Developing the small, open pit Santa Elena deposit toward production in Q4 2010 and actively exploring other nearby concessions in Sonora, Mexico. Production is expected to average about 35,000oz gold and 600,000oz silver over an 8 year mine life. Low CAPEX ($20 million) and cash costs ($375/oz Au equivalent) make for an attractive project. There is also the potential to expand the mine into an underground operation once the open pit phase is completed. [David Zurbuchen] [June 12, 2010]

Low share count, good management with solid experience, key projects located in Mexico, very nice resource (almost 100 million silver-equivalent ounces), active but limited newsletter following, and little exposure to base metals makes SilverCrest one of the better exploration speculations. Upside in share price possible via a successful transition into producer status. But be careful if you think SilverCrest is a primary silver company. Low silver recoveries mean that once in production it should properly be viewed as a junior gold producer. Also, 20% of the LOM open pit gold production was sold to Sandstorm Resources in exchange for $350/oz and $12 million to help finance the project.