Silvermex Resources (SLX.TO)

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Wed, Aug 31, 2011 - 11:11am
mouser
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SLX sitting on a lot of resource

Currently developing and drilling infill and exploratory holes, and i believe trying to get a handle of what is there so they can plan a proper expansion. We know that the shorterm plan is for 400 ton per day at La Guitara by years end, but i cant imagine that being the longterm plan. They have approx 7 million tonnes in proven underground reserves so it would take them 50 years just to mine the underground reserves at that pace, never mind the huge meas and ind resources.

The grades have been terrific, and steady over the past 6 months averaging over 2 gpt gold and nearly 6 ozs per tonne silver with great recoveries. This is one to lock away, great experienced management team, with both developement and ENGINEERING expertise on board

Wed, Sep 7, 2011 - 10:01pm
mouser
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SLX not very promotional

That is likely an understatement. Compared to the likes of GPR and AUN etc.

I am a bit perplexed at the lack of news on the drilling front, and perhaps time to make a call to the company.

Back on April 19, SLX announced they had begun a drilling program. This part of the news release is the question mark...

Re: La Guitara drill program

The entire program is expected to take approximately three to four months to complete. A new QA/QC program has been initiated to improve and ensure the accuracy and reliability of the drill results. Controls include the insertion of appropriate standards, blanks and duplicate samples. Additionally, approximately 5% of the original samples will have a second split submitted to a second outside laboratory for check assaying. Assay results will be released periodically throughout the drill program.

Well, sept 19 wil be 5 months !! Not a peep from the drilling. Last contact with the company said drilling was going well , but no word on how soon for assay results.

Now i cant imagine what the reason would be for the delay, and in all likelihood this uncertainty is holding the stock back despite record gold and very high silver prices. SLX has over a million ozs of gold mixed in the huge pile of silver at La Guitara.

Maybe IR took the summer off and is now trying to get the backlog on press releases ready....

Maybe a buyout is in the works and they are tightlipped about everything,

maybe this great , highly touted management, is great at developing and mining but really suck at investor relations....

Wed, Sep 7, 2011 - 10:13pm mouser
ScottJ
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Silvermex is being targeted

Silvermex is being targeted by naked shorts, as somebody doesn't want this company gaining momentum :\ The amount has been less lately, but that is probably because the share price has been destroyed so they have a chance to cover at profits?

https://failstodeliver.com/default2.aspx

And it doesn't help that the overall short volume has risen dramatically since the big move up.

https://www.otcmarkets.com/stock/GGCRF/short-sales

Come on Silvermex. It has the goods and it has the management and the story is going the right way. However, Fiona has let us down so far, as the lack of PR has left this stock to the mercy of the shorts until it can generate fresh buying.

Still long on this one though. Lets see what this next run provides... lets see some news!

Take everything in moderation, including moderation~
Thu, Sep 8, 2011 - 6:13pm Piece of Gold - Peace of Mind
GregGH
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Hi - been a main page reader

Hi - been a main page reader for a while - time to flag some better threads ( like this one )

Sprott lists these on recent Gold & Precious Metals fund June Stmt ( can own more on different funds eg Small Cap or one of several hedge fund's )

Warrants- Feb 12, 2012 - 1,527,000 ( approx 3/5's of outstanding )

-----------May 8,2012 - 935,000 ( approx 1/12 of outstanding)

-----------Dec 16,2013 - 806,500 ( approx 1/14 of outstanding ) ...the info on warrants most appreciated.

Started following Kitco thread by Will Wong and updated by Gwyde on miners who use www.goldminerpulse.com

https://www.goldminerpulse.com/blogs/silvermexResourcesValuation.php

https://www.goldminerpulse.com/c/slx.php

Gwyde does a great job on the google spreadsheet ... https://docs.google.com/spreadsheet/ccc?authkey=CN2G6PAN&key=0AoStOj0lu5...

And also posts his blog ... sample for valuation I kept ... https://gwyde.blogspot.com/2010/10/valuation-metrics-of-canadian-gold-an...

Look forward learning and sharing ( what I can )

Greg

Thu, Sep 8, 2011 - 6:15pm GregGH
TheGoodDoctor
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GregGH Thanks for the input!

GregGH Thanks for the input! Looking forward to you posts.

“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.” Norm Franz
Fri, Sep 9, 2011 - 12:55am
mouser
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Time to buy more anyways

Didnt get a chance to call into the company as i was on the road all day, but did pick up another 22k at .61 today. I think some news is very close and generally i have done well trading SLX by buying around the .60 mark and selling near .70 within a few weeks. Every now and again some big buyers come in and buy everything up. Shorts take over after and slowly work the price back down. The big PP at .62 that Sprott etal were involved in seems to be a good support area for SLX, anything below that and you are getting shares cheaper than the big boys in that PP.

I tried to get into that PP and was told it was only for institutional investors, i guess they wanted true longs.

Really that PP done nearly a year ago now with silver just over 20$, cant imagine why the shorts think it is has more downside from here with silver rising and gold near alltime records. The mining has been profitable the last Q , altho overall a loss reported as they continue to develop and get closer to running the mill at full throttle.

