Vinnie, it may take 2 yrs.

Strategy

Prior to the financial crisis, three general guidelines had to be met before we chose to cover a mining company. These included:

- A highly qualified management team with a track record of success

- Top quality exploration and development projects

- Well financed projects and access to cash - In light of the tight credit market, we are amending this last point. We are now looking at companies who have a strong cash position. There are a lot of deals that have suddenly gone south due to the fact that the financial supporters have suddenly backed out. So for mining companies today cash is king. We'll be looking for companies who have at least enough capital to keep working over the next two years.

I see 2009 as the year of consolidating and strategic positioning of select stocks. It will take at least 18 to 24 months for the general market to recover. After every market crash there is always a group of winners that eventually emerge. And that's where we will focus.

The first group of stocks that emerge from the wreckage and make gains will be the blue chips.

Even though the credit market is now tight, investors need to keep in mind that many of the current downtrodden blue chip gold companies we've followed in the past are sitting on a pile of cash right now. These companies will be able to make mergers and acquisitions at fire sale prices which bode well for future growth. Furthermore, many companies have strong organic growth. Therefore with greater production will come greater revenues, even if gold stays below $800, which it won't.

Bill Ridley
Publisher