Small-Cap Miner Is Bullish on Mexico

Do you have a long term price target for gold and silver?

We're fairly cautious ... we're banking our projections on $850 an ounce and that's fairly low, but we just like to be conservative as a company.

How many more people do you expect to hire in 2010?

We'll probably increase [our workforce] by another 25 people. We probably have about 80 people [in Mexico] right now, 80 to 100 on any given day. We're running 24 hours a day -- so its three shifts a day -- so we'll increase that over the course of the year as we ramp this project up another 25 people.

The stock is speculative. What do you want to tell investors?

Well, my view is that if you're looking at [our stock] on a per ounce basis, we're trading somewhere at around $55 and gold is selling for $1,100, so that's a very reasonable price. As long as gold holds in that range, you're going to see stocks like this get a lot of attention. And as we put more ounces of resource on the books, you're going to see the value per share go up fairly substantially and very significantly. So not only do we get the price appreciation on the commodity, but you get the leverage in adding more ounces.

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-- Written by Alix Steel in New York.

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