Silver and gold in ground SHOULD have this company valued higher, especially considering the pedigree of the management team.

Mon, Sep 12, 2011 - 6:37pm
mouser
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SLX trading at near the year

SLX trading at near the year low ( since the merger) despite silver being up over 100% and gold being at 1800$ an oz. There are very few PRODUCING silver gold miners with these kind of rich resources out trading at such low valuations.

I did note SLX was not the only silver/gold play being sold off, some moves away from precious metals equities as the physical prices got batted down.

Sooner or later the equity markets will move into precious metals plays but so far the powerz have been efficient at minimizing the effect of the record gold and 100 % yearly increase in silver prices.

Will be adding to my position here this week again. This one a great long term play , and i think a bounce nearterm should be close.

Mon, Sep 12, 2011 - 7:57pm
tofurkey
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Also adding to my position at

Also adding to my position at these prices. Currently sitting at about 35,000 shares but looking to bump that up quite a bit.

Mon, Sep 12, 2011 - 8:20pm
TheGoodDoctor
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Wow. I wish I had the kind of

Wow. I wish I had the kind of coin you guys (mouser and tofuturkey) have to invest. Damn!

“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.” Norm Franz
Mon, Sep 12, 2011 - 11:06pm
tofurkey
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Well, my cost base is pretty

Well, my cost base is pretty low because most of the shares came from before the merger when Genco was languishing in 20 and 30 cent range. I've traded a bit around my core holding because, like mouserman says, there has been some money to make while waiting for the market to realize what this company has going for it.

Fri, Sep 23, 2011 - 11:50pm
mouser
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Silvermex up after SIlver 25% haircut?

Well if you are trying to figure out the stock market and how it works, do not take SLX as an example. While they should be heading to new highs as silver heads up that did not happen. Now silver get s crushed 25% in 2 days , AND slx heads up.

I DONT recall seeing any hedges on silver that would make SLX make more attractive here.

AH well we live in strange times.

Sat, Sep 24, 2011 - 5:04pm mouser
tofurkey
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I was thinking something

I was thinking something could have leaked out, no reason for SLX to go up 11% on Friday with silver taking a huge pounding. Will be interesting to see if any PR comes early next week.

Sat, Sep 24, 2011 - 11:16pm
mouser
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Well  to be honest SLX has

Well to be honest SLX has been trading like silver is at 20$ or so for the past several months. Now that silver has dropped to 31$ or so, it heads up against the grain. However SLX was just coming off a 52 week low, and regardless of the COMEX/LME games silver miners with that much rich metal in ground , with production , are attractive.

Mon, Sep 26, 2011 - 9:27am
mouser
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News out drilling to Start?

Yeah great, but what happened to the drill program announced in April?

September 26, 2011 Silvermex Begins Surface Drill Program at La Guitarra


Vancouver, BC, Canada - September 26, 2011 - Silvermex Resources Inc. ("Silvermex") (TSX: SLX) announces the commencement of a surface diamond drill program on the La Guitarra property, located in the Temascaltepec Mining District in the State of Mexico. The program is planned for a minimum of 7,500 m of HQ diameter core drilling.

Initially, drilling will focus on the Coloso Area approximately 3 - 5 km to the northwest of the operating La Guitarra Mine. The objective of the drill program is to further test the known Jessica and Nazareno structures in addition to other structures in the area, including Joya Larga, Comales and Coloso. Geological mapping, rock chip sampling and soil sampling were completed prior to the drill program, with analysis using Mobile Metail Ion ("MMI"), a proprietary selective leach assay method developed by Wamtech Pty of Australia and under license to SGS Laboratories in Toronto, Canada. The MMI results identified previous unknown potential strike extensions to the known mineralized structures and identified new structures to be drill tested.

Three holes have been completed on Jessica, which is known to host at least two silver and gold bearing quartz veins over a minimum strike length of 250 m. Each hole has encountered two quartz veins varying from 0.8 -- 1.2 m in width within mafic to intermediate volcanic tuffs and breccias. These veins are interpreted as being similar to the main Jessica Vein and the Footwall Vein. The current drill program is following up on previous drilling by Genco Resources Ltd. ("Genco") reported in a news release dated March 26, 2008 entitled "Genco Discovers Significant Mineralization through Reconnaissance Drilling", which had returned several significant intercepts including:
  • 1.0 m of 2.50 g/t Au and 1030 g/t Ag from 84 -- 85 m in hole GDH-180; and
  • 0.80 m of 1.22 g/t Au and 1070 g/t Ag from 55.80 -- 56.60 m in hole GDH-182.

Check assaying by Genco confirmed grades and widths. Core logging and assaying by La Guitarra geological personnel is in progress.

A second important target area, Nazareno, has been drilled by previous operators and has been investigated by a series of adits at different elevations. The most important working is a 55 m deep shaft/open stope on a zone of high-grade silver mineralization. Significant gold and silver values are reported by previous operators. The proposed drill program will aim to verify the previous intercepts and test down dip and along-strike potential.

