robert quartermain gave an interview at financialsense.com (at the end of the second hour) and said everything is on track at pirquitas and their other projects. the mill and most of the other significant components are on site, the 40km gas pipeline is installed, and the generators are there.

by the end of september they hope to start commissioning the power plant, ahead of schedule. the training of the workforce is going well, and they are already mining 20-30,000 tons per day. the nearby communties are providing 80-90% of the local workforce.

the priquitas project is still robust, even with these commodity prices. these silver and tin prices are still higher than those used for the reserve calculations. the work on pitarrilla is underground now, with pre-feasibility expected around the end of the year, and a full feasibility study in 2009.

at san luis the resource evaluation will be completed soon, and a few months from now they will have better numbers on future production from pitarrilla and san luis, once the studies are done. in 3-5 years the company will be a significant silver producer.

currently each share is backed by 27 ounces of silver, but the market cap per ounce is much lower than its peers. the market cap is around $1/oz while producers like pan american, hecla, coeur and silver wheaton are valued at $3-6/oz. they expect a revaluation when the company becomes a producer. the market is adopting a wait and see attitude toward bringing pirquitas into production.

the next two quarters will be critical. the company needs to get the mill up and running, start producing concentrate, and selling it. over time they expect a re-rating with recognition in the marketplace of the net asset per ounce in the ground.

anything that delays production would be negative, but they have covered all of the bases at pirquitas. metals prices and political issues are beyond the company's control, but they don't see anything going wrong at pirquitas. they are meeting all of their milestones needed to commission in the fourth quarter. the silver price is ok even at $12, and the argentine economy is improving, and recently repaid debt to the europeans.

they have good relations with all levels of government. the communities are engaged, and more than 100 locals are employed. silver mining has been well established in the area since the 1930's.

the short interest is now 7.6%, which could be a problem for the shorts because most of the shares are in strong hands, held by long term investors. he said some shorts may be assuming they can cover the next time the company does a financing. but there aren't going to be any more financings. the company is cashed up, and its production growth will be organic. the growth profile is excellent, and they are always looking to add accretive value for shareholders.

in that regard, the company may actually benefit from the credit crunch. they are looking at projects that may now be of interest due to the pullback in prices.