http://www.theaureport.com/pub/na/3496

Source: Interviewed by Karen Roche, Publisher, The Gold Report 01/11/2010

As we learned in Part I of Trey Wasser's interview, his Mexican Gold & Silver Explorers Model (MSG) tracks junior explorers and producers as they define and develop precious metal assets and bring them into profitable production. Trey's model-based index has enjoyed a 250% increase since inception in January 2007—including no loss in the 2008 crash—so he clearly has a keen eye for what it takes to make a winner. Read on as Trey willingly shares insights on lots of his favorites in Part II of this exclusive interview.

TGR: Have you added anything else to the model lately?

TW: In addition to Oro Gold and Rochester Resources, I've recently added Silvermex Resources Ltd. (TSX-V: SMR) 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 (TSX: SSO; Nasdaq: SSRI) 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.

Another one I'm looking to move up in the model this year is Timmins Gold Corp. (TSX.V:TMM). They just did their first pour at the San Francisco Gold Mine in Sonora. I'm going down to see the mine in operation in late January. I think they're behind schedule and somewhat over budget, but $1100 gold pretty much solves those issues. Timmins also has some very interesting exploration properties through Mexico. So I look for this to be a very attractive growth story as they get San Francisco into production and have the cash flow to develop some of these other properties.