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Featured Video
Has the Job Market Turned Around?
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Video posted by Donald Yufi.
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Dear Members,
On November 15, 2009, we announced a special feature report
(click here for the report) on one of our favourite silver stocks, Silvermex Resources (TSX-V:SMR) when it
was trading at CDN$0.32.
On Friday, they finally announced the closing of the
Rosario Project acquisition.
Silvermex Resources (TSX-V: SMR) closed this Friday at CDN $0.45.
It's great to see Silvermex (TSX-V:SMR) shares trading higher and
building support. However, their news release couldn't have come at a worst
time as Gold and precious metals stocks fell sharply on Friday.
But as we looked deeper into their news release, something struck
us.
More on that in a bit.
Friday was not a day for Gold. It took its hardest one-day
fall in over a year after a surprise drop in the U.S. unemployment rate sparked
a rally in the U.S. dollar.
Barrick Gold, the world's biggest gold producer, fell
8.7 per cent after the 9th U.S. Circuit Court of Appeals ordered a lower court
to consider shutting down Barrick's $10-billion Cortez Hills mine in Nevada
while the project's impact on the environment is examined more closely. Goldcorp, the second-largest gold miner fell 5.9 per cent. IAMGOLD dropped 5.1 per cent.
Friday was not a day for gold.
But have no fear. Inflation is near.
The U.S.'s budget deficit is now 13% of GDP. President
Obama is continually looking to announce new trillion-dollar programs. You have heard it all before: Health care, cap-and-trade, expanding wars in Afghanistan, and whatever
else is on his list of things that require big money.
Total debt for the U.S. is 90.4% of GDP for 2009 (without
adding in unfunded liabilities like Medicare and Social Security.) According to
the IMF, the US-public debt is expected to hit 93% of gross domestic product
next year but other smart money analysts are predicting that will be much
higher.
Take a look at the current estimated real-time debt clock for the US:

click above for real-time debt clock
Japan's public debt could reach 227% of GDP in 2010 -- greater than the
combined annual economic output of Germany, France, Britain and Canada.
At the time of this writing, the US debt sits at over $12,080,600,000 - over
$12 trillion dollars. That's roughly $111,045 of debt per US taxpayer.
What makes it even worse for Americans is that their government owns its own
printing press - and it's not afraid to use it.
Remember a year ago when Bush sent everyone a $300
check? Cost: $152 billion. Result: Nothing.
Then the TARP gave failing banks $700 billion and, in
effect, nationalized them. Result: Bankers sitting around a hot tub after
receiving big bonus cheques.
Cash for clunkers? Need we say more?
Last year, the US spent $253 billion in interest to service
this debt. By 2019, that interest payment could reach $675 billion on the low
end. These interest payments are based on the fact that interest rates will
stay low and the economy can ramp back up to 5% growth. But truthfully, a more
likely scenario is that interest rates will rise significantly by 2019 to
combat inflation.
That's why our overall long term outlook on gold remains
bullish.
The smart money knows that the dollar will continue to fall. Hard assets
like gold, silver, and foreign stock markets will continue to go up. Eric
Sprott, who manages billions in assets, and correctly predicted in March of
2008 a "systemic financial meltdown" says:
"I believe no matter what environment you're in - deflation or inflation -
people will run to gold," Sprott said. "Gold is proving exactly what we all
would have expected, that in almost any environment, it's a go-to asset."
Sure gold may take its dips but in the end, it will continue its climb.
Next
week, we'll discuss the many points why we believe gold will continue its long
term run and give you an idea of what the big money players are doing.
But for
now, lets not forget silver!
Unlike gold, silver
is used in more commercial and industrial applications. The list is extensive -
electrical contacts, mirrors, jewellery, currency coins, photographic films and
as a catalyst in many chemical reactions.
Like gold, silver production is dropping. Much of it comes as a by-product
of other mining and refining, primarily lead and zinc (which both fetch for
just over $1/lb at current prices).
But due to plummeting prices created by
over-supply, many lead and zinc mines were mothballed back in 2008. As a
result, silver production stalled with lead and zinc - and inventories are now
at historic lows.
That's the supply side of the equation. But what about industrial demand? In
short, it continues to rise. So with silver supplies lagging, silver prices are
likely to rise. At these prices, we think silver is
undervalued.
Which leads us back to one of our favourite silver plays and our featured silver company,
Silvermex Resources (TSX-V:SMR).
So lets break down Friday's news release so you can
see what struck us
Their acquisition of the past-producing Rosario project, strategically
located within 5 kilometers of their San Marcial Silver Project, now gives Silvermex all facilities and infrastructure
at Rosario including:
-
20 year surface rights agreement in good standing
-
30 year water use permit
-
Underground workings and a tailings dam
-
Water access
- 60 km - 33 KV power line
- Offices, shops,120 man camp, infirmary,
warehouses and assay lab.
The previous owner invested approximately $11 million in property payments,
exploration, upgrades and renovations to the mine and mill site including
upgrading of electrical substations and wiring, camp and accommodations, mine
dewatering and detailed engineering of an 800 tonne per day (t/d) mill designed
to be installed on the existing foundations and structures.
Historic production on the Rosario Project by Grupo Mexico, the prior
operator, averaged 600 t/d from 1986 to 2000. During this production period a
total of 2.5 million tonnes of ore were extracted which averaged 190.5 grams
per tonne (g/t) silver, 0.92 g/t gold, 2.02% zinc and 2.38% lead.
The Rosario project is comprised of 2 past producing mines, the Plomosas-La
Cruz mine and the San Juan Mine and were both operated by Grupo Mexico until
2001. Operations were ceased in 2001 due to low metal prices and a regional
labor dispute.
Now be sure to keep in mind that everything we're stating
regarding Silvermex's properties, with the exception of their San Marcial Silver
Project, are historical facts and are non-NI 43-101 compliant.
Take a closer look at some of these underground channel samples from Plomosas-La Cruz Mine:

