the high-grade 7,005-hectare Copalquin gold/silver property located in Durango, Mexico.
    "Resource estimates on the property have not been calculated since the discovery of the high-grade vertical fault zone, its existence may significantly alter Kennecott's and Fransisco Gold's original target potential of one million ounces of gold and 50 million ounces of silver based on their interpretation of a low-grade horizontal quartz breccia formation."

    Grand Central Silver Mines Inc (GSLM.PK)

    ATN.TO/ATNAF.PK (Atna Resources Ltd.)
    37.1 mil shares fully diluted ???
    The company holds a diverse portfolio of gold, silver, zinc and copper properties in the United States, Canada, Mexico, and Chile.
    37 M shares (fully diluted)
    (Wolverine) 40% of 2300 Mg Ag = 30 Moz Ag
    + (Marg) 67% of 340 Mg Ag = 7,5 Moz Ag
    + (Wolf) 67% of 340 Mg Ag = 7,5 Moz Ag
    + (Nevada explorations) 40% of ?
    + (Ecstall) 140 Mg Ag = 4,7 Moz Ag
    The Wolverine Project is a joint venture between Atna (40%) and Expatriate Resources Ltd. (60%).

    Legend Mining LEG.AX LGDMF.PK
    specialising in exploration and production of silver.
    Silver at the Munni Munni Joint Venture in the West Pilbara region of Western Australia
    Email to me said: "Legend Mining just bought a 70,000 ounces per
    year gold mine in Western Australia."

    Malachite Resources MAR.AX

    Mountain Boy Minerals Ltd (MTB.V)
    TEL: (250) 636-9283
    high grade samples:  3640 g/T Ag to 45.5 g/T Ag

    Mascot Silver Lead Mines MSLM.PK
    Coeur d' Alene, Idaho
    "Though we have reserves and could conceivably mine them, it frankly makes no sense to do so at current prices. ... The end of the silver bear will bring a number of the now-dormant small companies back to life..."

    Silver Buckle Mines Inc (SBUM.PK)
    Coeur d' Alene, Idaho

    Merger Mines Corp (MERG.PK)
    Coeur d' Alene, Idaho

    Silver Bowl
    Coeur d' Alene, Idaho
    --working to get a new stock transfer company 216,559,942 Fully Diluted shares
    oxus will spin off:  Khandiza is a high-grade zinc, silver, copper and lead deposit located in the Sariasia region of southeast Uzbekistan.

    Silver Mountain Lead Mines Inc (SMLM.PK)

    Silver Verde May Mining Co (SIVE.PK)

    Metropolitain Mines Ltd (MEMLA.PK)

    Silver Surprize Inc (SLSR.PK)

    Standard Silver Corp (SDSI.PK)

    Horn Silver Mines Co (HRNS.PK)

    Andean American Mining Corp AAG.V ANMCF.PK
    --concentrates solely in Peru
    Peru currently stands as the largest gold producer and second largest copper producer in Latin America as well as the second largest silver producer in the world.

    Langis Silver & Cobalt Mining Co Ltd  LSM.V
    Phone: (416) 628-5936

    Silver Butte Mining SIBM.OB
    (mine abandoned in 1996, copper/zinc waste water?)

    Articles like this one, that present opportunities like these, can tend to move the markets in these stocks. So, be careful when buying. If you place any market orders at the open for any of these small stocks, you might end up buying at prices that are significantly higher than you intended.  Limit orders might be better, but then, you run the risk of your order not being filled if the stock price exceeds your limit.  And bid / ask spreads such as 15% on small cap silver stocks are not unusual.  Markets can especially be moved given the wide readership on the internet. I've seen markets moved even by small private newsletters such as and (I subscribe to both). Some of these stocks can move up 15%, 30%, 50% or even over 100% in a single day. Thus, valuations can change very, very quickly. So, be careful, and re-check the numbers if the prices move up. Do your own math.

    Also note, the majority of these companies have an emphasis on silver.  Most silver is produced as a by product of other mining, like lead or zinc or copper mining.  Those companies that primarily produce other minerals are not featured in this report.  This also helps to explain and prove, that silver is undervalued.  If silver miners cannot mine silver profitably, and this report shows that to be true, then something is wrong with the silver price.  It must go higher.

    This report, and my method of valuing silver companies, depends on a much higher price for silver than exists today to be most accurate and most successful.  If silver prices go up significantly, my picks will do well.  If silver prices remain flat, then many of my picks should not do well. 

    To learn more about the silver market:

    For information from the SEC on how to protect yourself from a "pump & dump" scam, see

    Several people have told me that they don't get information this good even when they sign up for annual newsletter subscriptions from others that cost from  $100 - $300.

    The beauty of the internet is that it is helping knowledge to increase, and it is a form of communication that those who commit crimes of monetary fraud upon us cannot control.  Please make the most of it, and please forward this on to others.

    You can help to make sure you can keep getting this report for free if you sign up at

    Jason Hommel

    Final Disclaimer:  I have not received any compensation from any public silver stock company for writing up my weekly report on "Silver Stocks--Comparative Valuations".  I own shares of the following 14 silver stocks: AUN.V, EDR.V, IMR.V, KG.V, (MGN) MNMM.OB, CBE.V, NPG.V, SVL.V, MMGG.OB, TM.V, OTMN.PK, FCO.TO, KRE.V, FR.V.  These are required disclaimers by the SEC: whether I've been paid, and what I own.   I believe the SEC intended this to be a cautionary note that I own these shares, not as a recommendation or endorsement.  I reserve the right to buy or sell any stock at any time.  I believe the SEC does not requrie a disclosure regarding finder's fees.  Nevertheless, I have begun to receive "finder's fees" from a few companies. 1
    -- Posted 20 March, 2004 | |

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