"...TGR: Let's go back to Timmins. It has the San Francisco Gold Mine in Mexico that's in production, but their mill throughput is a bit lower than it was earlier in the year.

IG: You're always going to have some slight hiccups when you go into production. I've basically financed Timmins from the seed capital days. The management of this company has always delivered to shareholders essentially what they've promised that they're going to do. There have been some delays in the production process, but I'm very confident that they're going to get it right. Their goal is ultimately to produce 100,000 ounces a year. Their cash costs are in the lower $400 an ounce range. It's going to be extremely profitable. The key for Timmins, as I see it, is to expand that resource at the San Francisco mine from about 700,000 ounces to something considerably more than that. I think that the drilling that they've done to date would indicate that they are doing that. We don't have a new resource calculation yet, but the drill results that they've been producing are similar to the results that they had in their previous resource calculations. I think we can comfortably estimate that we're going to see a resource calculation come out that's going to improve that 700,000 to something significantly better than that. If you can get above a million ounces, then we've got a 10-year mine life. If Timmins can generate a multiple of that, the mine life just increases. I think this company is actually very undervalued; it's about $1.40 a share...article continues"

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