Combine the high grade gold from these samples with the silver, lead, and zinc from these select samples and the rocks could be worth a lot of money!
Lets break it down a little more.
If we used a gold price of $1150/ounce, a silver price of $18/ounce, a lead price of $1/lb, and a zinc price of $1/lb, these are the results we get for the value of each tonne of rock from the above samples:
Sample
In-situ Metal
Value $/tonne
866
$1598.346/t
867
$1022.839/t
869 $1713.844/t
882
$313.2617/t
883
$2877.026/t
885
$1273.467/t
891 $1189.951/t
894 $1540.375/t
895
$1499.416/t
931
$782.0579/t
932
$483.5413/t
934 $644.2071/t
935
$1537.629/t
936 $921.0720/t
939 $1140.487/t
1244 $501.0800/t
1245 $605.9409/t
1251 $1216.938/t
1252 $694.2500/t
1257 $512.4797/t
1258 $850.6613/t
1261 $787.3339/t
1262 $310.5670/t
1263 $886.3744/t
Although the above are just samples from a non-43-101 report, those are numbers that should give any mine-savvy person goosebumps.
Now take a look at the San Juan samples:

The zinc, lead, and gold in the samples are not as high as their Plomosas-La Cruz samples, but look at the grades of silver!
The silver grades in the San Juan samples range from 223g/t all the way up to 1735g/t!
Now lets revisit their NI 43-101 compliant project, the San Marcial
The current mineral resource at San Marcial includes an indicated
mineral resource of 18.0 million ozs silver, 55.3 million lbs of zinc
(Zn) and 29.9 million lbs of lead (Pb) and an inferred mineral resource
of 4.4 million ozs silver, 34.7 million pounds of zinc (Zn) and 19.5
million lbs of lead (Pb).

Take a look at drill hole SM-4 where the interval is 53.95 metres grading 235 g/t.
Preliminary resource modeling has already determined that the resource at San
Marcial hosts a near-surface, potentially bulk-mineable, high-grade
resource of 1.13 million tonnes grading 321 g/t containing 11.6 million
ounces of silver. The existing resource is open at depth and along strike and has been traced on surface for 1.6 kms.
When we featured Silvermex Resources (TSX-V: SMR), we based a lot of our excitement
on their management team and their board which now includes big names from Silver Standard, Hecla Mining, and Timmins Gold. With the announcement of their recent acquisition, we couldn't be happier.
Until next week,

Questions?
Call Us Toll Free: 1-888-EQUEDIA (378-3342)
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Zacks Investment: Thoughts On Dubai Crisis And GDP Revision
Zacks Investment panelists discuss the impact of the Dubai credit
crisis on the U.S. stock market and react to the revision of 3Q GDP and
drop in initial jobless claims to a 14 month low.
Click the video to play.
More Zacks videos:
> Upgraded Broker Ratings > Why Some Have More 'Luck' In Options Than Others > Growth & Income Stock Picks - December 3, 2009 > Aggressive Growth Stock Picks - December 1, 2009 > Value Stock Picks - November 30, 2009
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The Future of America's Natural Gas
By Dr. Marc Bustin, Editor, Casey Energy Opportunities
Marc BustinPh.D., F RSC, is the senior researcher for unconventional oil and gas for Casey Research.
Considered to be one of the top authorities in the world, Marc is the go-to expertfor
multinational oil and gas conglomerates, and is brought in to help
evaluate finds around the world. Marc has reviewed more projects on his
own than some exploration teams put together.
Recently, at the Casey Research Energy Summit
- a two-day event showcasing the top minds in the energy industry - a
small group of investors became privy to Marc's take on the future of
natural gas... his prediction for where prices are heading next year...
and some of the companies he believes will profit when natural gas
takes off.
For an excerpt of Marc's presentation, read on...
Click Here to Continue Reading
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Technical Trading with Harry Boxer Harry Boxer has more than 40 years of Wall Street investment and
technical analysis experience, including eight years on Wall Street as
chief technical analyst with three brokerage firms.
Watch the video as he walks you through his technical analysis on Advanced Micro Devices, A-Power Generation Systems, China Green Agriculture, Genco Shipping and a whole bunch of other stocks. To see more videos, Click Here. Like his analysis? Click Here to receive a Free
15-Day Trial to Harry Boxer's Real-Time Technical Trading Diary for Equedia
members.
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Equedia's Newest Feature - Embed Videos
Is there a video on Youtube or another website that you want to post without uploading it through our technology?
With our new Embed feature enabled, you can now upload and embed any object or video into your blog post. Many of our users are already embedding videos from Fox, Youtube, and CNBC and sharing them with our users.
Embedding is simple. Just copy and paste the embed codes from another website ino the main blog section of your post (not the exceprt).
Where do you find these embed codes?
Embed codes for videos are usually right beside a video.
Here is an example of where the code is on Youtube, highlighted in yellow:

