This extended, continued and worsening precious metals market downturn was predicted by too few of the so-called experts. One, who I follow, has been more accurate than 95% (+or-) of all others, generally speaking that is. The usual precious metals chearleaders kept saying from week to week, "any day now," for the past 18 months. Most such pundits had a "dog in the fight." They had the appearance of a conflict of interest or were clearly conflicted. Their biased proclamations, like a pack of barking dogs each trying to out bark the other, were often based on words pulled out of thin air. A great many explorer managers and investors believed the "Midway circus barkers." Most entered the current downturn financially unprepaired, thinking the downturn would be short lived, if it happened at all. Meanwhile, they hunkered down while share price declined and refinancing became more difficult. Good news for almost all of them got them nowhere. Some may recall, I increasingly warned of the financing needs for the past 2+ years. I have been leary of the steady, week after week, month after month, drum beat that precious metals were on the verge of skyrocketing.

So, why all the slow progress with PEM? They have had to try to stretch out their funds. They have had to try to not do any major financing while this market downturn (and share price decline) continued, barring some special arrangement taking place. They have had to severaly cut overhead expenses, to the extent, I am told, that key players have been working with little or no income, so as to help conserve finances. And so, I suspect, there is no reason to hurry up anything. There is reason, however, to make wise use of this time to do everything as precise as possible, to take the time to check and recheck every detail, every decision, every hypothesis. . . . to review everything known. In this way PEM is preparing the stage for the market's upturn, getting ready for a better time, preparing for all things in the not to distant future, crossing their T's and dotting their I's. Over 200 PEM drill permit applications are being processed by the authorities at the moment. Plans for bringing the Friday up to 1.2m ounces, then to 2m followed by 3m, and more ounces, are also being arranged. Discussions about the nearby Monday, Project X, and the other OSZ areas of interest are being formulated. The Montana property, with it's highly prized treasure, has been spiffied up, with a nice little bow on top, ready for whoever is willing to offer a fair price, whether sometime soon or eventually.

And, so we wait, the company does what it can with what it has. The OSZ's gold does not go away. It is all still there, whether 15m ounces, 20m ounces, or more (or less). We wait for the market to turn. Meanwhile, some who followed the rare pundits who accurately predicted the depth and duration of the current downturn make money continuing to "short" precious metals for however long market conditions allow. Might gold decline further to 1,500 an ounce, or silver to 26 an ounce? At what point will the prices reverse course?

I believe PEM has the gold; that PEM is desirable; that PEM will get funding; that PEM will emerge from this downturn ready to add ounces; and, that this downturn in the precious metals market will likely end in the months ahead, perhaps by the end of this year; and I believe we will see new highs in precious metals prices and in mining equities. In the interim, PEM could sell one or more of it's assets or it could form a partnership with a company that has sufficient forsight to strike while the iron is hot and to help PEM get the OSZ drilled and get 1 new and/or 1 old mine up and running in the times ahead. I also believe, one way or other, that PEM has a significant dowry, a noteworthy future, as a part of, or as a marriage with, a yet to be revealed "significant other."