Silvermex Resources Ltd.

"Silvermex Resources Ltd. is using the same model [as Sandspring], beginning work on a project that's had previous work done on it, looking at it from a new geological perspective and bringing new ideas. Silvermex actually took it one step further. In addition to a deposit that's interesting geologically, close by they bought a processing plant that another company had shut down. Silvermex put these two pieces together—a deposit that had some historic work and a nearby mill—which should give them a fast track to production."
    -   The Gold Report Interview with Lawrence Roulston (02/19/10)

"I've recently added Silvermex Resources Ltd. to the Advanced Explorers. Silvermex is a new management story. CEO Duane Nelson has just brought on Mike Callahan and Art Brown to help him manage the company. These are retired Hecla executives who could make this a very exciting story in 2010. Duane also added two new board members, Joe Ovsenek and Ken McNaughton. They both work for Silver Standard and have been involved many significant discoveries and mine developments. This quality of people doesn't get involved in a junior company unless they really see something they like.

Silvermex has an option on the San Marcial property, a near-surface deposit of over 20 million ounces of high-grade silver in Sinaloa State. They also just bought the old Rosario Mine from Aurcana Corporation. This is a mine that was operated by Grupo Mexico in the 1990s and was shut down due to labor issues and low metal prices. The infrastructure at Rosario will allow Silvermex to fast-track San Marcial into production. There is also a couple of years' worth of production left behind by Grupo at Rosario that is very economical. There is significant exploration potential at the old mine, at San Marcial and within the district. Either of these projects on their own may not have been developable without a lot more exploration, but together they make a very powerful story and a near-term silver producer."
    -   The Gold Report Interview with Trey Wasser (01/11/10)

"In an interview on King World News, 'Mr. Gold' Jim Sinclair, spoke of the mortal danger that 'onerous underwriters' pose to a mining exploration company. Since exploration is capital-intensive, a lot of money goes into the ground before any gold/silver comes out. The management has to exchange shares for a loan—generally the only money coming into the explorer—which the underwriter then sells into the marketplace, depressing share price.

Sinclair says, 'The whole play for the companies is to get out of exploration alone, into production in which they can make more money than the day-to-day expenses, and avoid Wall Street financing. . .It would appear that Silvermex Resources, via its Rosario silver/gold/lead/zinc mine and surrounding past-producing properties, along with indications of a significant near-surface ore body, has been handed the opportunity and is developing the strategy by which to fulfill Jim Sinclair's dictum of 'graduating' from an externally financed exploration company, to an internally financed (through production) mid-tier silver producer. And if their near-term strategy, supported by a well-conceived business model is successful, they shouldn't have to 'use a shovel' to get themselves onto the profit side of the ledger.

Sinclair concludes: 'Any junior which has this opportunity, should stop looking towards markets and go for that opportunity. . .if you have to use a shovel!'

. . .The existing Rosario Mill Site is the linchpin in the Silvermex plan to turn itself into a near-term silver producer.

Having in its possession a previously-permitted mill site, which can be reconstructed and put back into production in a relatively short time, is a major reason why management could be able to jumpstart its efforts toward moving into the producer league. . .significantly cutting down the time AND dollars necessary to do so."
    -   David Smith, The Morgan Report (12/17/09)

"One of the first companies out of the chute in what promises to be a robust December bull market for precious metals is Silvermex Resources, Ltd. or as we might now call it, Hecla Down South. In addition to a star-studded board of directors that now includes former Hecla Exploration Veep Mike Callahan, Silvermex has rearranged itself as a premier mining explorer and near-term producer of precious metals in the Rosario District of Mexico, of Sinaloa State."
    -   David Bond, SILVERMINERS (12/15/09)

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