So share what you find with everyone! To learn more, feel free to email or call us at 1-888-EQUEDIA
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Equedia Tips - The Markets Tab
Using the search function at the top right corner of the website, search for any company. Let's use Research in Motion as an example. Once you reach their profile page, click on the MARKETS TAB. You should now see 12 seperate tabs underneath their logo. Try clicking on them and you will find in-depth information such as:
Detailed Quotes - Depth/Level II - Options - Java Charts - News - Profile - Financials - Insiders trades - Filings - Analyst Consensus - Earnings - Historical Data (Highs/Lows, Volumes, Closing/Opening Prices) |
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Build You Network and Invite Your Email Contacts
You can invite your friends to automatically join your network using your email contacts from:
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or
You can manually add your friends' email addresses by typing them in (or copy and pasting from any text documents)
Just log in with your username and password and click here:
So whether you are a media user or investor, invite your friends now and build your network of investment traders and professionals. Here are some obvious benefits to having a large network:
- Improved credibility to your work and news feeds - the more friends and people you have in your investment network, the more likely you will attract new friends and followers
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Of course, there are many more benefits to inviting your friends but should you give it a try yourself.
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Additional Features (you may not know)
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Here are just a few of them:
Calendar subscriptions: Keep track of your business events, subscribe to other events, and have access to your online calendar from anywhere in the world. In the near future, we will be working with public companies to add their events to the calendar so that shareholders will never miss an important event again. So call your companies and get them to participate!
Tagging companies to videos and images: Did you know that all of your videos and images can be tagged to public companies? Do you have a video about Google? How about a blog with an image? How about just a blog? Tag it to Google in your blog post, so that anyone searching for Google's quotes and finances can find your coverage!
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Blog feed subscriptions: Once you add someone as an associate, you will have access to all of their blog posts through your blog feeds. Simply go to your "blog feeds" tab once you log in!
Search function: By far one of the most overlooked but important functions on Equedia. Using the top right hand corner search function, you can find and add any corporations, media users, or investors to your network.
Markets Tab: Under any corporate profile, you will find this tab. Under this tab, you can find the company's news, level 2 depth (delayed), options, charts, profile, financials, insider trades, filings, analyst overviews, earnings, and historical data (these may not be available for all companies)
There are many more useful features on Equedia.com but we think its better if you experience them for yourself. The more associates you have, the more useful Equedia will become for you. So use the new "invite my contacts" function and get started!
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Forward-Looking Statements
This Newsletter and report contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect out current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the companies in this report do not intend to update any forward-looking statements to conform these statements to actual results.
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Companies Under Evaluation
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Disclaimer and Disclosure
Regarding Historical Data: All resource estimates presented in this report for Silvermex other than their San Marcial project are historical and were prepared before the introduction of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
Historical resource estimates may not be relied upon until they are confirmed using methods and standards that comply with those required by NI 43-101. The potential for the exploration target to replicate the historical resource, or to reach the indicated range of tonnages, is conceptual and is based on historical reports, which cite approximately lengths, widths, depths, grades and projections of the historical resource. Readers are cautioned that a qualified person has not completed sufficient exploration, test work or examination of past work to define a resource that is currently compliant with NI 43-101 for historical resource estimates in the Silvermex Reports. We further caution that there is a risk that exploration and test work will not result in the delineation of such a currently compliant resource. Neither Silvermex nor its personnel treat the historical resource estimate or the historical data as defining a current mineral resource, as defined under NI 43-101, nor do they rely upon the estimate or the data for evaluation purposes; however, these data are considered relevant and will be used to guide exploration as the Company develops new data to support a current mineral/resource estimate in accordance with the requirements of NI 43-101.
For more information on Silvermex Resources, investors should review the Company's registered filings that are available at www,sedar.com.
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