Nazareno remains open along strike to the northwest for at least 1 km. This section has never been drill tested, however MMI analysis of soils identified a potential strike extension with a stronger geochemical response than in the area of known mineralization. Both the main Nazareno Area and its potential strike extension will be drill tested.

A third target to be drill tested is known as the Joya Larga Vein. It has been traced on surface over a strike length of at least 900 m. It was delineated by identifying small outcroppings, old excavations and, occasionally, quartz float. It consists of milky quartz locally banded with an average width of 1.2 m. Nearby there is breccia present with strongly argillized and silicified fragments of tuffaceous volcanic rocks. Pyrite and marcasite is present in places. There is a strong multi-element soil anomaly directly associated with most of this structure. Of note is that previous drilling has never tested the portion of Joya Larga which exhibits the significant geochemical response. A fourth target area occurs within a large incised valley between Nazareno and the Los Angeles Area of the La Guitarra Mine where a very large MMI soil anomaly has been identified. This is a very strong multi-element response with high soil values in gold, silver, arsenic, antimony, mercury and thallium. Geological mapping is in progress and significant amounts of arsenopyrite, marcasite and pyrargyrite have been identified in surface exposures. This mineralogy is similar to that of the adjacent La Guitarra Mine. Drilling will be undertaken once all results are available and interpreted.

A number of other vein structures with multi-element soil responses to be drill tested occur in the Coloso Area. These include Comales, Veta Coloso, Nazareno 1, Nazareno 2 and Veta Soledad. One drill is currently on site and a second drill is to be mobilized by the contractor in mid-October. Drilling is expected to continue into next year

Pursuant to National Instrument 43-101, Robert Fraser, P.Geo., Vice-President Exploration of Silvermex Resources Ltd. is the Qualified Person (QP) responsible for the disclosure in this news release. Full disclosure of QA/QC controls conducted by Genco with regards to the results described above can be found in the Genco news release dated March 26, 2008.


Company Profile

Silvermex Resources Inc. is a publicly traded mining company focused in Mexico and led by a highly qualified team of professionals from some of the most notable companies in the silver mining sector. The Company's portfolio of projects ranges from advanced stage exploration to production. Its core asset is the producing La Guitarra silver-gold mine located in the Temascaltepec Mining District of Mexico. Silvermex is currently working to increase production at the mine to full capacity and is conducting extensive exploration to further develop the district. Silvermex is well financed to further develop resources organically from its multiple projects as well as from the acquisition of additional assets that will drive production growth.

ON BEHALF OF THE BOARD

"Duane Nelson"

Duane Nelson
CEO & Director

Thu, Sep 29, 2011 - 1:46pm
ScottJ
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3 Days of news 3 days in a

3 Days of news 3 days in a row....

Could Silvermex's experienced management have been backlogging their news releases for the proper time to display it to the market?

Or does Fiona just stink at her job?

Take everything in moderation, including moderation~
Thu, Sep 29, 2011 - 2:00pm
mouser
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Certainly are not great

Certainly are not great promotional skills on this stock.

I tried to get an answer out of them for a few weeks on what happened to the underground drill program, they chose not to get back to me.

I sold. Now wondering about buying back , especially in this market.

Last results from underground did not impress me much, very narrow intercepts. Was hoping for much better.

Thu, Sep 29, 2011 - 3:35pm
mouser
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Here was the latest NR for Silvermex

Silvermex receives final Chief payment from Andover

2011-09-29 05:53 ET - News Release

Also News Release (C-AOX) Andover Ventures Inc

Mr. Duane Nelson of Silvermex reports

SILVERMEX RECEIVES FINAL PAYMENT FROM ANDOVER

Silvermex Resources Inc. has received a $2.0-million payment from Andover Ventures Inc. This is the final payment to Silvermex from Andover under an agreement dated June 23, 2008, and amended March 24, 2009, by which Silvermex agreed to sell to Andover 13,034,769 shares of common stock of Chief Consolidated Mining Company.

Silvermex's chief executive officer, Duane Nelson, stated, "We are pleased to conclude the sale of Silvermex's interest in Chief to Andover and would like to thank everyone at Andover and Silvermex who worked to conclude the sale."

Sat, Oct 1, 2011 - 9:46pm
infinite_easing
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I'd be a lot happier to see

I'd be a lot happier to see exploitation of known resources ramp up faster....I can't be sure but it doesn't feel like they are optimizing their revenues.

Sun, Oct 2, 2011 - 3:04pm
mouser
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Yes things are crawling along very slow

I was disappointed in the latest results, not much good length of economic ore shown there, altho they are veins and infilling drilling.

Be lots of results to come in the months ahead, so still some chance of interesting results that may spark some buying interest.

Very non-promotional company imo, as they could be posting some fluffy nrs like... We are considering upping the underground production to 1000 tonne perday, once development at multiple sites has progressed.... also we are planning open pit and will be increasing production in the years ahead , as openpit will augment underground production.

You know, get some excitement building...

Mon, Oct 3, 2011 - 10:34pm
JoeyJoeJoe
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Well SLX got completely

Well SLX got completely pummeled today... down 15.2% on no news and going down with the general market. Who's got the conviction to buy?

randomness