Hi Folks:

I engaged in a very interesting and encouraging discussion with Agorcom regarding the ‘Company Q&A Session’ post that was pulled yesterday afternoon. Rather than a timed Q & A session, Jim would prefer to answer our inquiries one at time as they are submitted. This is good news as it appears that he is interested in enlightening us, (the party faithful) without going to press, and of course without releasing material information. So it would appear that the door is wide open for our questions and we can continue to take great comfort in the transparency of our CEO.

I encourage you to formulate sincere inquiries about progress at La Yesca, Xora, Copalquin and McFaulds according to your interest.

I will start the ball rolling with my next post, and I look forward to everyone’s queries and Jim’s responses.

In the mean time I invite you to read the following article posted on Kitco before the price of silver rebounded $0.46 to $18.14. If it can hold > $17.00, I think we will all be extremely happy campers.

Aafab

************************************************************

“22 July 2010, 10:25 a.m.
By Debbie Carlson
Of Kitco News
www.kitco.com

Chicago -- (Kitco News) --Silver prices are posting a rare session of strength Thursday, but generally seasonal factors are a weight, with little reason for this downtrend to reverse in the near-term

Technical chart weakness, a sluggish trade in gold and concerns about deflation are all keeping the white metal under pressure and market watchers said these reasons are putting a lid on prices.

Silver spot prices on Thursday are at $18.18 an ounce, following again the path of gold. September Comex silver futures on the New York Mercantile Exchange in the U.S. morning trade are around $18.17.

Since about April, silver prices have been holding between roughly $17 and $19.80, failing to crack the $20 area. Lately silver has been trading in the lower part of this range, and that could signal prices are set to probe support. This is especially true if gold continues its southbound drift, market watchers said.

Gijsbert Groenewegen, managing partner of Silver Arrow Capital Management, said as prices consolidate at the lower range, it could try to break through the downside.

“Gold could break and silver will not go anywhere but down,” Groenewegen said. “Basically we’ve come to the conclusion that there is no inflation and deflation is more a concern than inflation is.”

David Morgan, founder of http://silver-investor.com/">silver-investor.com, said silver will break $17 in the short-term because of this renewed focus on deflation and the psychology of the market is negative.

Silver has been lagging gold in regards to the gold-silver ratio. Historically Groenewegen said it has been around 52, meaning 52 ounces of silver buys one ounce of gold. Lately though it has traded at 67 and since 2009 it has traded between 75-60.

Morgan also pointed to the decline in price of what he calls “top tier” mining companies such as Gold Corp. and Silver Wheaton. Newmont is also seeing its value fall, he said, which goes with the dip in precious metals prices.

There are geopolitical “wild cards” which could cause silver – and gold – to see a return of safe-haven buying, but unless that occurs, he expects prices to trade in a typical seasonal pattern of decaying into August and start to rebound in September, Morgan said.

Groenewegen said silver’s difficulty breaking through $20 – and the reason why gold is stumbling – is a sign of a cap on the upside to the market. It will take a major event to draw investors back to these precious metals, like an actual sovereign debt default.

“Gold and silver are really profitable when other asset classes are exhausted, they act as a way to preserve capital,” he said.

Groenewegen believes that could happen, but when is up for debate. “You just never know the timing,” he said.

The problems of heavy sovereign debt levels and a struggling global economy make silver and gold attractive and because they are tangible assets rather than paper assets, there is no counterparty risk. It’s the counterparty risk that will send investors fleeing to these precious metals, he said.

Not only are there worries along the lines of sovereign risk that are well known in markets, he said other risks, such as unfunded pension liabilities and refinancing for commercial real estate in the next few years, will keep the financial markets uneasy.

He likes silver “very, very much” because of its unique qualities, noting its use in industrial application. He also noted that central banks no longer hold silver in its assets.

If an unexpected crisis finally takes silver through $20, he said the next upside target is $24. Beyond that is $48, which is where silver ran to when the Hunt brothers tried to corner the market in the 1980s.

Morgan said he believes silver will be over $20 by the end of the year, and could reach $25 as the desire to own gold and silver will return. “It will become apparent that gold and silver to some degree will be the asset of the day,” he said”

********************************************************************************************