Timmins Gold has shown strong relative strength in this market sell-off. Some thoughts on them include:

Company having completed its first year of commercial production has experienced a smooth transition from explorer to developer to producer.

Their initial mine plan years ago called for a 10,500 tonnes of ore per day operation generating 80,000 oz/yr with a 5 year mine life which has now gone to a completed expansion of 18,000 tonnes of ore per day generating 100,000 ozs/yr with the same 5 year mine plan. This expansion is fully funded, complete, tested and operational as of August.

They’re expecting to be adding one more portable crusher this fall which should enable their operation to quickly take us to crushing 25,000 tonnes of ore per day, which should add another 20,000 to 30,000 ozs of gold per annum.

Last year they completed drill program with limited capital up to June of 2010 and as a result were still able to expand our resources and reserves to the following:

Reserves went to 780,000 ounces from 611,000 and in all categories went over 1,200,000 ounces (It is important to note most of what they have been finding in inferred moves quickly into M&I due to the tight drill spacings)

Since June of 2010 – June of 2011 we completed over 85,000 meters of additional drilling in and around the main pit. The data is currently being processed for an updated NI43-101 update in the not-too-distant future. I feel comfortable to say that in addition to new ounces the life of the mine could quickly expand and thus significantly increasing their Net Present Values.

In addition, they now have on site working 9 drills (6RC and 3 Core) drilling over 20,000 meters per month which at this rate can add up to over 120,000 meters drilled before year end. At the rate they have had success on drilling this could be really add more ounces quickly.

The last two drill results published March 18th and July 14th had some of their best numbers to date. They’re also now drilling beneath the main ore body (main pit) and I’m told they’re quite happy with what they see beneath the pit.

TMM also have added two new management members to Company:

Colin Sutherland CFO, was former CEO of Capital Gold

Paula Rogers Director was formerly with Goldcorp and Wheaton River

One of our biggest hurdles was to remove and replace the 19% share block (26.5 million shares) of Pacific Road Capital which was quickly purchased by several well respected institutions in Canada and the United Kingdom. They took a $.90 dollar cost average block and replaced it with at $2.51 price. This fund was in the Company for over 3 years. Their original mandate was met and I’m told they needed to sell out to capitalize a new fund they created. Removing this block removes a huge cloud which was present in TMM’s market for months.