http://seekingalpha.com/article/1129...

These factors are favorable to junior precious metals equities. Gold and silver prices are correlated to inflation, suggesting stable or higher precious metal prices. Slower economic growth should increase the supply of labor and equipment for moderating operating expenses. The combination of increased prices and lower costs may expand margins, increasing the attraction of precious metal equities by investors. Though investors may recognize the importance of production and cash flow, the most attractive returns may be in development and exploration of precious metal resources. We believe that investors will look for leverage and screen precious metals companies by size (or resource) and probability of development. Our short list for consideration includes the following.

Alexco Resource Corporation (AXU) is scheduled to make a construction decision at its high-grade silver and base metal Bellekeno project (inferred resource of 537,000 tonnes containing 1,016 g/t silver, 13.5% lead and 10.7% zinc) in its wholly owned Keno Hill silver district in the Yukon Territory. Construction should be fully funded by the transaction with Silver Wheaton Corp. (SLW). Bellekeno is anticipated to be a modest but high-grade and highly profitable operation fueling development of the district. Keno Hill may be early in its production history, producing over 217 million ounces of silver between 1921 and 1988, and having been explored to depths of only several hundred meters. We believe the district has the potential to rival Idaho’s Silver Valley, which has produced over a billion ounces of silver, and mined to depths of over 5,000 feet.