I have done some ciphering (In the manner of my antihero Jethro Boudine) to determine the potential of this rising star stock)

We know that approximately 225,000 tonnes of tailings from the historic mine workings at La Yesca are available for processing. Recall that the refurbished mill operations are scoped to process ore 24 hours a day at the boiler plate rate of 200te of ore / day. If this is extrapolated for 250 days of the year then 50,000 tonnes of ore can be processed annually. This presents a mill life of 4.5 years. This assumption is based on 5 days a week for fifty weeks of the year. Of course the economics change drastically if this is an error and we are in fact employing four shifts and working 365 days a year. In which case then adjust the dollar numbers upwards by 30% and the life span of the mill downwards similarly.

We also know that the 225,000 tes have been converted to an inferred mineral resource with an average grade of 2.0 gms/te gold and 220 gms/te of silver.

1. Consider gold

225,000 tes of tailings @ 2.0 gms/te = 450,000 gms.

at 28 gms / ounce = 16,070 ounces of gold

at the assumed value of gold of $750 USF per ounce = $12,093,750 USF

at 80% recovery = $9,675,000

at 25% net margin from operations = $2,418,750

over 4.5 years = $537,500 USF positive cash flow per year

2. Consider Silver

225,000 tes of tailings @ 220 gms/te = 49,665,000 gms.

@ 28 gms / ounce = 1,773,750 ounces of silver

at the assumed value of silver of $9.00 USF per ounce = $15,963,750 USF

at 80% recovery = $12,771,000

at 25% net margin from operations = $3,192,750

over 4.5 years = $709,500 USF positive cash flow per year

Combined this represents $1,247,000 USF positive cash flow from the processing of the La Yesca Tailings

Alternately we can look at the asset value of our known mineral holdings in Mexico. From the above analysis we can value the gold at La Yesca at a total of $12,093,750 USF and the silver at total of $15,963,750 USF for a combined total of $22,446,000 USF.

We can apply the same math to the inferred mineral resource at the La Colorado mine located on the adjacent Xora concession which can be processed at the La Yesca mill for the minor additional cost of industrial road construction and in-house transportation. Jim and a qualified Geologist from Billiken have returned from this site with many samples to prove and expand the present inferred resource of 11,730tonnes of ore grading 0.70 gms/te gold and 619 gms/te silver. The value of these resources would be $174,000 for the gold and $1,867080 for the silver.

Adding this to the La Yesca total results in a total recoverable mineral asset value of $24,487,080 USF or $28,384,496 CAN in the current USF – CAN exchange market conditions.

Now somebody else whose claim to ciphering fame is better than having graduated tallest is their class is going to have to translate this to a potential share price in 2009.

But I do think this adds up to great potential for the New Year. Thanks to Jim and his staff here in Canada for the amazing recovery of this company in 2008. Further thanks to the staff and management in Mexico and the contracted crews in James Bay. I have been worrying for all of you while you guys have been sweating the big stuff.

Kindest Regards and best wishes to all my compatriots that have held long and strong while the forces of greed and evil took our futures for a toboggan ride in 2008.

Optimistically looking forward to 2009

AafabVentures

Failing Free World Investor